Celanese and Oriental Yuhong sign strategic cooperation agreement to promote sustainable development of waterproofing technologies

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, and Beijing Oriental Yuhong Waterproof Technology Co., Ltd., has recently announced they have signed a comprehensive strategic cooperation and development agreement, as per Celanese's press release.

The agreement aims to further expand cooperation in product research and development, expansion into emerging markets, and the advancement of industry, safety and environmental protection practices and sustainability.

Key components of the strategic cooperation agreement include the sharing of information and practices in the use of emulsions for waterproofing applications. Additionally, the companies will evaluate where Celanese can develop new product applications for use in Oriental Yuhong’s waterproofing business. Furthermore, the companies will begin the sharing of product development information and engage in discussions around plant productivity and sustainability in order to drive cost savings and identify potential opportunities for improving production and operational sustainability. Finally, the companies are expected to evaluate potential new supply arrangements in the Asia-Pacific region.

“Celanese and Oriental Yuhong have been working together commercially for more than a decade in the area of emulsions and vinyl acetate chemistry and this strategic cooperation agreement is the next logical step in our business relationship,” said Florian Kohl, Celanese Vice President, VAM and Emulsions. "Celanese and Oriental Yuhong are committed to a collaborative agreement to advance the sustainable development of the waterproofing and emulsions industry with chemistry solutions that outperform competing technologies."

"Oriental Yuhong has been working with Celanese for more than 10 years. Through our collaboration, both companies have achieved remarkable results in R&D and continuous business development," said Xiang Jinming, Vice Chairman and Executive President, Beijing Oriental Yuhong Waterproof Technology. "This agreement marks the joint effort of the two companies in providing fast-rising technologies in the construction and coatings business and expanding into emerging markets. It also provides a gateway for promoting more eco-friendly solutions in the future. This agreement will fulfil our mission to create a more sustainable and safe environment and customers will, therefore, enjoy high-quality construction products and services. We look forward to continuing our partnership with Celanese, a world-renowned brand with strong innovation, research and technical development capabilities, to build a better world for everyone."

Financial, contractual and commercial terms of this strategic cooperation and development agreement are not being disclosed at this time.

As MRC reported beofre, Celanese Corporation announced preliminary plans to expand its emulsion polymers derivatives business to extend the value of its global acetyl chain. Celanese is starting a debottlenecking project at its Nanjing ethylene-vynil-acetate (EVA) production facility of 20,000 metric tons per annum by 2022. Celanese will further expand EVA production capacity at its Nanjing facility by 65,000 metric tons per annum by adding a third EVA reactor by late 2022, taking the total Nanjing EVA capacity from 130,000 to 215,000 metric tons per annum. These expansion steps support emulsions growth plans in Asia through Celanese’s sustainable products and solutions in end uses such as redispersible powders and waterproofing.

According to MRC's DataScope report, November EVA imports to Russia dropped by 8,9% year on year to 3,440 tonnes from 3,780 tonnes in November 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-November 2019 by 18,9% year on year to 35,95 tonnes (44,330 tonnes in the first eleven months of 2018).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2018 net sales of USD7.2 billion.
MRC

MOSCOW (MRC) -- Worn Again Technologies of Nottingham, UK, has launched its pilot R&D facility for chemical recovery of PET from non-reusable textile and PET bottle and packaging waste, said Sustainableplastics.

The chemical process uses solvents to separate, decontaminate and extract PET polymer and cellulose from the waste, to be used again as raw materials, the company said in a statement.

With the capacity to process 80kilo batches, the facility is located at CPI, a technology and innovation centre in Redcar, England.

Designed and built with the help of leading equipment providers, the plant aims to develop further process data, knowledge and understanding as part of a move towards industrialisation of the technology.

CPI was chosen as the facility to host the plant in view of the technical excellence it provides to help accelerate technologies to market, Worn Again said.

“The pilot is a significant step in developments as it will allow us to confirm and further optimise the different steps in the process in one unit, accelerating our engineering development to the next step of a demonstrator plant,” said Nick Ryan, Worn Again Technologies’ technology director.

The pilot facility, according to Cyndi Rhoades, founder of Worn Again Technologies, is the “next tangible step” in bringing the company closer to a scalable, commercially viable industrial process.

As per MRC's DataScope, imports of injection moulding PET chips in Russia increased by 13% in 2019 compared with the same period a year ago and reached 126,600 tonnes. The same indicator in January-December 2018 amounted to 111,700 tonnes, according to MRC"s ScanPlast. The share of imports from China of bottled PET remained at the level of the previous year and amounted to 87% in January - December 2019.
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MOSCOW (MRC) -- Chinese policymakers are readying measures to support an economy jolted by a coronavirus outbreak that is expected to have a devastating impact on first-quarter growth, policy sources said, as per Reuters.

The sources said the government is debating whether to lower the planned 2020 economic growth target of around 6 percent, which many private sector economists see as well beyond China’s reach.

With the death toll from the virus epidemic climbing to over 420 and risks to growth mounting, China’s central bank is likely to lower its key lending rate - the loan prime rate (LPR) - on Feb. 20, and cut banks’ reserve requirement ratios (RRRs) in the coming weeks, said the sources who are involved in internal policy discussion.

"Currently, monetary policy is being loosened, but the central bank will follow a step-by-step approach and watch the virus situation,” said a policy insider.

The People’s Bank of China (PBOC) has already pumped in hundreds of billions of dollars into the financial system this week as it attempted to restore investor confidence and as global markets shuddered at the potentially damaging impact of the virus on world growth. In the past two days, the PBOC has injected 1.7 trillion yuan (USD242.74 billion) through open market operations.

In order to minimize job losses, China’s stability-obsessed leaders are likely to sign-off on more spending, tax relief and subsidies for virus-hit sectors, alongside further monetary easing to spur bank lending and lower borrowing costs for businesses, according to the policy insiders.

"We have policy reserves and will step up policy support for the economy. The most urgent task is to put the virus outbreak under control,” said a source who advises the government, who spoke on condition of anonymity.

Support measures will be concentrated on the retail, catering, logistics, transportation and tourism sectors, which are likely to be hit hard and are especially vulnerable to job losses, they said. Increased government spending could push up the annual budget deficit relative ratio to 3% this year from 2.8% in 2019, and local governments could be allowed to issue more debt to fund infrastructure projects, the policy insiders said.

Policymakers deem targeted measures as more effective than unfettered credit easing at this stage, given that the outbreak has weighed on factory and investment activities due to the extended holiday in some regions, the insiders said.

The Lunar New Year holiday has been effectively extended by 10 days in many parts of China including powerhouse regions such as Shandong province and the cities of Suzhou and Shanghai, while transport networks have been curtailed to curb the spread of the disease. More than 40 foreign airlines have suspended flights to China.

“It’s necessary to step up policy support for the economy but we don’t need to use strong stimulus at this stage,” said one of the policy insiders. While Beijing has rolled out a series of support measures in the last two years, mainly in the form of higher infrastructure spending and tax cuts, leaders have pledged they will not embark on massive stimulus like that during the 2008-09 global crisis, which saddled the economy with a mountain of debt.

The PBOC has cut the RRR, or the amount of cash that banks must hold as reserves, eight times since early 2018, with the latest reduction taking effect on Jan. 6. It has also lowered its key lending rates modestly since August.

China’s economy grew 6% in the fourth quarter, bringing 2019 expansion to 6.1% in 2019, the weakest in nearly three decades as demand at home and abroad weakened in part due to the bitter Sino-U.S. trade war. Growth of about 5.6% this year is seen enough for meeting the long-term gross domestic product target.

This year is symbolically crucial for the ruling Communist Party to fulfill its goal of doubling GDP and incomes in the decade to 2020, turning China into a “moderately prosperous” nation.

Chinese leaders face a more challenging job than they did during the Severe Acute Respiratory Syndrome (SARS) outbreak in 2002-03, as the economy is now driven more by consumption and services, and growth has been on a downward trajectory.

The virus has killed 425 and infected 20,438 in China, most of them in central Hubei province, the epicenter of the outbreak.

As MRC informed earlier, China’s polyolefin suppliers have cut their post-holiday production due to logistics restrictions amid authorities’ efforts to contain the coronavirus outbreak. Domestic inventories are high as the plants did not stop production during the Lunar New Year holiday period, which started on 24 January, with most storage warehouses now full.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent this year, putting pressure on Opec producers and Russia to curb supplies to keep prices in check, reported Financial Times.

Brian Gilvary, the UK oil major’s chief financial officer, said 300,000-500,000 barrels a day were at risk this year - a big chunk of 1.2m b/d growth initially expected by the company and global energy agencies.

Mr Gilvary added that BP was closely watching "whether Opec balances or not" by enacting production cuts with allies including Russia to bring Brent crude prices "back to the USD65 a barrel range".

His remarks come as Opec and Russia discuss emergency cuts in oil production after the crude price entered a bear market by falling more than 20 per cent in recent weeks to below USD55 a barrel.

The falling price presents an additional challenge for BP just as Bernard Looney, its head of exploration and production, takes over as chief executive on Wednesday from Bob Dudley, who leaves the company after nearly 10 years at the helm.

BP’s earnings - like its rivals in the US and Europe - have been under pressure as increased production failed to offset lower energy prices, leading to a 26 per cent drop in fourth-quarter profits.

In the three months to December 31, underlying replacement cost profits - BP’s definition of net income and the measure tracked most closely by analysts - were USD2.6bn, versus USD3.5bn in the same period in 2018. However, the results exceeded analysts’ estimates of slightly less than USD2.1bn.

However, BP’s confidence about its ability to generate more cash grew after the completion of a USD1.5bn share buyback programme, new asset disposal targets and falling debt levels led it to raise its dividend by more than 2 per cent to 10.50 cents.

Its shares rose nearly 5 per cent in early London trading.

"It’s a relief for me that we have got the balance sheet trajectory to where we want it to go, which sets us up with a strong foundation for a new chief executive," Mr Gilvary said.

BP reported full-year profits of nearly USD10bn in 2019, down from USD12.7bn the year before.

The company’s results followed disappointing earnings from Royal Dutch Shell, ExxonMobil and Chevron, as an energy price slump and contracting chemicals industry margins hit the oil and gas sector. France’s Total will report on Thursday.

BP is reconfiguring its portfolio of assets as part of a broad USD10bn divestment programme to strengthen its balance sheet after a blockbuster deal to acquire mining group BHP’s shale assets in 2018.

Divestment proceeds tallied USD800m in the fourth quarter and BP said it was ahead of its USD10bn target for the end of 2020. It planned a further USD5bn in sales by mid-2021, which it said would enable it to pay down debt after the BHP deal.

Gearing - which BP defines as net debt divided by the sum of net debt plus equity - fell to nearly 31 per cent in the fourth quarter, from close to 32 per cent in the previous three months. BP said it would move towards the middle of the 20 to 30 per cent range in 2020.

Oil and gas production for the quarter was up nearly 3 per cent compared with last year at 2.7m barrels of oil equivalent a day.

Operating cash flow was USD7.6bn in the fourth quarter, excluding Gulf of Mexico oil spill payments. These payouts are expected to be less than USD1bn in 2020.

BP’s capital expenditure is expected to remain towards the lower end of its USD15bn-USD17bn range for 2020, in line with 2019.

As MRC informed before, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
MRC

MOSCOW (MRC) -- Dow introduces first solventless silicone conformal coating with UV and moisture dual cure for high-volume electronics manufacturing, said the company.

Dow introduced today at IPC APEX EXPO 2020 new DOWSIL™ CC-8030 UV and Moisture Dual Cure Conformal Coating, the industry’s first solventless silicone conformal coating with an ultraviolet (UV) and moisture dual cure system for high throughputs. This new environmentally responsible silicone technology promotes sustainability, health and safety while reducing processing costs through automated spraying and fast, energy-efficient UV curing. Other silicones support UV curing, but none are conformal coatings with a low enough viscosity for spray coating and with a secondary moisture cure for shadowed areas. The new DOWSIL™ product also offers more reliable protection against stress and thermal cycling versus competitive materials.

Brian J. Chislea, senior electronics application engineer at Dow, will discuss the new DOWSIL™ CC-8030 UV and Moisture Dual Cure Conformal Coating during two poster sessions at IPC APEX EXPO. The first session is scheduled for today, Tuesday, Feb. 4, from 10:00 to 10:30 a.m. Pacific Standard Time (PST). The second is scheduled for Wednesday, Feb. 5, from 4:30 to 5:00 p.m. PST.

"Dow has long been an innovative leader and developer of leading-edge conformal coating technologies that address our customers’ most pressing needs,” said Chislea. “DOWSIL™ CC-8030 Coating is an excellent example of this. “By listening closely to our customers, we responded with this first-of-its-kind material that can help electronics manufacturers meet their sustainability and productivity goals, and more."

DOWSIL™ CC-8030 UV and Moisture Dual Cure Conformal Coating is an environmentally progressive solution for protecting rigid printed circuit boards (PCBs), sensitive electronic components and fine-pitch designs from environments with airborne contaminants. This high-performance silicone conformal coating is formulated without benzene, toluene, ethylbenzene or xylene (BTEX) solvents. The new DOWSIL™ Conformal Coating also has a low modulus for delicate components and high elongation for reliable protection against stress. To provide an even greater level of PCB protection, DOWSIL™ CC-8030 UV and Moisture Dual Cure Conformal Coating can be applied in multiple layers. Compared to leading acrylated urethane UV cure coatings, the new silicone-based Dow technology provides superior protection against thermal cycling.

As MRC informed earlier, Dow Chemical, the world's petrochemical major, has put order controls in place for vinyl acetate monomer (VAM). The letter dated January 8 said, effective immediately, volumes will be based on previous monthly averages of purchased volumes, or limited to monthly maximum volumes specified in contracts. The letter does not provide details about how long the order control will be in place.

VAM is the main feedstock for the production of ethylene-vinyl-acetate (EVA).

According to MRC's DataScope report, November EVA imports to Russia dropped by 8,9% year on year to 3,440 tonnes from 3,780 tonnes in November 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-November 2019 by 18,9% year on year to 35,95 tonnes (44,330 tonnes in the first eleven months of 2018).

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene, polypropylene, and synthetic rubber.
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