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Chemicals firm BASF biggest beneficiary of UK coronavirus loan scheme

June 05/2020

MOSCOW (MRC) -- The German chemicals company BASF has emerged as the biggest beneficiary of the Bank of Englands emergency coronavirus loan scheme, borrowing GBP1bn in cheap government-backed funding, reported The Guardian.

Threadneedle Street revealed for the first time the names of 53 big companies that have borrowed GBP16.2bn between them, amid rising pressure on the government to place tougher conditions on firms that receive state-backed support.

The list of businesses benefiting from the cheap funding, which is designed to help businesses weather the economic storm caused by the coronavirus pandemic, included many with a sizeable carbon footprint.

According to campaigners, about a fifth of the emergency loans were made to firms with heavy carbon emissions in aviation, oil and car manufacturing, prompting criticism for the government.

Ministers have previously made assurances that the government would prioritise a green economic recovery from the coronavirus crisis.

Alongside BASF the list of major overseas companies receiving support backed by the British state also included the German pharmaceuticals company Bayer, the French luxury brand Chanel and the Japanese carmakers Toyota, Nissan and Mitsubishi.

BASF employs about 850 people in Britain at eight plants across the country, producing farming pesticides and chemicals for the car industry.

As MRC wrote previously, BASF says it has successfully issued corporate bonds with a total volume of EUR2.0 billion (USD2.28 billion) on the capital market, including its first-ever placement of a green bond that will be used purely to finance sustainable products and projects.

We remind that BASF has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

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. BASF generated sales of EUR59 billion in 2019.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, LLDPE, PP random copolymer, propylene, LDPE, ethylene, petrochemistry, BASF, Bayer, UK, Germany, Rossiya.
Category:General News
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