Investment activity in Russia in 2010 grew slightly

Among the companies that made the biggest investments in 2010 the following should be mentioned: Narodniy Plastik, Plafen, Veka Rus, Docke Extrusion, Polymerplast, Uralchemplast.

As we forecasted, there wasn't a quick recovery of investment activity concerning PVC conversion as well as other volume polymers. The reason for that was a ⌠stock of installed capacities in 2007-2008 when total gain in capacities of PVC conversion made 1 325 KTa whose potential remained unlocked in 2009. Taking into account that each second investment in equipment of PVC conversion was made at that period at the expense of borrowed funds (with average payback time for equipment equal to 4 years), we are forecasting mobilization of investment activity by 2012.

Detailed analysis of PVC market as well as short-term and long-term forecasts of its development are available in MRC Annual report ⌠PVC in Russia 2011.

MRC

(Azelis) -- Azelis Composites is currently looking to significantly grow its business in the Spain and Portugal regions. International Business Manager Serge Gradys explains: ⌠The name Azelis may be new to the Composites market but our presence and recognised technical competence is not. The origins, of what has become one of the fastest growing International Business Areas for Azelis, go back to the mid 1970s through Arnaud, one of the founding members of Azelis, in France and Eastern Europe and also through Tradex Colori in Italy, which also later became part of the Azelis Group. We have used our long established relationships and considerable technical knowledge to significantly grow our presence across Europe in recent years.

Azelis has more than 60 specialists working in the Composites IBA - 90% of whom have a technical background and around 50% have specialist composites expertise.

Sales have doubled into the traditional high volume composites sector over the past 3 years with the Nordic countries, UK and Benelux now well serviced by Azelis.

Azelis Composites is exhibiting at JEC Paris 29-31 March, stand no F25, building on its strong customer and supplier relationships.

MRC

(ICIS) -- Negotiations for March caprolactam (capro) in Europe will likely progress into April, with buy and sell ideas still far apart, a buyer said on the sidelines of the International Petrochemical Conference (IPC) on Sunday. ⌠The expectation is for sure below [an increase of] EUR 100/tonne. To be honest, with some [producers] we are quite far away, with others not so far, the buyer involved in the production of nylon (or polyamide) said.

Producers had earlier started with targets of an increase of EUR 150-200/tonne (USD 211-282/tonne), but have since revised these downwards in light of a sharp drop in demand for polymers following the Japan disaster. Producers' targets, though, were still at a range of plus EUR 100-170/tonne.

Despite this reduction in offtake and a rollover in the upstream March benzene contract, supply concerns allowed producers to remain bullish in their expectations for March capro agreements.

While acknowledging tightness in the market, the consumer said that margins for capro production were high and any increase in costs would need to be passed on further downstream as nylon margins had been squeezed considerably.

MRC

(BASF) -- BASF, the world's leading chemical company, has received approval for a 400,000 metric tons per year MDI (diphenylmethane diisocyanate) project in Chongqing, China. The investment will total RMB 8 billion (approximately EUR 860 mln). The facility, which will produce a core component mainly used for polyurethane foams, is expected to start up by 2014.

The project was approved by Chinese authorities, following a stringent examination of environmental, health and safety standards, two rounds of local public consultation and several expert reviews. This state-of-the-art facility will consist of an MDI plant, a nitrobenzene plant and an aniline plant, and will cover 40 hectares. It will form the center of an integrated chemical production complex operated by the Chongqing (Changshou) Chemical Industry Park.

MRC

(Bayer) -- Bayer continues to be listed in the two major sustainability indices FTSE4Good and ASPI. This is the outcome of the reviews conducted by both index providers of the sustainability performance of major companies. The indices aid decision-making by institutional investors who place importance on social and ecological criteria as well as economic aspects.

The FTSE4Good index series is managed by the Financial Times and the London Stock Exchange. To be listed, companies must meet considerable demands in terms of environmental and climate protection, employee rights, anti-corruption practices, supplier management and sustainability reporting. The evaluation is made by the London-based rating agency Ethical Investment Research Services (EIRIS). Bayer has been continuously listed in the FTSE4Good index series since it was established in 2001.

Bayer has also been listed right from the beginning in the Advanced Sustainable Performance Indices (ASPI) Eurozone. This, too, was set up in 2001 and comprises 120 sustainability leaders from the Dow Jones Euro Stoxx index. Criteria for inclusion in the ASPI include sustainable corporate governance, responsible relations with customers and suppliers, safety, health protection and social commitment. The French rating agency Vigeo and the index specialist Stoxx Limited are responsible for analyzing the respective companies' sustainability performance.

MRC