Marubeni Corporation announces long-term off-take agreement for polypropylene and sulfur in Vietnam

MOSCOW (MRC) -- Marubeni Corporation has concluded an off-take agreement with Nghi Son Refinery and Petrochemical Limited Liability Company, the operator of the Nghi Son Refinery & Chemical Complex in Vietnam, for its products, namely polypropylene and sulfur, said Your Petrochemical News.

Idemitsu-Kosan Co., Ltd, one of the largest oil refineries and distribution companies in Japan, Mitsui Chemicals, Inc., a major Japanese petrochemical company, Kuwait Petroleum International and PetroVietnam are expected to start construction of the complex and aim to begin commercial production in 2017.

Polypropylene, polymerized propylene which is processed from heavy oil recovered from the oil refining process in the complex, is one of the commodity plastics widely used in daily household goods and industrial materials. Marubeni will off-take a certain portion of annual production (370,000MT) for the long-term period to distribute mainly within the Vietnamese domestic market and export partially. Marubeni is the only non-shareholding company selected as off-taker of petrochemical products from Nghi Son Refinery & Chemical Complex for its well-established polypropylene import sales and propylene handling records in Vietnam.

Sulfur is processed into sulfuric acid and used for fertilizer production and metal leaching. Marubeni will off-take over half of the annual production for the long-term period to distribute domestically in Vietnam and also export to neighboring countries where rapid demand increase is expected.

Marubeni is delighted to be a support of the first Japanese-owned refinery & chemical complex located outside of Japan in terms of stable operations by committing to long-term off-taking and is willing to continue its contribution to the emerging Vietnamese economy for further development.
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MOSCOW (MRC) -- Marubeni Corporation has reached an agreement with other parties to participate in Laffan Refinery Company Limited 2, which will be incorporated in the near future by the purchase of 1% of its shares, and signed a Joint Venture Agreement on April 21, 2013, said Your Petrochemical News.

The other participating parties are Qatar Petroleum, Total S.A., Idemitsu Kosan Co., Ltd., Cosmo Oil Co., Ltd. and Mitsui & Co., Ltd.

Marubeni has a 4.5% stake in Laffan Refinery Company Limited, which owns a condensate refinery in Ras Laffan Industrial City with a refining capacity of 146,000 barrels per day that has been in operation since 2009. The LR2 condensate refinery is the same size as LR1, and the commencement of commercial operations is expected in the second half of 2016. The total project cost is estimated to be approximately USD1.5 billion.

As with LR1, LR2 will produce naphtha, kerojet fuel, gasoil and LPG by refining the condensate produced from Qatar North Field, which is the largest single natural gas field in the world. The gasoil from the refinery will be treated by a diesel hydro treater to produce more eco-friendly and value-added products. It is expected that there will be synergy between LR1 and LR2 as both projects will share certain facilities with each other.

In addition to LR1 and LR2, Marubeni has been doing a lot of business in the State of Qatar, including LNG projects. Through this new project, we intend to expand our natural resource business and also would like to reinforce the strong longstanding relationship with QP and the State of Qatar.

As MRC wrote before, Rosneft and Marubeni Corporation signed Memorandum of Cooperation in LNG project implementation and joint exploration and development of oil and gas fields.
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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.
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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.

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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.
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