DSM announces global price increases for several high performance plastics

MOSCOW (MRC) -- Royal DSM, a global science-based company active in health, nutrition and materials, has announced that significant and continuing cost increases of main raw materials throughout 2017 and early 2018 have caused DSM Engineering Plastics to increase prices globally for several polyamide and thermoplastic polyester products, effective April 1 or as contracts allow, as per the company's press release.

The price increases are as follows:

- Akulon polyamide (nylon) 6 and 66 products will increase by the equivalent of EUR175 per metric ton
- Arnite polybutylene terephthalate (PBT) products will increase by the equivalent of EUR175 per metric ton
- Stanyl polyamide 46 products will increase by the equivalent of EUR350 per metric ton
- Arnitel co-polyester elastomer (COPE) products will increase by the equivalent of EUR225 per metric ton.

As MRC informed before, in November 2017, Royal DSM announced a new approach for its additive manufacturing (AM) activities. By aligning all its AM activities within the Materials cluster and promoting a partnership approach, DSM can provide customers an open and flexible infrastructure. This will help customers to find exactly the right materials and production systems for their applications.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
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MOSCOW (MRC) -- LyondellBasell (LBI), one of the largest plastics, chemicals and refining companies in the world, and A. Schulman, Inc. a leading global supplier of high-performance plastic compounds, composites and powders, has announced that they have entered into a definitive agreement under which LyondellBasell will acquire A. Schulman for a total consideration of USD2.25 billion, as per LBI's press release.

The acquisition builds upon LyondellBasell's existing platform in this space to create a premier Advanced Polymer Solutions business with broad geographic reach, leading technologies and a diverse product portfolio.

"The acquisition of A. Schulman is a natural extension of our current platform. This combination will allow us to provide our customers with a wider range of innovative solutions while adding the ability to serve high-growth end markets beyond the automotive sector, such as packaging and consumer products, electronics and appliances, building and construction, and agriculture," said Bob Patel, Chief Executive Officer of LyondellBasell. "By leveraging our proven approach to operational, commercial and business excellence, the combined business will create significant value for our shareholders and customers."

"This transaction, which provides our shareholders with a compelling, immediate cash premium, represents the culmination of a robust assessment of strategic alternatives undertaken by our Board of Directors," said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman, Inc. "We are delighted to join forces with LyondellBasell, an industry leader we have admired for many years. LyondellBasell not only shares our commitment to meeting customers' demanding requirements, but with its scale and resources, the combined business will be better positioned to address a broader range of customer needs by integrating across applications and offering customers a wider range of solutions in attractive and growing markets. We also expect this combination to create significant opportunities for A. Schulman employees, whose professionalism and expertise will be integral to advancing LyondellBasell's vision, values and commitment to making a positive global impact."

The proposed acquisition, which has been unanimously approved by the respective boards of LyondellBasell and A. Schulman, is subject to customary closing conditions, including regulatory approvals and approval by A. Schulman shareholders. The acquisition is expected to close in the second half of 2018.

As MRC reported earlier, in August 2016, LyondellBasell made the final investment decision to build a high density polyethylene (HDPE) plant on the US Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The start-up of the new plant is scheduled for 2019.

LyondellBasell is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 55 sites in 17 countries. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.

A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio. Since 1928, the Company has been providing innovative solutions to meet its customers’ demanding requirements. The Company’s customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The Company employs approximately 4,800 people and has 54 manufacturing facilities globally. A. Schulman reported net sales of approximately USD2.5 billion for the fiscal year ended August 31, 2016.
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MOSCOW (MRC) -- A consortium led by India's Oil and Natural Gas Corp (ONGC) has become the first group to win a stake in Abu Dhabi National Oil Co's (ADNOC) 40-year offshore oil concession, a deal set to help the UAE expand its foothold in Asia, reported Reuters.

State-run ADNOC signed an agreement on Saturday with the ONGC Videsh-led consortium giving the group a 10 percent stake in the new Lower Zakum offshore concession, with a participation fee of 2.2 billion dirhams (USD600 million), ADNOC said in a statement, confirming a report by Reuters.

ONGC Videsh is the foreign investment arm of ONGC. Other members of the consortium are Indian Oil Corp and Bharat Petro Resources Ltd, an upstream arm of refiner Bharat Petroleum Corp.

The contract signing in Abu Dhabi was attended by Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed al-Nahyan and Indian Prime Minister Narendra Modi. It is the first time for Indian oil companies to take part in an Abu Dhabi oil and gas concession.

ADNOC, like other major oil producers, wants to tap rising demand growth and invest in India, the world’s third-biggest consumer.

The concession deal "will help India meet its growing demand for energy and refined products, create opportunities for ADNOC to increase its market share in a key growth market, and build a solid foundation as ADNOC explores potential international investments, particularly focused on downstream opportunities", ADNOC's Chief Executive Sultan al-Jaber said in the statement.

In August, ADNOC said it would split its ADMA-OPCO offshore concession into three areas - Lower Zakum, Umm Shaif and Nasr, and Sateh Al Razboot and Umm Lulu - with new terms to unlock greater value and increase opportunities for partnerships.

The agreement has a term of 40 years and an effective date of March 9, ADNOC said.

The existing ADMA-OPCO concession, in which ADNOC has a 60 percent stake that it will retain, produces around 700,000 barrels per day (bpd) of oil and is projected to have a capacity of about 1.0 million bpd by 2021.

Existing shareholders in ADMA-OPCO are BP plc with 14.67 percent, Total SA with 13.33 percent and Japan Oil Development Co with 12 percent.

ADNOC said it was still finalising opportunities, with potential partners, for the remaining 30 percent of the available 40 percent stake in the Lower Zakum offshore concession.

Last year, ADNOC signed a deal to store about 6 million barrels of oil at India’s Mangalore storage site, taking up about half of its capacity.

As MRC informed earlier, in late May 2017, ADNOC announced that it will work together with the Austrian producer OMV to help grow Adnoc’s downstream businesses.
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MOSCOW (MRC) -- Lubrizol has announced that it has selected Simko S.A. as the new distributor for its thermoplastic polyurethane portfolio throughout Argentina, reported GV.

Simko distributes engineering plastics, synthetic rubbers, rubber chemicals and industrial equipment for rubber and plastic industries in Argentina. The company has warehouse and office facilities in San Martin near the Buenos Aires highway network.

The agreement includes the following product lines:

- Estane TPU products are utilised in film and sheet, extrusion, blow moulding, injection moulding, over moulding, calendaring and solution coating processes.
- Isoplast ETP products are hard and high flexural modulus polyurethane engineering resins with good chemical resistance and barrier properties.
- The Pearlbond TPU portfolio includes products for hot melt adhesives (HMA) and reactive hot melts (HMPUR), typically used in automotive interior parts, bookbinding, furniture, textile and footwear.
- Pearlstick TPU products are designed for use in the manufacture of solvent-based adhesives.

Other products that will also be distributed by Simko are: Pearlcoat TPU, Pearlthane TPU, Pearlthane ECO TPU and Carbo-Rite conductive compounds and sheet products.

As MRC informed before, in February 2016, speciality chemicals major Lubrizol Corporation announced the commencement of its USD50 million chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej. This was the company's first CPVC compounding plant in the country, and it claimed that it is the first such in India by any global major. The plant has a capacity to produce nearly 55,000 tonnes of compounds annually. The company invested over USD50 million (Rs325 crore) on this facility.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol is providing innovative solutions for its customers high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth. With headquarters in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 8,000 employees worldwide.
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MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, and Shanghai Huaxi Chemical Industry Science & Technology Co. have formed a strategic partnership for hydrogen production projects in China, using Shanghai Huaxi's medium temperature shift (MTS) technology, as per Apic-online.

According to the agreement, Clariant's catalysts will be qualified and recommended for Shanghai Huaxi's MTS process licenses. Clariant will provide its ReforMax series catalysts for the reforming process, its HDMax series catalysts for the hydrodesulfurization of the feed stream, and its ShiftMax 300 catalyst for the water gas shift process.

"The deal combines Shanghai Huaxi's advanced process technology with Clariant's state-of-the-art catalysts to provide a highly efficient and economical solution for hydrogen producers," the companies said.

Shanghai Huaxi's hydrogen production technology increases production rate per unit of raw feedstock, while decreasing overall energy consumption. It also reduces manufacturing and equipment costs by simplifying MTS inlet temperature control and waste heat boiler design.

As MRC wrote previously, in March 2017, Clariant announced that it had been awarded a contract by Dongguan Grand Resource Science & Technology Co. Ltd. to develop a new propane dehydrogenation unit in cooperation with CB&I. The project includes the license and engineering design of the unit, which is to be built in Dongguan City, Guangdong Province, China.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
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