Production of polymer products in Russia increased by 2% in January-May

MOSCOW (MRC) - May production of polymer products in Russia increased by 2% year on year. Total output of these products showed an increase of 3.2% in January - May of this year, according to analysts of the company MRC.

According to the Federal State Statistics Service of Russia, May output of unreinforced and uncombined films was 98,900 tonnes against 90,700 tonnes a month earlier. The production of film products increased by 9.8% in the first five months of this year year on year and amounted to 432,900 tonnes.

Last month, the production of plates, sheets and polymer non-porous films was 31,600 tonnes against 27,800 tonnes in April. Thus, January-May output of this product reached 137,000 tonnes, up 2.4% year on year.

May production of plastic bottles and bottles rose to 2.0 million units against 1.747 million units. a month earlier. During the period under review, the total production of these plastic products amounted to about 8.281 million units, which actually corresponds to the indicator of 2017.

May production of plastic windows and door blocks amounted to 2.12 million square meters and 105,000 square meters, respectively, against 1.68 million square meters and 81,700 square meters a month earlier. For the first five months of the year, the total output of this product was 7.49 million square meters and 357,400 square meters, respectively, an increase to the same indicator in 2017 was 13% and 12% respectively.

May of production of plastic pipes, hoses and fittings rose to 52,400 tonnes against 46,300 tonnes a month earlier. January - May output of these products amounted to 205,900 tonnes, up 3.2% year on year.

MRC

MOSCOW (MRC) -- Antwerp, Belgium-based specialty chemicals and food ingredients distributor Azelis said its private equity owner Apax Partners has received a binding takeover offer from two other funds, EQT VIII and PSP Investments, and is in exclusive negotiations to transfer its holding, as per Chemanager-online.

The transaction, for which financial terms were not disclosed, is subject to regulatory approvals, and other conditions including consultation with employee representatives. A closing is targeted for the fourth quarter of 2018.

Established in 2001, Azelis, which fields a high-end technical sales force, supplies a diverse range of products and services to more than 43,000 customers in over 40 countries. The distributor also operates more than 50 of its own application laboratories.

Private equity investor 3i acquired a majority stake in Azelis in 2007. Since its acquisition by Apax in 2015, the distributor said it has successfully executed its targeted growth strategy through focusing the business on product development and innovation, as well as developing its M&A platform.

Over past three years, the company has more than doubled sales revenue and tripled EBITDA while at the same time making nine acquisitions to broaden its geographic reach and product offering.

By its own account, Azelis’ most significant deal to date was the 2015 takeover of Koda Distribution Group, whose North American presence was complementary to its own European and Asian reach. This, it said, expanded the company into a "truly global player."

In 2016, Azelis acquired 100% of Milan-based distribuor Ametech and in 2017 alone picked up four more companies, including US distributor Ross Organic, Denmark’s LCH, Chemcolour, based in Australia and New Zealand and Georges Walther, a family-owned specialty chemicals distributor. So far in 2017, it has bought South Korea’s Sammi Chem and taken full ownership of Distralim, a Moroccan distributor of food ingredients.

Going forward, the distributor said its strategy is to continue to leverage its diversified business model.
MRC

MOSCOW (MRC) -- After winning its appeal against a decision by the Rotherham Council in Yorkshire to deny the company permission for test drilling at a greenbelt site in Harthill, INEOS Shale has submitted a second planning application, as per Chemanager-online.

The new application is for a drill site at nearby Woodsetts, where the council has also refused drilling permission.

The UK subsidiary of the Swiss-headquartered chemical producer said it has done additional survey work and can disprove claims put forward by the council on its first application, namely that the subsequent project does not meet ecological standards and also would present hurdles to highway safety.

Like the previous permit, which Ineos has now secured, the new application would provide temporary permission for drilling activity for a maximum of five years. The work would involve months of investigation surveys at various sites as well as site preparation, followed by a period of drilling, coring and testing.

INEOS argues that the activity would be small scale, have no significant impact and would take place on agricultural land with “little ecological value.” The second site, however, takes in a Site of Special Scientific Interest – protected by law to conserve wildlife or geology – in addition to a golf course. Ineos said the golf course, would be restored after drilling has been completed.

Planning consultants who submitted the application on the company’s behalf said it is a re-submission of the rejected application. They insist that the national planning Inspector who overruled the decision “clearly made his decision based on the technical evidence” and that the points raised by local planning officials “were not supported by evidence of any harm."

The resubmission on the same basis allows the opportunity to “rectify the Council’s decision” and avoid the potential for a second appeal with its associated costs, the consultants said, adding that, “we consider that the ecology reason put forward can no longer be substantiated."

According to Drill or Drop, a website that monitors the shale industry, Rotherham’s rejection of the Ineos plans was the seventh this year by councils across the Midlands and the north of England.

Before the decision against the chemical company was overturned, the only green light had been given for another drllling company, Cuadrilla, to test oil flows in West Sussex in southern England.

Along with planning delays, the UK shale gas industry is chafing at new requirements that require a check of potential drillers’ economic potency. The industry complains that it now takes 58 weeks on average to get a planning decision on the drilling of a vertical well for exploration, compared with 13 weeks five years ago.

INEOS is leveraging the fast-track powers created by the British government in 2015 to kick-start the country’s nascent shale gas industry. These allow national planning inspectors to bypass local councils that fail to make a decision within the mandated 16-week timeframe and in some cases override decisions.

The shale gas industry meanwhile has been condemned by an international tribunal for harming humanity, violating human rights and damaging nature. The Permanent Peoples’ Tribunal established in Italy in 1979 to defend human rights has accused drilling companies and governments of failing in their duties to protect the environment.

“The processes of fracking contribute substantially to anthropogenic harm, including climate change and global warming, and involve massive violations of a range of substantive and procedural human rights and the rights of nature,” the tribunal said.

Along with environmental NGOs, two professors from the University of Stirling in Scotland have given the tribunal evidence of the dangers of fracking. “The arguments of the UK industry about the alleged safety of fracking do not stand up to scrutiny,” one said, while the other, accused the industry of a “moral and legal failure.”
MRC

MOSCOW (MRC) -- As a trusted supplier to high-quality vending machine manufacturers for over 25 years, The Dow Chemical Company has created a brand new low-global-warming-potential polyurethane foam insulation solution that also delivers weight reduction and improves thermal insulation, said the producer on its site.

The insulation will help a cold-drink vending machine manufacturer meet the more stringent ENERGY STAR version 4.0 with a solution that will be compliant with global blowing agent regulations.

The custom formulated polyurethane insulation solution’s excellent mechanical properties, good flow, and superior curing profile delivered a 15 percent weight reduction and 10 percent thermal insulation improvement over the incumbent low-global-warming-potential system, helping ensure the cold-drink vending machines meet the qualifications for ENERGY STAR version 4.0. Compared to competitive solutions using hydrofluorocarbon foam blowing agents, Dow's solution delivers the same or better performance with a global warming potential 99.9 percent lower, providing a more sustainable solution that will be compliant with upcoming global regulations on foam blowing agents.

"We know how challenging it can be for companies and brand owners to keep up with U.S. Department of Energy standards, SNAP regulations, and end-user requirements," said Robert York, market manager for Dow Polyurethanes. "Dow is fully committed to staying ahead of these changes, and bringing more sustainable, SNAP compliant formulations to the marketplace for our customers."

Polyurethane rigid foam is one of the best insulation materials available to help achieve energy efficiency targets, reduce costs and mitigate greenhouse gas emissions. For companies and brand owners impacted by SNAP regulations, Dow has developed polyurethane-based solutions that will fully comply with all applicable regulations once they become law.

With decades of technical experience, Dow is proud to offer solutions to meet the specific needs of each customer and help manufacturers meet increasingly demanding energy standards in the commercial appliance industry.

As MRC reported earlier, in January 2018, the company announced that the technologies of Dow Corning Polyurethane Additives (PUA) will be incorporated into the Dow Polyurethanes portfolio under the Vorasurf polyurethane additives brand name.

Dow Polyurethanes develops and delivers a broad portfolio of technologies and customized solutions to customers in a variety of industries under its DurableScience, ComfortScience and InsulationScience category brands. Applications range from industrial and infrastructure solutions, to consumer comfort solutions in flooring, furniture bedding and footwear, to automotive solutions for vehicle interior, and energy-efficient insulation materials. The business manufactures and sells key chemical components as well as fully-formulated polyurethane systems for rigid, semi-rigid and flexible foams, and coatings, adhesives, sealants, elastomers and composites. Dow is the world's largest producer of propylene oxide (PO), propylene glycol (PG), and polyether polyols, and is a leading producer of quality aromatic isocyanates, such as MDI. Striving to meet the specific needs of its customers in their local geographic regions, Dow Polyurethanes operates a global network of production sites and systems houses, as well as innovation and service centers.
MRC

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into a joint venture agreement with Dhunseri Petrochem Ltd. (Dhunseri) to acquire its Egyptian Indian Polyester Company S.A.E. (EIPET) PET facility located in Ain Sokhna free trade zone, North West of the Gulf of Suez in Egypt, as per IVL's press release.

This plant has a manufacturing capacity of 540,000 tonnes per annum. The transaction takes place with immediate effect. Restart activities for manufacturing recyclable PET has commenced and key raw material PTA will be shipped from IVL Portugal soon after restart of Portugal PTA production anticipated in early July 2018.

This joint venture between Dhunseri and IVL allows for an uninterrupted supply of recyclable PET, which promotes the development of the consumer beverage industry and increases demand for sustainable packaging. Indorama Ventures will bring its world class capability and supply chain economics to the JV in order to competitively serve customers growing needs of sustainable packaging in Egypt and in the region as a whole and will be one of the largest project in EMEA. IVL is one of the few integrated producer of PTA and PET in Europe-Middle East-Africa (EMEA) spanning Lithuania in the North East and Nigeria in West Africa. IVL is the largest producer in Turkey for recyclable PET and producer of PTA and PET in Rotterdam, The Netherlands and in the Iberian Peninsula.

IVL is focused on balancing market needs for recyclable PET packaging, which has faced unprecedented economic challenges over last several years leading to uncompetitive supplies and disruptions in recent times. The facility in Egypt will lead to easing supply concerns in North Africa and in the Common Market for Eastern and Southern Africa (COMESA) as well as the markets covered by the several Free Trade Agreements (FTA) which Egypt is a signatory to.

The EIPET plant is strategically located in Ain Sokhna free trade zone, Egypt, offering logistics advantage when sourcing feedstocks and delivering end products in key markets, domestically and internationally. This facility is one of the largest in the Middle East and Africa and is well-positioned to cater to the increasing packaging needs of customers in the region and elsewhere. The economic resurgence in the region is expected to further improve demand growth potential, which currently is at around 7% per annum. Both partners are confident about the reforms that President El-Sisi has brought about in Egypt and the JV is a step forward to fulfilling the commitment made to the Egyptian authorities over the past three years.

Dhunseri and Indorama Ventures have established a sound business rapport and support mechanism in India since 2016 and expects to achieve continued success in this follow up investment in Egypt. Indorama Ventures has successfully revived a PTA producer in Portugal following the previous owner’s bankruptcy and has recently taken on the revitalization of Brazil’s largest PET plant, which faced a serious financial crisis after its former parent went in liquidation. The revival of these businesses will support easing of reliable supplies by IVL to its customers and help grow sustainable packaging in markets worldwide.

The addition of EIPET will increase Indorama Ventures’ existing global PET capacity by 10%. This plant uses the same technology as deployed at the IVL Dhunseri facility in India, allowing the Company to leverage its proven operational expertise and track record of successful integration. This recently built facility will be among Indorama Ventures’ finest in terms of scale and competiveness, enabling the Company to maintain its position at the forefront of the industry and serving customer needs in every geography in a timely and reliable manner.

Indorama Ventures expects to be able to leverage on internal feedstock supply of PTA from its manufacturing base in Asia and Iberian Peninsula as well as IPA from its facility in Spain, enabling it to utilize its assets more efficiently and ensure supply continuity to all its customers. In addition, this joint venture will also open up a new avenue for growth by providing immediate access to a large domestic market and duty-free access to North and East Africa through preferential trade agreements in the region. Additional volume can be exported, with duty-free privileges to key Western markets that currently face limited availability of supply.

Commenting on this joint venture, Mr. Aloke Lohia, Group CEO of Indorama Ventures said, "I am delighted to extend our strategic partnership with Dhunseri through this acquisition. EIPET is a good fit with Indorama Ventures’ strategy in the recyclable and sustainable PET business, where the Company aims to supplement its position and build scale in key markets. EIPET also marks Indorama Ventures’ maiden entry into Egypt, complementing our existing footprint in EMEA. EIPET will provide meaningful opportunities for feedstock integration from our existing assets while allowing us to serve our customers in growth markets of Egypt and in the region."

Mr. C. K. Dhanuka, Executive Chairman of Dhunseri said, that "Our JV in India has been extremely smooth and provided a win-win situation for both, the customer and us. After experiencing the JV in India, we are very upbeat on entering the same in Egypt, which will be again a equal ownership JV."

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 15,000 employees worldwide and consolidated revenue of USD 8.4 billion in 2017. The company is listed in the Dow Jones Sustainability Index (DJSI).

Dhunseri Petrochem Ltd. is one of the largest producers of PET resin in India and among the top ten in the world. The company manufactures the finest bottle grade PET resin, for packaging of drinking water, carbonated soft drinks, edible oil, pharmaceuticals and many more. Dhunseri Petrochem Limited is the Petrochem division of Dhunseri Petrochem & Tea Limited.
MRC