Showa Denko and Mitshubishi Chemical form a strategic partnershipm in Fullerene business

MOSCOW (MRC) -- Mitsubishi Corporation (MC), a major petrochemical producer, and Showa Denko K.K. (SDK) have entered into a strategic partnership in the Fullerene business, according to Plastemart.

As part of the arrangement, SDK acquired from Mitsubishi Corp a 50% stake in Frontier Carbon Corporation (FCC), a producer and marketer of Fullerene products, thereby making FCC a 50-50 joint venture between MC and SDK.

Fullerene is a molecule composed entirely of carbon. It takes the form of a soccer ball and is one nanometer (one-millionth of a millimeter) in diameter. As the molecule is soluble in organic solvents and is an excellent electron acceptor, it is seen as a promising material in the field of electronics, particularly for such applications as n-type material for organic photovoltaic (OPV) cells.

SDK's VGCFTM is already used in various applications, including lithium ion batteries, next generation solar cells, optical filters. It should be mentioned that, when Fullerene molecules are mixed with p-type organic semiconductors and made into ink, thin film layers having the property of semiconductors can be formed on PET and other types of plastic films through printing technology, contributing to mass production at low cost. Such coating with special property will bring about innovation in the areas of organic thin film transistors (TFT)/diodes, organic photovoltaic(OPV) cells, and organic light-emitting diode (OLED).

We remind that, as MRC informed previously, Showa Denko KK, citing the rapidly changing business environment, has decided to "drastically reorganize" the roles of its plants, business divisions and research and development organization.

Showa Denko K.K. is mainly engaged in the petrochemical business. The Petrochemical segment manufactures and sells olefin, organic chemicals and others. The Chemical Product segment supplies chemicals, industrial gases, special gas and functional drug for semiconductors, functional high molecular materials, among others.

Mitsubishi Chemical Corporation (MCC) operates the basic and petrochemicals businesses of Mitsubishi Chemical Holdings Corporation. Among the products the company makes are polyolefins like polyethylene and polypropylene, polycarbonate, and purified terephthalic acid (PTA).
MRC

MOSCOW (MRC) -- SIBUR has launched a sales office in Ekaterinburg to facilitate distribution of its basic polymers across the Urals Federal District, according to the company's press release.

The newly-established office in one of the majors Federal Districts of Russia will bring the company closer to its consumers and ensure timely response to the clients’ needs, while promoting high-quality service.

The representative office will market SIBUR’s polyethylene (PE) and polypropylene (PP) both to large industrial consumers and SME customers.

The office will also provide logistic support of product flows and monitor the quality of client service by warehouse and transport operators.

The Ekaterinburg-based office will be the company’s fourth unit involved in the regional sales of polyolefins. SIBUR currently distributes basic polymers through the representative offices in Moscow, Saint Petersburg, and Tomsk. In these cities, along with Nizhny Novgorod, Ekaterinburg, and Voronezh, SIBUR employs warehouse facilities for storing basic polymers and other products.

As MRC reported previously, in the second half of 2010, SIBUR opened a Chinese trading company Citco (Shanghai) Trading. The Chinese office was established to distribute the company's petrochemical products in China and to strengthen its position in the Chinese strategic market.
MRC

MOSCOW (MRC) -- Monthly European Union (EU) chemicals production nudged higher in November, led largely by strong output growth in petrochemicals, reported Hydrocarbonprocessing with refrence to industry trade group Cefic.

The monthly data for November 2012 showed a 1.5% increase compared with the same month in 2011. However, EU chemicals production was still down 1.8% in the first 11 months of 2012 compared with the same period of 2011. Levels are off 6.2% from the 2007 peak.

EU chemicals prices climbed by 2.7% in November on a year-on-year basis, led by an overall price hike in petrochemicals.

Trade data available through October 2012 show the EU chemicals net trade surplus during the first ten months of 2012 growing well beyond the level seen during the same period the year prior, up by EUR9.2 billion to EUR41.7 billion.

Broader chemicals industry confidence indicators showed a slight weakening in December, mainly due to less optimistic production expectations.

As MRC reported earlier, in 2012, Russian producers reduced their production volumes of large polymers by 1% to 3,480,000 tonnes. Last year, the output of polyolefins dropped, while the production volumes of PVC, polystyrene (PS) and PET increased, according to MRC ScanPlast. Ukrainian producers amid uncertain conditions in 2012 reduced production of large volume polymers by 22%.
MRC

MOSCOW (MRC) -- Fourth quarter profits from shrinking British oil company BP Plc beat analysts' expectations on Tuesday thanks in part to a record performance from its refining division, as a trial over its 2010 U.S. Gulf oil spill looms later in February, said Reuters.

BP, the last of the big four western world oil companies to report, said fourth quarter net profit, adjusted for non-operating items and accounting effects, fell to USD3.984 billion from USD4.986 billion a year earlier, mainly as a result of asset sales to pay for its spill liabilities.

Analysts had expected a quarterly profit of USD3.305 billion, although they warned the result was hard to predict given the changing nature of BP.

The company has sold USD37.8 billion worth of assets since the Macondo spill and taken a total charge against profits of USD42.2 billion - most of which has already been paid out.

More billions could flow out of the business this year either via a settlement with U.S. authorities and/or as a result of a civil penalties trial that is due to begin on February 25.

BP expects four new major upstream projects to begin production by the end of 2013 -- Angola LNG, North Rankin 2 in Australia, Na Kika 3 in the Gulf of Mexico, and the Chirag Oil project in Azerbaijan.

A further six major projects are expected to come onstream through 2014. In addition, the major upgrade of the Whiting refinery in Indiana is expected to come online in the second half of 2013, BP said.

Like its sector peers, BP is facing rising costs and is spending fast to keep production growing. It said organic capital expenditure would be USD24-USD25 billion in 2013, up from USD23 billion in 2012.

As MRC wrote earlier, BP agreed to sell its half of TNK-BP to the Russian Rosneft for USD17.1 billion in cash plus almost 13% of its shares.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.

MRC

MOSCOW (MRC) -- Romania's economy ministry said talks are underway to provide a state aid of EUR20 million (USD27.1 million) to insolvent chemical company Oltchim, said Seenews.

Economy minister Varujan Vosganian discussed with members of the Romanian Competition Council options to provide state aid to Oltchim without violating the European Commission's requirements, the economy ministry said in a statement on Friday.

The minister and investors in Oltchim plan to pay a visit to Brussels to discuss the issue with European Commission vice-president Joaquin Almunia, the ministry said. The matter may be moved to Romanian parliament for discussion, it added.

Last week, the chemical producer was declared insolvent after it filed for insolvency on January 24. The court appointed as temporary administrator a consortium made up of Rominsolv SPRL and BDO Business Restructuring SPRL.

Oltchim's net loss jumped to 308.5 million lei (USD96.3 million/70.8 million euro) in the first nine months of 2012 from 180 million lei a year earlier, according to the latest available financial data. In 2011, Oltchim reported a net loss of 278 million lei on a turnover of 1.53 billion lei.

As MRC wrote earlier, Romania tried unsuccessfully to sell its 54.80% stake in Oltchim in October. Under its two-year precautionary funding arrangement with the International Monetary Fund the government in Bucharest must sell its stakes in key energy and transport companies, including Oltchim.

Oltchim's shares last traded 2.5% up at 0.307 lei last week, before being suspended from trading prior to the insolvency announcement.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating polyvinyl chloride (PVC) for panels, doors and window frames.

MRC