Vertellus acquires supplier Bercen Chemicals

MOSCOW (MRC) -- Vertellus (Indianapolis, Ind) announced it has acquired Bercen Chemicals, a leading U.S. supplier of alkyl succinic anhydrides and additives used in the fuel, lubricant, and paper industries, said Chemengonline.

"This acquisition expands the range of products Vertellus is able to offer to the North American market” said Jim Elliott, General Manager of Vertellus’ Anhydrides & Specialties business. "The acquisition also provides us with a strong foundation to better serve the global fuel and lubricant additives market."

This acquisition complements Vertellus’ current capabilities and the combined business is better positioned to service global customers. Bercen’s gulf coast location with rail access supports the growing fuel and lube additive market in North America. Pilot facilities will also support the scale-up of new technology, with blending capabilities in Singapore providing a platform to support the growing Asian market.

MA is mostly used in the manufacture of unsaturated polyesters resins (UPRs) used in the production of boat hulls, bathroom fixtures, automobiles, tanks and pipes. Other outlets include 1,4- butanediol (BDO), tetrahydrofuran (THF) and gamma-butyrolactone (GBL).

As MRC informed earlier, Russia's output of chemical products dropped by 3.2% in November 2019 month on month.
However, production of basic chemicals increased by 3.6% in the first eleven months of 2019, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, the largest increase in production volumes on an annualized basis accounted for mineral fertilizers and polymers in primary form. Last month, 255,000 tonnes of ethylene were produced versus 210,000 tonnes in October; by November, Russian producers had completed all their scheduled works. Thus, 2,721,000 tonnes of this olefin were produced in January-November 2019, up by 0.3% year on year.

Founded in 1958, Bercen (a division of Cranston Print Works) has provided customers with high quality chemical solutions for more than 60 years. Based in Denham Springs, Louisiana, Bercen supplies maleic anhydride derivatives for paper sizing and other industrial applications.

Vertellus is a leading provider of specialty chemicals for the agriculture, nutrition, pharmaceutical, fine chemicals, medical, personal care, plastics, coatings and other industrial markets.
MRC

Air Liquide signs new long-term contract to supply hydrogen to Shell refinery

MOSCOW (MRC) -- Air Liquide Philippines and Pilipinas Shell have recently signed a long-term contract for a supply of Hydrogen to Shell’s Tabangao refinery in Batangas, Philippines, according to Hydrocarbonprocessing.

The new venture will secure for the Tabangao refinery a continuous supply of Hydrogen for its processing needs.

Air Liquide will invest EUR30 million in the construction of a state-of-the-art Hydrogen Manufacturing Unit (HMU) that will be built on the Tabangao refinery in Batangas. The HMU, owned and operated by Air Liquide, will be fitted with a CO2 recovery unit that mitigates direct carbon emission levels by capturing and liquifying the CO2 for other uses. This new large scale project is in line with Air Liquide’s Climate Objectives and commitment to supporting key customers and strategic partners with more sustainable solutions.

"This gas supply contract reflects the long-term partnership and the mutual trust between Air Liquide and Shell. We are confident in our ability to create value for our key customers in the Philippines and deliver superior performance that considers both business interests and environmental sustainability," Francois Abrial, member of the Air Liquide Group’s Executive Committee supervising Asia Pacific said.

As MRC informed previously, in July 2019, Air Liquide signed a long-term agreement with Gulf Coast Growth Ventures (GCGV), a 50/50 joint venture between ExxonMobil and SABIC, to supply oxygen and nitrogen from its industrial gas pipeline network to GCGV’s planned ethane cracker facility located near Corpus Christi, in Texas.

We also remind that Shell Singapore restarted its naphtha cracker in Bukom Island in early December 2019, following a two months maintenance shutdown since the beginning of October 2019. Thus, this cracker was taken off-stream for the turnaround on 1 October 2019. The cracker is able to produce 960,000 tons/year of ethylene and 550,000 tons/year of propylene.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

Arkema to close deal for divestment of functional polyolefins business to SK Global Chemical in Q2 2020

MOSCOW (MRC) -- Arkema has recently announced the proposed divestment of its Functional Polyolefins business to SK Global Chemical, a subsidiary of SK, the major South Korean corporation. The proposed disposal, which is subject to an information and consultation process involving Arkema’s employee representative bodies and to the approval of the relevant antitrust authorities, is expected to be finalized in second quarter 2020, reported Chemical Engineering.

With this project, Arkema continues its shift towards specialty chemicals and advanced materials.

Part of the PMMA Business Unit (Industrial Specialties division), the Functional Polyolefins activity represents sales of some EUR250 million. It comprises ethylene copolymers and terpolymers for the food packaging, cable, electronics and coatings markets, and leverages well-known brands: Evatane, Lotryl, Lotader, Orevac.

This activity employs around one hundred people in France and has an international sales network of around thirty people.

A subsidiary of South-Korean group SK, SK Global Chemical reported sales of USD11.9 billion in 2018, and operates around ten production sites around the world.

Offering a highly complementary fit with SK Global Chemical’s existing portfolio of activities, Arkema’s Functional Polyolefins would enable the company to consolidate its position in the packaging market and enter new industrial markets such as cable manufacturing.

The transfer of the business from Arkema France to SK Global Chemical would lead to the creation of a French subsidiary of the South-Korean group. The offer received is based on an enterprise value of EUR335 million.

This project, part of the program to divest non-strategic activities initiated in 2015, contributes to Arkema’s objective to increase the share of specialties in its portfolio, in line with its ambition for these businesses to exceed 80% of Group sales by 2023.

As MRC informed earlier, in October 2019, Arkema successfully brought on stream a new 90,000-ton acrylic acid reactor at its Clear Lake, Texas site to support the growth of its North American customers in the superabsorbents, paints, adhesives and water treatment markets.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Arkema is a global manufacturer in specialty chemicals and advanced materials, with 3 business segments - High Performance Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The Group reports annual sales of EUR8.8 billion. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.
MRC

LANXESS completes sale of chrome chemicals business to Brother Enterprises

MOSCOW (MRC) -- Specialty chemicals company LANXESS on January 10, 2020, completed the sale of its chrome chemicals business. The buyer is Brother Enterprises, a Chinese leather chemicals producer, the German chemicals producer said.

All relevant antitrust authorities have given the necessary approvals for the transaction, which was announced in August 2019. Upon completion of the transaction, LANXESS has received cash proceeds of approximately EUR 80 million.

With this transaction, Brother Enterprises has also taken over the Newcastle site in South Africa with around 220 employees from LANXESS. At the site sodium dichromate is produced, some of which is processed into chromic acid. In Merebank, South Africa, LANXESS will continue to manufacture chrome tanning salts from sodium dichromate exclusively for Brother Enterprises on a contract basis, presumably until 2024.

As MRC informed earlier, LANXESS has acquired Brazilian biocide manufacturer Itibanyl Produtos Especiais Ltda (IPEL) to further expand its global biocide production network. Both companies signed an agreement to this effect on Thursday November 28, 2019. The parties have agreed not to disclose the purchase price. The transaction is still subject to the approval of the responsible antitrust authorities and is expected to be completed in the first quarter of 2020.

Earlier, Covestro has closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to\\from Belarus) fell in January-November 2019 by 14% year on year to 70,700 tonnes (62,000 tonnes a year earlier).

LANXESS is a leading specialty chemicals company with sales of EUR 7.2 billion in 2018. The company currently has about 15,500 employees in 33 countries and is represented at 60 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics.
MRC

Asia distillates-gasoil cracks post biggest weekly drop in over 3 years

MOSCOW (MRC) - Asian refining margins for 10 ppm gasoil fell on Friday, posting their biggest weekly decline in more than three years, weighed down by muted buying interest as the market awaits an expected demand boost following a switch to cleaner fuels in the shipping sector, said Reuters.

The International Maritime Organization (IMO) has banned ships from using fuels with a sulphur content above 0.5%, effective Jan. 1, and a section of ship-owners are expected to switch to marine gasoil (MGO) to adhere with the new rules. But some ship-owners and operators, especially those with larger ships, strongly prefer very low sulphur fuel oil (VLSFO) over MGO due to technical issues related to running on distillate fuel as opposed to heavy fuels. Traders, however, are optimistic that gasoil demand would pick up steadily over next few months as the availability of existing VLSFO supplies shrink. Refining margins, also known as cracks, for gasoil with 10 ppm sulphur content plunged to USD13.98 per barrel over Dubai crude during Asian trade on Friday, down from USD14.95 per barrel a day earlier. Cracks for the benchmark gasoil grade in Singapore have dropped about 13.4% this week in their steepest weekly decline since August 2016, Refinitiv Eikon data showed.

Cash premiums for 10 ppm gasoil, which have dropped 59% over the last two weeks, were at 37 cents per barrel over Singapore quotes on Friday, 1 cent higher compared with Thursday. Meanwhile, cash differentials for jet fuel were at a discount of 15 cents per barrel to Singapore quotes, compared with a 11-cent discount in the previous session. Refining margins for jet fuel fell to USD12.79 per barrel over Dubai crude on Friday, their lowest in more than eight months. They were at USD13.55 a barrel.

Global air passenger traffic for November showed demand rose 3.3% compared with the same month a year earlier, but stayed below the long-term trend, the International Air Transport Association (IATA) said on Thursday. - "November's moderate result reflects the continuing influence of slower economic activity, geopolitical tensions and other disruptions, including strikes in Europe," Alexandre de Juniac, chief executive officer of IATA said in a statement. "On the plus side, positive developments in the U.S.-China trade talks, in tandem with signs of improving business confidence, could support an uptick in travel demand," he added. - Passenger traffic for Asia-Pacific airlines increased 3.9% in November compared with the year-earlier period, slightly lower than the 4.2% annual growth recorded in October, IATA said. The Asia-Pacific region makes up more than a third of the global aviation market. - Among domestic passenger markets, Indian airlines experienced a return to double-digit growth for the first time since January 2019, as traffic rose 11.3% compared to November 2018, IATA said. - Domestic traffic in Japan rose 3.7% in November year-on-year, while airlines in China posted a rise of 5.3% in domestic traffic for the same period.

As MRC informed earlier, Asia is expected to receive up to 1.7 million tonnes of naphtha from the West, including Europe, the Mediterranean and the United States in January, which is more than 6% higher versus 2019's monthly average.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
MRC