PE production in Russia rose 9% in the first nine months of 2016

MOSCOW (MRC) -- Russia's production of polyethylene (PE) grew in the first nine months of 2016 by 9% year on year, totalling about 1.266 million tonnes. At the same time, the segment of low density polyethylene (LDPE) accounted for the negative increase in the output, according to MRC's ScanPlast report.

September total PE production in Russia fell to 149,400 tonnes, whereas this figure was about 161,400 tonnes a month earlier. Lower output was caused by the shutdown at Kazanorgsintez and by the decrease in Ufaorgsintez's capacity utilisation. Overall PE production reached 1.266 million tonnes in January-September 2016, compared to 1.165 million tonnes a year earlier. Production of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) rose significantly, whereas the output of LDPE dropped.

The structure of PE production by the plants looked the following way over the stated period.

Russian HDPE producers reduced their output to 93,800 tonnes last month from 99,000 tonnes in August. Low September figures were caused by a scheduled turnaround at Kazanorgsintez, which began in the third week of the month. Overall, Russian manufactures produced about 769,300 tonnes of HDPE in the first nine months of 2016, up by 17% year on year.

September LDPE output decreased to 55,600 tonnes from 60,600 tonnes a month earlier. Lower production was due to a forced reduction in capacity utilisation at Ufaorgsintez and Kazanorgsintez. Overall LDPE production totalled 448,500 tonnes in January-September 2016, compared to 465,900 tonnes a year earlier. The forced outage at Angarsk Polymer Plant from mid-February to early July due to the equipment failure at the ethylene unit was one of the main reasons for lower output.

LLDPE was not produced last month, the sole manufacturer - Nizhnekamskneftekhim - switched to LLDPE production only in the middle of October. Output of LLDPE exceeded 48,800 tonnes in January-September 2016, whereas this figure was about 39,500 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Clariant AG reported that its third-quarter EBITDA before exceptional items was 208 million Swiss francs compared to 207 million francs in the same time period last year, said Rttnews.

".... The differentiated business steering in Plastics & Coatings continued to positively impact the profitability improvement. We are therefore on track to achieve our targets for the full year 2016," said CEO Hariolf Kottmann.

Quarterly sales grew by 2% in local currency to 1.400 billion francs. Volumes were up by 3% compared to the same period last year.

For 2016, in spite of the increasingly challenging economic environment, Clariant is confident to achieve growth in local currency, as well as progression in operating cash flow and EBITDA margin before exceptional items.

Clariant confirmed its mid-term target of reaching a position in the top tier of the specialty chemicals industry. This corresponds to an EBITDA margin before exceptional items in the range of 16% to 19% and a return on invested capital (ROIC) above the peer group average.

As MRC informed earlier, Clariant, a world leader in specialty chemicals, will broaden its collaboration with Engineering Plastics division of Shinkong Synthetic Fibers Corp. to promote Clariant's non-halogenated flame retardants to a host of applications in China.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- Major polysilicon producer Wacker Chemie has reported that polysilicon sales declined 6.8% in the third quarter of 2016, due to weaker demand and ASP declines, specifically in September, said Pv-tech.

Wacker’s polysilicon division reported third quarter revenue of EUR253.0 million, down 6.8% from the previous quarter after two quarters of flat revenues.

Polysilicon volumes were said to have remained almost unchanged versus the prior year period, while average prices declined.

Rudolf Staudigl, CEO of Wacket Chemie said, "The market environment for our polysilicon business was more difficult, with solar customers ordering substantially less material in September than in the preceding months. Since then, however, there have been increasing indications that demand for solar silicon is picking up again."

EBITDA in the quarter was EUR82.3 million and EBITDA margin was 32.5%, both higher than the previous quarter as major capital expenditures ended as its new polysilicon plant in new Charleston, US started ramping production.

As MRC wrote previously, in 2013, Wacker Chemie AG officially launched its new production plant for ethylene-vinyl-acetate copolymer (EVA) dispersions at its Ulsan site in South Korea. The additional 40,000 tonnes from the second reactor line increases the site's EVA-dispersion capacity to a total of 90,000 tonnes per year. The production capacity of the site has, thus, almost doubled, making the plant complex one of the biggest of its kind in South Korea.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

MOSCOW (MRC) -- A pipeline of flammable material had been cut before a deadly blast at the headquarters of German chemicals group BASF last week, said Reuters.

The blast nine days ago near a port that connects the river Rhine with BASF's chemical complex killed two of the company's firefighters and a worker on a tanker, and injured 30. BASF shut down 24 production facilities in the wake of the accident but was able to gradually restart them within days.

A pipeline carrying flammable raffinate - used for the production of various chemicals such as solvents or plasticisers - appears to have been cut, local police and state prosecutors said in a joint statement.

"As part of our intensive investigations at the scene we discovered a cut in a pipeline. This was evidently carried out with a circular saw."

While they said it was not known who made the cut, they added that maintenance workers were using an angle grinder on another pipeline nearby at the time. "Accounting for the connections between the cut and the explosion will take further close investigation," they added.

Leading state prosecutor Hubert Stroeber said a subcontracted worker who suffered severe injuries from the accident may have made the cut but he was not yet well enough to be questioned.

Investigators would now focus on the maintenance work that took place, according to the statement. BASF said it would continue to support the investigation.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of over EUR74 billion in 2014 and over 113,000 employees as of the end of the year.

mrcplsat.com

MOSCOW (MRC) -- French oil services company Technip raised its full-year 2016 objectives for its subsea division after revenue and profit for the third quarter beat expectations as it continues to cut costs due to the prolonged fall in oil prices, said Reuters.

Technip's adjusted revenue for the quarter was 2.9 billion euros (USD3.16 billion), while net income for the same period rose 12.4 percent to 184 million euros.

A poll Reuters poll for Technip's net adjusted income was 148 million euros, and revenue of 2.7 billion euros.

"A robust operational performance associated with strong cost reduction measures enabled Technip to record a solid third quarter," Technip's CEO Thierry Pilenko said in a statement.

As MRC informed earlier, Technip has been awarded by Public Joint Stock Company (PJSC) Kazanorgsintez a contract to provide engineering and procurement of three proprietary SMK grassroots furnaces at Kazan, Republic of Tatarstan, Russia.

Technip is a world leader in project management, engineering and construction for the energy industry.
From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our close to 32,500 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges. Present in 45 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.
MRC