Sadara launches sukuk sale to raise USD1.4 billion for it Jubail chemical complex

MOSCOW (MRC) -- Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical, launched an Islamic bond sale that could raise at least USD1.4 billion to finance a large petrochemical complex, reported Saudi Gazette.

The USD19.3 billion facility, located at Jubail Industrial City, will be the world’s largest chemical complex ever built in a single phase. The first production units are expected to come on line in the second half of 2015, with all production units coming on line in 2016 with the total estimated output to make more than 3 million tonnes of petrochemicals each year.

Sadara may increase the size of the planned sukuk to USD2.5 billion depending on market demand, it said in a prospectus for the sale, adding if the company raises more than USD1.4 billion other sources of financing will be adjusted accordingly.

Pricing of the sukuk, which is only available to Saudi investors, will be determined once roadshows have taken place. The sukuk has a 16-year lifespan, the company said.

The sukuk forms part of a USD12.5 billion debt package currently being raised to fund the construction of the project.

Of the total, USD4.975 billion has been provided by the US Export-Import Bank - the largest direct loan ever given by the agency to a single project.

Deutsche Bank, Riyad Bank, Alinma Bank and Bank Al Bilad have been mandated to arrange the sukuk, the statement said.

Once sold, it will be only the second project finance sukuk ever sold in Saudi Arabia - the first was the SR3.75 billion (USD1 billion) issue in October 2011 from Saudi Aramco Total Refining and Petrochemical Co. (Satorp), a joint venture between Aramco and France’s Total.

The Sadara complex, which will have 26 manufacturing facilities, is claimed to be the world's largest petrochemical facility ever built in a single phase and will manufacture more than three million tonnes of chemical and plastics products.

Earlier, Intertec has won the contract for the environmental protection cabinets and shelters that will protect the field-based process analyzers at the planned Sadara petrochemical complex. The outdoor cabinets will be constructed from high-performance grades of GRP (glass reinforced polyester).
MRC

MOSCOW (MRC) -- CB&I has been awarded a contract by SK gas, South Korea’s largest importer and distributor of liquefied petroleum gas (LPG), for the license and engineering design of a grassroots propane dehydrogenation (PDH) unit to be built in Ulsan, Korea, according to Hydrocarbonprocessing.

The startup of "the largest PDH unit in Korea" is scheduled for 2016, according to Daniel McCarthy, president of CB&I’s technology operating group.

The unit will use the CATOFIN dehydrogenation process from Lummus Technology to produce 600,000 tpy of propylene.

“We are pleased to be able to provide this cost-effective and reliable route to on-purpose propylene to meet SK gas’ plans to expand their product portfolio," said CB&I's president.

We remind that, as MRC informed earlier, in October, 2012, CB&I was awarded a contract by Huating Coal Group for the license, basic engineering and related services for a polypropylene (PP) plant at the Huating industrial development area in China. The plant is to produce the full scope of polypropylene homopolymers, random copolymers and impact copolymers. The 200,000 tpy polypropylene project is expected to start up operations in 2014.
MRC

MOSCOW (MRC) -- SIBUR today announces the appointment of Pavel Malyi, member of the Board of Directors and Chairman of finance committee, as Chief Financial Officer (CFO) of the company, said Sibur in its statement.

Alexey Philippovskiy, Deputy Chairman of the Management Board and current CFO, is stepping down to pursue other interests and will leave the company in June 2013.

Until his departure, Alexey Philippovskiy will retain his position as Deputy Chairman of the Management Board and CFO of SIBUR. During this period Mr Malyi and Mr Philippovskiy will work together to ensure a smooth transition.

Commenting on the appointment of Pavel Malyi as the new Chief Financial Officer, Mr Konov added:
"Pavel has a deep knowledge of the Company and outstanding financial expertise which we are confident will contribute to the Company’s consistently strong financial management and sustainable growth going forward."

Until Mr Philipposkiy’s departure, Mr Malyi will hold the position of CFO Designate in order to ensure a seamless handover of leadership responsibilities. The CFO Designate will play an active role in all financial matters. However, the departing CFO retains the signing authority until he hands over all of his responsibilities and powers to the successor and leaves the Company.

As MRC wrote earlier, SIBUR begun the construction of unit for separating methanol from propane fraction at Tobolsk-Neftekhim. The new unit is the next step in SIBUR’s ongoing achievement to lower the content of methanol in the propane fraction, this time in a range not exceeding 50 parts per million. The new propane gas purification unit will have a projected capacity of up to 2.1 million tonnes per year.

SIBUR is a vertically integrated gas processing and petrochemical company with a business model focused on two key segments. The company holds and manages Russia"s largest associated petroleum gas (APG) assets (according to IHS CERA), dominating the Russian petrochemical market.
MRC

MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, has developed technology to manufacture Kynar PVDF foam structures for wire and cable jacketing and insulation applications, according to the company's press release.

The technology is based on the patent-pending foam concentrate Kynar Flex 2620 FC masterbatch resin.

"By foaming Kynar PVDF, we can demonstrate an improvement in dielectric constant of greater than 50 percent," says Sean Stabler, Arkema’s business development engineer for Kynar PVDF fluoropolymer foams.

The foaming technology and specialized masterbatch has been developed over several years by the R&D group in Arkema’s King of Prussia, PA laboratory. The masterbatch is sold in pellet form, which allows fine-tuning of foaming levels in any conventional extrusion process.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. As MRC reported recently, Moody's Investors Service had upgraded Arkema S.A.'s senior unsecured rating to Baa2 from Baa3. The outlook on the rating was changed to stable from positive.
MRC

MOSCOW (MRC) -- Huhtamaki, the Finnish-based consumer packaging specialist with worldwide operations, will build a moulded fibre egg packaging unit adjacent to its existing packaging facility in the greater Moscow area, according to FoodProduction.

The investment into the new project will make EUR5 million, and the unit is scheduled to start commercial production by the end of 2003.

Employing the company's proprietary Leotech moulded fibre technology, the new facility will bring modern, high quality egg packaging to the rapidly growing Russian supermarket sector.

"The Russian food retail business grew by a double-digit figure last year, and much of this is concentrated around Moscow and other major cities in western Russia," said Hannu Kottonen, Huhtamaki's division president for the Fresh Foods business.

"Because we are building this new operation at the same site as our rigid packaging plant, we will be able to enjoy a variety of economies of scale. The established Ivanteevka operation will provide shared infrastructure and logistical benefits, thus delivering value sooner than a typical green-field project," Kottonen added.

The new unit will concentrate on a narrow range of high-volume premium egg packaging, with complementary products sourced from other Huhtamaki units and technology licensees. This supply network enables the company to start sales and deliveries while the new unit is still under construction. The company already has a specialised fresh foods sales force in Russia.

We remind that, as MRC informed previously, earlier this year, Huhtamaki Oyj's subsidiary Huhtamaki, Inc. has purchased a manufacturing facility in Batavia,Ohio, in the United States to set up a new state of the art manufacturing and distribution unit. With the purchase Huhtamaki continues its series of investments in expanding and strengthening its disposable product offering and capability in the United States.
MRC