Sipchem Q2 net profit jumps 41% - sales, margins rise

MOSCOW (MRC) -- Saudi International Petrochemical Co (Sipchem) beat analysts’ forecasts with rises in profit margins and sales on Sunday as second-quarter net profit jumped 41%, said Gulfnews.

Sipchem made a profit of 244.6 million riyals (USD65.3 million) in the three months to June 30, up from 174.0 million riyals in the prior-year period, according to a bourse filing.

Five analysts polled by Reuters had on average forecast Sipchem’s quarterly profit would be 176.8 million riyals.

As MRC wrote before, Sipchem and Sahara Petrochemicals Co. put on hold a planned merger that would have created a Saudi Arabian chemicals company with about USD5.8 billion in market value. The companies said it would be difficult to proceed with the merger using a structure acceptable to both sides under the current regulatory framework.

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC

MOSCOW (MRC) -- European vinyl sheet and profiles extruder Profine Group has just completed expansion of its PVC-U window profiles production facility at Voskresensk in Russia, said the producer in its press release.

Troisdorf, Germany-based Profine formally launched a new 26,000tpa mixing plant last month, the second unit at what is today the company’s largest manufacturing site outside Germany.

The window and doors extruder, a pioneer in Russia, has been operating in the country under the KBE brand for around 20 years and has established a leading market position. It now operates two plants, in Voskresensk, near Moscow and in Khabarovsk in the Russian Far East.

Profine has another plant in the Ukraine at Zaporozhie, as well as two facilities in Pirmasens and Berlin, Germany. Elsewhere, it operates other manufacturing units in France, Italy, Spain, China, India and the US.

The group, with annual turnover of EUR700m, employs a global workforce of 3,000 and has an overall profiles capacity of 450,000tpa.

profine GmbH manufactures and distributes PVC-U profiles for windows, doors, shutters, and facades. The company’s products include window systems, residential door systems, shutter systems, and PVC sheets. It serves customers in various markets, such as Europe, Asia, Africa, North America, South America, and Oceania. The company was founded in 2003 and is based in Troisdorf, Germany with production sites in Berlin and Pirmasens, Germany; Marmoutier, France; Bosaro, Italy; Madrid, Spain; Woskresensk and Chabarovsk, Russian Federation; Zaporozhie, Ukraine; Tianjin, China; and Huntsville, Alabama. profine GmbH operates as a subsidiary of HT TROPLAST GmbH.
MRC

MOSCOW (MRC) - Ukraine's imports of acrylic-butadiene-styrene (ABS) remained steady in the first six months of the year, compared with the same time in 2013, despite the general instability in the country and the slowdown in economy, according to MRC DataScope report.

Total imports of ABS in Ukraine were 1,650 tonnes in January-June 2014, which was equal to the last year figures.
At the same time, according to Ukrstat data processing industry decreased by 7.2% in January-May 2014, compared with the same time a year earlier.

ABS in Ukraine is mainly processed by injection moulding. The main consumers of injection moulding ABS in Ukraine are producers of electrical goods.The share of electrical goods occurred for about 84% of recycled polymer in the country.

The rest volumes of ABS are used in the production of car components and other sectors. Key suppliers of imported ABS in Ukraine over the reported period were such brands as Starex SD-0150 and HG-0760GP by Samsung Cheil Industries production, as well as the HF380 from LG Chem.
MRC

MOSCOW (MRC) -- Ufaorgsintez, owned by United Petrochemical Company, has announced an adjustment in its contract prices of low density polyethylene (LDPE) and polypropylene (PP) for shipments from 15 July 2014, according to ICIS-MRC Price report.

The company raised its contract LDPE prices by Rb1,000-1,500/tonne, depending on the grade, from the price level as of 1 July 2014. PP prices grew by Rb2,000-3,000/tonne. Thus, prices of homopolymer of propylene (homopolymer PP) rose by Rb2,800-3,000/tonne, whereas prices of block copolymers of propylene (PP-impact) and statistical copolymers of propylene (PP-random) rose Rb2,000/tonne and Rb2,3,000/tonne, respectively.

Increases in contract polyolefins prices were caused by higher feedstock prices, strong demand and an upcoming outage for a long-term turnaround. As reported earlier, the shutdown is scheduled to be held in two phases. The first phase includes the outage at the plant's LDPE production (158 and 153 grades) and the whole PP complex for 30 days from 15 August 2014. The remained LDPE production will be shut down for 30 days from 1 September (108 grade PE).

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. The company was incorporated in 1984. Ufaorgsintez produced about 44,000 tonnes of PE and 64,100 tonnes of PP over the first six months of 2014.

United Petrochemical Company owns 87.76% of Ufaorgsintez's capital. Bashneft sold Ufaorgsintez to United Petrochemical Company in May 2013.
MRC

MOSCOW (MRC) -- Eastman Chemical Company is increasing prices of a range of its products on 1 August, or as contracts allow, reported the company on its site.

Thus, prices will be increased for the following products, as mentioned below:

- EASTMAN ISOPROPYL ACETATE: offlist price increase of USD 0.04/lb (USD 0.09/kg) globa;
- EASTMAN N-PROPYL ACETATE: offlist price increase of USD 0.04/lb (USD 0.09/kg) globally;
- EASTMAN N-PROPYL ALCOHOL: offlist price increase of USD 0.04/lb (USD 0.09/kg) globally;
- EASTMAN ISOBUTYL ACETATE: offlist price increase of USD 0.04/lb (USD 0.09/kg) globally;
- EASTMAN DB SOLVENT, ALL GRADES: list price increase of USD 0.05/lb (USD 0.11/kg) globally, offlist price increase of USD 0.05/lb (USD 0.11/kg) globally;
- EASTMAN DB ACETATE: list price increase of USD 0.05/lb (USD 0.11/kg) globally, offlist price increase of USD 0.05/lb (USD 0.11/kg) globally;
- EASTMAN EB SOLVENT, ALL GRADES: offlist price increase of USD 0.05/lb (USD 0.11/kg) globally;
- EASTMAN EB ACETATE: list price increase of USD 0.05/lb (USD 0.11/kg) globally, offlist price increase of USD 0.05/lb (USD 0.11/kg) globally.

As MRC wrote previously, earlier this year, Eastman Chemical Company, a global specialty chemical company, enhanced its medical packaging portfolio with Eastalite copolyester, the company’s first opaque offering, which is styrene-free and can be a sustainable alternative to high-impact polystyrene (HIPS).

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC