PPG Industries steps up pressure on takeover target AkzoNobel

MOSCOW (MRC) -- US-based paints and coatings group PPG Industries added pressure to its increasingly hostile attempt to take over rival AkzoNobel by sending an open letter to Akzo shareholders, said Dutchnews.

The letter added fuel to the fire ahead of Akzo’s planned announcement of its new corporate strategy in London on Wednesday. In the two-page document, PPG chairman Michael McGarry once again outlined his belief that combining the two companies would have great benefits for both.

McGarry also revealed that PPG approached Akzo in 2013 and discussed plans to merge the companies, adding Akzo was not interested and did not react at the time. Nor has Akzo reacted to PPG’s two bids for the Dutch company made since 2 March. PPG’s second, sweetened offer valued Akzo at EUR22.4bn. Refusing any discussion, Akzo termed PPG’s offer ‘too low and too risky’ and said it substantially undervalues the company.

McGarry said PPG had made 50 acquisitions in the past 15 years and all were now well integrated into the group. PPG has five production facilities in the Netherlands, with a total payroll of 1,000. Akzo employees and unions have said they feared job losses with a PPG takeover.
MRC

MOSCOW (MRC) -- Technology, engineering and project management company Neste Jacobs and refinery and petrochemical group Unipetrol have signed an agreement for Neste Jacobs to perform a comprehensive energy efficiency study of Unipetrol's Litvinov oil refinery in Czech Republic, reported Hydrocarbonprocessing.

The energy efficiency study will be performed by utilizing Neste Jacobs' proprietary NAPCON energy performance analysis, that is a combination of high level process know-how and modeling skills, pinch-technology, equipment expertise and automation solutions. Neste Jacobs' energy analysis with a modular approach will identify the feasible improvement potential and create an action plan to implement the improvements.

The study will review existing energy consumption and production within the refinery process units. This includes pinch-analysis to identify opportunities to improve heat integration of the process. This is combined with fired heater optimization to maximize the benefits. On top of energy efficiency, the study includes waste water optimization assessment to minimize the water usage and recycling of waste water.

"We are happy to provide our extensive energy efficiency and water management knowledge in the form of an energy study for Unipetrol's refinery in Litvinov," said Jarmo Suominen, CEO of Neste Jacobs. "Our excellent project team will provide systematic study to Unipetrol to discover solutions, which are both practical and lucrative."

As MRC informed before, in October 2016, Neste Jacobs and Borealis signed an agreement for Neste Jacobs to perform an energy screening for all production units at Borealis’ site in Porvoo, Finland. Neste Jacobs utilized its unique NJe2 technology, part of Neste Jacobs proprietary NAPCON offering for the project. The project started in autumn 2016 and the recommendations will be implemented in the upcoming projects.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.

MRC

MOSCOW (MRC) -- Reliance Industries Ltd (RIL), India's petrochemical major, is likely to brought on-stream its cracker in Hazira, as per Apic-online.

A Polymerupdate source informed that the company is expected to complete the maintenance at the cracker in end-April 2017. The cracker was taken off-line on March 24, 2017.

Located at Hazira near Surat in Gujarat, the cracker has a production capacity of 1.1 mmt/year.

As MRC informed previously, RIL has delayed the start-up of its new monoethylene glycol (MEG) plant until Q2 2017. The company scheduled to commence operations at the plant in Q2 2017. As per the earlier plans, the plant was to be started in December 2016. Located at Jamnagar, Gujarat in India, the plant has a production capacity of 750,000 mt/year.

Reliance Industries is one of the world's largest producers of polymers. The company is engaged in a wide range of activities, ranging from oil and gas production to production of polyester and polymer goods, including the production of polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), and textiles.
MRC

MOSCOW (MRC) -- Bechtel, a company in engineering, procurement, and construction, announced that the company has been awarded two contracts by Carbon Holdings of Egypt: one to provide project management services for the Tahrir Petrochemicals Complex at Ain Sokhna, Egypt, and one to build two new polypropylene units at an adjacent site, said Hydrocarbonprocessing.

In its project management role, Bechtel will have oversight of project execution and contractor performance on what will be the largest petrochemicals complex in Egypt.

"For decades we have partnered with customers, contractors, and suppliers in Egypt and the region to safely deliver quality industrial facilities. These awards allow us to continue the legacy with the delivery of world-class facilities for Carbon Holdings," said Joe Thompson, general manager of Bechtel's Downstream and Chemicals business. "At the same time, the project will use goods and services from the United States, supporting jobs and creating opportunities for small businesses in the country."

Bechtel will also design, build and procure all the equipment and materials for the polypropylene production expansion at the complex's existing Oriental Petrochemicals site.

Bechtel has delivered complex petrochemical projects for more than 60 years, including signature projects such as the Borouge Petrochemical Complex in Abu Dhabi, CSPC Nanhai in China, and LP-7 in Canada. The company is currently building an ethylene plant in Texas for ExxonMobil.
MRC

MOSCOW (MRC) -- ExxonMobil Chemical Company and Sabic each announced the selection of a site in San Patricio County, Texas for potential development of a jointly owned petrochemical complex on the US Gulf Coast, reported Reuters.

The proposed multibillion dollar investment would include a world-scale ethane steam cracker capable of producing 1.8 MMt of ethylene per year, which would feed a monoethylene glycol unit and two polyethylene units.

The proposed project, one of 11 ExxonMobil announced as part of its 10-year, USD20 billion Growing the Gulf initiative, is expected to create thousands of jobs during the construction phase, as well as 600 new, full-time jobs and 3,500 indirect jobs during operations. It is also expected to generate more than USD22 billion in economic output during the construction phase and more than USD50 billion in economic output during the first six years of operations.

"This decision represents a significant milestone for both the local community and the state of Texas," said Neil Chapman, president of ExxonMobil Chemical Company. "We wish to thank local and state officials who have been instrumental in the site selection process, as well as everyone in the community who attended meetings to learn more about the project and provided us with constructive feedback. We will continue listening to local residents and businesses and look forward to continuing to work together."

With site selection completed, ExxonMobil and Sabic will now apply for the necessary air and wastewater permits from the Texas Commission on Environmental Quality. Each company will make a final decision on the investment after the required permits have been granted.

"We are focused on geographic diversification to supply new markets," said Sabic vice chairman and CEO Yousef Abdullah Al-Benyan. "The proposed venture would capture competitive feedstock, capitalize on the growing global demand for ethylene-based products, and reinforce Sabic’s strong position in the value chain."

As MRC wrote before, ExxonMobil and SABIC have worked together for 35 years in major chemical joint ventures in Saudi Arabia.

Sabic ranks among the world's top petrochemical companies, and is among the worldпїЅs market leaders in the production of polyethylene, polypropylene, advanced thermoplastics, glycols, methanol and fertilizers. Sabic manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific. The company operates in more than 50 countries across the world with 40,000 employees worldwide.

ExxonMobil Chemical Company is one of the largest petrochemical companies worldwide. The company holds leadership positions in some of the largest-volume and highest-growth commodity petrochemical products in the world. ExxonMobil Chemical Company has manufacturing capacity in every major region of the world, serving large and growing markets. More than 90% of the company's chemical capacity is integrated with large refineries or natural gas processing plants.
MRC