Five employees at DuPont Chesterfield plant have tested positive for the coronavirus

MOSCOW (MRC) -- DuPont, which operates one of the Richmond region’s largest manufacturing plants, confirmed Monday that five local employees have tested positive for the coronavirus, but the company’s local manufacturing operations are still functioning, according to Richmond Times-Dispatch.

All five employees who tested positive for COVID-19 are "quarantined and recovering," DuPont spokesman Ryan Smartt said.

"We have not made any adjustments to our workforce at this time," Smartt said. "Employees who have tested positive for COVID-19 or are being quarantined continue to be paid. We continue to monitor and respond to the situation and will adjust our plans and protocols as needed."

The Wilmington, Del.-based industrial company’s largest US factory, called the Spruance plant, is on Jefferson Davis Highway in Chesterfield County. The factory employs about 2,200 people, including about 1,800 DuPont employees and several hundred contractors.

The production areas for Tyvek, Kevlar and Nomex are all operating, the spokesman said.

Those products are deemed "essential" during the coronavirus outbreak, including Tyvek, a water and microbial-resistant material used in a variety of applications, including protective personal garments worn by first responders and medical professionals.

The company reported in March that it was responding to a surge in demand for Tyvek apparel because of the coronavirus outbreak, and that production of Tyvek had increased about 20% so far this year compared with the same period last year.

The plant also makes the bullet-resistant material Kevlar and the fire-resistant material Nomex, used by the military, police officers and firefighters, as well as in industrial environments.

"The safety and well-being of our employees continues to be our top priority," Smartt said in an emailed response to questions. "We have implemented safety plans and protocols based on World Health Organization and Centers for Disease Control guidelines and recommendations to help prevent the spread of the virus, and to ensure we continue providing a safe and healthy workplace for our essential employees."

The company said that all employees who are not needed for the continuous operation of its manufacturing processes are now working from home.

"We have limited visits to the site, and are practicing social distancing and sanitizing common areas in the plant more frequently," Smartt said.

DuPont is at least the third manufacturing plant in Virginia that has been hit by the coronavirus outbreak.

Cigarette maker Philip Morris USA, a subsidiary of Henrico County-based tobacco giant Altria Group Inc., announced on March 19 that it was suspending operations for two weeks at its cigarette factory just off Interstate 95 after two employees tested positive for COVID-19. In addition, Altria’s chairman and chief executive officer, Howard A. Willard III, was diagnosed as having the virus that causes COVID-19 and temporarily stepped aside from his job for medical leave.

Altria said it would restart operations at the plant this week with a limited staff. Employees must complete a health questionnaire before they return to work. Anyone entering the factory will first need to stop at an off-site location to get his or her temperature checked.

Goodyear Tire & Rubber Co. also has temporarily suspended operations at its factory in Danville due to a sudden decline in market demand because of the COVID-19 pandemic.

As MRC wrote before, Chemical maker DuPont will spend USD220 million to build new production assets at its specialty films plant in Circleville, Ohio. In a statement, Wilmington, Del.-based DuPont said that the new assets will expand production of its Kapton-brand polyimide film and Pyralux-brand flexible circuit materials to meet what it calls "growing market demand in automotive, consumer electronics, telecom, and defense." DuPont expects the new assets to be operational by 2021.

Besides, rising demand for DuPont’s Tyvek nonwoven materials has prompted DuPont Safety and Construction, a business unit of DowDuPont Inc., to invest more than USD400 million to expand capacity for the materials at its facility in Luxembourg. The expansion will include the addition of a new building and third operating line at the site. The new capacity will come on stream in 2021.

We also remind that an employee at the Port Arthur Total refinery has tested positive for the coronavirus. The company confirmed Tuesday that the employee who tested positive is in self-quarantine and hasn't been at the site since March 26. Total says it has 'implemented its pandemic response in the case of a positive COVID-19 test, which includes disinfecting and sanitation of the potentially-affected areas.'

In November 2019, Total disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

April prices of European HDPE grew by EUR80/tonne for CIS markets

MOSCOW (MRC) -- April contract price of ethylene was settled in Europe down by EUR200/tonne from the previous month. However, European producers are not going to cut export high density polyethylene (HDPE) price proportionally for shipments to the CIS markets in April, according to ICIS-MRC Price report.

Negotiations over April prices of European PE began at the mid of last week. All market participants said that European producers have made a significant reduction in the export prices of HDPE for shipments in the current month, but the price reduction made EUR80/tonne, while ethylene fell by EUR200/tonne in the current month in Europe.

Deals for April shipments of HDPE were discussed in the range of EUR730 - 810/tonne FCA, down by EUR80-90/tonne from March. Pipe polyethylene has fallen in price more significantly, negotiations are ongoing in the range of EUR830 - 870/tonne FCA, which is EUR140-180/tonne lower than a month earlier.

Some producers have export restrictions due to scheduled maintenance works of capacities. But they are not critical for most buyers. Consumers partially met their needs in HDPE due to cheaper shipments from the Middle East.
MRC

Port Arthur Total refinery employee tests positive for COVID-19

MOSCOW (MRC) -- An employee at the Port Arthur Total refinery has tested positive for the coronavirus, according to 12News.

The company confirmed Tuesday that the employee who tested positive is in self-quarantine and hasn't been at the site since March 26.

Total says it has 'implemented its pandemic response in the case of a positive COVID-19 test, which includes disinfecting and sanitation of the potentially-affected areas.'

Employees who may have been in contact with the patient are asked to self-quarantine according to a Total news release.

The Port Arthur Refinery works with Total’s U.S. COVID-19 Task Force to implement a wide range of mitigation measures.

As MRC informed earlier, European oil majors Shell and Total announced in late March plans to cut capital expenditure by around 20% and suspend their share buybacks as part of a raft of measures to strengthen balance sheets in response to collapsing oil prices and the economic impact of the global coronavirus pandemic. Shell said it would cut its cash spending by USD5 billion from planned levels to USD20 billion "or below" in 2020 and reduce its operating costs over the next 12 months from 2019 levels. Separately, Total announced a "USD30/b action plan,” under which it will cut more than USD3 billion, or over 20%, mostly from its organic capex this year, taking its net investments to less than USD15 billion.

We also remind that a contractor working at Shell's Pulau Bukom manufacturing site in Singapore has contracted the new coronavirus. The Bukom manufacturing site in Singapore houses Shell's biggest wholly-owned refinery. The company said earlier it had sent some staff home from its main office at Metropolis in western Singapore after discovering another employee had been in contact with a carrier.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC

Lanxess suspends share buyback scheme on coronavirus crises

MOSCOW (MRC) -- Lanxess’ managing board has decided to indefinitely suspend its planned share buyback program announced on Mar. 10, in view of the coronavirus crisis, reported CHEManager.

The program launched on March 12 with a first tranche of up to EUR250 million foresaw repurchasing shares up to a volume of EUR500 million over a 24-month period.

Michael Pontzen, chief financial officer of the Cologne, Germany-based specialty chemical producer, said the challenges resulting from the corona pandemic require the company to conserve its liquidity.

“Lanxess has built up a very solid financial base in recent years. Nevertheless, we want to secure the greatest possible flexibility in the current situation,” Pontzen said, adding that management will “continuously monitor the challenging situation and decide about a resumption of the share buy-back program in due course.”

The German company had planned to leverage a provision granted by its supervisory board at the May 2019 annual general meeting, buying back outstanding shares equivalent to 10% of equity. In announcing the scheme, CEO Matthias Zachert said it demonstrated management’s confidence in the strategic direction of Lanxess and would create value for shareholders.

Recent financial market reports, however, suggest that amid the economic turmoil that will undoubtedly follow the pandemic, the buybacks would be misplaced. At the beginning of this week, analysts at Goldman Sachs predicted that share repurchases “will slow dramatically, both for political and practical reasons.”

“First, politicians are denouncing repurchases given the impending recession,” the investment bank said. “Second, from a practical perspective, as revenues evaporate, firms will be looking to preserve cash.”

But even before the coronavirus crisis, critics of buybacks argued that these were a poor use of company cash that could instead be invested in long-term growth and workers.

As MRC informed earlier, Vinmar Polymers America will distribute Lanxess Corp.'s high-performance plastics to customers in North America.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

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

Clariant starts monthly production of 2m litres of disinfectant in Germany

MOSCOW (MRC) -- Clariant announced it has started monthly production of 2 million liters of disinfectant at its facilities in Gendorf, Germany, said Hydrocarbonprocessing.

This disinfectant is then directly or via repacking partners provided to regional hospitals and other vital institutions in Bavaria, who are currently facing limited availability of this critical product during the COVID-19 outbreak.

At its facility in Gendorf, Clariant is able to use its available infrastructure to blend the necessary ingredients into disinfectant at a large scale. This allows the company to fulfill close to two-thirds of the monthly target demand of the Bavarian State, which aims for a total of 10 million liters of disinfectants to be produced over the next three months. Costs associated with this program are financed by a crisis fund set up by the State of Bavaria, Clariant offered its contribution at cost price.

“At times like this, it is vital that everyone, be it individuals or companies, contributes in every way possible to reduce the spread of the virus. We at Clariant have the capability to support those working the hardest to protect all of us. Therefore, our employees acted decisively to ensure it was done”, said Hans Bohnen, Chief Operating Officer of Clariant.

In order to realize the production of such large volumes of disinfectant, Clariant has cooperated with several other companies. The main ingredient, ethanol from renewable sources, was provided by CropEnergies AG. Their facility in Zeitz, Saxony-Anhalt, one of Europe’s largest production sites for renewable ethanol, produces the ethanol and ships it to Clariant in Gendorf. For this process, support was given by several logistics and infrastructure partners. After inspection and approval, the ethanol is then mixed with other ingredients in Clariant’s production facilities to produce disinfectant according to an official standard of the World Health Organization (WHO). Upon completion, the disinfectant is filled into large tank containers. Other partnering companies fill packaging in suitable sizes, ranging from 1 to 1,000 liters, after which the disinfectant is distributed to regional hospitals and other vital institutions.

Thanks to all these contributions, it was possible to support the Bavarian authorities and establish a stable supply chain for disinfectant on short notice and of large proportions. The total of 10 million liters would represent approximately 750 ml. of disinfectant for every resident of Bavaria.

Stephan Trautschold, Head of Operations for Clariant’s Industrial and Consumer Specialties business, added: “Being able to establish production of such large quantities of disinfectant so quickly is an impressive achievement. I am very proud of our entire team at the Gendorf site, Clariant’s service functions and very appreciative of the support from all other partnering companies and the Bavarian authorities. Together we can make a difference by supporting those in need."

As MRC informed earlier, Sabic has announced that it has purchased additional shares in Clariant, increasing its holding in the company from 24.99% to 31.5%. The move is part of Sabic’s growth strategy to achieve a leadership position among global peers in specialties and increase this segment’s contribution to Sabic. Completion of the transaction is subject to regulatory approvals.

Earlier last year, SABIC took off-stream its SABIC Olefins 4 cracker owing to technical issues on May 10, 2019. Further details on duration of the shutdown could not be ascertained. Located in beek, the Netherlands, the cracker has an ethylene production capacity of 690,000 mt/year and a propylene production capacity of 360,000 mt/year.

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.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC