BASF to divest liquid masterbatch business to Audia International

MOSCOW (MRC) -- BASF signed a contract to divest its liquid masterbatch business in Clermont de l’Oise, France, to Audia International, a large global supplier of polyolefins and color masterbatches, said the producer in its press release.

The transaction is expected to close in mid 2014. The parties have agreed not to disclose financial details of the agreement.

BASF will concentrate on its business with solid and powder masterbatches, produced in Cologne, Germany. For BASF, the liquid masterbatches are a niche business and not part of its future focus.

For Audia, this acquisition of the liquid masterbatch business is very strategic and represents an exciting expansion in technology, markets, and geography, complementing its major entry into the European market over the past seven years. The liquid masterbatch business will be run as part of Audia’s subsidiary, Uniform Color Company, a leading global supplier of masterbatches, with facilities in North America and Europe.

As MRC wrote previously, last year BASF presented its innovative solutions for energy-efficient and low-maintenance construction in Russia. The company's new wide-range construction portfolio is aimed to increase energy efficiency in buildings and enhance durability and, thus, reduce repair and maintenance costs.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals.

Audia International is a privately held company focused on plastic compounding, color solutions, and distribution. The Audia International companies currently have 10 manufacturing locations and over 1,000 employees in North America and Europe and are doing business in over 50 countries, across broad market platforms including Automotive, Appliance, Construction, Packaging and Consumer.
MRC

MOSCOW (MRC) -- China’s Sinopec is to sell up to 30% of its oil product marketing business as it seeks to restructure the segment, said Upstreamonline.

The refinery giant’s board has approved the measure and given the go-ahead for the sale of stakes to "social and private investors", it said in a statement to the Hong Kong Stock Exchange on Wednesday.

The board agreed to restructure Sinopec’s oil product marketing segment based on the results of the audits and valuation to be conducted on the current assets and liabilities of this segment, the statement read.

It also agreed to diversify the ownership of this segment by way of introducing social and private capital investment.

"The shareholding percentage for social and private investors will be determined according to the market conditions."

The percentage of shares to be sold will not, however, exceed 30%.

As MRC informed previously, in late 2012, Sibur, a Russian gas processing and petrochemicals company, and Sinopec International (Hong Kong) Co. Ltd, the wholly owned subsidiary of Sinopec, signed an agreement that will see Sinopec purchase 25% + 1 share of Krasnoyarsk Synthetic Rubbers Plant JSC (KSRP). Sibur and Sinopec are also discussing projects on setting up a joint venture to produce nitrile and polyisoprene rubbers in Shanghai.

Sinopec Corp. is one of the largest scale integrated energy and chemical companies with upstream, midstream and downstream operations. Its refining and ethylene capacity ranks No.2 and No.4 globally. The Company has 30,000 sales and distribution networks of oil products and chemical products, its service stations are now ranked third largest in the world.
MRC

MOSCOW (MRC) - The output of polymer products in Russia dropped by 6% in January 2014, compared with January 2013, according to MRC.

The same index in January 2013 decreased by 19.7% from January 2012.

The greatest reduction in output occurred for the sector pipes, hoses fittings, sheets and plates. According to the Federal State Statistics Service, the January production of plastic pipes, hoses and fittings decreased to 26,300 tonnes against 37,700 tonnes in January 2013 (42,300 tonnes in December 2013).

January production of porous plates and sheets fell to 14,800 tonnes, from 19,600 tonnes in the same month last year (17,600 tonnes in December 2013).

Production of noncombined and reinforced films in January 2014 was about 49,200 tonnes, compared 47,000 tonnes in January 2013 (66,000 tonnes in December 2013).

January production of plastic windows and window boxes and sills increased to 1.2 million square meters, compared to 993,000 square meters in January 2013 (1.7 million square meters in December 2013).

January output of doors and door boxes was about 43,100 square meters, down 9.1% from January 2013 (73,600 square meters in December 2013).

January production of polymer bottles and flasks rose to 917 million units against 902 million units in January 2013 (1.1 billion units in December 2013).
MRC

MOSCOW (MRC) - January production of mineral water and beer in Russia decreased by 1.5% and 1.1%, compared with January in 2013, according to Rosstat.

Total Russia's production of beer and beer-based drinks was 39.1 million decaliters in January 2014, down 44.8% from the level in December 2013.

Russia's production of mineral waters in January 2014 was 702 million half-liters, down 17.4% from the December level.

January decline in production is traditional for the market. The decrease of January production was insignificant compared with January 2013 level and was close to a statistical discrepancy.

Market players expect buying activity to improve in the coming months, helped by oncoming season. Weak production of beer producers and bottlers resulted in a decrease of PET chips consumption. Converters reported a weak demand in the finished products market.

As previously reported, according to MRC DataScope MRC, Russia's imports of PET in January reached a record high level of 25,500 tonnes. Because of strong imports and weak demand in the preforms market Russian companies reduced their activity in the spot PET market.
MRC

MOSCOW (MRC) - Demand for polystyrene (PS) and styrene plastics in Ukraine grew to 3,400 tonnes in January 2014, up 25% from January 2013, according to MRC Monthly Report.

Buying activity in PS market increased in January because converters aimed to build up their inventories anticipating price rise in the foreign markets and a sharp devaluation of the hryvnia.

Many companies said despite the decline in the activity in the market of finished goods they feared a rise in PS prices, that is why they had increased their purchases.

Because of strong demand in the domestic market in January, Stirol shipped general purpose polystyrene (GPPS) practically to the domestic market only. Sources at the plant also reported a strong demand for Ukrainian expandable polystyrene (EPS) and GPPS this year. However, the producer did not meet the demand because of emty stock inventories and low production rates.

As reported previously, January imports of polystyrene and styrene plastics to Ukraine was 3,100 tonnes, down 2% from January 2013.
However, imports of expandable polystyrene (EPS), on the contrary, increased to 1,100 tonnes in January 2014, down 81% from January 2013.

Demand for polystyrene and styrene plastics will improve in the coming months, helped by the seasonal increase in activity and production rates.



MRC