Canadian auto sales down in March: Scotiabank

MOSCOW (MRC) -- Canadian auto purchases fell by 2.5% year-over-year (y/y) in March for a thirteenth straight month of year-on-year declines off near-record-high sales levels in early-2018, a new report from Scotiabank said, as per Canplastics.

On a month-on-month basis, sales rose for the third consecutive time with a 0.9% gain to 1.97 million units sold on a seasonally adjusted annualised rate (saar) basis, Scotiabank’s latest Auto News Flash said.

"Following a sharp dip in sales in the final quarter of 2018, vehicle deliveries in Canada have rebounded in recent months,” the report said. “However, purchases should settle on a more stable downward trajectory toward a medium-term sales total of around 1.90 million units sold off 2017’s record of 2.04 million units as the Canadian economy aligns itself to its long-run potential. We forecast that auto sales in Canada will fall to 1.93 million units delivered in 2019."

In the U.S., meanwhile, auto sales rose by 5.9% m/m to 17.5 million saar units sold, handily beating the median analyst’s forecast of 16.8 million units sold. Despite the month-on-month climb, vehicle purchases fell by 2.2% y/y in March for a third straight month of year-on-year declines, Scotiabank said.

"Sales for the first quarter contracted by 3.4% quarter-over-quarter to a still-strong three-month average of 16.90 million saar units – their softest quarterly performance since Q2-2017 – owing to temporary factors, such as particularly adverse weather and the federal government shutdown, as well as the more persistent effect of rising prices on new vehicles and reduced dealer incentives,” Scotiabank said. “While the U.S. economic expansion is set to slow in 2019 and 2020, solid employment growth and sturdy household finances should continue to support strong, albeit plateauing, auto sales of about 16.7 million units in each year."

As MRC informed earlier, world vehicle sales fell in 2018, a new report from Scotiabank said, owing mainly to a sharp contraction in auto purchases in China in the second half of the year amid a Government-led crackdown on non-bank lending – but despite posting a decline relative to 2017, the Canadian auto market posted its second best year on record in 2018.
MRC

Texas chemical plant fire kills one, injures two

MOSCOW (MRC) -- A blast and fire at a chemical plant near Houston killed one person on Tuesday and injured two others, in an incident involving a highly flammable gas, officials said, less than a month after a similar fire in the region that burned for days, reported Reuters.

The fire at a plant operated by KMCO LLC in Crosby, Texas, northeast of Houston, led officials to temporarily order residents and schoolchildren within a mile of the plant to stay inside.

The order was lifted after the US Environmental Protection Agency detected no threat of contamination, Harris County Sheriff Ed Gonzalez said.

"Our understanding is that there are no active readings in the area, either in the air or on the ground," Gonzalez told a news conference.

It was the second fire at a Houston-area chemical plant in less than three weeks. On March 17, a blaze erupted at a Mitsui unit Intercontinental Terminals Co (ITC) plant in Deer Park, burning for three days and destroying 11 tanks holding thousands of barrels of gasoline and other fuels.

The Mitsui plant fire led officials to close schools in Houston suburbs for several days because air-quality monitors detected elevated levels of benzene, a cancer-causing chemical.

Deer Park, the suburb of Houston where last month’s fire broke out, is about 20 miles (30 km) south of Crosby, scene of the latest chemical fire.

The fire on Tuesday began when a transfer line ignited near a tank with Isobutylene, which quickly caught fire, Gonzalez said. Isobutylene is used to make isooctane, a component of aviation fuel.

A victim was declared dead at the scene and two people with injuries were airlifted to a hospital, officials said. Their conditions were not immediately known.

In a statement, KMCO apologized to residents in the vicinity of the fire and said the well-being of people in the area was its top priority.

KMCO manufactures chemicals and provides services for chemical companies worldwide.
MRC

Evonik announces new Canadian distribution agreement for dairy feed additive

MOSCOW (MRC) -- Evonik and Halchemix Canada are pleased to announce the launch of a strategic partnership for the promotion of Evonik’s rumen-protected methionine product Mepron® in the Canadian market, as per the company's press release.

The agreement will see Halchemix become the exclusive distributor of Mepron® in Canada. The product is a superior methionine source that helps to boost milk production and reduce feed costs for the dairy industry.

Ken O'Halloran, Evonik’s Regional Vice President, North America, said: "Halchemix is well established in the Canadian market as a provider of well-researched feed additives, making them an ideal partner. Their products include amino acids, phytase, enzymes, and a dairy product line that includes rumen protected lysine and DCAD products."

The use of Mepron makes it easy to balance the ration for amino acids. This results in better herd health thanks to improved liver function, lower inflammation and less oxidative stress; higher dry matter intake followed by higher energy-corrected milk (ECM) yield; higher profitability (Income Over Feed Costs); lower nitrogen emissions and higher weaning weights of calves.

As MRC reported earlier, Evonik Industries AG combined its isophorone chemistry and epoxy curing agents business in the new Crosslinkers Business Line effective July 1, 2017. The newly formed Business Line, headed by Min Chong, is part of the Resource Efficiency Segment

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees. In fiscal 2018, the enterprise generated sales of €15 billion and an operating profit (adjusted EBITDA) of EUR2.6 billion.

MRC

Chevron Lummus Global announces base oil unit to be commissioned at Hengli in China

MOSCOW (MRC) -- As the world’s second largest lubricant market, China has been mostly depending on imports to satisfy its fast-growing Group III base oil demands. As Chevron Lummus Global (CLG) announces, this situation will be greatly improved by the recent addition of a Group II/III base oil plant at Hengli PetroChemical Co. which will employ CLG’s ISODEWAXING technology, as per Hydrocarbonprocessing.

Hengli’s base oil plant is located within its refinery on Changxing island off the industrial seaport of Dalian. CLG’s ISODEWAXING technology was selected due to a combination of exceptionally high yields, extended cycle length, and outstanding base oil quality.

With the plant in mechanical completion, full production is expected later in 2019, with capacity to make 350,000 t/y Group III and 190,000 t/y Group II base oils. CLG will provide startup support and to Hengli for smooth daily operation to maximize plant economics.

Chevron Lummus Global (CLG), a joint venture between Chevron USA Inc. and McDermott, is a leading process technology licensor for refining hydroprocessing technologies and alternative source fuels, as well as a global leader in catalyst system supply.

bottom-of-the-barrel solution for upgrading heavy oil residues. Our research and development experts are continuously seeking advancements in technology and catalysts that will improve operating economics for your next project.

As MRC wrote before, in later March 2019, Chevron Lummus Global announced successful start-up of RDS Unit in Vietnam. Thus, Nghi Son Refinery & Petrochemical LLC (NSRP) - a joint venture between PetroVietnam, Idemitsu Kosan, Kuwait Petroleum Europe, and Mitsui Chemicals has recently started up a large residuum hydrodesulfurization (RHDS) unit at its new 200,000 barrels per day refinery in Thanh Hoa Province in northern Vietnam. The 105,000 barrels per day RHDS unit started up in May 2018 and passed performance guarantees in December 2018, Chevron Lummus Global (CLG) reported.

Chevron Lummus Global (CLG), a joint venture between Chevron USA Inc. and McDermott, is a leading process technology licensor for refining hydroprocessing technologies and alternative source fuels, as well as a global leader in catalyst system supply. CLG offers the most complete bottom-of-the-barrel solution for upgrading heavy oil residues. Our research and development experts are continuously seeking advancements in technology and catalysts that will improve operating economics for your next project.
MRC

A. Schulman announces convertible special stock dividend

MOSCOW (MRC) -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, has announced that its wholly owned subsidiary, A. Schulman, Inc., has declared a quarterly dividend of USD15.00 per share for A. Schulman's convertible special stock, as per LyondellBasell's press release.

The dividend is payable on May 1, 2019 to shareholders of record as of April 15, 2019.

This dividend is only payable to shareholders of A. Schulman convertible special stock and is independent of LyondellBasell's quarterly dividend.

As MRC informed earlier, in Augugst 2018, LyondellBasell announced it had completed the acquisition of A. Schulman, Inc., a leading global supplier of high-performance plastic compounds, composites and powders.

A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds, composites 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 5,200 people and has 54 manufacturing facilities globally. A. Schulman reported net sales of approximately USD2.5 billion for the fiscal year ended August 31, 2017.

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.
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