Georgia Gulf reduced PVC Production

(Georgia Gulf) -- Georgia Gulf announced that, due to reduced ethylene supply and reduced operating rates for chlorine at its production facility in Plaquemine, La., it has declared a force majeure event for PVC (polyvinyl chloride) shipments. The company expects the force majeure to impact PVC shipments for the next few months.


"The reduced ethylene supply is the result of a force majeure declared by a major supplier that significantly impacted our ability to procure this essential ingredient for producing PVC," said Joseph Breunig, executive vice president - Chemicals.


"The reduced operating rate at our Plaquemine chloralkali facility is due to operational issues that have decreased the plant's effective production capacity by approximately 33 percent," Breunig said. An evaluation of the operational issues is being conducted, and the length and cost of necessary repairs is still being analyzed.


"Despite this unexpected reduction in production capacity, we expect to benefit from the improving North American chemicals environment and believe that we will deliver results at the top end of our guidance of USd 245-265 million of adjusted EBITDA for 2011," said Paul Carrico, president and chief executive officer.


The company expects to announce its financial results for the first quarter of 2011 in the first week of May.


MRC

Catalytic cracking unit commissioned after overhaul at Socar

(Socar) -- A catalytic cracking unit # 55 was commissioned at the Heydar Aliyev Oil Refinery after overhauls. The mentioned installation is the plant's largest and most important production area. Following the repairs, products indicators have considerably increased. The automatic production control system was improved for the refinery's catalytic cracking units and hydraulic equipment.


After the renovation, management was simplified and performance significantly increased following the application of improved new electron system. The company received 135.182 tons of vacuum gas-oil, 1.067 tons of liquefied natural gas, and 2.442 tons of dry gas, and produced 16.840 tons of light reflux and 21.109 tons of heavy phlegm in March. These figures are higher than in previous months.


MRC

CJ CheilJedang and Arkema announce a project to build the world's first bio-methionine plant

(Arkema) -- CJ CheilJedang (CJ Group) and Arkema have agreed a Memorandum of Understanding to build a bio-methionine and thiochemicals platform in South East Asia (Malaysia or Thailand). This project entails the construction of the world's first world-scale methyl mercaptan integrated bio-methionine plant, which will enable CJ to respond to strong demand for methionine, a sulfur amino acid widely used for animal feed in Asia, and Arkema to better serve its Asian customers from a new industrial platform. The project represents overall investments of USD 400m split equally between both partners.


MRC

Force-majeure in USA to reduce PVC export quotes for Russia

MOSCOW (MRC) -- One of the biggest North American suppliers of PVC to Russia declared force-majeure on 14 April. It will significantly reduce PVC export quotes for the Russian market, according to ICIS-MRC Price Report.


Georgia Gulf, one of the biggest North American PVC producers, declared force-majeure for PVC deliveries because of limited supplies of the feedstock for its production. The main supplier of ethylene for Georgia Gulf reduced deliveries that affected production process. Problems with production at the chlorine enterprise in Louisiana resulted in decreased production by 33% and, as a result, affected Georgia Gulf work. As per company's estimates, the present situation will limit PVC deliveries within a few next months.


The Russian market of PVC appeared among those who may suffer in a current situation. Supplies of PVC-S produced by Georgia Gulf to the Russian market in 2010 exceeded 20 KT, the indicator grew to 10.5 KT in QI. It should be obvious that other North American producers (Oxyvinyls, Westlake, Shin-tech, Formosa) will be forced to redistribute their export lines and the lack of PVC will cause the next leap in prices.


This week quotations for insignificant quotation stock volumes of North American PVC for the Russian companies in April grew to record USD 1.330 - 1.370/mt, CFR Saint-Petersburg.


MRC

Celanese Corporation increase the price of all grades of Ateva EVA

(BUSINESS WIRE)-- Celanese Corporation, a global technology and specialty materials company and a North American leader in Ethylene Vinyl Acetate (EVA) polymers, announced today that its subsidiary, Celanese EVA Performance Polymers Inc., will increase the price of all grades of Ateva EVA by USD 0.06/pound and all grades of LDPE by USD 0.05/pound effective May 1, 2011, or as contracts allow.


This price increase is in addition to the previously announced April 15, 2011, increase of USD 0.08/pound for all Ateva EVAs and USD 0.06/pound on all LDPEs.


Celanese Corporation is a global technology leader in the production of specialty materials and chemical products which are used in most major industries and consumer applications. Based in Dallas, Texas, the company employs approximately 7,250 employees worldwide and had 2010 net sales of USD 5.9 billion, with approximately 72% generated outside of North America.


MRC