BASF appoints new head of Construction Chemicals division

MOSCOW (MRC) -- Effective September 1, 2014, Ralf A. Spettmann, currently Senior Vice President, Pigments & Resins Europe, Ludwigshafen, will become President of the Construction Chemicals operating division headquartered in Ludwigshafen, as per the company's press release.

Spettmann succeeds Dr. Tilman Krauch, who will take up a new position at another company.

As MRC reported previously, in early May 2014, the new Supervisory Board of BASF elected Dr. Jurgen Hambrecht as its new chairman. Hambrecht thus succeeds Dr. h.c. Eggert Voscherau, who took over as chairman following the annual shareholders’ meeting 2009 and who was no longer available for re-election. As vice chairmen, the Supervisory Board elected Michael Diekmann and Robert Oswald, both of whom had previously held this function.

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. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Princeton-based Rockwood Holdings Inc. has completed a $475 million acquisition of the ownership interest to create a joint venture with Sichuan Tianqi Lithium Industries Inc., giving Rockwood a 49%ownership interest in Talison Lithium Pty Ltd, said Njbiz.

"Completing the acquisition of 49 percent in Talison is a significant strategic step as we move forward to position Rockwood Lithium as the premier provider of lithium products to our global customers. We are now uniquely situated with significant and diverse lithium resources in multiple continents, including South America, North America and now Australia. This will assure our customers that we have the ability to meet their fast-growing needs," Seifi Ghasemi, chairman and CEO, said in a statement.

"Additionally, this acquisition drives meaningful shareholder value as it meets all of our key capital allocation criteria that we previously announced. It is the leading spodumene producer with the largest and richest mine operations in the world, accretive from day one and expected to deliver margins well over our 25% target. We look forward to working with our Chinese partner to further develop and grow this excellent resource," Ghasemi said.

According to the announcement, Lazard was Rockwood’s financial advisor and Clifford Chance was its legal advisor.

As MRC wrote before, Huntsman Corp is buying Rockwood Holdings Inc's titanium dioxide pigments business for USD1.1 billion cash, a deal that could mark the start of a long-expected shake-up in the volatile industry. The buyout, which is expected to close by June of next year, will make Huntsman second only to DuPont atop the market for titanium dioxide, a key white pigment used in paint, sunscreen and myriad other consumer goods.

Rockwood Holdings, Inc., a global group of inorganic specialty chemicals and advanced materials businesses with approximately 10,200 employees in more than 20 countries. Rockwood focuses on leadership in niche segments of the specialty chemicals, pigments and additives and advanced materials markets.
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MOSCOW (MRC) - Imports of polyvinyl chloride (PVC) in Kazakhstan increased by 93% to 18,100 tonnes in the first four months of this year, according to MRC DataScope report.
Virgin PVC imports to Kazakhstan grew almost twofold to 6,500 tonnes in April, compared with the March level of 3,800 tonnes. Total PVC imports to the country increased to 18,100 tonnes in January - April 2014, compared with 9,400 tonnes in January - April 2013.

Lower prices in comparison with other PVC producers helped Chinese companies Xinjiang Zhongtai and Xinjiang Tianye to become the only suppliers of the resin to Kazakhstan in recent months.

PVC from Turkey and South Korea has not been delivered in March - April 2014.
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MOSCOW (MRC) -- Domestic South Korean petrochemical companies are struggling to cut their losses by shutting down manufacturing facilities amid the global supply glut, reported Plastemart with reference to businesskorea.co.kr.

Hyundai Cosmo, a subsidiary of Hyundai Oil Bank, is mulling over stopping the production of 800,000 tons of paraxylene (PX) from next month.

"The operation of the second plant, which produces 800,000 tons of PX, is scheduled to be stopped for regular repair and maintenance and energy efficiency enhancement," said the parent company.

However, industry insiders say that the shutdown is due to the recent drop in PX price. Under the circumstances, S-Oil, GS Caltex, and Lotte Chemical have reduced their capacity ratios.

The problem is several new PX production plant start ups - SK Incheon Petrochem and SK Chemicals, both of which are subsidiaries of SK Innovation, will run new facilities from late June with annual capacities of 1.3 million tons and one million tons, respectively.

As MRC wrote before, Samsung Total will add one million tons to its annual production volume from the second half of this year, too. The combined quantity is equivalent to more than half of the domestic PX production volume as of March.

A series of bisphenol A (BPA) production plants are being closed due to a supply glut as well. BPA is a type of engineering plastic for use in automobiles, mobile phones, and electronics appliances.

LG Chem, which had stopped its BPA production lines in Daesan, in February this year, was planning to reopen the plant this month, but has postponed the plan due to adverse market conditions.

"Korean petrochemical corporations expanded their facilities to provide against rising demand in emerging markets such as China, but it has turned out that the demand increase falls short of their previous expectations," an industry watcher explained, continuing, "The slimming down is likely to continue for a while unless demand recovers."
MRC

MOSCOW (MRC) -- Dow Chemical, the largest US chemical maker by sales, is considering the creation of a tax-advantaged partnership for two plants it’s building in Texas to boost returns for investors, reported Hydrocarbonprocessing.

The plants in Freeport, Texas, are slated to produce ethylene and propylene, two petrochemicals that are used to make plastics. They could fit into a master-limited partnership structure, partly because the plants haven't been depreciated, said Howard Ungerleider, Dow’s executive vice president for advanced materials.

"We are actively studying it," he said at Goldman Sachs Group's Basic Materials Conference in New York. "There are issues to be worked through."

The partnerships, also known as MLPs, are common in the pipeline industry and have become increasingly popular with investors as the companies generally don't pay income taxes.

Dow is divesting as much as USD6 billion of low-return assets as Dan Loeb, the activist investor who leads Third Point, pressures the Midland, Michigan-based company to improve earnings from commodity chemicals. The jump in Westlake Chemical shares after its April 29 announcement of a planned ethylene MLP "gives us pause," Ungerleider said.

Interest rates will probably rise, depressing the value of an MLP structure, he said. Having multiple ventures also increases the complexity of strategic decisions, he said.

Air Products, the world’s largest hydrogen producer, probably won't pursue an MLP because it wouldn't add much value for shareholders, chief financial officer Michael Scott Crocco said in a separate session at the conference.

As MRC informed previously, as part of its ongoing commitment to innovation, The Dow Chemical Company announced in March 2014 that a new research and development (R&D) facility will be built in Lake Jackson, Texas, near its largest manufacturing site in Freeport, Texas. The Texas Innovation Center will house state-of-the-art laboratory facilities and technical expertise centers to enable ongoing innovation that supports the commercialization of solutions across the various high-growth end-use markets, such as food packaging, personal care and automotive.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber. In 2012, Dow had annual sales of approximately USD57 billion. The сompanyэs more than 5,000 products are manufactured at 188 sites in 36 countries across the globe.
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