INEOS ChlorVinyls announces derivatives price increase for March

March 4 (yourpetrochemicalnews) -- INEOS ChlorVinyls has today announced a price increase of ┬50 per tonne and GBP45 per tonne for methylene chloride for March supply.

This increase is in response to margin erosion over recent months that needs to be remedied.

The new price levels will be effective from March 2010, or as contracts permit.

MRCMRC Reference

Ineos is a petrochemical group.
In Russia Ineos's interests are represented by Ineos Polyolefins and IneosChlorVinyls.

The share in the Russian market in 2008:
PVC - 4.5%;

polyethylene - 1.9%
(HDPE - 2.8%, LDPE - 1.2%);
polypropylene - 1.4%
(PP-random - 22.1%, PP-impact - 2.0%);
polystyrene - 0.9%.

Imports by polymers processing technologies:
profile extrusion;
pipe extrusion;
film extrusion;
injection molding.

RIL loses out on LyondellBasell, gains on stock market

March 4 (plastemart) -- The shares of Reliance Industries Ltd. (RIL) have spiked past the 1000 mark as reports pour in that the bankrupt petrochemicals firm LyondellBasell rejected an acquisition bid by RIL. RIL had bid for LB in November at about US$12 bln that it raised to US$14.5 bln a week ago.

Investors were concerned that RIL was paying too much for the acquisition because of which the share prices had weakened. However, markets have been believed that the deal did not come through.

MRC

MRC Reference

LyondellBasell. The share in the Russian market in 2008:
PE - 1.4% (including HDPE - 2.5%, LDPE - 0.3%);
PP - 4.1% (including block-copolymers - 9.5%).

Annual sales growth in Russia, during the recent 5 years:
PE - 27%;
PP - 88%.

The leader in the following polymers processing technologies:

pipe extrusion;

film extrusion;

injection molding.


Israeli Environment ministry issues memorandum on packaging law

March 4 (plasteurope) -- In a move to step up its ⌠recycling revolution, Israel's ministry of the environment on 14 February 2010 distributed a memorandum on a draft packaging law to several ministries. Mirroring the European Directive on Packaging and Packaging Waste, the proposed law is steeped in the principle of manufacturer responsibility. Its provisions include encouraging the use of multi-use packaging, clearly marking the packaging with recycling or reuse information as well as the imposition of fines for non-compliance.

The ministry's proposed law also would oblige packaging manufacturers and importers to meet a recycling target of 60% of the total weight of single-use packaging by 2014. In addition, producers will have to comply with annual recycling targets - 22.5% in the case of plastic. Packaging producers and importers will also be required to finance new models for treating and separating waste at the source.

MRC


IRPC to expand capacity at an investment of US$1.4 bln in the next five years

March 4 (plastemart) -- In a bid to meet rising demand, Thai major IRPC Pcl plans to invest US$1.4 bln in the next five years on expanding capacity. With annual capacity to produce 728,000 tons of olefins products and 367,000 tons of aromatics, IRPC is operator of Southeast Asia's biggest integrated petrochemical complex. It plans to upgrade facilities to be among the top quartile of integrated petrochemical complexes in Asia within four years.


By 2014, the company aims to boost return on invested capital (ROIC) to 22% vs last year's 9%, by focusing on diversification rather than size.
Under its five-year "Phoenix projects", IRPC will focus on maximising asset utilisation and 70% of its budget would be spent on capacity and product expansion, as its olefins capacity will rise significantly. The company plans to raise fund via bonds to refinance debt and finance expansion under the Pheonix scheme.


Petrochemicals should contribute more than 50% of profit this year and is expected to rise at least 8-10% in 2010, due to rising capacity as it had no major shutdowns this year. Its 2010 gross integrated margins, which includes both petrochemical and refinery operations, should be stable at around 2009's $9.9 a barrel given sustained demand for petrochemical products helped offset weakness in the refinery business.


IRPC expects its run rate of its 215,000 bps refinery to be around 70% this year, up from 66% last year, while its petrochemical complex would continue to run at 100%.

MRC


Dow to sell Styron business for $1.63bn

March 3 (prw) -- Dow Chemical has announced it is to sell its Styron division to US private equity group Bain Capital Partners for $1.63bn.

The deal is scheduled to close by August. As part of the transaction, Dow retains an option to keep up to 15% of Styron equity. It also includes a number of long-term supply, service and purchase agreements.

"This transaction is yet another step in our disciplined approach to portfolio management, and is consistent with both the timeline and value we previously communicated for these assets, said Andrew Liveris, chairman and CEO of Dow.

Bain Capital Partners, a Boston, US-based private equity firm, is taking on a business with $3.5bn in annual sales, more than 40 manufacturing plants, and around 1,900 employees.

The Styron portfolio includes: Styrenics - Polystyrene, acrylonitrile butadiene styrene, styrene acrylonitrile and expandable polystyrene; Emulsion Polymers - paper and carpet latex; Polycarbonate Compounds & Blends; Synthetic Rubber; and Automotive Plastics.

MRC

MRC Reference