Sidi Kerir to set up new ethylene plant

(Fibre2fashion News Desk ) -- Alexandria-based Sidi Kerir Petrochemicals Company, along with two other firms, is setting up a petrochemical plant to produce 460 KTa of ethylene. Sidi Kerir will have a 20 percent stake in the joint venture which is expected to cost around USD 1.18 bln. The project is anticipated to be completed within three years.


Sidi Kerir is a producer of linear low density polyethylene (LLDPE) and high density polyethylene (HDPE).


MRC

Solvay to create with Rhodia a major player in Chemicals

(Solvay) -- Solvay and Rhodia announce the signing of a framework agreement according to which Solvay will launch a friendly cash Offer for 100% of the share capital of Rhodia. The cash Offer at EUR 31.60 per share (ex dividend of EUR 0.5 per share) values the equity of Rhodia at EUR 3.4 billion and the enterprise value at EUR 6.6 billion, representing a REBITDA multiple of 7.3x . The Offer represents a premium of 50% compared to the closing price of Rhodia on the 1st of April 2011 and a premium of 44% compared to the average closing share price over the last three months. The Offer will be launched in France and extended to the United States of America. The transaction has been recommended unanimously by the board of directors of Rhodia.


The acquisition of Rhodia will be earnings accretive from the first year. Solvay will fully finance the transaction with its cash resources and its financial structure will continue to be conservative and solid.


The new group's strategy is based on the following strengths: 90% of its combined sales of EUR 12 billion are realized in businesses where it is already among the top three worldwide. Solvay is a leader in high performance specialty polymers, in soda ash and hydrogen peroxide, while Rhodia holds leadership positions in specialty materials (silica, rare earths), products for consumer markets (surfactants, natural polymers, acetate tow) and engineering plastics based on polyamide 6.6.


MRC

European spot butadiene prices are rocketing because of strong demand

(ICIS) -- European spot butadiene (BD) prices are rocketing because of strong demand in an extremely tight global marketplace, market sources said on Friday. Spot export prices were being pegged from EUR 2.000/t (USD 2.857/t) to as much as EUR 2.200/t FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp), well above the April monthly contract price (MCP) settlement of EUR 1.690/t FD (free delivered) NWE (northwest Europe).


Three European BD producers said that despite traders offering these prices, low inventory levels and strong incremental demand from domestic contract consumers meant that free volumes were virtually non-existent.


Technical problems at two sites in Germany are impacting on a market that is already very snug because of a planned maintenance shutdown at an extraction unit in the Netherlands and constraints on BD feedstock crude C4 output due to cracker turnarounds and light feed cracking.


Domestic European consumers are attempting to maximise their contract volumes from some suppliers to manage the shortfalls resulting from the unplanned issues at other suppliers. However, a consumer said: ⌠So far we are still able to find volumes, it's tough, but we find volumes. We are missing only a small part of our regular tonnes."


Additionally, export demand from the US is very strong. Already a net importer of crude C4 and BD, it has been heaviliy impacted by the loss of supply from Europe and Libya - an important crude C4 exporter.


MRC

LyondellBasell nominated a 10 cent/lb increase for April PP contracts

(ICIS) -- A major US polypropylene (PP) producer nominated a 10 cent/lb increase for April contracts, aiming to keep pace with a potential increase in propylene monomer prices, sources said on Friday. The 10 cent/lb (USD 220/t, EUR 154/t) increase nomination was at odds with another producer's announcement to raise April prices by 2 cents/lb in addition to the monomer price increase.


Most US domestic PP contracts are linked to polymer grade propylene (PGP) benchmarks, and PGP has been nominated up 10-11 cents/lb for April.


In mid March, resin buyers and sellers forecast April PGP and PP to increase by 5-8 cents/lb, but tighter propylene supplies have caused expectations to firm.


A PP producer said the shutdown of an Enterprise splitter was contributing to the propylene shortage. Splitters convert refinery grade propylene (RGP) into PGP.


PP demand will weaken with the higher prices in April, but unlike previous price spikes, the market could stabilise at the higher levels, a trader said.


MRC

Emaar announced construction of PP plant at KAEC

(US-SABC) -- Emaar, the Economic City (Emaar), has announced the commencement of construction of a new polypropylene manufacturing facility in the industrial area of King Abdullah Economic City (KAEC). U.S. industrial packaging manufacturer Greif, Inc., through a joint venture with the National Scientific Company of Saudi Arabia, is building the facility, which will produce polypropylene woven fabric for use in flexible intermediate bulk containers for the packaging industry. The facility will be more than 2.02 mln square feet (188.000 square meters) and is scheduled to begin production in 2012 and be operating at full capacity by 2016. Emaar is managing the planning and development of KAEC, the 65 square-mile (168 square-kilometer) city which is scheduled for completion in 2029.


MRC