Romanian AdePlast opens PS factory in Oradea

MOSCOW (MRC) -- Romanian construction materials producer AdePlast, owned by businessman Marcel Barbut, has recently opened a new polystyrene factory in Oradea, Romania, following an investment of EUR 3.2 million, according to Romania-insider.

The new plant’s production capacity is 700,000 cubic meters per year. Through the new production facility, the company aims to cover the Eastern and Northeastern part of the country with lower costs, and also to serve customers in Ukraine and the Republic of Moldova.

This is AdePlast’s second polystyrene factory, after the one located in Ploiesti and the company plans to open a third one in Romania this June, according to Marcel Barbut, CEO Adeplast. "The development of the other industrial platforms in Ploiesti and Roman will continue throughout this year, for July we plan the opening of the paint factory in Ploiesti," added Barbut. AdePlast invested a total of EUR 22 million in the three local platforms, at Oradea, Ploiesti and Roman.

By opening the new factory in Oradea, the Romanian manufacturer aims to consolidate its position in neighboring Hungary and in Western Europe, with exports being a development target for the following years. "Bulgaria, the Republic of Moldova, Ukraine, Hungary, Austria, Germany or Lebanon are markets where we will be increasingly more present; in the first four months, we already had a 49% export increase compared to the same period last year," said Marcel Barbut.

AdePlast is owned by Romanian investor Marcel Barbut and was founded in Oradea, in 1994. The company currently has 250 employees across the country. AdePlast now owns two production units, at Oradea and Ploiesti. Their annual capacity reaches 700,000 tonnes of mortar and 800,000 tonnes of tincture, decorative coating and special humid adhesives.

MRC

MOSCOW (MRC) - After February surge Russia's production of finished products made of polymers has been going down since March. April production of polymer products grew only by 2%, according to MRC analysts.

In February 2013 the production of finished products made of polymers in Russia grew by 15%. In March, many Russian companies on the back of the weak demand in the domestic market reduced the production of finished products.

April production of key goods made of polymers (pipes and films) fell to the lowest level, which reflects the current state of the Russian economy. According to the Federal State Statistics Service, the total production of pipes, hoses and fittings made of polymers in Russia in April totalled 48,100 tonnes, which is 2% more than in March.

In January - April of this year the total production of pipes, hoses and fittings made of polymer was 175,000 tonnes, which corresponds to the same period in 2012. The output of polymer non-reinforced and combined films rose in April by 3.5% compared to the same period last year and amounted to 77,100 tonnes.

Over the four months of this year, the total production of these products made 260,000 tonnes.

Unusually high rates of output were seen in the construction sector, in particular the production of plastic windows, window sills, doors, especially considering that the entire construction sector this year shows a negative trend.
The production of plastic windows with boxes and window sills in April of this year was 2.2 million sqm, which is 30% more than in March.

The production of doors and boxes made from polymers has grown by 31% and amounted to 124,600 sqm. Over the January - April of this year the total production of plastic windows and sills , as well as doors totalled 6.1 mln sqm and 233,000 sqm, respectively, up 13% and 7% compared with the same period last year.

According to market participants, the increase in output resulted from the expansion of the calculated base, rather than the improvement in the sector of profile-moulded PVC products.

MRC

MOSCOW (MRC) -- Ufaorgsintez (part of "Bashneft"), Russia's largest petrochemical company, resumed polypropylene (PP) production after a weekly shutdown for maintenance, according to MRC analytics.

On Sunday, 12 May, the company stopped its PP production for a scheduled turnaround. Initially the maintenance works were to last for two weeks, but company's employees managed to complete them within a week's time. PP production was resumed on Monday, 20 May.

The annual capacity of PP unit is 100,000 tonnes. Over the first four months of the year, Ufaorgsintez produced about 43,000 thousand tonnes of polypropylene.

As reported, at night, 26 April, Ufaorgsintez shut its production of low-density polyethylene (LDPE) and PP due to a power failure. Repair works lasted 2 days.

A scheduled turnaround at LDPE production is planned for September this year.

OAO "Ufaorgsintez" (part of "Bashneft") specializes in the production of petrochemical products, plastics and synthetic rubber in primary forms.
MRC

MOSCOW (MRC) -- By late May, a price rise of feedstocks and limited supply had led to a major increase in the price of dioctyl phthalate plasticizer (DOP) in the Russian market - by as much as Rb80,500/tonne, according to MRC analysts.

Some market participants do not rule out further price increases.

In late April, Gazprom neftekhim Salavat shut its DOP plasticizer production for a turnaround. In May, the price of one of the feedstocks for DOP production - 2-ethylhexanol - increased by Rb7,000/tonne from April. All these factors have resulted in a serious increase in the price of DOP plasticizer in the Russian market.

By late May, spot prices for Russian DOP plasticizer had reached Rb79,000-80,500/tonne, including VAT and delivery. The limited supply of Russian plasticizer made some companies actively buy imported material. Deals for June shipments of Korean DOP were concluded in the range of Rb81,000-82,000/tonne, including VAT and delivery.

According to unofficial information, one of the Russian producers of alcohol DEG is planning to raise the price for June shipments by Rb7,000/tonne, which will result in an increase in DOP production costs by Rb5,000/tonne.

Many market participants are skeptical about further price increases of the plasticizer. On the one hand, after a monthly turnaround, Gazprom neftekhim Salavat is already planning first shipments of DOP next week, which should take the pressure off the market. On the other hand, the price of Russian DOP has already caught up with the price of imported alternative material, and the further growth of the Russian material will provoke a major increase in imports.
MRC

MOSCOW (MRC) -- A three-fold increase in the excise duty on beer will hit the largest consumption market of PET granulate and adveserly affect the production of PET preforms in the country, according to MRC analysts.

As reported previously, Ukraine's Ministry of Income proposes to increase the rates of the excise duty on beer almost three-fold - from UAH0.87/liter to UAH2.43/liter. This innovation is provided for by the draft law "On Amendments to the Tax Code and other legislative acts."

According to MRC analytics, more than 50% of beer produced in Ukraine are poured in PET bottles. According to the State Statistics Service of Ukraine, in 2012, the country produced 300.5 mln decaliters of beer. Given this index, the share of the beer market accounts for more than 90,000 tonnes of recycled PET granulate in the country. This is equivalent to more than 55% of PET market capacity in Ukraine.

As per Russia's experience, a rapid increase in excise duties on beer will reduce the consumption of the product and market stagnation. The other day, Carlsberg Ukraine's CEO Pyotr Chernyshev also said in his interview to Interfax that in the case of increase in the excise duty on beer in Ukraine, Carlsberg do not rule out the possibility of closing one of the plants in Ukraine.
MRC