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MOSCOW (MRC) -- The Dow Chemical Company has announced an increased divestiture target aligned to further enhance the value of its portfolio and support the company’s market-driven, integrated strategy, reported the company on its site.
On track to complete its goal of realizing USD4.5 billion to USD6 billion in proceeds by year-end 2015, and with additional portfolio management actions underway, Dow is now increasing its divestiture target to USD7 billion to USD8.5 billion to be complete by mid-2016. Since 2013, the company has generated USD2.5 billion in proceeds, reallocating this capital to remunerate shareholders, fund growth and reduce debt.
"As part of our ongoing process to drive value through a best owner mindset and using economic value add as our lens, we are consistently looking across our portfolio to identify additional sources of long-term value creation and maximize the returns on the capital we invest," said Andrew N. Liveris, chairman and chief executive officer. "Our focus on continuously and increasingly rewarding shareholders is at the core of every decision and action we take."
Dow continues to assess opportunities to enhance the value created across its portfolio, including rationalizing its position in major joint ventures and divesting Dow businesses that, while valuable, no longer align with Dow's integration strategy.
In line with this strategy, and as MRC wrote earlier, Dow plans to reduce its equity position in all of its Kuwait joint ventures, which will release capital for other strategic purposes including shareholder remuneration. The company also announced the signing of a definitive agreement for the divestiture of its ANGUS Chemical business for USD1.215 billion in net proceeds.
The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC
Dow increases divestiture target to USD7-8.5 billion by mid-2016
Ufaorgsintez increased PE and PP prices
Clients of the company said prices for 108 and 158 PE rose by Rb500/tonne and Rb200/tonne, respectively, compared with the level at 1, November. Price for LDPE for shrinkable films production was not changed.
Prices for homopolymer PP of raffia grade and injection moulding homopolymer PP increased by Rb1,500/tonne and Rb2,000/tonne, respectively, compared with the level at the beginning of the month. Contract prices for PP block copolymers grew by Rb800-1000/tonne
A week earlier, SIBUR, parent group of Tomskneftekhim, Neftekhimiya , Tobolsk-Polymer and Poliom, increased contract prices for LDPE and and homopolymer PP by Rb1,000/tonne.
Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. As of January 22, 2010, Ufaorgsintez OAO operates as a subsidiary of Bashneft Joint Stock Oil Company. "United Petrochemical Company" (UPC) owns 87.76% of Ufaorgsintez"s registered capital. Bashneft sold Ufaorgsintez"s stake to UPC in May 2013. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, polyvinyl chloride and polyethylene items, thinners, and dilutants. The plant"s annual polypropylene (PP) production capacity is 100,000 tonnes.
Ufaorgsintez JSC 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. Total PP production at Ufaorgsintez was 89,600 tonnes in the first nine months of this year. UPC owns 87.76% of the share capital Ufaorgsintez.
In May 2013, Bashneft sold shares of Ufaorgsintez to "Joint petrochemical company."
MRC
Imports of titanium dioxide in Russia decreased by 2.6% in January -October 2014
Total imports of titanium dioxide in Russia were 68,500 tonnes in january-October 2014. At the same time, the situation has deteriorated in the second half of the year.
Sellers reported a weak demand for the material this autemn, compared with the same time a year earlier. They reported also a high residues of the material in their warehouses. Russia's imports of titanium dioxide were 5,300 tonnes in October, compared with 7,100 tonnes in October 2013.
Deliveries from "Crimean Titan" were stable. At the same time, the volume of imports of Ukrainian titanium dioxide by Sumyhimprom production decreased by 21%. Most traders of imported titanium dioxide (except material from Sumyhimprom and Crimea Titan) announced their prices in dollars since end of October. Conversion was made at the exchange rate at the time of payment.
Prices for imported titanium dioxide have sharply increased in line with the falling rouble; demand in the spot market was poor, added traders.
MRC
EPS imports to Russia dropped by 11% by November
MOSCOW (MRC) -- Imports of expandable polystyrene (EPS) to the Russian domestic market had decreased by 11% by early November. Local companies shipped 52,700 tonnes of polymer from January to October 2014, according to MRC ScanPlast.
Chinese EPS with the share of almost 65% accounted for the bulk of supplies. The overall imports from China exceeded 34,00 tonnes over the first ten months of the year . The largest direct importers are Meta-Service, Koros and DV Group.
Purchasing has slumped since since August, after the peak imports in July, and was caused by seasonal factors, as well as by the beginning of the dollar growth in July (quantities purchased in Asia in July began to arrive in the market in August because of long delivery).
Demand for Russian EPS remained strong in November. Traders said competitive prices were one of the factors of strong demand. Market players continued to report a shortage of SIBUR's EPS of Alphapor grade. At the same time, demand for Asian grades has been subsiding gradually on the back of a sharp price increase in the market caused by the fall of the rouble.
MRC
HDPE imports to Russia rose by 2% from January to October 2014
MOSCOW (MRC) -- Imports of high density polyethylene (HDPE) to the Russian market grew over the first ten months of 2014 by 2% and totalled 252,100 tonnes. Blow moulding and pipe grade HDPE accounted for the main increase in the total imports, according to MRC DataScope report.
After the September surge of imports, caused by scheduled outages at Kazanorgsintez and Nizhnekamskneftekchim, October imports decreased to 28,200 tonnes. The overall imports of this polyethylene (PE) grade into Russia reached from January to October 252,100 tonnes versus 248,000 tonnes a year earlier. The extrusion blow moulding (EBM) and pipe extrusion sectors accounted for a major increase in imports, whereas imports dropped in other sectors.
The supply structure by the consumption sectors looks the following way over the stated period.
Last month's imports of pipe grade HDPE totalled 7,400 tonnes under the pressure of seasonal factors versus 14,500 tons in September. The overall pipe grade HDPE imports to Russia reached 73,200 tonnes, up by 20% year on year.
October imports of HDPE for extrusion coating of large-diameter steel pipes rose to 5,100 tonnes from 4,700 tonnes in September. PE imports into this processing sector fell by 23% over the said period and reached 38,800 tonnes. Gazprom neftekhim Salavat and Metakley started producing this PE grade this year, which was one of the reasons for lower imports.
Last month's HDPE imports for EBM sector dropped to 6,600 tonnes from 9,800 tonnes in September (the September hike was caused by a scheduled maintenance at Kazanorgsintez). The overall imports of this PE grade increased by 43% from January to October 2014 to 45,800 tonnes.
October imports of injection moulding HDPE was reduced to 3,300 tonnes from 3,700 tonnes a month earlier. Imports of this HDPE grade rose over the first ten months of 2014 by 1% and totalled 39,300 tonnes.
Last month's film grade HDPE imports fell to 4,500 tonnes after the September spike of 7,500 tonnes. The overall imports of film grade PE were 33,900 tonnes over the stated period, down by 14% year on year.
HDPE imports to the other consumption sectors (cable extrusion, rotational moulding, etc.) decreased over the first ten months of 2014 to 11,200 tonnes compared to 13,600 tonnes a year earlier.
MRC