Covestro announces upcoming leadership changes

MOSCOW (MRC) -- Jerry MacCleary, Covestro's president and managing director - as well as head of the North American polyurethanes business unit - will take over as CEO and chairman of the board, reported CoatingsWorld with reference to the company's statement.

MacCleary will be succeeded in his role as head of the Polyurethanes business unit by Christine Bryant, the head of Coatings, Adhesives and Specialties.

COO Dr. Erik Haakan Jonsson will succeed MacCleary as president and managing director.

MacCleary, who currently represents Covestro as vice chairman of the board, a member of the Executive Committee and an officer at the American Chemistry Council (ACC), will become chairman of the ACC Executive Committee Jan. 1, 2018.

MacCleary joined Covestro - then part of Bayer - in 1979 as an accountant, before embarking on a diverse career path that included sales, marketing and strategic management roles throughout the United States and Germany. In 2004, MacCleary was named head of the North American Polyurethanes business unit - a role he maintained after becoming president of Covestro LLC in 2012.

MacCleary led Covestro’s North American business through its separation from Bayer AG and establishment as an independent company in 2015.

In addition to his roles at the ACC, MacCleary serves on the board of directors of the National Association of Manufacturers, the International Isocyanate Institute and the Center for the Polyurethanes Industry.

In Pittsburgh, home to Covestro’s North American headquarters, MacCleary serves on the board of directors of the Allegheny Conference on Community Development, the United Way of Southwestern Pennsylvania, Variety the Children’s Charity and the Imani Christian Academy. He also serves as a member of the board of trustees for the Children's Hospital of Pittsburgh Foundation.

"I’m happy to continue my executive leadership role at Covestro," MacCleary said. "At the same time, I am excited for the opportunity to make an even stronger contribution at ACC, which plays a critical role for Covestro and the entire chemical industry.

"I’ll be working to advance our industry leadership position at Covestro and, in conjunction with the ACC, promote industry issues, such as sustainability, innovation and safety. I’m also a Pittsburgher at heart and eager to continue my community service activities in this region."

Since 2012, Bryant has led Covestro’s Coatings, Adhesives and Specialties (CAS) business in North America and also leads the unit’s global key account business. She joined Covestro in 1989 and has held increasing roles in marketing, sales, distribution and business development throughout her career. A chemical engineer by training, Bryant’s focus has been on creating stronger relationships with customers and developing new business and markets within the CAS area. She is also an advocate for STEM education and an active community leader, working closely with the United Way of Southwestern Pennsylvania, as the current co-chair of the Women’s Leadership Council.

Jonsson joined Covestro in 1992 as a scientist in Pittsburgh. His career has led him throughout the United States and Germany, as he took on roles in manufacturing, innovation, supply chain and business development. Jonsson has served on the board of directors of various chemical industry, community service and educational organizations. He is a chemical engineer and holds his Ph.D. in polymer technology.

“I’ve spent my entire career with Covestro and am incredibly proud of the people and culture we have today," said Jonsson. "Under Jerry’s leadership, Covestro has built its reputation in this region as a strong, bold and innovative company. I’m grateful for the opportunity to support him in carrying the torch forward - and I’m glad to be back in Pittsburgh, the city I call home."

As MRC informed before, in September 2017, German drugs and pesticides group Bayer further reduced its holding in Covestro to 31.5% from 40.9% by selling 19 million shares in the plastics business for a total of EUR1.2 billion (USD1.4 billion).

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
MRC

OPEC sees slower growth in demand for its oil as rivals pump more

MOSCOW (MRC) — Global demand for OPEC's crude will rise in the next two years more slowly than expected, the group forecast, as a recovery in prices resulting from an OPEC-led supply cut stimulates renewed output growth from non-members, as per Hydrocarbonprocessing.

The Organization of the Petroleum Exporting Countries also said in its 2017 World Oil Outlook that rapid adoption of electric vehicles could cause oil demand to plateau in the second half of the 2030s, denting OPEC's longer-term prospects. OPEC and rivals including Russia have been cutting output in 2017 to get rid of a glut. A resulting price rise is spurring a rebound in non-OPEC supply, the report shows, but OPEC still expects its market share to increase further down the line.

"It is evident that this major commitment to production adjustments has been central to the rebalancing process that the market has undergone this year," OPEC Secretary-General Mohammad Barkindo wrote in a foreword to the report. "The long-term focus for additional liquids demand remains on OPEC."

Demand for OPEC crude will reach 33.10 MMbpd in 2019, the report said. While up from 32.70 MMbpd in 2016, the 2019 figure is down from 33.70 MMbpd forecast in last year's report. OPEC raised its forecast for the supply of tight oil, which includes US shale. It said a rise in prices in 2017, plus sustained demand growth, had resulted in a higher forecast for supplies outside OPEC.

"The medium-term outlook for non-OPEC liquids growth has changed quite considerably," OPEC said in the report, referring to its 2016 forecasts. "Most strikingly, US tight oil production has exceeded previous growth expectations."Oil prices hit their highest since July 2015 on Monday, trading above USD62 a barrel. This year's report did not mention the oil price it assumes. Last year's report assumed OPEC's basket of crude oils would reach $65 in 2021.

MRC

China sets 2018 non-state crude oil import quota 55% higher than 2017

MOSCOW (MRC) — China has raised its 2018 crude oil import quota for "non-state trade," generally meaning independent refiners, by 55% over 2017, raising the clout of the independents in the global market after a setback this year, said Hydrocarbonprocessing.

The move took market participants by surprise after Beijing cut the quotas to independents for 2017. The annual quota setting, announced earlier than usual, is a sign the government is relaxing its policies towards the independent refiners after the cuts and after banning them from exporting fuel this year.

The Ministry of Commerce said on Wednesday companies can start applying for quotas for 2018 totaling 142.42 MMt, or about 2.85 MMbpd, up from 91.73 MMt for 2017. The ministry did not provide a detailed breakdown of quota recipients, but they should include mostly independent refiners, which in 2017 made up around two-thirds of the total.

The announcement follows a recent state media report that China's increasingly influential independent refineries have sought changes to oil quota polices to help them plan procurement and production in advance. Quotas for some of these independents, also known as "teapots," were cut by nearly 17% in 2017 versus 2016 because they under-used the earlier permits.

"Teapots like us may get a bit more quota next year after Commerce Ministry cut back our volumes in 2017," said a procurement manager with Shouguang Luqing Petrochemical Co, a teapot based in the eastern Chinese province of Shandong, home to a number of the independent plants.
MRC

Enerkem biofuel facility receives approval from EPA to sell ethanol

MOSCOW (MRC) — Enerkem Inc., a waste-to-biofuels and renewable chemicals producer, announced it has received approval from the US Environmental Protection Agency (EPA) to sell cellulosic ethanol produced at its Edmonton, AB, Canada facility under the US renewable fuels standard (RFS), said Hydrocarbonprocessing.

Enerkem's state-of-the-art advanced biofuels facility has successfully completed all the necessary steps required by the EPA and is the first ever municipal waste-to-cellulosic ethanol plant to receive approval to sell in the US. Under the 2007 Energy Independence and Security Act, 16 Bgal of cellulosic biofuels are to be blended in the conventional transportation fuel pool by 2022.

Enerkem is now registered for D3 Renewable identification numbers (RINs) credits. These RIN credits are purchased by US refiners to comply with the US RFS program. The EPA has established that cellulosic biofuels reduce greenhouse gas emissions by at least 60% when compared to gasoline.

Earlier this year, Enerkem expanded its Edmonton biofuel facility to produce some 13 MMgal of cellulosic ethanol annually following the commissioning of its methanol-to-ethanol conversion unit. This pioneering facility has been financed by private sources and received funding support from Sustainable Development Technology Canada (SDTC), Alberta Innovates and Alberta Energy.
MRC

Thai refiner IRPC quarterly profit more than doubles on rising oil prices

MOSCOW (MRC) -- Thai oil refiner IRPC Pcl's net profit more than doubled in the third quarter as the subsidiary of energy giant PTT Group benefited from rising oil prices and higher margins on its chemical products, reported Reuters.

Temporary shutdowns at US refineries after hurricanes on the East Coast and regional maintenance shutdowns also pushed product prices higher, the company said in a statement.

Its net profit surged 149% in July-September from a year earlier to 3.25 B baht (USD98 MM), beating a forecast of 2.56 B baht in a Reuters survey of four analysts and helped by 1.1 B baht in gains on its oil stocks as oil prices improved.

Net sales surged 26% to 52.3 B baht and average product prices increased 4%, while its average profit margin was 5.73%, up from 2.86% a year ago.

Market gross refining margins (GRM), or the difference between the price of crude oil and the value of products was at USD15.05/bbl, up USD2.55 from the same period last year on better petroleum and petrochemical product spreads.

IRPC, a PTT Plc subsidiary, booked a total market GRM of 9.3 B baht, up from 7.1 B baht a year earlier.

It said it expects oil prices to be in the range of USD52/bbl-USD58/bbl in the next quarter.

As MRC informed before, on 3 February, 2017, IRPC took its cracker off-stream for a maintenance turnaround. Located at Map Ta Phut in Thailand, the cracker has an ethylene capacity of 360,000 mt/year and propylene capacity of 312,000 mt/year.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC