Kraton completes sale of Cariflex business to Daelim Industrial

MOSCOW (MRC) -- US Kraton Corporation completed the sale of its Cariflex business to South Korean-based Daelim Industrial, said the company.

The sale was completed for USD530m in cash. The divestment, announced in October, follows a strategic review Kraton announced last February.

The company produces specialty polymers and biobased products derived from pine wood. It signed the agreement to sell its Cariflex business last October.

Kraton’s polymers are used in several applications such as adhesives, consumer and personal care products, coatings, medical, packaging, automotive, sealants and lubricants, paving and roofing applications.

Its pine-based specialty products are sold to the adhesives, roads, construction and tyre markets.

Kraton produces and sells a wide range of performance chemicals to markets such as fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks, flavours, fragrances and mining.

Kraton president and CEO Kevin M Fogarty said: “We are pleased to announce that we have completed the sale of our Cariflex business to Daelim Industrial. We believe Daelim is well-positioned to invest in and grow the Cariflex franchise as it continues to expand its global business.

“We thank the Cariflex team for their significant contributions, not only for developing Cariflex, but for continuing to grow the business over the years, and we wish them continued success in the future.

“As previously communicated, we intend to use the net proceeds from the Cariflex sale principally for debt reduction. Following the closing of this important transaction, we remain committed to continuing to improve our overall capital structure, and this sale is an important step in that regard.”

JP Morgan Securities served as financial advisor to Kraton, while Baker McKenzie was the legal advisor.

UBS Securities served as financial advisor to Daelim and Paul Hastings served as legal advisor.

As MRC informed earlier, Kraton Performance Polymers, a leading global manufacturer of styrene block copolymers (SBC) and other complex polymer products, has announced that it has changed its name to Kraton Corporation.

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

Neste invests in Sunfire, leading technology developer of high-temperature electrolysis

MOSCOW (MRC) -- Finnish refining and renewable fuels company Neste has acquired a minority stake in Sunfire, a German developer and supplier of high-temperature electrolysers and electrolysis technology, said the company.

Electrolysis is the key technology in the power-to-X platform, enabling the production of emission-free renewable hydrogen and conversion of carbon dioxide (CO2) into fuels, chemicals and materials.

"Sunfire’s highly efficient technology and world-class expertise in power-to-X, together with our proven track record in commercialising new sustainable technologies, provides an excellent basis for further development of the power-to-X solutions," said Neste’s CEO, Peter Vanacker.

In addition to the equity investment, Neste will work with Sunfire on a project designed to demonstrate the production of renewable hydrogen, using Sunfire’s high-temperature electrolyser, Neste added.

Financial details were not disclosed.

Dresden, Germany-based Sunfire develops and produces high-temperature electrolysers and high-temperature fuel cells based on solid oxide cell technology.

As MRC informed earlier, Neste, together with several European Union Member States and forerunner companies representing different parts of the European plastics sector, have signed the European Plastics Pact in Brussels, Belgium. The European Plastics Pact aims to accelerate cross-border exchange and collaboration on a pan-European scale to supplement and support the already existing European and global commitments as well as the existing national and company initiatives on the circularity of plastics value chain.

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

Plastics Recycling Show Europe 2020 postponed due to coronavirus concerns

MOSCOW (MRC) -- The upcoming Plastics Recycling Show Europe (PRSE), scheduled to take place from March 25-26 at the RAI Amsterdam, has been postponed due to concerns over the worldwide coronavirus outbreak, said Canplastics.

The announcement was made on March 10 by show organizers Crain Communications Inc. and PRE, the European association for plastics recyclers.

"The decision was made following consultations with exhibitors, speakers, pre-registered visitors and the venue, and considering the significant impact of international travel at this time,” the organizers said in a statement on the show’s website. “Our first consideration under these difficult circumstances must be for the health and well-being of all stakeholders involved in the event while national governments seek to contain the spread of this disease."

The organizers said they are “currently liaising with our exhibitors and other stakeholders to arrange alternative dates for PRSE."

A further announcement will be made as soon as dates are confirmed, they added.

As MRC informed earlier, global stocks plunged on Monday and prices for crude oil tumbled as much as 33% after Saudi Arabia launched a price war with Russia, sending investors already worried by the coronavirus fleeing for the safety of bonds and the yen.

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

ExxonMobil restarts last CDU at Baton Rouge, Louisiana refinery

MOSCOW (MRC) -- ExxonMobil Corp restarted the last crude distillation unit (CDU) that had been shut by a Feb 12 fire at its 502,500 barrel-per-day (bpd) refinery in Baton Rouge, Louisiana, reported Reuters with reference to sources familiar with plant operations.

The 90,000-bpd PSLA-7 CDU was the last of the refinery’s four CDUs to return to production after being idled by a fire in a natural gas pipeline that supplied fuel to the heaters on the CDUs, the sources said.

Exxon spokesman Jeremy Eikenberry declined to discuss the status of individual units at the Baton Rouge refinery.

Most of the refinery’s units have restarted as the CDUs returned to production last week and this week, the sources said.

The CDUs do the primary breakdown of crude oil into feedstocks for all other production units at the refinery.

As MRC informed before, in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

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).

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

Pregis acquires Italian films manufacturer Soprad

MOSCOW (MRC) -- Pregis has acquired Italian temporary protective films manufacturer Soprad, said the company.

The financial terms of the acquisition were not disclosed. Soprad’s products will be marketed under the Pregis’ PolyMask brand, which includes temporary surface protection films and specialty films.

Headquartered in Deerfield Illinois, Pregis makes protective films, tape and masking as well as packaging products used in the agriculture, transportation, construction and furniture industries. This is Pregis’ first acquisition under new private equity owner, Warburg Pincus and the latest example of Pregis’ continued investment in the European marketplace.

“Soprad has a 40-year track record of supplying performance-oriented adhesive protective films for a variety of surfaces including metal, plastic, glass and carpet,” said Kevin Baudhuin, president and CEO of Pregis. “Its robust European customer base provides an ideal foundation from which to expand the availability of our existing temporary adhesive film products."

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).

The Soprad acquisition is the first acquisition under Pregis’ new private equity owner, Warburg Pincus. This is the latest example of Pregis’ continued investment in the European marketplace. The company also recently announced the opening of Pregis Europe’s Customer Experience and Paper Specialist Centre in Stevenage, UK, as well as a Film and Foam Specialist Centre in Heerlen, The Netherlands.
MRC