South Korean producers have for long been dependent on the Chinese market to absorb a large percentage of their output. So it is perhaps not surprising to read that SK Energy plans to move the headquarters of its chemicals division to China. It is also said to be looking at hiving off the chemicals business […]
Asian Chemical Connections
Beware The Motives of Optimists
By John Richardson IT is always useful to make a note of both what economists are saying and where they are coming from. To give you an example, I was at a conference last year when I heard a ridiculously rosy outlook for both emerging and developed economies, delivered by an economist working for a […]
Post merger Braskem talks of global growth through acquisitions
By Malini Hariharan After overcoming legal objections, Braskem took the final step late last week to announce the merger of the petrochemical operations of Petrobras, Odebrecht and Quattor, to create not only Brazil’s largest petrochemical company but also America’s largest polymer producer. The plan now is to develop the company to become one of the […]
Time for Reliance to make its next move
By Malini Hariharan Reliance’s bid to acquire LyondellBasell has taken an interesting turn after yesterday’s court ruling. The US bankruptcy court has allowed Lyondell Chemical, the US arm of LyondellBasell, time until 15 April to file a reorganisation plan. During that time, no other competing reorganisation plans can be filed with the court. “… With […]
China’s Credit Growth Versus the West
By John Richardson THE BIG gap in credit growth between China and the developed world has been thrown into further relief by recently released data – raising inflationary concerns in the world’s most important economy, while emphasising how rich-world countries remain on government life-support systems. Broad money supply growth was a huge 30% in China […]
Reliance ups LyondellBasell valuation
By Malini Hariharan LyondellBasell’s aggressive moves to convince creditors to approve its own reorganisation plan have drawn a reaction from Reliance Industries. A source familiar with developments confirms that Reliance has raised its valuation of LyondellBasell to $13.5bn, up from $12bn and a letter has been sent to LyondellBasell. But the Wall Street Journal reports […]
Korea’s Kumho faces heavy dose of restructuring
By Malini Hariharan The financially troubled Kumho Asiana group, with assets stretching from petrochemicals to airlines, has finally been able to work out a plan that should satisfy its creditors. The Korea Herald reports that the group plans to raise $1.13bn by selling assets as part of a restructuring programme. Kumho Tire and Kumho Industrial […]
The Threat From Arms-Length Project Financing
By John Richardson THE increasing use of non-recourse financing has raised the cost of projects financed since 2007 in a very difficult economic climate, warns a senior industry source. “I look at how some recent projects have been financed and worry,’ he adds. “Until 2007 money was plentiful, making it very easy to get board […]
China’s Data Quandary: Time To Take Up Golf?
By John Richardson Carrying on with our theme of just how difficult it is to get reliable information out of China, we heard of an overseas speciality chemicals producer seeking reliable data on growth prospects for a particular province. Pic source: destination360.com “It contacted the provincial government which put it in touch with an industry […]
The latest on Mab Ta Phut
By Malini Hariharan There is some good news for chemical companies affected by the Map Ta Phut crisis. The Thai cabinet will ask the Administrative Court to remove 19 projects from the list of 65 projects that had been ordered to stop work. PTT’s No 6 gas separation project and PTT Chemical’s phenol and polyethylene […]
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