Sika to acquire Axson Technologies

MOSCOW (MRC) -- Sika has entered into exclusive negotiations with Axson management and shareholders to acquire Axson Technologies, a leader in the field of epoxy and polyurethane polymer formulations for design, prototyping and tooling, structural adhesives, composite materials and encapsulation products for the automotive, nautical, renewable energy, sports & leisure and construction markets, said the producer in its press release.

The transaction is subject to conditions including anti-trust approvals in certain jurisdictions as well as consultations with employee representatives.

As MRC informed before, in October 2013 AkzoNobel finalized the EUR260 million divestment of its Building Adhesives business to Sika AG.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its more than 16,000 employees generated annual sales of CHF 5.6 billion in 2014.
MRC

MOSCOW (MRC) - Some European producers of polypropylene (PP) have cut their export PP prices further for CIS markets, despite the price drop of EUR90-100/tonne in the first half of January, according to ICIS-MRC Price Report.

European producers had to decrease export PP prices by EUR90-100/tonne in the early January under the pressure falling propylene contract prices. However, last week, some producers announced further reduction in export prices.

Price offers for homopolymer PP for the delivery in the CIS countries in early January were discussed in the range of EUR1,010-1,070/tonne FCA. In the late January some producers from Eastern Europe have reduced their PP price offers to the level of EUR900-950/tonne FCA.

However, market participants are in no hurry to make deals for the supply of polypropylene, expecting European PP prices to be cut further in February.

An ongoing weakening of the euro against the dollar contributed to the general downtrend in European PP prices. The exchange rate of the euro to the dollar on 26, January was at 1.12EUR=1USD.
MRC

MOSCOW (MRC) -- Last year's production of high density polyethylene (HDPE) in Russia decreased by 19%. Russian producers increased their capacity utilisation, but it did not help to offset a forced outage at Stavrolen, according to MRC ScanPlast.

December HDPE production in Russia fell to 72,200 tonnes versus 73,400 tonnes in November because of the reduced capacity utilisation at Kazanorgsintez. The overall HDPE production totalled 817,000 tonnes in 2014 versus 1.011 million tonnes a year earlier. The main reason for the fall was the long shutdown at Stavrolen (due to an accident), whereas other Russian producers increased their output.

The HDPE production structure by plants looks the following way over the stated period.

Kazanorgsintez, Russia's largest polyethylene (PE) producer, produced 43,600 tonnes in December compared to 46,900 tonnes in November. The plant's overall HDPE production rose by 5% in 2014 to 489,500 tonnes.

Nizhnekamskneftehim produced a little over 19,000 tonnes of PE last month, whereas in November, this figure was 18,600 tonnes. The plant's overall HDPE output exceeded 186,800 tonnes over the stated period, up by 15% year on year.

"Gazprom neftekhim Salavat" increased its HDPE production to 9,500 tonnes in December, despite a major products expansion, versus 7,800 tonnes a month earlier. Thus, the Bashkir plant raised its last year's HDPE output by 26% to 92,800 tonnes because of an increase in its capacity utilisation.

As reported earlier, Stavrolen was forced to shut down its PE production due to an accident at its ethylene unit on 26 February. The plant's HDPE production was about 48,000 tonnes in less than two months of 2014. According to the recent statements made by the company's officials, the resumption of HDPE production is expected in March - April 2015. The plant's annual production capacity is 300,000 tonnes.

MRC

MOSCOW (MRC) - Total imports of polyethylene (PE) in Belarus increased by 3.7% in eleven months of 2014.
The demand in the market of high density polyethylene (HDPE) has been weak, while the demand for other PE grades increased, as per MRC analysts.

According to the National Bureau of Statistics of Belarus, November imports of polyethylene in Belarus was 10,900 tonnes, compared with 11,000 tonnes in October. Total PE imports in the country grew to 101,300 tonnes in January - November 2014, compared with 97,700 tonnes year on year. Structure of PE imports in Belarus was as follows.

November imports of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE), despite the seasonal factors, rose to 5,800 tonnes, compared with 5,400 tonnes in October. Total imports of these PE types in the country grew to 49,300 tonnes in January - November last year, compared with 41,400 tonnes year on year.
The main suppliers of PE in the local market were the producers from Saudi Arabia (30,300 tonnes) and Russia (6,800 tonnes).

November imports of HDPE in Belarus decreased to 5,200 tonnes, compared with 5,600 tonnes in October. Supply from Saudi Arabia decreased two times, while Russian producers, on the contrary, increased their presence in the local market to 1,600 tonnes (700 tonnes in October). Total HDPE imports in Belarus decreased to 52,000 tonnes, down 7.7.% year on year.
MRC

MOSCOW (MRC) -- In Q4 of last year, Unipetrol continued in very good results from the previous period and confirmed a significant improvement of its operating indicators and also profitability, said the company in its press-release.

Company recorded operational profit (EBITDA LIFO) of CZK 2.618 bn. Net profit reached CZK 598 m. Revenues increased y/y by 15% to CZK 28.939 bn in 4Q14. During the last three months of 2014, Unipetrol managed to maintain a very high utilization of its production units. Refinery utilization has reached the level of 88%, within the petrochemical production steam-cracker unit was utilized at the level of 90%.

In the downstream segment, that combines refinery and petrochemical segments, the company recorded EBITDA LIFO of CZK 2.330 bn in 4Q14. The results in the segment was positively influenced by better margins (both refining and petrochemical) supported by profound decline of crude oil prices, development of FX – weaker exchange rate of CZK against USD and higher sales volumes. Grey zone reduction on the fuel market had a positive impact on sales volumes and margins. Last but not least, positive result of the downstream segment has been affected by lower energy costs thanks to significantly lower crude oil price and ongoing projects within the Operational Excellence. On the other hand, results of the segment were negatively affected by inventory revaluation effect (-775 m CZK) or refining assets impairment of CZK -151 m.

Operational profit EBITDA LIFO in the petrochemical part of downstream segment amounted at CZK 2.213 bn in 4Q14. Company recorded a sales increase of petrochemical products to 439kt in Q4 (+4% y/y), caused by higher market demand. Increase in market demand was driven by lower price level due to steep decline of crude oil price. The sales of polyethylene increased by 13% and of polypropylene by 12%.

Financial results for 2014 were significantly affected by accounting of several one-off accounting items. The most significant of these items was the impairment of refining assets (-4.721 bn CZK) in the second quarter of the year. Without the one-off effects, the Unipetrol Group would post a net profit of 2.094 bn CZK for last year, with their inclusion company managed to reduce the net loss to -556 m CZK (-1.396 bn in 2013).

The revenues of the company Unipetrol grew by 25% y/y and amounted to 124.229 bn CZK. This increase was supported by the finalization of purchase of Shell's stake in Ceska rafinerska and related increase of refinery capacity. In the second half of year 2014, Unipetrol also significantly increased sales across all segments of its business. In 2014, the company achieved operational profit before interests, taxes, depreciation and amortization (EBITDA LIFO) of 3.102 bn CZK. During the year, the company continued in implementation of projects in improving of the Operational Excellence, with the positive effect on operational profit of 1.062 bn.

As MRC reported earlier, last year, Unipetrol acquired technology and production rights for a new polyethylene unit and wants to pick a contractor for the project in the first half of 2014. The company, after posting net losses in 2011 and 2012, laid out plans to invest almost USD1 billion over the next five years and make its petrochemical segment the biggest contributor to profit.

Unipetrol expects petrochemicals to become the largest source of revenue for the company in 2013-2017. Unipetrol wants to use the favourable market conditions to reinforce its position on the petrochemical market and optimise its operations.

Unipetrol , a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 Unipetrol became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the Unipetrol Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs almost 4,000 people.

MRC