Romanian government ask for insolvency of Oltchim

MOSCOW (MRC) -- Romania’s government may ask for an insolvency procedure for Oltchim SA (OLT), a state-owned unprofitable chemical company, following talks with the International Monetary Fund and the European Union, Bloomberg reported.

The Cabinet wants to restructure Oltchim and a 450 million- euro (USD599 million) debt to the state, without risking a sanction from the EU.

"Given the current economic problems Oltchim is facing, we have decided to start insolvency procedures. A request in this regard will be filed to a local court in Ramnicu Valcea. Furthermore, Oltchim’s board is to approve our decision today," said Romanian Minister for Economy and Commerce Varujan Vosganian during a government meeting.

The Romanian state holds a 54.8% stake in Oltchim, with Germany-based chemical producer PCC holding 18.3% and Cyprus-based Nachbar Services holding an additional 14.3%.

As MRC wrote earlier, the bid over Romanian state-owned chemical producer Oltchim was canceled on 1 October 2012. bidder – Romanian television station owner Dan Diaconescu - had not provided documents to prove he had the money to purchase the majority stake.

Romania was hoping to sell Oltchim to a strategic Russian investor, but only two Romanian bidders and the minority Oltchim shareholder PCC showed up at the auction.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating PVC for panels, doors and window frames.
As per MRC, Oltchim at the present does not supply PVC to the Russian market. Insignificant amounts of PVC-S had been delivered from 2005 to 2009 and on average made 1,900 tonnes per year.
MRC

MOSCOW (MRC) -- Dutch chemicals major AkzoNobel announced that Graeme Armstrong will become Managing Director Surface Chemistry and Country Director for North America. Armstrong is currently Executive Committee member responsible for Research, Development, and Innovation (RD&I), said company in its statement.

Armstrong will assume his new responsibilities on April 1 and will work alongside Margevich during the first two months to ensure a smooth transition.

A process to find a successor for Armstrong in RD&I is ongoing. Armstrong will continue his RD&I responsibilities until a successor is announced.

Armstrong joined AkzoNobel in 2008 following the acquisition of ICI, where he led the company’s RD&I function. Prior to joining ICI, Armstrong spent 19 years in the detergents industry for Unilever and JohnsonDiversey.

As MRC wrote earlier, in December 2012, Akzo Nobel sellrd North American paints unit to to US rival PPG Industries for USD1.05 billion. U.S. Deco, as the Akzo Nobel unit is known, was hit hard by the slump in the US construction and housing market, struggling to compete with bigger US rivals, such as PPG and Cleveland-based Sherwin-Williams. Akzo Nobel originally acquired the business as part of its 2008 acquisition of UK chemicals group ICI.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.

MRC

MOSCOW (MRC) --INEOS Europe has entered into 15-years shipping agreements with Evergas for the transportation of ethane into Europe from the US Mariner East project, said INEOS.

Under the agreements, Evergas will build and operate new customised vessels that will be dedicated to the transportation of ethane from Marcus Hook, US to Rafnes, Norway.

These new agreements follow the recent completion of supply and infrastructure agreements by INEOS, to access ethane feedstocks from the US for use in its European cracker complexes and the announcement of the construction of a new ethane tank in Rafnes.

The new vessels, that will enter into service in 2015, are tailored to meet the specific needs of this project and will be built to the latest specifications matching highest environmental and efficiency performance measures.

The shipping agreement with Evergas follows a number of well timed investments by INEOS that will help secure a significant volume of ethane feedstock from the US, for use in its European cracker complexes.

MRC wrote earlier, on 26th September 2012, INEOS Europe announced that it had completed supply agreements with Range Resources for the lifting, of ethane from the Marcus Hook Facility from 2015. At the same time INEOS finalised Pipeline Transportation Services and Terminal Services Agreements for the shipping of ethane from Houston, Pennsylvania, to Marcus Hook, Pennsylvania, with subsidiaries of Sunoco.

On the 4th December 2012 INEOS also confirmed that it will invest in the construction of a new ethane tank at its Rafnes site in Norway. An EPC contract with TGE Gas Engineering for the construction of a new tank and expanded infrastructure has been signed, and the facilities will be commissioned in 2015. Construction work has already started.

The ethane imported from the US will allow INEOS to enhance the competitiveness of its business in world markets and as a consequence, secure the long term future of its sites in Europe.

MRC

MOSCOW (MRC) -- The United States on Wednesday objected to proposed European Union import duties on U.S. ethanol that EU officials said are intended to offset subsidies given to American producers, Reuters.

"We are disappointed in this outcome," said Nkenge Harmon, a spokeswoman for the U.S. Trade Representative's office. "I will add that we have serious concerns about certain procedural and methodological aspects of the investigation."

The European Commission has proposed a rare duty on all U.S. producers of ethanol after an investigation concluded that U.S. exporters sell the fuel to Europe at illegally low prices after receiving subsidies.

The European Union is seeking anti-dumping duties of 9.5 percent on all ethanol coming from the United States. The document proposed that the regulation should be adopted by the member states no later than Feb. 22.

Shipments of ethanol from the United States to the EU are worth more than USD930 million, or EUR700 million, a year.

EPure, a European ethanol industry group, supports the EU proposal. "We think it's effectively representing the fact that European industry has suffered from these cheap imports," a spokeswoman said.

U.S. ethanol industry groups the Renewable Fuels Association and Growth Energy said in a joint statement that ethanol producers and marketers were "outraged" by the proposal.

"Not only does it fly in the face of over 30 years of consistent practice by the European Commission, but it also violates numerous provisions of the World Trade Organization's agreement on anti dumping," it said.

As MRC wrote earlier, INEOS aims to access ethane feedstocks from the US for use in its European cracker complexes and announced the construction of a new ethane tank in Rafnes.


MRC

MOSCOW (MRC) - In 2012, calculated consumption of titanium dioxide by Ukrainian companies fell by 25% on a decline of production from Sumyhimpromom and Crimean Titan, as well as fall of TiO2 purchases in foreign markets, according MRC DataScope.

In 2012, the market capacity of TiO2 in Ukraine fell to 5,660 tonnes, down 25% y-o-y, and reached 16,400 tonnes. With the reduction in consumption in the domestic market, the imports of the material to the country also declined. In 2012 Ukrainian producers of paints, PVC, paper and other sectors of processing imported about 6,500 tonnes of titanium dioxide, which down 9% (650 tonnes respectively) year on year.

Exports of titanium dioxide fell by more than 3,000 tonnes (down 2%) and totaled 16,400 tonnes. Due to the deterioration of the general situation in foreign markets, Ukraine's exports of titanium dioxide decreased to 135,000 tonnes. However, the structure of sales of did not change significantly. The major buyers of Ukrainian titanium dioxide are still Russia, Germany and Turkey.

Amid falling sales of titanium dioxide, both in external and domestic markets in 2012 Ukrainian plants reduced the production by 5.3% (to 8,167 tonnes), compared to the previous year. In 2012, Crimean Titan, based in Armyansk , produced 106,000 tonnes of titanium dioxide, down 2.2% from 2011. Sumykhimprom's production volumes of TiO2 fell by 12.8% to 39,310 tonnes. So, in 2012 the Ukraine's total production of titanium dioxide totaled 145,640 tonnes, from 153,800 tonnes in 2012.

More detailed information on exports and imports of titanium dioxide in Ukraine you can get in MRC DataScope.


MRC