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Wednesday, January 20, 2010
Today's News Headlines
* Vitopel expects sales to increase 7% in 2010 - Brazil
* Vitopel could increase synthetic paper production - Brazil
* PPQ's capex to total US$2.7bn in 2010-13 - Mexico
* Devaluation could cost Goodyear some US$150mn in Q1 - Venezuela
* Ecopetrol to increase asphalt prices - Colombia
* Agrium to nominate 2 directors for election to CF board - Peru, Regional
* Vale in talks with Bunge for fertilizers assets acquisition - Brazil
* Braskem, Quattor merger on track, says Petrobras - Brazil
* Petrobras' investments not likely to change despite Comperj's planned expansion - Brazil
* Judge lifts injunction suspending Braskem, Quattor merger talks - Brazil
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* Vitopel expects sales to increase 7% in 2010 - Brazil
Latin American bioriented polypropylene films producer Vitopel expects sales volumes to increase by up to 7% this year compared to 2009, company president José Ricardo Roriz told BNamericas.
Growth is expected to be driven chiefly by the global trend of replacing rigid packaging with flexible packaging as well as increased purchasing power of the population in the northeast and central-west regions of Brazil, where people are beginning to have better access to packaged products.
Revenues last year are expected to have increased by between 2% and 2.5% from 720mn reais (US$406mn) in 2008 despite the global economic crisis.
According to Roriz, in the second half of 2009 sales were already similar to pre-crisis levels. "The first quarter of 2009 was more difficult, with clients making use of inventories. However, during the year demand from final consumers didn't drop," the executive said.
Vitopel was forced to adjust output due to weak demand at the beginning of last year, but currently the company is operating at close to full capacity especially as a result of an upturn in domestic demand.
Some 65% to 70% of Vitopel's sales are to the food and beverage industries, followed by labels, tapes and overwrap films used in several segments.
Exports account for approximately 25% of Vitopel's sales, which is expected to remain steady this year. Of total exports, 60% are shipped to the US, where demand was also sustained despite the economic slowdown, according to Roriz.
Vitopel has put its US$55m expansion plan, targeted at supplying both the domestic and international markets, temporarily on hold.
"Even though we expect to maintain export volumes during the year, we prefer to wait until we have a clearer picture of the global economic environment," Roriz added.
Vitopel produces 150,000t/y of bioriented polypropylene films at its two production sites in Brazil and one in Argentina.
By Fernanda De Biagio
Business News Americas
* Vitopel could increase synthetic paper production - Brazil
Latin American bioriented polypropylene films producer Vitopel could increase production capacity of its synthetic paper made from recycled plastic in view of growing demand, company president José Ricardo Roriz told BNamericas.
Currently, Vitopel produces 10,000t/y of synthetic paper at its facility in Votorantim, in Brazil's São Paulo state.
"We can easily increase that output by three times and that would require low levels of investment," Roriz said.
Vitopel began selling the synthetic paper in 2009, during which time the company penned several partnerships including with publishing houses, to which it intends to increase sales this year.
Due to the product's environmental and sustainability appeal, there has been significant interest from both national and international potential clients, according to the company.
Vitopel developed a technology that allows any type of post-consumption plastic to be used to produce the synthetic paper. It is the first technology of its kind in the world and was developed over three years by the company, the federal university of São Carlos and the foundation for research support of São Paulo state, Fapesp.
Vitopel invests some US$2mn annually in research and development and holds several patents in technology for products that supply diverse markets.
By Fernanda De Biagio
Business News Americas
* PPQ's capex to total US$2.7bn in 2010-13 - Mexico
Mexican state oil company Pemex aims for capex of its petrochemicals subsidiary PPQ to total 34.2bn pesos (US$2.70bn) in 2010-13, according to a company filing with the US Securities and Exchange Commission.
The finance ministry approved capex of 4.78bn pesos for 2010, 16.7bn pesos for 2011, 6.50bn pesos for 2012 and 6.24bn pesos for 2013.
Pemex's gas and basic petrochemical arm PGBP has a total 23.9bn pesos earmarked for capex in 2010-13, with 5.72bn pesos set aside for 2010, 7.73bn pesos in 2011, 4.95bn pesos in 2012 and 5.46bn pesos in 2013.
Pemex's total capex for the period is 1.14tn pesos, the majority of which, 930bn pesos, is earmarked for its E&P subsidiary PEP.
By Business News Americas staff reporters
* Devaluation could cost Goodyear some US$150mn in Q1 - Venezuela
US tire company Goodyear (NYSE: GT) expects to record a charge of approximately US$150mn in the first quarter 2010 associated with the devaluation of the Venezuelan currency if calculated at an exchange rate of 4.30 bolívares to the US dollar, the company said in a statement.
On January 8 the Venezuelan government created a dual exchange rate whereby priority imports would be subject to a rate of 2.60 bolívares to the dollar and non-essential items 4.30 bolívares.
Some of the tires and raw materials Goodyear imports into Venezuela have been classified essential. The company said it continues to evaluate the list of goods to determine the full impact of the devaluation.
"We have a strong business in Venezuela with an outstanding and experienced leadership team that is focused on managing through the changes taking place in the Venezuelan market," company chairman and CEO Robert J Keegan said in the statement.
As of end-2009 Goodyear had US$370mn in cash denominated in bolívares.
By Business News Americas staff reporters
* Ecopetrol to increase asphalt prices - Colombia
After conversations with Colombia's energy and mines ministry and asphalt associations, state oil company Ecopetrol (NYSE: EC) will increase the price of asphalt by 10% on February 1, Ecopetrol said in a statement.
Asphalt will be increased from 740,000 pesos (US$375) per tonne to 814,000 pesos/t to reflect, in part, the increase in the price of raw materials.
The parties agreed to periodically review domestic asphalt prices, the statement said.
By Business News Americas staff reporters
* Agrium to nominate 2 directors for election to CF board - Peru, Regional
Canadian fertilizer maker Agrium (TSX, NYSE: AGU) will nominate two independent directors for election to Illinois-based fertilizer manufacturer and distributor CF Industries' (NYSE: CF) board at the latter's annual shareholders meeting, the former said in a statement.
Agrium will also seek approval for a resolution requesting the CF board redeem its poison pill, the statement said.
"We remain fully committed to acquiring CF and believe the CF board of directors has failed to uphold its stockholders' interests by continuing to ignore Agrium's strategically and financially compelling offer, currently valued at US$110.32 per CF share," said Mike Wilson, Agrium's president and CEO.
Agrium has extended the expiration date of its offer to acquire CF for US$45.00 in cash plus one Agrium share per CF share until February 22, 2010.
On January 14, CF announced it had withdrawn its offer to acquire Iowa-based nitrogen producer Terra Industries (NYSE: TRA), BNamericas reported previously.
"It is clear that an acquisition of Terra now would require a significant increase in our offer, given the substantial uplift in equity values in the fertilizer sector," said CF's CEO Stephen Wilson.
CF Industries has a nitrogen complex under development in Peru for which it announced in October that it had signed a natural gas supply agreement with the Camisea consortium, led by Argentine oil company Pluspetrol.
By Business News Americas staff reporters
* Vale in talks with Bunge for fertilizers assets acquisition - Brazil
Brazilian mining major Vale (NYSE: VALE) is in talks with US agribusiness and food company Bunge (NYSE: BG) for the acquisition of the latter's fertilizer assets in Brazil, including the 42.3% stake Bunge holds in Brazilian fertilizer producer Fosfertil, Vale said in a filing with the São Paulo Bovespa stock exchange.
The deal is estimated to be worth up to US$3.8bn, Vale said.
Assets include phosphate rock reserves and production units of phosphorus and nitrogen-based fertilizer intermediates.
Vale added that negotiations may or may not result in the acquisition of Fosfertil.
By Business News Americas staff reporters
* Braskem, Quattor merger on track, says Petrobras - Brazil
Negotiations on the merger between Brazilian petrochemical companies Braskem (NYSE: BAK) and Quattor are advancing but no deadline has been set for the conclusion of a deal, federal energy company Petrobras' (NYSE: PBR) downstream director Paulo Roberto Costa said, according to newspaper O Estado de S Paulo.
Petrobras controls 40% of Quattor and 31% of Braskem's voting capital.
According to Costa, there are no legal barriers to an agreement that would result in the incorporation of Quattor by Braskem and the consequent consolidation of their assets into one firm.
Petrobras is expected to control 49% of the new company's voting capital, while Brazilian conglomerate Odebrecht, which has majority control of Braskem, would hold the other 51%.
Costa also believes the merger would have no trouble in receiving approval from Brazilian antitrust regulator Cade.
When Quattor was created through the merger of the petrochemical assets of Petrobras and Brazilian petrochemical group Unipar (Bovespa: UNIP6), Cade ruled in favor of the consolidation by stating that competition in the petrochemical industry is in the international market.
By Business News Americas staff reporters
* Petrobras' investments not likely to change despite Comperj's planned expansion - Brazil
Brazil's federal energy company Petrobras' (NYSE: PBR) plan to increase refining capacity of the Rio de Janeiro Comperj petrochemical complex would not result in any modification to its 2009-12 investment plan, Petrobras said in a filing with the São Paulo Bovespa stock exchange, in response to recent press reports.
Comperj was originally planned to process 150,000b/d but capacity is expected to be increased to 300,000b/d.
The change does not alter the project's schedule either, said Petrobras downstream director Paulo Roberto Costa, according to a Reuters report.
The additional output is also expected to be exclusively used in diesel production, according to a report from newspaper O Estado de S Paulo.
Investments in Comperj are expected to total US$8.4bn. The complex will also produce basic petrochemicals and thermoplastic resins.
By Business News Americas staff reporters
* Judge lifts injunction suspending Braskem, Quattor merger talks - Brazil
Judge Luiz Roberto Ayoub, who sits in a court of justice in Rio de Janeiro, has lifted an injunction suspending negotiations on the merger of Brazilian petrochemical companies Braskem (NYSE: BAK) and Quattor, news service Agência Estado reported.
Alberto Soares de Sampaio Geyer, a shareholder in the Vila Velha holding, has been trying to prevent the merger going through.
Vila Velha controls Brazilian petrochemical group Unipar (Bovespa: UNIP6), which has a 60% stake in Quattor. Brazil's federal energy firm Petrobras (NYSE: PBR) controls the remaining 40%.
According to Ayoub, the deal will be submitted to Brazilian regulators and does not represent any "irreparable" harm to society that would require an immediate interference from the judiciary, the report read.
By Business News Americas staff reporters
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In-deph interview
* "We forecast revenue growth of at least 6% for the sector in 2010"
Alfredo Schmitt
President
Abief
Brazil
http://www.bnamericas.com/interviews/petrochemicals/Alfredo_Schmitt_,Abief,1/170693743
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Main companies covered in today's news
* Quattor Petroquímica S.A.
http://www.bnamericas.com/company-profile/en/Quattor_Petroquimica_S,A,-Quattor/170693743
* Fertilizantes Fosfatados S.A.
http://www.bnamericas.com/company-profile/en/Fertilizantes_Fosfatados_S,A,-Fosfertil/170693743
* Construtora Norberto Odebrecht S.A.
http://www.bnamericas.com/company-profile/en/Construtora_Norberto_Odebrecht_S,A,-CNO/170693743
* PEMEX Petroquímica
http://www.bnamericas.com/company-profile/en/PEMEX_Petroquimica-Pemex_Petroquimica/170693743
* Unipar Comercial e Distribuidora S.A.
http://www.bnamericas.com/company-profile/en/Unipar_Comercial_e_Distribuidora_S,A,-Unipar_Comercial/170693743
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