A. Schulman third-quarter profit falls 69%

MOSCOW (MRC) -- A. Schulman Inc. fiscal third-quarter earnings fell 69% amid continued sluggishness in European markets and higher-than-expected costs in Latin America, where the company has been consolidating its Brazilian operations, said Marketwatch.

Chairman and Chief Executive Joseph M. Gingo said, "The challenges we experienced in the third quarter in Latin America are temporary and not systemic in nature."

The maker of plastic compounds, which supplies a wide swath of markets such as packaging, construction, electronics and personal care, had been hurt in recent quarters by its heavy exposure to Europe's economy. Since 2010, the company has executed a series of cost-cutting programs in Europe as demand has waned.

During May, A. Schulman said it would expand its restructuring plans in its Europe, Middle East and Africa region--including job cuts. The company at the time also made efforts to sell its its rotational compounding business in Brisbane, Australia. The company also has been consolidating two plants in Brazil into one new plant, efforts that resulted in greater-than-expected costs and disruptions in the latest period.

As MRC wrote earlier, A. Schulman Inc.fiscal second-quarter earnings rose 30% with a boost from a tax benefit, though the company said it was continuing restructuring efforts in Europe to address weakening market trends and was initiating consolidation efforts in Brazil.

A. Schulman is a global plastics supplier, headquartered in Akron, Ohio, and a leading international supplier of high-performance plastic compounds and resins, which are used as raw materials in a variety of markets. A. Schulman has 33 manufacturing facilities globally. It reported net sales of USD2.2 billion for the fiscal year ended August 31, 2011.
MRC

MOSCOW (MRC) -- INEOS plans to build a new 350,000 tpy linear alpha olefins plant in the US Gulf Coast region, the company announced at its site.

The project is targeted for completion by the end of 2016. Beyond then, it could be expanded by an additional 50%, said Bob Learman, CEO of INEOS Oligomers. Ultimately, the capacity could reach over 500,000 tpy, he added.

"INEOS Group already has a significant footprint on the GUlf so we have ready access to key resources," said Learman. "We have been working on this project for the past year and it is now ready to scale up for a new phase of activity."

The company’s focus on polyethylene comonomers and polyalphaolefins and its access to cheaper ethylene makes the project a "very attractive opportunity", said Joe Walton, business director at INEOS Oligomers.

INEOS is also considering an expansion at its Joffre facility in Alberta, Canada, where it is working to raise linear alpha olefins capacity by 10%.

That project is expected to be completed by the end of the 2014 first quarter.

"The global demand for lubricants has been impacted by the current difficult conditions in both the European and Asian automotive sectors" said Walton. "Despite this backdrop, our [poly alpha olefins] business has been quite resilient. It will continue to benefit from lubricant reformulation activity to attain better fuel economy and to lower carbon emissions".

"INEOS Oligomers is the world’s largest merchant supplier of PAO and our investment plans will ensure we maintain this positio," he added.

As MRC wrote before, Ineos formed PVC joint venture with Solvay. Two of European biggest chemical companies have agreed a joint venture that will create one of the worldпїЅs largest producers of PVC plastics by revenues. Solvay, the Franco-Belgian chemicals company, will pool its European business that creates chlorvinyls - the base materials for PVC plastics with that of privately owned rival Ineos Group , in a move that will eventually result in the Anglo-Swiss company taking full control of the joint venture.

INEOS is a global manufacturer of petrochemicals, speciality chemicals and oil products. It comprises 15 businesses each with a major chemical company heritage. Its production network spans 51 manufacturing facilities in 11 countries throughout the world.

MRC

MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, announced today that it has closed an agreement with TOTAL to acquire its majority interest of 56.86% in Rosier SA, said Boreaslis.

Rosier - is a mineral fertilizer manufacturer with two production facilities (Moustier in Belgium and Sas van Gent in the Netherlands) and markets its products in more than 80 countries worldwide. Rosier generated sales of EUR278 million in 2012.

Borealis has offered EUR 192 per share for TOTAL’s majority interest. On the same date, Borealis also completed the acquisition of GPN SA. GPN SA is France’s largest nitrogen fertilizer manufacturer. Borealis is already active in nitrogen fertilizers in Central Europe, as well as in France following its acquisition of PEC-Rhin SA, today known as Borealis PEC-Rhin SAS, in early 2012.

"These acquisitions are in line with our strategy to grow our fertilizer business, to keep our number 1 position in Central and Eastern Europe and to become a leading producer in Europe", says Mark Garrett, Borealis Chief Executive. "|We believe that fertilizers in Europe are an economically sustainable and attractive area of activity and we are committed to invest in the assets to ensure reliable production and customer service. We are happy to welcome our new colleagues in France, Belgium and the Netherlands to the Borealis Group and are looking forward to a successful cooperation."

As Borealis acquired the 56.86% interest in Rosier, it will be required to launch a mandatory public takeover bid for the remaining outstanding shares.

As MRC wrote before, Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals, announced that it has acquired DEXPlastomers VOF in Geleen, The Netherlands, from DSM Nederland BV and ExxonMobil Benelux Holdings BV.
MRC

MOSCOW (MRC) - Negotiations on European polypropylene (PP) prices for July have begun for CIS markets this week. Some European producers announced price increases, others are planning to keep the June prices for July, according to ICIS-MRC Price Report.

The contract price of propylene in Europe for July deliveries was agreed at the level of June. Though the price of propylene were left at the roll over from June, some European producers aimed to increase PP prices by EUR20/tonne, citing limited export quotas.

Other the European producers keep their PP prices for July at the level of June. At the same time, export PP prices were increased only by those producers who offer PP in June in the lower price range.

In general, the deals for the supply of European PP this week were discussed at the range of EUR1,170-1,210/tonne FCA, for homopolymer PP.

Deals for copolymers of propylene were voiced in the range of EUR1,220-1,300/tonne FCA. In June, the European PP prices for CIS markets were in the range of EUR1,150-1,210/tonne FCA, for homopolymer PP.
MRC