DuPont, Dow Chemical get requests for more information from regulators

MOSCOW (MRC) -- DuPont Co. and Dow Chemical Co. said U.S. regulators last week requested additional information about their pending merger, which will extend the their antitrust review, said The Wall Street Journal.

The pending deal, unveiled in December, will combine two of the oldest companies in the U.S. into a chemical giant called DowDuPont, initially valued at about USD130 billion. The combined company will then split itself into three separately-traded companies focused on agricultural products, material sciences, and specialty products about 18 to 24 months after the merger closes.

In a filing with the U.S. Securities and Exchange Commission on Tuesday, the companies said each of them received a request for additional information from the antitrust division of the Justice Department, potentially extending the merger review by 30 days.

The companies said they had filed a first round of required information regarding the merger plans with the Federal Trade Commission and the Justice Department’s antitrust unit during January.

As MRC informed earlier, DuPont Co. and Dow Chemical dislosed the merger in the late December 2015.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber. In 2014, Dow had annual sales of more than USD58 billion and employed approximately 53,000 people worldwide.
MRC

US Valero suspends plans for methanol plant


MOSCOW (MRC) -- Valero Energy Corp.’s previously-announced USD700 million methanol plant, planned at its existing St. Charles Parish, LA, facility, has been shelved indefinitely, said Naturalgasintel.

A spokeswoman for the San Antonio-based mega-independent refiner told NGI this week that "after continued evaluation of the proposed methanol project at St. Charles, Valero does not have plans to move forward at this time."

The methanol plant, announced in 2013 would have produced 1.6 million tons/year of methanol, tapping low-cost natural gas from the nearby Eagle Ford Shale and other basins to make a wide range of products, including paints, solvents, plastics and other consumer goods.

But the project appears to be a casualty of the commodities downturn. After the company told analysts during a conference call last summer to expect a final investment decision by 4Q2015, the methanol project never came up during subsequent earnings calls.

Valero had also been looking for a partner to help shoulder some of the cost of the methanol plant.

As it was written earlier, in February 2015, Valero Energy Partners LP approved the partnership's acquisition of certain businesses from subsidiaries of Valero Energy Corporation. In the transaction, the partnership will receive the outstanding membership interests in Valero Partners Houston, LLC and Valero Partners Louisiana, LLC for total consideration of about USD671 mln.

Valero Energy Corporation is a Fortune 500 international manufacturer and a marketer of transportation fuels, other petrochemical products, and power. It is based in San Antonio, Texas, United States. The company owns and operates 16 refineries throughout the United States, Canada, United Kingdom, and the Caribbean with a combined throughput capacity of approximately 3 million barrels (480,000 m3) per day, 10 ethanol plants with a combined production capacity of 1.2 billion US gallons (4,500,000 m3) per year, and a 50 megawatt wind farm.
MRC

Evonik invests in Austria to expand membrane business for gas separation

MOSCOW (MRC) -- Essen-based Evonik Industries, a leading specialty chemicals manufacturer, is expanding its promising membrane business, as per the company's statement.

To this end, the specialty chemicals company will further expand its Austrian site in Lenzing/Schorfling to double the existing production capacities for the hollow-fiber membrane modules of its SEPURAN brand. The membrane offers a particularly efficient method for the separation of gases from gas mixtures such as methane, nitrogen, or hydrogen. Evonik is investing an amount in the mid double-digit million euro range in the plant and its infrastructure.

The production of additional membrane modules is projected to begin in late 2017.

"The investment in Austria creates the basis for the further growth of our membrane business in the very attractive market for efficient gas separation. As a technology leader, we want to benefit in an above-average way from the growth in the global gas separation market with our highly selective and productive membranes," said Dr. Ralph Sven Kaufmann, a member of Evonik’s Executive Board and its chief operating officer.

"We aim to expand the biogas membranes business, which has been well-established for five years. At the same time, we see excellent growth opportunities in the market for helium and hydrogen processing as well as for the efficient nitrogen production from air," noted Dr. Claus Rettig, chairman of the Board of Management of Evonik Resource Efficiency GmbH.

Compared to conventional methods such as cryogenic separation, gas separation via membranes is still a new technology. Because of its higher energy efficiency and lower cost, experts project higher growth for gases from membrane-based separation processes than for conventional gas separation. Nitrogen, with a share of more than 40 percent, has the largest market volume in membrane-based gas separation.

The gas separation modules that Evonik produces in Schorfling are primarily intended for the biogas market and for hydrogen and helium extraction. The new hollow fiber spinning plant will be dedicated to the production of membrane modules for efficient gas separation particularly for nitrogen extraction. The nearby Lenzing plant manufactures polyamide, a high-performance polymer, which is spun and then further processed in Schorfling. The infrastructure in Lenzing will be expanded as well.

SEPURAN Green membranes for biogas processing were successfully launched in 2011. Since then, the membrane technology has been consistently developed further; the product range has been supplemented with the SEPURAN Noble membrane for helium and hydrogen processing. A new hollow fiber membrane for efficient nitrogen extraction - SEPURAN N2 - was added to the membrane portfolio in early 2016. Protection against fire and explosion, for example in ship and aircraft tanks, is an important application area for nitrogen.

As MRC reported earlier, in April 2015, Evonik Industries inaugurated a new application technology center for superabsorbent polymers in Krefeld, Germany. The company invested EUR1 million. The new facility strengthens the position of Evonik as an innovative solutions provider for superabsorbent polymers.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.
MRC

Pampa offers Petrobras about USD1.2 billion for its Argentine unit

MOSCOW (MRC) -- Argentina's Pampa Energia SA offered Brazilian state-run oil company Petroleo Brasileiro SA about USD1.2 billion to buy its 67.2 percent stake in Petrobras Argentina SA, said Reuters, citing a source with direct knowledge of the bid.

The board of Petrobras, as the Brazilian company is known, has approved exclusive talks with Pampa for up to 60 days. The discussions were announced earlier on Wednesday in a Brazilian securities filing.

Petrobras Argentina is among the four largest producers of oil and gas in the South American country and has extensive downstream operations, including refining, petrochemicals and electricity generation.

A final deal should be complete within two months, said the source, who requested anonymity because a final accord has not been signed.

The proposed transaction comes at a key time for Petrobras and Pampa. If completed, the sale will be one of the first major deals in Petrobras' eight-month old plan to sell USD15.1 billion of assets by the end of 2016.

Petrobras Chief Executive Officer Aldemir Bendine has said the company needs to sell the assets to shore up its troubled finances and pay debt of about USD130 billion, the world oil industry's largest.

For its part, Pampa would widen its range of energy assets, including natural gas and oil rights. It is the largest integrated power company in Argentina, generating about 8 percent of the nation's electricity.

As MRC informed earlier, Iran and Brazil are in talks about a possible Iranian investment in troubled refinery projects controlled by Brazilian state-led oil company Petroleo Brasileiro SA.

Petroleo Brasileiro SA is also known as Petrobras. Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.

MRC

Evonik acquires Norwegian manufacturer of food ingredients

MOSCOW (MRC) -- Evonik Industries acquires the company MedPalett AS, with headquarters in Sandnes (Norway), on March 3, 2016, said the company on its site.

MedPalett AS specializes in food ingredients containing anthocyanins. The acquisition helps Evonik expand the portfolio of its Health Care Business Line in the area of advanced food ingredients. The parties have agreed not to disclose the purchase price.

Anthocyanins are known for their natural antioxidant properties. Numerous international studies suggest broad health-promoting properties including the prevention of cardiovascular disease.

"We are seeing an increase in demand for innovative food ingredients, especially those made from natural substances with scientifically proven benefits, and that’s something we want to be a part of," says Dr. Reiner Beste, chairman of the Board of Management of Evonik Nutrition & Care GmbH.

MedPalett, which previously belonged to the Norwegian Biolink Group, developed a berry extract from wild Scandinavian bilberries and black currants from New Zealand that has a particularly high and stable anthocyanin content. The company manufactures the ingredient itself. The berry extract, which is marketed as a dietary supplement under the brand name Medox®, has been available in Scandinavia since the year 2000.

Evonik has distributed the berry extract since 2015 under the name Healthberry 865, with exclusive distribution rights in Canada, Brazil, China, Japan, Korea, Australia, New Zealand, and South Africa.

"We have been a partner to the food ingredients industry for decades with our high-purity amino acids. Expanding our portfolio with nutritional solutions which promote health is a logical step in the development of our Health Care business," says Dr. Jean-Luc Herbeaux, head of the Health Care Business Line at Evonik. For MedPalett, the integration into the Evonik Group primarily means improved access to international markets and higher R&D resources.

As MRC informed earlier, Evonik launched an additional production area and erected a new building to house research, development, and scale-up operations for fixed bed catalysts at its Marl site, where it has been manufacturing catalysts for the past 75 years. The specialty-chemicals group has made a low double-digit million euro investment to expand its existing production capacities and erect a new building for operations revolving around the continued improvement of fixed-bed catalysts.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.

MRC