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[lorenzo63]

Polymers buck global trends in India

Demand for polymers is strong, the supply is tight, and the outlook is good


THERE ARE few bright spots in the global polymer market, but India appears to be one of them.

At a time when the most of the world is worrying about recession and falling demand, Indian polymer producers and processors are confident about the short and long-term demand prospects, especially for polyolefins. And this is despite constant downward revisions to the country's GDP growth forecasts for 2009-2010.

Optimism has returned after last year's polymer price meltdown, as warehouses are no longer overflowing with material.

Polyolefin producers claim they are facing no problems in placing product in the local market, while processors complain that their key concern today is finding sufficient volumes and managing price volatility.

TIGHT SUPPLIES
Imports have been rising and one producer estimates that nearly 70,000 tonnes/month of polyolefins will enter the country during March and April, compared with an average of 50,000 tonnes/month in 2008. Local prices are well over international levels, resulting in some unusual trade flows, such as drawing polyethylene (PE) and polypropylene (PP) from South Africa and even South America.

Processors complaining about the dearth of local product are also unhappy with the government's recent move to start antidumping investigations on PP imports from Saudi Arabia, Singapore and Oman based on a petition by Reliance Industries. The Indian energy and materials company holds nearly 90% of India's PP capacity. Haldia Petrochemicals, India's only other PP producer, has also supported the petition.

A major trader asks: "If the dominant supplier refuses to provide material, what choice do processors have but to import product?" The government should instead look at safeguarding the interests of processors, he adds.

India's demand recovery started in November 2008, progressed swiftly as processors sensed that prices had bottomed out and it was time to refill a depleted inventory chain.

"We had issues a few months back when prices were falling. Some of our buyers were cautious, as they wanted to clear stocks. But things are back to normal now and in fact slightly better than before," says Dharmesh Zavery, general manager, sales and marketing, at Paharpur 3P, a manufacturer of flexible packaging.

Packaging is expected to be one of the key segments driving current, as well as future growth.

Food consumption is not expected to fall during the economic slowdown, and there has been no let-up in orders for packaging of products ranging from chocolates to cooking oil, say processors.

"India's packaging segment has been doing well for the last two to three years. We expect huge growth in India and also the Middle East until 2015," says Indrajit Ghosh, deputy general manager for domestic and international marketing at Uflex, which manufactures polyester film and biaxially oriented PP (BOPP) film in India and Dubai, the United Arab Emirates (UAE).

Uflex is due to start up a BOPP film plant in Egypt and a polyester film plant in Mexico by the end of this year. Plans for 2010 include a BOPP film line in Mexico, a polyester film line in Egypt and new lines for polyester and BOPP film in India.

Among other expansions in the country, Jindal Poly Films, India's largest BOPP film producer and the fifth-largest in the world, added two BOPP lines in the last quarter of 2008 to raise its total capacity to 180,000 tonnes/year.

This year, Jindal will be expanding polyester film capacity by 25,000 tonnes/year to 85,000 tonnes/year. A new 65,000 tonne/year BOPP line is scheduled to be added in the second quarter of 2010, after which Jindal will become the second-largest BOPP film producer globally, says a company source.

ROOM TO GROW
When compared with developed countries, penetration of flexible packaging is still at a low level in India, which makes it an attractive market. Not only is the number of food and nonfood products packed in plastic increasing, but new manufacturers are entering the fast-moving consumer goods (FMCG) segment.

"Price point packs are also on the growth path as these are convenient to sell and buy," points out Zavery, referring to products packed in small sachets and sold at very low prices. For instance, a small sachet of coffee or cough syrup is sold at only 2 US cents (1.5 euro cents), while a sachet of shampoo or detergent costs 10-20 cents. These small pack sizes have proved to be popular, especially in India's vast rural market. And with growth in disposable incomes slowing, these packs are attracting consumers even in urban India.

Global market research firm AC Nielsen estimates that sachets accounted for 74.5% of the Indian shampoo market of 104,000 kiloliters in 2008, up from 71% in 2006 and 73% in 2007. FMCG companies have introduced a variety of products in small pack sizes to promote brands and lure cost-conscious buyers. This is despite the higher packaging costs.

"Normally, cost of flexible packaging is 3-7% of the selling price. But with small packs the percentage goes up to 13-15%," points out Zavery.

Within the broad packaging sector, retort packaging, laminates and bulk packaging are seeing good growth, says an applications development manager at one polyolefins manufacturer.

Indian processors have also successfully penetrated the export market for BOPP film and flexible intermediate bulk containers (FIBCs), also know as jumbo bags.

Exports of BOPP film are rising, says the Jindal source. He points out that the economic crisis has resulted in some European and US processors cutting production, forcing buyers to increase their purchases from Indian and Chinese BOPP film producers.

In FIBC, India has emerged as a major sourcing hub, and the segment has seen a compound average growth of 28% from 2001/02 to 2007/08, estimates Haldia Petrochemicals. However, the strong growth prospects for packaging film have created problems of excessive competition, as barriers to entry are quite low.

"It is not very capital-intensive; you only need about Indian rupees 50m [$987,000]. So when people are seeing demand [growing] they are adding capacity. But the additional capacity cuts into prices and starts a vicious circle. This is the devil in most industries," says Zavery. Growth estimates for the packaging industry vary, with some expecting the sector to deliver 15-20%/year growth, while others see growth of only 6-7%/year for commodity films.

KNOCK-ON GROWTH
Another sector attracting attention these days is agriculture, which is supporting demand for high density polyethylene (HDPE) and polyvinyl chloride (PVC) pipes.

Growth in agriculture, which accounts for 18.5% of India's GDP, is faltering this year, but it performed strongly in 2007/08, leaving farmers relatively flush with money.

Farmers are also receiving support from state governments, which have been implementing agricultural irrigation programs.

One of the largest pipe producers in India says that he saw demand grow by 30% last year. And he expects the growth to continue, buoyed by lower polymer prices and a recent reduction in excise duty. The government cut excise duty on polymers and plastics from 10% to 8% in February.

Hopes are being pinned on implementation of various government schemes related to irrigation and infrastructure over the next few years. For instance, the Andhra Pradesh state government said in February that it would offer a 90% subsidy to large farmers adopting drip irrigation systems.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is important as it will, among other things, invest in new water and sanitation pipes in 67 cities, points out the applications development manager. JNNRUM is a seven-year national program launched in 2005/06.

"Work has already started in four or five cities. We estimate that new pipes in each city would result in 4,000-5,000 tonnes of new polymer demand," he adds.

He also sees a positive shift in quality standards and greater interest in HDPE pipes.

Government support is emerging in another sector, as well. Bulk packaging of food grains in India has for long been dominated by jute. The Jute Packaging Materials Act (JPMA) was passed in 1987 to preserve the interests of jute farmers and restrict the use of PP or HDPE raffia bags.

But the act is slowly being relaxed. The government has placed orders for 140m bags so far this year, which would absorb around 19,000 tonnes of PP and HDPE, says a source at a local polymer producer. And more orders are expected in the coming months.

The raffia sector is also benefiting from strong cement production. The Centre for Monitoring Indian Economy has forecast a 8.1% hike in cement output in 2009/10. Demand remains strong for infrastructure projects although the economic slowdown has seen some slackening from the real estate sector, especially in the cities.

The slowdown's impact is more visible in the auto components sector.

"We saw orders fall by 75% in the last quarter of 2008; we had never expected this," says a major supplier of plastic components.

And though he saw an improvement in orders in February, he is not sure how long it will last. "We will know only after the election. The new government will need to take concrete steps to improve the health of the auto industry," he stresses.

The general election, starting in April, is on the minds of other industry players, as political stability will be crucial to maintaining an environment conducive to growth.

Polymer producers also worry that the processing industry is still burdened by some age-old problems. The industry, which has over 22,000 converters, is widely fragmented, with many small processors using old machines. Productivity is low, diminishing India's competitiveness in the export market. And the government continues to reserve investments in certain plastic end- use segments for small-scale players.

So while local producers are relieved that the Indian polyolefins market is holding up relatively well during this crisis, they are not too ambitious in their growth projections. They expect demand to rise by 3-4% during 2008/09, although other market participants are projecting slightly higher growth numbers at 5-6%. The projections are disappointing when compared with the 16% growth of 2007-2008. But in tough times such as these, any growth is welcome.

 

[lorenzo63]

Recession likely to hurt China more than India

It may be the differences more than the similarities that determine how well India and China emerge from the turmoil now roiling the global economy

When China's economy took off in the 1980s, a question arose: Why did India lag so far behind? The gap in growth rates has narrowed considerably over the last decade, and Indian confidence has soared, but a new question has been prompted by the deepening global recession: Which of these countries is better positioned to endure such a crisis - and to prosper over the long term?

The two economies are as different as Shanghai and Mumbai, cities that represent the leading edge of commerce in each nation.

Shanghai, with its maglev train, extensive highway system, massive redevelopment projects, numerous industrial parks and towering skyscrapers, reflects the centralized, top-down, export-oriented policies of China's authoritarian government.

In China, no objective is so ambitious that a demolition crew and a fleet of concrete mixers cannot achieve it.

Mumbai, on the other hand, sprawling and chaotic, its crumbling infrastructure groaning beneath the booming business sector, its teeming slums rolling up against gleaming factories and global headquarters, reflecting India's bureaucratic inefficiency, socialistic heritage, ethnic diversity and fractious democratic institutions.

India seems to succeed, despite itself, owing to a vibrant entrepreneurial culture.

In the struggle to deal with fiscal and economic crises, the comparison might appear to favor China, which has a broader array of tools at its disposal than India.

However, China's heavy dependence on exports, which contribute about 40% to its gross domestic product (GDP), will prove to be a difficult handicap to overcome, observes Arpitha Bykere, lead analyst at New York-based economic and financial analysis firm RGE Monitor.

WEAK POINTS
India is less exposed to exports, which account for only about 20% of its GDP. However, the country is vulnerable in regard to foreign exchange reserves, the fiscal deficit and capital flows, key factors in a government's ability to influence the economy through fiscal policy, monetary policy and direct intervention in the private sector.

In each respect, China has greater capacity, given its large foreign exchange reserves and the government's broad powers.

China's foreign exchange reserves, almost $2 trillion (€1.47 trillion), vastly exceed India's, which are close to $250bn and falling as the government draws upon them to defend the Indian rupee, which has lost 27% of its value against the US dollar since March 2008. In the last eight months, India's foreign exchange reserves have dropped by over $50bn, notes Bykere, whereas China's continue to grow, if more slowly, given the plunging exports.

The rupee's troubles stem from the withdrawal of foreign capital in response to the financial crisis. Another outcome of this outflow has been a correction in the real estate and stock markets. India is more vulnerable to such fluctuations, says Bykere, because of its greater dependence on short-term capital flows such as portfolio investment and foreign bank borrowing. Capital flows in China, given the larger contribution of foreign direct investment (FDI), are more stable.

China's superior financial resources are evident in its aggressive fiscal stimulus package of yuan (CNY) 4 trillion ($585bn), or 14% of the country's CNY29 trillion gross domestic product (GDP).

"Therefore, we believe that, here, Chinese policy is more impressive," says Bykere. "It was able to bring in a large fiscal stimulus package and try to hold up consumption and investment. India has implemented [a number of] fiscal stimulus packages, but they've been a very small share of GDP, and we believe that they won't be effective in reducing risks of growth slowdown."

Bykere also finds China's monetary policy to be more aggressive.

"India has been cutting interest rates to improve credit access to businesses, and also injecting liquidity into the banking systems," she acknowledges. "But we believe China has been more aggressive in its monetary policy, especially because it has also directed its banks [which are government controlled] to lend to the private sector. India, trying to maintain private sector independence, cannot influence private banking decisions."

For the same reason, she notes, the Chinese government has a freer hand to prop up the stock and real estate markets when they are correcting, and also to intervene in the corporate sector.

"Basically, firms that are in trouble can be taken over by the government and restructured," Bykere observes. "In India, it is difficult to intervene directly in the private sector. India is therefore trying indirect measures to help the private se­ctor - ease credit access, or ease rules for foreign investment or other regulations."

THE LONG VIEW
The global economy is not normally in a state of crisis, of course, and however advantageous a tight grip may be in an emergency, it may not offer the most sustainable path to prosperity.

"Certainly, democracy in India is not as efficient in allocating and enabling infrastructure projects and initial responses to, particularly, an economic crisis, as is China's more authoritarian and consensus-based political system," says Christopher Runckel, president of Runckel & Associates, an international business consulting company based in Portland, Oregon, US.

"But one thing that I would note, on India's behalf, is that Indian banking and economic officials often have much greater and deeper experience than their Chinese counterparts," he adds.

"The Indian stock market is more transparent, better regulated and more predictable than their Chinese counterparts. This same set of facts also applies to the Indian banking and banking regulation system and helps to support Indian development."

China's reluctance to privatize state-owned enterprises (SOEs) also diminishes the efficiency of the economy. In 2006, SOEs accounted for 31% of China's industrial output, according to the Organization for Economic Cooperation and Development.

"State-owned enterprises are generally not efficient utilizers of capital in China, Vietnam and elsewhere in socialist economies in transition," Runckel points out. "Further moves to equitizing these companies in a responsible manner that protected worker and other interests, in my view, would be a major plus for China."

Although India's socialist legacy still constrains private capital, the country has fewer state-owned companies.

"India, in my view, and the view of many others, is a much more efficient utilizer of capital," says Runckel, "and long term, China's failure to deal more aggressively with its state-owned enterprises will be a drag on other sectors."

Runckel believes both India and China have responded well to the crisis so far, but he says the real test will come as the depth of the problem becomes clearer, and the governments have to take further action.

"In this scenario, I think the depth of Indian experience with financial markets, entrepreneurship and economic management will give it an increasing edge," Runckel says. "China will have to work harder and perhaps take more chances to develop the further policies needed to deal with a deepening crisis."

RGE's Bykere expects China's collapsing exports - which plunged 21.1% year over year during January and February - to take a severe toll on the country, leaving it with a more difficult path to recovery.

"Though the government will try to cushion the workers and of course the corporations, ultimately China's growth will be determined more by how quickly the global economy recovers," she says. "I believe China will have a hard landing by the end of this recession, with a much greater loss in output as well as employment. Therefore, there is a much higher risk of social unrest arising in China compared to India."

Some observers believe China should reduce its dependence on exports, boost domestic consumption, and channel the country's high rate of savings into its own financial institutions.

"That will be a major challenge," says Bykere. "Only time will tell whether China will change its whole growth model from export-led to domestic demand-led growth."

India, she says, needs to address its current account deficit by reducing its dependence on oil imports. It should also encourage more resilient forms of capital inflow, she adds. In 2007, FDI totaled only $24bn.

"This crisis will probably lead the Indian government and central bank to further improve corporate sector governance and banking sector regulation," Bykere says. "And the central bank going forward will be more vigilant about real estate and equity market bubbles, and the inflow of foreign money into these markets."

 

[lorenzo63]

India sets out plans for rapid petrochemicals growth

In its drive to attract international investment, India is seeking to develop six special zones for refineries, natural gas and chemical production

SINCE THE start of India's economic deregulation in the early 1990s, the country has seen increasingly rapid economic expansion. Annual rates of growth in GDP have varied between 7.5 and 9.6% over the past six years.

This has driven even more rapid increases in the country's chemical output. India's chemical production (including pharmaceuticals) was valued at $40bn (€31.6bn) in 2006, the result of an average growth rate of 10.8%/year between 2002 and 2006.

Estimates made shortly before the current economic turmoil indicate that growth was still accelerating, to around 13.6%/year over the period to 2011. This would have taken output to an expected value of $75.8bn, according to the latest analysis on India's chemical sector made by Mitsubishi Chemical Techno-Research.

The Indian government is promoting further investment in chemicals and an upgrading of supporting infrastructure in its 11th five-year plan, which runs to 2012.

Two major elements in this support for India's chemical sector are the government's decision to allow 100% ­ownership of foreign direct ­investment projects in this sector, and its establishment of a series of special economic zones (SEZs) and a number of petroleum, chemicals and petrochemical investment regions (PCPIRs).

The establishment of SEZs was spurred by enabling legislation passed in 2005. Prior to that date, 19 had been established or proposed, but none were dedicated to chemicals. Since then, some 222 SEZs have been proposed for development, with 14 devoted solely to the chemical industry.

Of these, 12 are for pharmaceutical-related business, one for petrochemicals and oil refining (located at Baikampady and being developed by Mangalore SEZ) and one for general chemicals (at Baruch, being developed by Jubilant Infrastructure).

Several are already up and running, for example Divi's Laboratories' project at Visakhapatnam and Serum Institute of India's project at Pune.

But there has been little concrete ­progress at the Mangalore petrochemical SEZ, although India's Oil and Natural Gas Corp. (ONGC) has plans for an aromatics plant there and is looking for other, down-stream investors.

The Baruch facility is perhaps closer to development. Jubilant announced in April last year that it would invest Indian rupees 4bn ($77m) in fine chemicals at the site in 2008/09.

More attention is being focused on the larger PCPIRs, an idea launched in 2006 when it became clear that the SEZs were too small in scale to attract global chemical players to make foreign direct investment in petrochemicals. "The basic concept is to provide large-scale sites with sufficiently upgraded infrastructures to attract investment for oil refining, chemical and petrochemical production," says the report.

The sites are generally around 250km2 (97 square miles), of which 40% is earmarked for primary production. Investment of $15bn-20bn in each PCPIR is envisaged, with start-ups targeted at around 2013 (estimated in pre-crisis times last year).

So far, six states have come forward with outline plans for PCPIRs. Complexes are thus proposed at Dahej (Gujarat), Mangalore (Karnataka), Cuddalore-Nagapattiman (Tamil Nadu), Visakhapatnam-Kakinada (Andhra Pradesh), Paradip (Orissa), and Haldia-Nayachar Island (West Bengal), with total investment proposed of some $280bn (see table).

The Indian government gave its approval to three of the developments at the end of February - those in Gujarat, West Bengal and Andhra Pradesh. The other three, say reports, will need to rework and resubmit their plans.

However, even before the current downturn, several of the proposed projects had been delayed, or are now under review. Timescales for any developments must now be a question of conjecture given the current global downturn in petrochemical demand.

For instance, the consortium proposing to develop a grassroots refinery in the Andhra Pradesh PCPIR, led by Hindustan Petroleum Corp. Ltd. (HPCL), has yet to start detailed studies. The partners include Singapore's Mittal Energy Investment, France's Total, Oil India Ltd. and GAIL (India). The export-oriented project would also include an aromatics unit and naphtha cracker.

OLEFINS EXPANSIONS
India is not over-endowed with basicolefins capacity. According to the Mitsubishi Chemical Techno-Research report, ethylene capacity stands at around 2.9m tonnes/year, just a quarter the size of China's, and only 41% the size of the six ASEAN states.

However, rapid development is expected and the report identifies plans and projects for 7.4m tonnes/year of new capacity. It forecasts, therefore, that capacity should reach 8m tonnes/year by 2014, with energy and materials group Reliance Industries still holding the lion's share (3.53m tonnes/year, or 44%), followed by Essar Oil (16%), ONGC (14%), Indian Oil Corp. (10%), Haldia Petrochemicals (8%) and GAIL (India) (5%).

Even so, says the report: "India's 11th five-year plan target will not be met for ethylene, unless the ONGC project in Gujarat can come on stream in 2012", which it deems unlikely.

The developments will, however, move India from being short in ethylene to long. The country is currently around 450,000 tonnes/year short of its ethylene needs for downstream products such as polyethylene (PE), ethylene glycol (EG) and vinyl chloride monomer (VCM). This situation, says the report, "will be relieved by the dramatic expansion of ethylene capacity post-2011," leading to a substantial surplus of some 1.4m-2.6m tonnes/year in terms of ­ethylene equivalent.

For propylene, however, the situation is more positive, and capacities by 2011-2012 are expected to exceed by a fair margin the levels set out in the five-year plan. The report expects propylene capacity to reach nearly 7m tonnes/year by 2012 and 8m tonnes/year by 2014.

This is largely down to expansions at Reliance, which is expected to increase capacity at Jamnagar by 900,000 tonnes/year in 2009, a further 450,000 tonnes/year in 2011 (doubled in 2012), and add a 900,000 tonne/year unit in 2012. In terms of supply and demand, the Indian market is fairly balanced, but is expected to become increasingly long after 2010.

Reliance's ambitious expansion plans will see it move up the table of major olefins producers, albeit slowly. The report expects the company to lie just outside the top 10 producers of ethylene in 2014, at No. 12, up from 16th position in 2007. In Asia, though, it will become the third-largest producer, after China's Sinopec and PetroChina, overtaking Formosa Plastics of Taiwan and Yeochun NCC of South Korea.

The story is the same in propylene, as by 2014, Reliance will hold the fifth spot globally and the third slot in Asia, again after the two Chinese majors.

Much of the investment under discussion in India, like much in the rest of the world, will now be reviewed as a result of the economic downturn and loss of business confidence worldwide. This resulted in a sharp decline, by as much as 20-30%, in chemical demand in the final quarter of 2008, a state which has persisted into the first three months of 2009.

Will India's grand plans for petrochemical expansion be able to attract foreign investment in today's climate? Or will the country have to go it alone, albeit at a slower pace? It may be several years before the answer is clear.

Vedi l'allegato plants project india.xls

 

[lorenzo63]

Qualche news su Syngenta

1)ZURICH (Dow Jones)--Swiss aggrochemical company Syngenta AG (SYT) said Wednesday 1Q sales were down 4%, citing the significant appreciation of the dollar.
In the first quarter Syngenta achieved strong underlying sales growth after a record year in 2008. Sales increased by 7% at constant exchange rates (CER); reported sales were 4% lower at $3.6 billion owing to the significant appreciation of the dollar.

Crop Protection sales were 8% higher (CER) at $2.6 billion. Excluding Professional Products, sales rose by 10% with volumes up 2% and price realization ahead of target at 8%. Sales increased in Europe with a strong performance in Western Europe, notably France; in Eastern Europe growth was led by Russia and Poland. In NAFTA, Syngenta capitalized on its strong market position and saw good growth across all product lines. Second season sales in Latin America were lower owing to drought in Argentina and southern Brazil and to careful risk management. Growth in Asia-Pacific was particularly strong in the emerging markets demonstrating the resilience of the farm economy in these countries and the success of Syngenta's tailored product offer.

Product line growth was led by herbicides: selectives performed particularly well in NAFTA and in non-selectives demand for TOUCHDOWN remained strong. Fungicide sales increased with the main season still to come. Insecticides saw a slight decline owing to lower Latin American sales. Seed Care continued its record of double digit growth helped by the registration of CRUISER in France. Professional Products were affected by the impact of the economic environment on the lawn & garden and home care markets.

Sales of new products - AVICTA, AXIAL, DURIVO and REVUS - increased by more than 40% demonstrating the continuing willingness of growers to adopt new technology.

Seeds sales were 3% higher (CER) at $1.1 billion. Corn & soybean sales increased by 7% despite delayed planting decisions in the USA and corn acreage contraction in Europe; growth primarily reflected portfolio improvements in corn and price increases. In Diverse Field Crops, sales of sunflower and sugar beet were lower with tight risk management in Eastern Europe. In Vegetables & Flowers, the downturn in consumer purchasing affected flowers but sales overall were slightly higher.

For the full year, despite adverse currency effects and ongoing tight risk management, the company continues to target growth in earnings per share.

Una precisazione del loro direttore finanziario..

2)(Dow Jones)--Syngenta AG (SYT) is likely to book higher costs for currency fluctuations than it previously said, the company's chief financial officer, John Ramsey, told Dow Jones Newswires in an interview following the release of the company's first-quarter sales figures.

"Headwinds from currency fluctuations were stronger than anticipated in the first quarter, and the impact from that might exceed $150 million on a net basis," Ramsey said, referring to 2009 operating profit. He added that however, the number is unlikely to climb over $200 million, due to price increases.

In February, Syngenta had guided for costs of up to $150 million in relation to currency fluctuations.

UBS...

3)Syngenta Raised To Buy From Neutral By UBS

 

[Imark]

Arrivato l'upgrade di S&P sui bond Ciba conseguente alla sua piena integrazione nel gruppo BASF... pregasi aggiornare tabelle...

Preciso che Ciba conserverà una propria autonomia societaria, per cui il supporto è di tipo parentale, ma BASF centralizza le attività riguardanti la gestione del debito in seno alla controllante, per cui - conclude S&P - sarà la stessa BASF ad organizzare il rifinanziamento del debito di Ciba quando questo verrà in scadenza.

Swiss Chemicals Producer Ciba Holding Inc. And Entities Upgraded To 'A+/A-1' On Acquisition By BASF; Outlook Negative

FRANKFURT (Standard & Poor's) April 14, 2009--Standard & Poor's Ratings Services said today it raised its long- and short-term corporate credit ratings on Switzerland-based chemicals company Ciba Holding Inc. and its
related entities (collectively, Ciba) to 'A+/A-1' from 'BBB-/A-3' to reflect the 95.8% ownership of the company by Germany-based BASF SE (A+/Negative/A-1) since April 9, 2009. The ratings were removed from CreditWatch, where they were placed with positive implications on Sept. 16, 2008. The outlook is negative.

"The upgrade reflects our view that Ciba will become an integral part of BASF and be fully integrated in the group in the coming months," said Standard & Poor's credit analyst Tobias Mock.

Although we do not expect BASF to provide Ciba's debtholders with a formal guarantee, we understand it will fully consolidate Ciba's debt into its balance sheet and take over Ciba Holding's treasury responsibilities in the future. Because BASF remains committed to its central financing policy, we expect BASF to arrange the refinancing of Ciba's maturing debt issues.

The ratings on BASF benefit from high barriers to entry, including the need for technological expertise, high capital intensity, and strong customer relationships.

BASF has a good cost position, in our view, thanks to a high degree of backward integration and production integration in most of its businesses. The group's size and diversity allow for efficient portfolio management, which is an important source of strategic flexibility, given that the key success factors in the chemicals industry are continually changing.

Since 1999, BASF has spent about €20 billion on acquisitions and received about €11 billion in disposal proceeds, having exited more mature and challenging businesses, such as commodity plastics. The company has reduced its strong dependence on the petrochemicals business by investing in activities that follow different cycles, such as specialty chemicals, agrochemicals, and oil and gas. However, it remains highly sensitive to overall economic cycles.

BASF has significantly reduced its financial flexibility over the past few years as a result of acquisitions and sizable shareholder returns. This has negatively affected credit quality.

"The outlook is negative because we believe that prolonged weak demand for chemical products could result in significantly weaker profitability and, subsequently, weak credit metrics for the current rating," said Mr. Mock. "In addition, BASF's financial policy might not continue to support our expectations for the 'A+' rating as a result of the company's high shareholder returns, capital expenditures, and acquisitions."

 

[lorenzo63]

Zi buana...

 

[lorenzo63]

Air Products

31 marzo 09


Un po' di newsflow su AIR PRODUCTS..

Air Products' Proprietary Technology Joins World's First Full Demonstration of Oxyfuel CO2 Capture and Sequestration at Vattenfall

LEHIGH VALLEY, Pa., March 31 /PRNewswire-FirstCall/ -- Air Products (NYSE: APD) today announced it will play a key role in the world's first full demonstration of oxyfuel carbon capture and sequestration with the signing of an agreement with Vattenfall AB, one of Europe's leading energy companies. Air Products will install its proprietary carbon dioxide (CO2) capture, purification and compression system at Vattenfall's research and development facility in Schwarze Pumpe, Germany, which is viewed globally as the preeminent CO2 oxyfuel project. Air Products will focus specifically on the purification and compression of oxyfuel combustion flue gas. The two companies also executed a joint research and development agreement related to the project. Air Products' pilot plant is to be operational at Schwarze Pumpe in December 2010.
"This is the world's first full demonstration of oxyfuel CO2 capture and sequestration, and our unique CO2 purification and compression technology will be validated at pilot scale through this work," said David J. Taylor, vice president -- Energy Businesses at Air Products. "We are honored to have been chosen by Vattenfall for this project, and we look forward to working closely with one of the global leaders in CO2 capture solutions."
"It is crucial for Vattenfall to qualify a portfolio of optional technology use in the coming deployment phase of CCS, carbon capture and storage. Air Products has been engaged in innovative oxyfuel solutions for many years and we are pleased to get them on board in our pilot facility," said Goran Lindgren, CCS R&D manager at Vattenfall.
At the Schwarze Pumpe facility, Air Products will take flue gas directly off Vattenfall's 30 megawatt (MW) wall-fired boiler at the oxyfuel pilot plant. It will purify and compress the carbon dioxide, a portion of which will ultimately be transported for sequestration. Air Products' proprietary sour compression technology uses a staged compression process to optimize pressure, hold-up, and residence time to allow removal of impurities during the compression process. This allows cost savings in the oxyfuel combustion process and minimizes the concentration of acidic components, important in preventing corrosion during the CO2 sequestering process. This pilot will demonstrate the efficient purification of CO2, and remove inert gases, in particular oxygen. In addition, it will incorporate novel membrane technology, targeting carbon capture rates as high as 98 percent. More information on Air Products' CO2 purification technologies can be found at www.airproducts.com/CO2_capture.
Vattenfall inaugurated the 30 MW pilot plant for carbon dioxide capture at its lignite coal-fired power plant at Schwarze Pumpe in September 2008. Based on the conclusions from this pilot plant, the next step will be to build larger demonstration power plants, for which feasibility studies have already been initiated and target on-stream status in 2015. More information on Vattenfall's carbon capture technology is at www.vattenfall.com/ccs.
Air Products is currently working on several carbon capture and storage demonstration projects around the world. In early March the company announced work with the U.S. Department of Energy (DOE) to design and construct a CO2 purification system in support of an oxyfuel technology development project at a boiler simulation facility in Windsor, Connecticut. In 2008, it was announced that Air Products' oxyfuel sour compression technology had been demonstrated in experimental work carried out by Imperial College London with flue gas from a 160 kilowatt coal-fired combustion installation at Doosan Babcock's facility in Renfrew, Scotland, as part of the Oxycoal-UK Project. Air Products has also announced a CO2 capture study for gasification in collaboration with the Alberta Energy Research Institute. The study, focused on advanced carbon dioxide capture technology for use with gasification, is to be completed in October 2010.
Additionally, in January 2009, a team led by Air Products and including Imperial College London and Doosan Babcock Energy Ltd. were presented the Rushlight Carbon Capture and Storage Award 2008 for work addressing impurity removal in CO2 waste streams from coal-fired power plants. The Rushlight Awards promote and celebrate the leading environmental technologies and innovations by organizations throughout the UK and Ireland.
About Air Products
Air Products (NYSE: APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. Air Products has annual revenues of over $10 billion, operations in more than 40 countries, and 21,000 employees around the globe. For more information, visit www.airproducts.com.
About Vattenfall
Vattenfall is Europe's fifth largest generator of electricity and the largest generator of heat. Its vision is to be a leading European energy company. Today, Vattenfall generates electricity, produces heat and supplies energy to several million customers in the Nordic countries and northern Europe. Relying on coal as an energy source in some of the countries, Vattenfall is strongly committed to CCS and plays a key role in the development of these innovative technologies. It has set as target a 50 percent reduction of its CO2 emissions by 2030 and has the vision to become CO2 neutral by 2050. More information on Vattenfall can be found at www.vattenfall.com.

 

[lorenzo63]

Air Products' Hydrogen Fueling Technology Powering Forklifts at Defense Distribution

1 aprile

LEHIGH VALLEY, Pa., April 1 /PRNewswire-FirstCall/ -- Air Products (NYSE: APD), a global leader in hydrogen fueling and infrastructure, has installed its hydrogen fueling station technology at the Defense Distribution Depot Susquehanna Pennsylvania (DDSP) in New Cumberland, Pa. and today is powering an overall fleet of 40 hydrogen fuel cell powered forklifts being used in daily warehouse operations. Air Products is the lead contractor for the two year Defense Logistics Agency (DLA) research and development demonstration pilot project.
In the pilot project, DDSP personnel will operate 20 fuel cell-powered forklifts alongside lead-acid battery forklifts, outside the scope pilot project, in daily operations. In addition, the fueling station will be used to support an additional 20 fuel cell-powered forklifts provided by DLA. Data to compare costs and operational characteristics will be collected and analyzed to support the development and commercialization of hydrogen fuel cell technologies for Department of Defense operations.
"We commend the DLA for taking this close look at the many positives, both operational and environmental, offered by the use of hydrogen powered forklifts. The program at this location provides for a side-by-side comparison during routine operations of the traditional lead-acid battery technology and the advanced hydrogen fuel-cell technology. We believe the performance of the hydrogen powered materials handling equipment will clearly demonstrate operational, economic and environmental benefits," said Brian O'Neil, program manager for Hydrogen Energy Systems at Air Products.
"The DDSP project is the first in a series of three research and development pilots of fuel cell and associated hydrogen fueling technologies within the Defense Distribution Center," said Leo Plonsky, DLA's R&D program manager for hydrogen fuel cell technologies. "Not only does this technology reduce DLA's dependence on imported oil, it reduces greenhouse gas emission that can contribute to climate change."
There are many advantages to using hydrogen powered forklifts and other materials handling equipment. Hydrogen fuel cell-powered equipment needs refueling, which can be completed in minutes, only once or twice daily depending on use. In contrast, traditional battery-powered equipment must be placed temporarily out of operation for battery replacement and required battery recharging approximately every four to six hours. Hydrogen fuel cell-powered equipment provides consistent power during use and do not experience decreased performance or wear down as traditional lead-acid battery units do as they near a required battery change out or recharge time. Further, hydrogen-powered fuel cell equipment is more environmentally friendly, without associated lead-acid battery storage and disposal issues.
Air Products had previously announced a hydrogen fueling infrastructure project for the materials handling industry in late 2008. Air Products is installing indoor hydrogen fueling infrastructure to fill a fleet of over 200 fuel cell powered lift trucks that will operate at Central Grocers' new distribution center in Joliet, Illinois. The distribution center fueling project will come on-stream in 2009. Air Products has also been involved with similar work at a grocery chain warehouse in Texas since 2007 and a manufacturing and assembly plant in Tennessee since 2006.
Air Products, the leading hydrogen supplier to refineries to assist in making cleaner burning transportation fuels, has completed over 85,000 hydrogen fills and has placed over 90 hydrogen fueling stations in the United States and 16 countries worldwide. Cars, trucks, vans, buses, scooters, forklifts and other materials handling equipment, and even submarines, have been fueled with this trend-setting technology that involves Air Products' know-how, equipment, and hydrogen, and use of the technology is increasing at over 2,500 hydrogen fills per month. Air Products provides liquid and gaseous hydrogen, and HCNG (hydrogen/compressed natural gas) fueling, and has developed a variety of enabling devices and protocols for fuel dispensing at varied pressures. Hydrogen for these stations is delivered to a site via truck, by on-site natural gas reformation, and by electrolysis, including electrolysis that is solar and wind driven.
Air Products has more than 50 years of hydrogen experience and is on the forefront of hydrogen energy technology development. Air Products has an extensive patent portfolio with over 50 patents in hydrogen dispensing technology. For more information on Air Products' hydrogen fueling station technologies go to www.airproducts.com/h2energy.
Air Products (NYSE: APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. Air Products has annual revenues of over $10 billion, operations in over 40 countries, and 21,000 employees around the globe. For more information, visit www.airproducts.com.

 

[lorenzo63]

E dopo avere convinto i Canadesi

Tocca a Nestlè


LEHIGH VALLEY, Pa., April 9 /PRNewswire-FirstCall/ -- Air Products (NYSE: APD), a global leader in hydrogen fueling and infrastructure, today announced the signing of a long-term agreement with Nestle Waters North America, Inc. to supply hydrogen and hydrogen fueling station technology for Nestle's Dallas, Tex. facility, where it will be used to fuel a fleet of approximately 32 Class I hydrogen fuel cell powered forklifts to be used in daily operations. Nestle Waters is in the process of expanding its bottling and warehousing operations in Dallas and is converting its materials handling equipment to hydrogen fuel cell forklifts. The fueling station is to be installed and operational during the second quarter of 2009.
"This is a leading edge decision made by Nestle Waters to convert its materials handling system and use hydrogen as an energy carrier. It is a move that will provide operational, economic and environmental benefits for this bottling facility. Hydrogen fueling technology for materials handling applications is proven and cost-effective," said Tom Joseph, business development manager for Hydrogen Energy Systems at Air Products. "This project also further strengthens our collaboration with Plug Power in providing alternative energy solutions."
"This project is consistent with our commitment to environmental stewardship and sustainable 'green' solutions for which Nestle Waters North America, Inc. aspires. I continue to be encouraged by the enthusiastic support from the front lines to senior leadership to introduce this capability and explore the responsible alternative energy options," said Christopher Lyon, process improvement manager for Nestle Waters Fleet Services. "We look forward to this site proving the viability of future conversions."
"The new hydrogen fueling association with Nestle is an extension of existing business relationships in supplying industrial gases and services to a familiar customer," said Todd Geis, strategic account manager at Air Products. "We've been providing industrial gases and related services to Nestle at other locations around the United States for nearly 20 years. Hydrogen fueling, which is using our liquid hydrogen as its feed at this site, is an innovative offering that in the eyes of the customer sets us apart from our competition."
Air Products' fueling infrastructure at Nestle includes an outdoor liquid hydrogen storage and compression system, along with multiple indoor fueling dispensers for operator refueling. Air Products' will fuel the fleet of new lift trucks fitted with Plug Power's (Nasdaq: PLUG) GenDrive(TM) hydrogen fuel cell power units. The GenDrive systems can be quickly refueled by the lift truck operator in less than five minutes, completely eliminating the need to change, store, charge and maintain multiple lead acid batteries per lift truck.
There are many advantages to using hydrogen powered forklifts and other materials handling equipment. Hydrogen fuel cell-powered equipment needs refueling once or twice daily, depending on use. In contrast, traditional battery-powered equipment must be placed temporarily out of operation for battery replacement and required battery recharging approximately every four to six hours. Hydrogen fuel cell-powered equipment provides consistent power strength during use and do not experience decreased performance or wear down as traditional lead-acid battery units do as they near a required battery change out or recharge time. Additionally, hydrogen fuel cell forklifts are not adversely impacted by temperature or by operating in coolers and freezers, in comparison to traditional battery performance. Further, hydrogen-powered fuel cell equipment is more environmentally friendly because they do not involve lead-acid battery storage and disposal issues.
This announcement follows closely Air Products' recent news of its hydrogen fueling project at the Defense Distribution Depot Susquehanna Pennsylvania (DDSP) in New Cumberland, Pa., where it is powering a fleet of 40 of Plug Power's GenDrive hydrogen fuel cell powered forklifts used in daily warehouse operations. Additional related materials handling projects powered by Air Products' hydrogen technology include installation of indoor hydrogen fueling infrastructure to fill a fleet of over 200 fuel cell powered lift trucks, working with Plug Power and Yale Equipment Services, which will operate at Central Grocers' new distribution center in Joliet, Illinois in 2009, and similar work at a grocery chain warehouse in Texas since 2007, and manufacturing and assembly plants in Tennessee and South Carolina since 2006.
Air Products, the leading hydrogen supplier to refineries to assist in making cleaner burning transportation fuels, has completed over 85,000 hydrogen fills and has placed over 90 hydrogen fueling stations in the United States and 16 countries worldwide. Cars, trucks, vans, buses, scooters, forklifts and other materials handling equipment, and even submarines, have been fueled with this trend-setting technology that involves Air Products' know-how, equipment, and hydrogen, and use of the technology is increasing at over 2,500 hydrogen fills per month. Air Products provides liquid and gaseous hydrogen, and HCNG (hydrogen/compressed natural gas) fueling, and has developed a variety of enabling devices and protocols for fuel dispensing at varied pressures. Hydrogen for these stations is delivered to a site via truck, by on-site natural gas reformation, and by electrolysis, including electrolysis that is solar and wind driven.
Air Products has more than 50 years of hydrogen experience and is on the forefront of hydrogen energy technology development. Air Products has an extensive patent portfolio with over 50 patents in hydrogen dispensing technology. For more information on Air Products' hydrogen fueling station technologies go to www.airproducts.com/h2energy.
About Air Products Air Products (NYSE: APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. Air Products has annual revenues of over $10 billion, operations in over 40 countries, and 21,000 employees around the globe. For more information, visit www.airproducts.com.
About Plug PowerPlug Power Inc. (Nasdaq: PLUG), an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive, continuous and backup power products. The Company is actively engaged with private and public customers in targeted markets throughout the world. For more information about how to join Plug Power's energy revolution as an investor, customer, supplier or strategic partner, please visit www.plugpower.com.
About Nestle Water
North America
Central to the leadership of Nestle Waters North America Inc. is its 33-year experience and single-focus on producing bottled water products. The company's dedication to product quality control, manufacturing expertise, employee development and environmental stewardship, especially in the areas of water use, energy and packaging, has led Nestle Waters to the number one bottled water position in the U.S. Simply said, to reach success the company follows its credo: Respect for each other, respect for the environment and respect for the community.
Founded in 1976, Nestle Waters North America is noted for having seven of the top ten bottled water brands sold in the U.S. The nation's number one ranked bottled water brand is Nestle(R) Pure Life(R) Purified Water which is available nationally. Other market-leading regional domestic brands include Poland Spring(R), Arrowhead(R), Ozarka(R), Deer Park(R), Zephyrhills(R), and Ice Mountain(R). Rounding out the company's portfolio of bottled water brands are popular imports such as Perrier(R), Contrex(R), Acqua Panna(R) and S.Pellegrino(R).
Nestle Waters North America Inc., with 8,400 employees, is based in Greenwich, Connecticut. It is a corporate affiliate of Nestle S.A., of Switzerland. Please visit www.nestlewatersnorthamerica.com for more information.

 

[lorenzo63]

Air Products to Supply CHINT Solar with Bulk and Specialty Gases

Air Products Lands Another Thin-Film PV Win in
Asia
LEHIGH VALLEY, Pa., April 14 /PRNewswire-FirstCall/ -- Air Products (NYSE: APD) today announced it has signed a gas supply contract to provide bulk and specialty gases to CHINT Solar (Zhejiang) Co., Ltd. (CHINT Solar) at its new thin-film photovoltaic (PV) facility in Binjiang District, Hangzhou, China. The contract calls for the supply of hydrogen, nitrogen and argon, as well as specialty gases such as silane, nitrogen trifluoride (NF3) and dopant mixtures.
CHINT Solar is a subsidiary of CHINT Group Corporation, a producer of low-voltage electrical power transmission and distribution industries in China. Specializing in the manufacturing of photovoltaic products, CHINT Solar's annual production capacity of crystalline and thin-film PV is expected to exceed 300MW by 2010.
"Air Products is excited to be CHINT Solar's gas supply partner, and we look forward to applying our expertise in thin-film photovoltaic applications to help them quickly reach their goal of 210MW in thin-film PV by 2010," said Corning Painter, Air Products' vice president and general manager, Global Electronics Division. "Grid parity is key for the PV industry. Air Products continues to lower our customers' cost-per-watt through innovative technical, product and equipment solutions."
CHINT Solar's thin-film PV modules, which convert sunlight directly into electricity, will be manufactured in much the same way as thin-film transistor liquid crystal displays (TFT-LCD). As the leading supplier to the TFT-LCD industry, Air Products is ideally suited to supply the new facility.
Last year, Air Products won more than 20 new contracts in Asia serving both the crystalline and thin-film PV markets. "We are well positioned to meet the growing needs of our customers around the world, particularly in Asia," said Painter.
With the demand for renewable energy and improved efficiency on the rise, Air Products is well positioned to support these developing markets with its expertise and project experience in areas including large scale hydrogen supply for cleaner transportation fuels, developmental work on the hydrogen economy, hydrogen vehicle fuelling and infrastructure, leading natural gas liquefaction technology, and now the growing supply of gases and services for the photovoltaic industry. For more information on Air Products' photovoltaic offerings, please visit www.airproducts.com/photovoltaics.
Air Products (NYSE: APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. Air Products has annual revenues of over $10 billion, operations in more than 40 countries, and 21,000 employees around the globe. For more information, visit www.airproducts.com