PVC exports from Russia up by 42% in Jan-May 2019, import down by 18%

MOSCOW (MRC) -- Exports of suspension polyvinyl chloride (SPVC) from Russia totalled 77,300 tonnes in January-May 2019, up by 42% year on year, whereas imports decreased by 18% year on year to 7,900 tonnes, according to MRC's DataScope report.

Russian producers maintained fairly high volumes of polyvinyl chloride (PVC) exports, but export sales have declined since May. Last month's exports of Russian SPVC (excluding shipments to the Customs Union) were 12,800 tonnes, compared to 17,300 tonnes in April. Thus, overall exports of resin from Russia totalled 77,300 tonnes in the first five months of 2019, compared to 54,500 tonnes a year earlier. Some producers significantly reduced their exports in June under the pressure of stronger demand from the domestic market and scheduled shutdowns for maintenance at a number of production capacities.

Indian buyers were the main foreign importers of Russian resin this year. Overall sales of resin were 41,700 tonnes over the stated period.

Sufficient supply of PVC from domestic producers, even given high exports, and weak demand from converters led to lower imports, although foreign purchases have still increased for the past two months. May SPVC imports were 2,800 tonnes, compared to 3,200 tonnes a month earlier. And overall imports totalled slightly over 7,900 tonnes over the stated period, compared to 9,700 tonnes a year earlier.

MRC

MOSCOW (MRC) -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, has announced that it commenced a "modified Dutch Auction" tender offer to purchase up to 37,000,000 of its issued and outstanding ordinary shares, as per the company's press release.

The outstanding ordinary shares will be purchased par value EUR0.04 per share, or such lesser number of Shares as are properly tendered and not properly withdrawn, at a price that is the lesser of a price not greater than USD88.00 nor less than USD77.00 per Share, and a price that equals 110% of the Daily VWAP on the expiration date of the tender offer, to the seller in cash, less any applicable withholding taxes and without interest.

If the Final Price Cap is determined to be less than USD77.00 per Share, which is the low end of the price range in the tender offer, the Company will not purchase any Shares tendered, unless it decides, in its sole discretion, to amend or extend the offer in accordance with applicable law. The tender offer is made in accordance with the terms and subject to the conditions described in the offer to purchase, the related letter of transmittal and other related materials, as each may be amended or supplemented from time to time. The "Daily VWAP" is the daily per share volume-weighted average price for Shares on the New York Stock Exchange, as defined in more detail in the offer to purchase.

The closing price of the Shares on the New York Stock Exchange on June 7, 2019, the last full trading day before the commencement of the tender offer, was USD79.22 per Share. The tender offer is scheduled to expire at one minute after 11:59 P.M., New York City time, on July 8, 2019, unless the offer is extended or terminated. The Company will determine the final Daily VWAP promptly after the close of trading on the New York Stock Exchange on July 8, 2019, unless the offer is extended or terminated, and will announce the final Daily VWAP, and the corresponding Final Price Cap, no later than 4:30 p.m., New York City time, on such date.

The Company believes that the repurchase of Shares pursuant to the tender offer is consistent with its long-term goal of allocating capital to maximize value for its shareholders and other stakeholders. The offer also provides a mechanism for completing the Company's authorized share repurchase program more rapidly than would be possible through open market repurchases. The Company believes that the modified Dutch auction tender offer provides its shareholders with the opportunity to tender all or a portion of their Shares, and thereby receive a return of some or all of their investment in the Company, if they so elect.

The tender offer is not contingent upon any minimum number of Shares being tendered. However, the tender offer is subject to a number of other terms and conditions, which are described in detail in the offer to purchase. Specific instructions and a complete explanation of the terms and conditions of the tender offer are contained in the offer to purchase, the related letter of transmittal and other related materials, which will be mailed to shareholders of record promptly after commencement of the tender offer.

None of the Company, the members of its Board of Directors, the dealer managers, the information agent or the depositary makes any recommendation as to whether any shareholder should participate or refrain from participating in the tender offer or as to the purchase price or purchase prices at which shareholders may choose to tender their Shares in the tender offer.

As MRC wrote previously, in August 2016, LyondellBasell made the final investment decision to build a high density polyethylene (HDPE) plant on the US Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The start-up of the new plant is scheduled for 2019.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- Cameroon’s 42,000-barrel-per-day Sonara oil refinery will be shut for a year following a fire earlier this month, a spokesman for the ministry of commerce told Reuters.

Operations came to a halt at the country’s only refinery in Limbe this month after a storage tank exploded.

Sonara produces 20 percent of Cameroon’s gasoline demand, the rest of which is imported, said ministry spokesman Eric Epoune. It also supplies to other countries in the region, including Nigeria, Togo and Ghana, according to its website.

Epoune said extra imports will cover the shortfall and that a fuel shortage will be avoided.

As MRC wrote before, in early June 2019, Cameroon’s state oil refinery declared force majeure after a storage tank exploded overnight, causing a fire that shut down output at its main refinery in Limbe but caused no deaths.
MRC

MOSCOW (MRC) -- The Tornio Manga LNG (liquefied natural gas) receiving terminal has been inaugurated in Tornio, northern Finland, as per Hydrocarbonprocessing.

The project was led by Manga LNG Oy, a joint venture between the Finnish companies Outokumpu Group, SSAB, Gasum Oy and EPV Energy Ltd. Wartsila was brought into the project for its long and proven expertise and experience in project execution, LNG handling systems, and the use of LNG as fuel.

Wartsila's EPC (engineering, procurement and construction) solution for the Tornio Manga LNG receiving terminal includes complete unloading, storage, pipeline distribution, regasification, truck loading, and ship bunkering facilities. This terminal is the largest such facility in the entire Nordic region. An efficient logistics chain developed around the terminal creates a diversified fuel market benefiting both Northern Finland and Sweden. The terminal will supply natural gas to Outokumpu’s Tornio steel mill and LNG to local industries, mines, and other consumers in the region. LNG from the terminal will be supplied also to the LNG storage facility, also supplied by Wartsila, at the SSAB Raahe steel mill. The terminal also supplies LNG as fuel to ships, such as the new icebreaker Polaris, operating in the Gulf of Bothnia. Truck access to the terminal facilitates fast and efficient deliveries of the LNG.

Wartsila will serve the Tornio Manga LNG terminal under a 10-year maintenance agreement. This agreement ensures reliable gas send-out and maximises uptime of the LNG terminal. Wartsila has unique experience of the entire LNG distribution chain.

The Tornio Manga LNG receiving terminal will play an extremely significant role in reducing the carbon footprint and emissions such as nitrogen oxides (NOx), sulphur oxides (SOx) and particulates of the region's industrial operations. It is, therefore, an important environmental milestone for the Baltic Sea area, and especially for Northern Finland and Sweden.

"The Tornio Manga LNG terminal is creating a long-term platform for cost-efficient, environmentally more sustainable energy supply in Northern Europe. The beneficiaries include industrial and mining companies, shipping and road transportation companies, power and heat utilities in this area. Wartsila, with special value-adding capabilities in this field, was a natural choice to participate in the project and a valuable partner,” said Matti Suurnakki, Chairman of the Board, Manga LNG Oy.

"This project demonstrates our know-how on gas technology and gas as fuel as well as our expertise in medium-scale LNG distribution. We are proud to work together with Manga LNG Oy to deliver this terminal and enable a sustainable energy supply for an energy-intensive industrial region,” said Antti Kami, Vice President, Engine Power Plants, Wartsila Energy Business.

Liquefied natural gas is a low emission fuel, which can be utilised by the land-based industry, the shipping industry and the energy industry. Compared to alternative fossil fuels, substantial reductions can be obtained in carbon dioxide, nitrogen oxide and particulate matters emissions.
MRC

MOSCOW (MRC) -- Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, announced the strengthening of its leadership in high-performance specialty polymers with the operational launch of a new production line for Arnitel® in Emmen, the Netherlands, said the company.

The capacity will be expanded by 20% and will enable greater supply flexibility and security.

The new production line will allow DSM to meet the growing demand for Arnitel® high-performance ThermoPlastic Copolyesters (TPCs). These materials are known around the world for their unique combination of elasticity, high temperature resistance and mechanical properties, as well as excellent processing characteristics. What’s more, Arnitel® is increasingly being used as a lighter, greener alternative to conventional rubbers in automotive applications – reducing environmental impact and, ultimately, system costs.

The new production line underlines DSM’s contribution to the economic development of the Drenthe region, in the Netherlands.

Lu Zhang, Global Business Director at DSM Engineering Plastics: “We see increasing demand of Arnitel® in various application areas including automotive, consumer and industrial. This capacity expansion shows DSM’s commitment to our customers and industries we serve."

As MRC wrote earlier, in November 2017, Royal DSM announced a new approach for its additive manufacturing (AM) activities. By aligning all its AM activities within the Materials cluster and promoting a partnership approach, DSM can provide customers an open and flexible infrastructure. This will help customers to find exactly the right materials and production systems for their applications. The new customer-centric organization will build on experience and expertise from all of DSM’s existing materials businesses, combining deep market segment-specific application understanding and expertise in all polymer AM processing technology platforms.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
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