BASF says basic chemicals accounted for most of the slump in Q2

MOSCOW (MRC) -- German chemicals giant BASF , which surprised investors with a profit warning earlier this month, said a slump at its basic petrochemicals businesses accounted for most of the weakness in the second quarter, said Reuters.

"Earnings in the second quarter of 2019 were significantly negatively impacted by the lower volumes and margins in the Chemicals and Materials segments," BASF said in a statement, adding that the two divisions accounted for 83% of the overall earnings decline in the second quarter.

In a surprise announcement on July 8, BASF forecast a 30% fall in 2019 operating profit instead of a rise as previously predicted, weighing heavily on the share price. It also published preliminary group results for the second quarter at the time.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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MOSCOW (MRC) -- AkzoNobel has announced plans to add three new production lines at its Changzhou powder coatings plant in China - the company’s largest facility of its kind in the world, said the producer on its site.

The EUR3 million investment will support additional supplies of acrylic powder coatings, metallic powder coatings and powder primers for the automotive sector, strengthening AkzoNobel’s ability to deliver more locally produced premium products.

"China is a high priority region for us and the booming powder coatings industry in China will help to optimize our production and investment strategy," says CEO Thierry Vanlancker. "This latest investment will also reinforce our capability to support local customers and enhance our manufacturing and supply chain."

Adds Mark Kwok, President of AkzoNobel China/North Asia: "Given emerging market trends and customer needs, we are fully aware of the importance of manufacturing and delivering locally. The Changzhou site plays a strategic role in supporting our business development in China. The new production lines will further our localization strategy to create more value for both ourselves and our customers with efficient and customized solutions."

Opened in 2012, the Changzhou site supports the manufacture of both powder coatings and liquid coatings, including decorative paints, protective coatings and vehicle refinishes. The powder coatings facility was a later addition and started production in 2018. It covers virtually all industry applications and supports the entire East China region.

As MRC wrote earlier, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings.

AkzoNobel, the global leader in powder coatings, supplies these coatings to more than 30,000 customers worldwide, covering market segments ranging from domestic appliances, architecture and automotive to furniture, IT and general industrial applications.
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MOSCOW (MRC) -- Linde Malaysia, the leading gases and engineering company, has announced it has started up a new gas and liquid producing air separation unit (ASU) supplying oxygen, nitrogen and argon to leading Japanese glass manufacturer, Nippon Electric Glass (NEG) and other customers located at the Hicom Industrial Estate (Hicom) in central Malaysia, as per Linde's press release.

This new ASU expands Linde’s existing production capacity at its Hicom facility by 60 percent and will meet the growing demand from its customers in the electronics, healthcare, metallurgy, glass and food and beverage industries.

Speaking at the official opening ceremony, Binod Patwari, Linde’s Regional Managing Director for ASEAN said, "We are pleased to have started supplying NEG while expanding our industrial gas capacity and pipeline supply network in central Malaysia. This plant will increase our network density, ability to reliably supply and support the growth of our other customers within central Malaysia."

The new plant will be integrated into Linde’s Remote Operating Centre (ROC), which is also located at Hicom. Through remote network access, employees at the ROC monitor, operate and control systems and equipment at 128 Linde plants across the ASEAN, South Asia and South Pacific regions, resulting in greater operational efficiency, optimisation of resources and reduced downtime.

"Linde’s long-term investment in Malaysia has benefitted our economy, industries and people through technology transfer, talent development and job opportunities. The company’s adoption of digital solutions to create value for its customers and the industry sets a good example and supports Industry4WRD, our National Policy on Industry 4.0, to drive technological transformation of the manufacturing and manufacturing related services sectors in Malaysia. I look forward to seeing more businesses follow Linde’s lead." said Ministry of International Trade and Industry, Deputy Minister, Yang Berhormat Dr Ong Kian Ming.

"Linde’s long-standing presence in Malaysia and the opening of the new air separation unit embodies how manufacturing industries are consistently moving up the value chain by adopting digital solutions and Industry 4.0. InvestKL is confident that Linde’s investments will add great value to the local economy, and at the same time spur positive impact on our local talent and digital ecosystem. We are thrilled to support Linde’s expansion in Greater KL and Malaysia and we will continue to facilitate high-value activities and services from global multinationals such as Linde," added InvestKL Acting Chief Executive Officer, Muhammad Azmi Zulkifli.

As MRC reported before, in June 2018, The Linde Group and the specialty chemicals company Evonik Industries concluded an exclusive cooperation agreement on the use of membranes for natural gas processing.

Linde is a leading industrial gases and engineering company with 2018 pro forma sales of USD 28 billion (EUR 24 billion). The company employs approximately 80,000 people globally and serves customers in more than 100 countries worldwide. Linde delivers innovative and sustainable solutions to its customers and creates long-term value for all stakeholders. The company is making our world more productive by providing products, technologies and services that help customers improve their economic and environmental performance in a connected world.

Linde has been present in Malaysia since 1960. A leading industrial gas supplier in Malaysia with close to 60 years of experience in the industry, it combines local knowledge with global expertise and resources in the areas of technology, research and development, gas applications, engineering and best operating practices.

Linde Malaysia is the specialist in the provision of total gas solutions to a variety of industries. It manufactures and distribute industrial, specialty and medical gases and provide a range of related services including installation of gas equipment, pipelines and associated engineering services. In addition, it supplies packaged chemicals, welding and consumables products.
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MOSCOW (MRC) -- BASF plans to invest in a second production plant for tert-Butylamine (tBA) at BASF Specialty Chemicals Co. Ltd (BSNJ) in Nanjing, China, said the company.

With this expansion, BASF’s global annual production capacity of tBA will increase by more than 30%. The plant is planned to start up in 2022 and will adopt advanced BASF technology which generates a minimal amount of by-products in an advanced production process. BASF also operates tBA production plants in Antwerp, Belgium, and Geismar, Louisiana, USA.

"China is the largest chemical market and the growth driver for global chemical production. It is also the global hub of the tire manufacturing industry. We are excited to be part of this dynamic market and fulfill our customers’ needs through the investment in a new tBA plant in Nanjing, China," said Dr. Stephan Kothrade, President Functions Asia Pacific, President and Chairman, Greater China, BASF.

"As Asia remains the key growth region for tBA, the new plant underlines our strong commitment supporting the growth of our customers in the rubber and tire industry as well as the agricultural and pharmaceutical markets,” said Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific, BASF. “We further strengthen our production capabilities in delivering consistent and reliable supply to our customers in this fast-growing region, solidifying our position as a leading supplier to the global rubber and tire industry."
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MOSCOW (MRC) -- The Abu Dhabi National Oil Company (ADNOC) has signed a Comprehensive Strategic Framework (CSF) with Indonesia’s energy company, PT Pertamina (Persero) to explore opportunities for collaboration across the oil and gas value chain in the United Arab Emirates, Indonesia and globally, reported Reuters.

The signing of the agreement took place in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Force and His Excellency, Ir. H. Joko Widodo, President of Indonesia.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Nicke Widyawati, President Director & CEO of Pertamina signed the agreement.

As part of the CSF, ADNOC and Pertamina will evaluate collaboration opportunities across the upstream, midstream and downstream sectors. The scope of projects under consideration includes participation in the UAE’s upstream oil and gas sector, as well as refining and petrochemicals, LNG, LPG, aviation fuel and fuel retail opportunities in Indonesia. In addition, the two partners will explore other forms of strategic collaboration with respect to opportunities across transportation, trading and storage in the UAE, Indonesia and globally.

Pertamina is the state-owned energy company of Indonesia. The company operates an integrated business in the energy sector in Indonesia and is expanding its overseas presence. The company produces and distributes energy products such as fuel, lubricants, LPG, LNG, and petrochemicals. Currently, Pertamina owns six oil refineries in Indonesia with a combined production capacity of 1.1 million barrels of oil per day (mmbpd). At the same time, the company is developing renewable energy from many potential resources in the country.

H.E. Dr. Al Jaber said: "We are pleased to sign this agreement with Pertamina today, building on the strong existing relationship between our two countries. Indonesia has a thriving industrial base and is a rapidly growing market for energy. We see significant opportunity for collaboration between our two companies and the development of projects that meet our joint strategic objectives."

He added: "This collaboration with Pertamina further demonstrates ADNOC’s drive to unlock value from across our entire portfolio and our ambition to expand our international investments to become a truly global energy company."

Nicke Widyawati said: "Pertamina plans to develop an additional 1 mmbpd of refining capacity through the Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects. Therefore, partnership with ADNOC will be an important milestone for Pertamina to secure energy supplies from overseas. ADNOC’s interest to participate in Indonesia’s oil and gas landscape is monumental to support Pertamina in ensuring the availability and accessibility of energy for Indonesian people."

Working groups from each side will be meeting over the coming months to evaluate and shortlist key areas for strategic collaboration across both companies’ extensive asset and project portfolios. It is expected that specific collaboration options will be agreed for execution by the end of 2019.

This new partnership marks another step in ADNOC’s group-wide transformation and value creation program that addresses the evolving energy and petrochemicals landscape and ensures ADNOC remains a resilient and flexible company able to take full advantage of emerging market opportunities and trends. The Group’s transformation is driven by an expanded approach to strategic partnerships and co-investments as well as the more proactive management of ADNOC’s portfolio of businesses, assets and capital.

As for Pertamina, the collaboration supports its ambition to embark into the global energy arena and acts as a stepping stone to achieve greater competitiveness to compete with international energy players.

As MRC informed earlier, last week, ADNOC said its Ruwais Refinery West Cracker is offline for maintenance.
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