AkzoNobel strongly supports Chairman in response to EGM request

MOSCOW (MRC) -- AkzoNobel strongly respects and greatly values its shareholders and regularly engages in an open and direct dialog with them to better understand and consider their perspectives, said the company on its site.

Within the last week alone, the management of AkzoNobel has held face-to-face meetings with shareholders at an Investor Day followed by an extensive international shareholder roadshow and today’s Annual General Meeting (AGM). This dialog will continue to be intensive and the valued insights of AkzoNobel shareholders will be carefully considered by the Board of Management and the Supervisory Board.

AkzoNobel fully supports the rights that shareholders have under Dutch law. One of these rights is for shareholders representing at least 10% of issued share capital to request a general meeting as qualified by Dutch law. According to Dutch law, this includes meeting standards of reasonableness and fairness and a ‘legitimate interest’ test.

In its statement of April 12, 2017, AkzoNobel confirmed receipt of a request from certain shareholders, led by Elliott Advisors, to hold an EGM with the sole agenda item of dismissing Mr. Antony Burgmans as Chairman of the Supervisory Board. The Supervisory Board subsequently conducted a thorough review in response to this request and has taken detailed legal advice (see also footnotes below).

The Supervisory Board has concluded that the request from Elliott Advisers to dismiss the Chairman does not meet the standards required under Dutch law. The request is irresponsible, disproportionate, damaging and not in the best interests of the Company. Given the sole agenda item, there is no legal basis for calling an EGM.

As per MRC, US paintmaker PPG has fired what it called its "last" friendly invitation to buy Akzo Nobel, by tabling a third bid to take over its Dutch rival for EUR24.6bn.
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MOSCOW (MRC) -- Russia reclaimed its position as China's biggest crude oil supplier in March, customs data showed on Tuesday, displacing Saudi Arabia after two months in second place as Moscow fights to hang on to its slice of the Chinese market, reported Reuters.

Russian shipments grew nearly 1% to 1.104 MMbpd from the same month a year earlier, as China's private refineries maintained high processing rates and restocked inventories after receiving fresh 2017 import quotas. China's crude imports rose to a record in March, overtaking the United States and shattering expectations.

Saudi shipments were 1.072 MMbbl in March, up nearly 15% from a year ago, the General Administration of Customs said. For the first three months, Saudi arrivals stood at 1.165 MMbpd, making it the top supplier on a quarterly basis.

March's record arrivals came as Saudi Arabia cut April prices of light crude as Europe and the United States ramped out supply to Asia.

The Organization of Petroleum Exporting Countries (OPEC) agreed to curb its output by about 1.2 MMbpd from January to support prices. Non-OPEC producers, including Russia, agreed to cut another 600,000 barrels, but both OPEC and non-OPEC countries continued efforts to keep Asian markets vital for growth well supplied.

March also saw the United States ramp up shipments to 45,057 bpd. A year ago, China did not import US crude.

Imports from Iran meanwhile rose 5.97% to 626,200 bpd.

We remind that, as MRC informed earlier, in September 2016, Russia's Rosneft signed a contract to supply 96 MMt of crude oil to PV Oil, an affiliate of state oil and gas PetroVietnam, starting 2017. The contract, signed on the sidelines of an international economic forum in Russia's St Petersburg, will last between 2017 and 2040.
MRC

March total HDPE production in Russia was 83,500 tonnes, whereas this figure reached 70,400 tonnes a month earlier. Kazanorgsintez and Stavrolen accounted for a major increase in capacity utilisation. Overall HDPE production reached 238,400 tonnes in the first three months of 2017, compared to 243,400 tonnes a year earlier. Kazanorgsintez and Stavrolen's higher output did not allow to offset the reduction in production at the other two plants.

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

Kazanorgsintez's March HDPE production exceeded 51,700 tonnes versus 39,500 tonnes a month earlier. Overall HDPE production at Kazanorgsintez reached 132,700 tonnes in January-March 2017, compared to 121,700 tonnes a year earlier.

Stavrolen produced about 25,000 tonnes of HDPE last month, whereas it manufactured 22,400 tonnes in February. The plant's HDPE output reached 73,100 tonnes in the first three months of 2017, up by 11% year on year.

Gazprom neftekhim Salavat reduced its HDPE production to 6,700 tonnes in March because of a one-week shutdown for maintenance at the beginning of the month, compared to 8,500 tonnes a month earlier. Thus, overall HDPE production at the Baskhir plant reached 21,800 tonnes in the first three months of 2017, down by 19% year on year.

Nizhnekamskneftekhim switched to linear low density polyethylene (LLDPE) output in the second half of January and plans to resume HDPE production only in May. HDPE production at the Tatar plant was 10,700 tonnes over an incomplete month of work.

MRC

MOSCOW (MRC) -- February imports of unmixed polyvinyl chloride (PVC) into Belarus increased by 27.4% year on year, totalling about 3,500 tonnes, according to MRC's DataScope report.

According to the Statistics Committee of Belarus, some local converters increased significantly their purchasing of PVC in February, despite seasonal factors.

Thus, shipments of resin from Russia increased almost twofold, some companies were actively building up additional inventories, anticipating higher PVC prices in March.

Therefore, January-February imports of resin rose to 3,500 tonnes from 2,800 tonnes in January-February 2016.

Russian producers were the key suppliers of resin to Belarus. They accounted for about 68% of the local market over the stated period.

Producers from Germany with the share of about 29% were the second largest suppliers.
MRC

MOSCOW (MRC) -- Braskem will present new applications for its I’m green Green Plastic packaging, including coffee packaging for The Netherlands’ Peeze as well as packaging for the personal care segment, for Germany’s Speick and Italy’s L'Erbolario at Interpack, as per Plastemart.

It will also show Braskem Amppleo, a polypropylene resin developed for the production of high performance foams, and display research work and advances made in intelligent packaging technology.

I’m green Green Polyethylene is produced from sugar cane, a renewable source, and contributes to the reduction of greenhouse gas emissions in the atmosphere, as it captures carbonic gas during its productive process. A recent update of a Life-Cycle Analysis (LCA) study on Green Plastic from the Institute for Energy and Environmental Research GmbH (IFEU), focusing on the agricultural phase, points to process improvements and a reduction in environmental impact. This has allowed a higher level of carbon capture to be registered compared to previously measured results.

"Our Green Plastic is the result of a research and development study involving a variety of people and investment of around USВ 300 million. This biopolymer is currently exported to Europe, the US, Asia, Africa and South America and is used in more than 150 brands worldwide. For Braskem, taking part in the world’s foremost packaging fair is an opportunity to reinforce our global presence," affirms Gustavo Sergi, head of Renewal Chemicals Business at Braskem.

Braskem will showcase Amppleo, a high-melt-strength polypropylene resin, during Interpack 2017. This HMS-PP resin has been developed for versatile and high-performance foam applications in the packaging, automotive and industrial markets. The resin can withstand temperatures of up to 130 C without deforming and enables the production of foams for a wide range of applications within a broad density range, from 30 to 300 kilograms per cubic meter. It enables products to be made with a lighter weight than those made using other materials and offers excellent thermal and acoustic insulation. The material is also 100% recyclable.

Another of the fair’s highlights will be Braskem’s advances in research into intelligent packaging, which can inform the consumer, via colour changes, of the quality and state of conservation of various products, from food to cosmetics. Braskem is developing this technology in partnership with the USA’s Clemson University and Brazil’s Rio Grande do Sul Federal University (UFRGS).

As MRC informed before, Braskem Idesa, a 75-25 joint venture between Braskem and Grupo Idesa, started polyethylene (PE) production at its Coatzacoalcos, Mexico complex on 6 April, 2016. The jv started injecting ethane at its Etileno XXI steam cracker on 18 March.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
MRC