Honeywell to supply process control systems for Kirishi refinery in Russia

MOSCOW (MRC) -- OOO Kirishinefteorgsintez selected Honeywell to supply its experion process knowledge system (PKS) and advanced alarm manager system at the company’s refinery in Kirishi, in the Leningrad region of Russia, officials said on Tuesday, reported Hydrocarbonprocessing.

OOO Kirishinefteorgsintez said it chose to install Experion PKS as part of the upgrade process to its gas fractionating unit’s compressor block and the crude distillation unit.

Experion PKS will help to optimize production processes by providing the tight integration of production subsystems as well as safety, industrial security and advanced control systems, enabling plant operators to work more effectively and make more informed decisions, the company said.

"Honeywell’s Experion PKS solution enabled us to realize the benefits of these solutions and ensure we were able to rise to the challenge of automating our process units," he added.

Kirishinefteorgsintez is the only refinery in the North-West of Russia, which makes all kinds of fuel, a wide range of petrochemicals, including polystyrene (PS). The project processing capacity of the plant is 19.8 million tpa of oil. The company is a part of Surgutneftegas. We remind that, as MRC reported earlier, Kirishinefteorgsintez remained its PS prices for February at the level of January.
MRC

MOSCOW (MRC) -- Poliom (Titan Group), Omsk, has launched a new 180,000 tonnes/year production of polypropylene (PP) on 11, February, according to MRC analysts.

The construction of a new plant in Omsk had begun in 2005, the commissioning was scheduled for the second half of 2011. But, due to several reasons, including financing, the terms of the project was shifted and the launch took place only on 11, February 2013.

Poliom (Titan Group) is a fifth Russia's polypropylene production. Poliom choose LyondellBasell' technology "Spheripol", which provides production of 78 grades of polypropylene. Thus, the total capacity of the Russian producers rose to 860, 000 tonnes/year.

Russia's largest producer of polypropylene is Nizhnekamskneftekhim with an annual capacity of 220,000 tonnes. The second largest producer is Tomskneftekhim (Sibur Group) with annual capacity of 140,000 tonnes. Stavrolen (Lukoil Group) with capacity of 120,000 tonnes/year is in the third place. Ufaorgsintez and Neftekhimiya have the capacity of 100,000 tonnes/year.

In 2011, Russian producers made about 677,000 tonnes of polypropylene. Last year due to Stavrolen's stoppage the total output declined to 660,000 tonnes.

Another Russian production of PP is expected to be launched soon in Tobolsk. Tobolsk-Polymer (Sibur Group) has officially announced the start of 500,000 tonnes/year production in the beginning of April. New production will use the technology of INEOS.

Given the start of production in Tobolsk, by mid-2013 the total production capacity of polypropylene in Russia will amount to 1.36 m tonnes.

MRC

MOSCOW (MRC) -- Wacker Chemie AG generated lower sales and earnings in 2012 than in the prior year, according to the company's press release.

According to preliminary calculations, the Munich-based chemical group achieved total sales of EUR4.63 billion in 2012 (2011: EUR4.91 billion), almost 6% below the prior-year figure.

The decline is chiefly due to lower prices for polysilicon and semiconductor wafers. Altogether, price effects reduced 2012’s consolidated sales by EUR700 million, or by over 14%. The chemical divisions, in contrast, actually increased their sales performance by 5% overall, with higher volumes and positive exchange-rate effects offsetting the impact of price competition.

Based on preliminary figures, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to around EUR787 million (2011: EUR1.1 billion), down 29% year over year. Earnings before interest and taxes (EBIT) in 2012 reached EUR258 million (2011: EUR603 million) according to preliminary calculations. The WACKER Group’s net income for 2012 amounts to EUR107 million (2011: EUR356 million).

The earnings decline is mostly due to the overcapacities affecting the photovoltaic industry.

WACKER’s capital expenditures amounted to some EUR1.1 billion in 2012 (2011: EUR981 million) according to preliminary figures. The major part of investments was dedicated to new facilities for producing hyperpure polysilicon. Additional funds flowed into the expansion of production capacities for polymer dispersions and polyvinyl acetate solid resins in China and South Korea.

During Q4 2012, the WACKER Group’s business was shaped by the usual seasonal influences and by persistent price pressure on polysilicon and semiconductor wafers. In total, Group sales from October through December 2012 amounted to EUR1.02 billion (Q4 2011: EUR1.01 billion). Sales were thus in line with the previous year’s level. The Group’s fourth-quarter EBITDA reached EUR130 million, an increase of about 17% year over year (Q4 2011: EUR111 million).

During the first four weeks of 2013, there have been no improvements in the conditions underlying semiconductor-wafer business. Taking into account the normal seasonal effects occurring in their business during the winter months, WACKER’s chemical divisions are reporting continued strong demand.

The Q4 and fiscal 2012 figures and forecasts in this press release are preliminary. Wacker Chemie AG will publish its Q4 Report and Annual Report 2012 on March 14, 2013.

We remind that, as MRC informed earlier, Wacker Chemie had officially launched its new production plant for vinyl acetate-ethylene copolymer (VAE) dispersions at its Ulsan site in South Korea. Wacker already produces EМФ dispersions of the Vinnapas brand in South Korea for the adhesives industry. This expansion will almost double company's Ulsan EVA dispersion capacity, making the enlarged production complex one of the biggest of its kind in South Korea. The company considers the expansion to be essential for reliably and enduringly meeting the market growth that industry experts anticipate in the region and thus strengthens its position as one of the world’s major suppliers of EVA dispersions.
MRC

MOSCOW (MRC) -- DuPont has announced the completion of the sale of DuPont Performance Coatings (DPC) for USD4.9 billion in cash (about USD4.0 billion after-tax) and the assumption of certain liabilities to global alternative asset manager The Carlyle Group, according to the company's press release.

"We intend to use a portion of the proceeds from the sale of the DPC business to buy back USD1 billion of the company’s common stock during the first half of this year," said Executive Vice President and Chief Financial Officer Nicholas C. Fanandakis. "Additionally, we anticipate using the remaining portion of the DPC sale proceeds to further strengthen our balance sheet, which should give us flexibility to invest in future selective growth opportunities."

DuPont remains committed to serving the automotive industry. The company said it would still generate more than USD3 billion through sales of advanced materials to the auto industry. As part of the transaction, Carlyle will assume USD250 million of DuPont's unfunded pension liabilities, as MRC reported earlier.

DuPont's performance coatings business primarily sells to auto paint refinishers. Ford Motor Co. and General Motors Co. are also key customers.
MRC

MOSCOW (MRC) -- Wacker Chemie AG officially launched its new production plant for vinyl acetate-ethylene copolymer (VAE) dispersions at its Ulsan site in South Korea, said Plastemart.

The additional 40,000 metric tons from the second reactor line increases the site's VAE-dispersion capacity to a total of 90,000 tpa. The production capacity of the site has thus almost doubled, making the plant complex one of the biggest of its kind in South Korea. The expansion is WACKER's response to the rising demand for high-quality VAE dispersions, especially in Southeast Asia's emerging markets.

The project goal is to ensure sufficient capacities of VINNAPAS VAE dispersions now and in the years ahead. As a result, ERWACK will be able to offer its customers in the region consistently high product quality and supply security over the long term. Having invested around EUR10 million in the expansion project, WACKER is strengthening its position as one of the world's major suppliers of VAE dispersions. WACKER's production facility in Ulsan: With a total annual capacity of 90,000 tons VAE dispersion, the plant complex is one of the biggest of its kind in South Korea.

As MRC wrote earlier, The Munich-based chemical group, Wacker Chemie AG, is building a new plant with an annual capacity of 40,000 metric tonnes at its site in Ulsan, South Korea. The new facility is aimed to produce vinyl acetate-ethylene copolymer (EVA) dispersions for applications in the paints and coatings, construction, nonwoven, paper and carpet industries.

Wacker already produces VAE dispersions of the Vinnapas brand in South Korea for the adhesives industry. This expansion will almost double company's Ulsan EVA dispersion capacity, making the enlarged production complex one of the biggest of its kind in South Korea. The company considers the expansion to be essential for reliably and enduringly meeting the market growth that industry experts anticipate in the region and thus strengthens its position as one of the world’s major suppliers of EVA dispersions.
MRC