RusVinyl shut down PVC production for turnaround

MOSCOW (MRC) - Russia's largest producer of polyvinyl chloride (PVC) - RusVinyl, a joint venture of SIBUR and SolVin, has stopped production for scheduled preventive maintenance, according to company representatives.

The plant was shut down on 19 September. The outage of the plant will last at least two weeks. The producer plans to fully resume the PVC production by early October.

This is the last routine maintenance shutdown at Russian PVC producers in the current year. Kaustik Volgograd shut its PVC production in the late May. SayanskKhimPlast had to shut its PVC production from mid-February to July.
Bashkir Soda Company does not plan to stop its capacities for scheduled maintenance works this year.

RusVinyl began production of suspension PVC (SPVC) in the test mode in August 2014. The official launch of the plant in Kstovo (Nizhny Novgorod region) took place on 19, September. Total production of resin at RusVinyl in the first eight months of this year was about 209,400 tonnes, compared with 153,900 tonnes year on year. The design capacity is 300,000 tonnes/year of SPVC and 30,000 tonnes/year of emulsion polyvinyl chloride (EPVC).
Its caustic soda production capacity is 225,000 tonnes/year. RusVinyl got ethylene from the complex SIBUR-Kstovo, which have been recently expanded to 360,000 tonnes/year. Rock salt is delivered by water transport from the Astrakhan region and rail from Belarus. All produced polyvinyl chloride will be sold in the domestic market.
MRC

Trinseo announces secondary offering of 10,669,567 ordinary shares by selling shareholder

MOSCOW (MRC) -- Trinseo S.A., a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, announced that Bain Capital Everest Manager Holding SCA agreed to sell ordinary shares pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission, said the company on its site.

The Selling Shareholder will receive all of the net proceeds from this offering. No shares are being sold by the Company. Morgan Stanley will act as the sole book-running manager for the offering.

A shelf registration statement (including a prospectus) relating to the offering of ordinary shares was filed with the SEC on March 15, 2016 and became effective on March 18, 2016.

As MRC informed earlier, Trinseo announced price increases for all natural Polycarbonate (PC) grades for September delivery by EUR200. In September, Trinseo also increased for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile styrene copolymer (SAN) grades in Europe.

Trinseo is a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber. We are focused on delivering innovative and sustainable solution to help our customers create products that touch lives every day - products that are intrinsic to how we live our lives - across a wide range of end-markets, including automotive, consumer electronics, appliances, medical devices, lighting, electrical, carpet, paper and board, building and construction, and tires. Trinseo had approximately USD4.0 billion in revenue in 2015, with 18 manufacturing sites around the world, and more than 2,200 employees.
MRC

Saudi Aramco contains fire at Ras Tanura, eight injured

MOSCOW (MRC) -- State-owned Saudi Aramco said it had put out a minor fire at its Ras Tanura oil terminal where 8 workers were injured, including 6 contractors and 2 Aramco employees, said the producer on its site.

The company said emergency fire services have fully contained the fire. Workers in the facility have been evacuated, the injured have received medical treatment.

The state-owned oil firm said the cause of the fire was not yet known. Further details about the incident have not been disclosed.

The Ras Tanura oil terminal has a refining capacity of 550,000 barrel per day, according to the Associated Press. The Ras Tanura refinery, which exports naphtha, fuel oil and middle distillates, will be shut for scheduled maintenance in December this year.

As MRC informed earlier, British oilfield services company Petrofac and Spain's Tecnicas Reunidas are likely to win contracts to build projects for state oil giant Saudi Aramco's Uthmaniyah and Ras Tanura plants. Tecnicas Reunidas is the lowest bidder to build units for a cleaner fuels project at Ras Tanura refinery, originally estimated to cost more than USD2 B, aimed at removing sulfur from refined oil products.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.MRC

Bayer sets new growth targets, likely to drop Monsanto name

MOSCOW (MRC) -- Bayer has announced plans to increase sales and earnings in all of its businesses in the medium term, said Chemweek.

The announcement was made at today’s Meet Management investor conference, held in Cologne, Germany. Werner Baumann, chairman, said that the company anticipates especially significant sales and margin growth in pharmaceuticals. "This growth is expected to be driven particularly by the positive development of our recently launched products, for which we now see combined peak sales potential of more than EUR10 billion [USD11.2 billion]."

At the Bayer CropScience subgroup, Bayer expects a substantial increase in margin after closing the agreed $66-billion acquisition of Monsanto. Closing is expected at the end of 2017. Speculation is growing that Bayer will drop the Monsanto name following the acquisition but Bayer says that the decision has not yet been made. "We have not commented on this question; the brand strategy has not been defined yet," Bayer says.

The pharma targets include average annual sales growth of approximately 6% by the end of 2018 adjusted for currency and portfolio effects. Pharma sales totaled EUR15.3 billion in 2015. Bayer aims to increase the pharma EBITDA margin before special items to 32-34% in 2018.

Baumann says Bayer has raised the estimate of the combined peak annual sales potential of five recently launched pharmaceuticals from at least EUR7.5 billion, to more than EUR10 billion. Bayer now expects peak sales potential of more than EUR5 billion, up from approximately EUR3.5 billion, for the anticoagulant Xarelto; and more than EUR2.5 billion for the eye medicine Eylea, up from at least EUR1.5 billion. The company anticipates peak sales potential of more than EUR1 billion for the cancer drug Xofigo and more than EUR500 million for the pulmonary hypertension treatment Adempas. The peak sales potential of the cancer drug Stivarga is unchanged—at least EUR1 billion.

As MRC informed earlier, Monsanto has accepted an increased takeover bid of USD128/share from Bayer, paving the way for Bayer to acquire Monsanto in an all-cash transaction valued at USD66 billion.

Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen.
MRC

GE to provide power solution for Petronas Pengerang complex

MOSCOW (MRC) -- The majority of world’s largest refineries are situated in the Asia Pacific region. With 4 MMbpd of oil produced by the top five refineries in the region, Asia’s growing importance as both an energy source and destination market is clear, said Hydrocarbonprocessing.

Located in Johor, the development of Petronas’ Pengerang Integrated Petrochemical Complex (PIPC) will soon give a boost to the region’s energy output. Upon completion, PIPC’s refinery will be able to produce 300 Mbpd, while the petrochemical plants will produce 7.7 MMtpy of various chemical products.

Through a strategic partnership with Prime Sourcing International (PSI), a subsidiary of Petroliam Nasional Berhad (Petronas) group, GE will supply 17 emergency diesel generator (EDG) packages, five transportable switch rooms and the electrical balance of the plant. The equipment will be provided by various GE businesses. Each EDG package will consist of 616 diesel engines provided by GE’s Distributed Power business, which will be coupled with the generators and electrical equipment bounded in e-houses.

The 616 diesel engines play a critical role in enabling uninterrupted operation to ensure high productivity. These generators will be switched on to provide continuous power if the complex experiences an unexpected power shutdown. Integrated into one single package by GE’s Power Conversion business, GE's 616 diesel generator set addresses the most critical application challenges with advanced reciprocating engine technology. It combines and enhances the proven technology of the Jenbacher J616 gas engine with the P616 locomotive diesel engine from GE Transportation—bringing together the best of both worlds to increase efficiency and productivity. The integrated package has a more compact design. While the low component count means less installation cost and higher system reliability, the modular design also brings flexibility to the plant layout, thus helping optimize plant design.

As MRC informed earlier, Petronas Gas Bhd has executed a shareholders agreement with Linde (Malaysia) Sdn Bhd for a joint-venture company to undertake the development of an air separation unit plant in Pengerang, Johor, a project that is estimated to cost USD172 million (RM692 million).

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.
MRC