Chemtrade CEO to step down in 2021

MOSCOW (MRC) -- Chemtrade Logistics Income Fund (Chemtrade; Toronto, Ontario, Canada) says president and CEO Mark Davis intends to retire in 2021. Scott Rock, currently chief operating officer, will take his place, said Chemweek.

"I am extremely proud of the organization and business portfolio that my team built over the last 20 years,” says Davis. He has been president and CEO of the company since it was founded in 2001. “Since joining Chemtrade [in September 2019], Scott has demonstrated genuine leadership and deep knowledge of our businesses. I will be leaving Chemtrade in good hands."

As MRC informed earlier, Chemtrade Logistics has announced force majeure circumstances for the supply of caustic soda, chlorine and hydrochloric acid from its plant in North Vancouver (North Vancouver, British Columbia, Canada). In a statement, the company said that the force majeure was caused by a technical failure of the equipment.

As MRC informed earlier, Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-June. Production of benzene was 106,000 tonnes in June 2020, compared to 110,000 tonnes a month earlier. Overall output of this product reached 721,000 tonnes over the stated period, up by 3.9% year on year.

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, liquid sulphur dioxide, sodium nitrite, sodium hydrosulphite and phosphorus pentasulphide. Chemtrade is a leading regional supplier of sulphur, sodium chlorate, potassium chloride, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
MRC

MOSCOW (MRC) -- Sinopec Qilu Petrochemical, part of Sinopec Group, has undertaken an unplanned shutdown at its No. 3 linear low density polyethylene (LLDPE) unit in Shandong, according to Apic-online.

A Polymerupdate source in China informed that, the company halted operations at the unit on August 11, 2020. Further details on duration of shutdown could not be ascertained.

Located at Shandong province in China, the LLDPE plant has a production capacity of 140,000 mt/year.

As MRC reported earlier, Sinopec Qilu Petrochemical shut its No, 3 LLDPE unit for scheduled turnaround from 2 to 11 June, 2020.

According to MRC's ScanPlast report, June LLDPE shipments to the Russian market rose to 38,600 tonnes from 31,290 tonnes a month earlier, production increased. Russia;s overall LLDPE shipments totalled 191,700 tonnes in the first six months of 2020, down by 7% year on year. Production increased by 89% year on year, whereas exports grew by several times.

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
MRC

MOSCOW (MRC) -- Formosa Petrochemical Corporation (FPCC) has undertaken a planned shutdown at its No.3 cracker in Mailiao, according to Apic-online.

A Polymerupdate source in Taiwan informed that, the company started maintenance at the cracker on August 11, 2020. The cracker is expected to remain off-line till end-September, 2020.

Located at Mailiao in Taiwan, the No. 3 cracker has an ethylene production capacity of 1.2 million mt/year and propylene production capacity of 600,000 mt/year.

As MRC wrpte previously, Formosa took off-stream its No.2 cracker in Taiwan on 1 June, 2020. No reason for unplanned closure was given. The cracker was idle until 4 June. Located at Mailiao in Taiwan, the No.2 cracker has an ethylene production capacity of 1.03 million mt/year, propylene production capacity of 515,000 mt/year and butadiene production capacity of 162,000 mt/year.

Formosa, Asia's top naphtha importer, operates three naphtha crackers in Mailiao. These units have a total capacity of 2.93 million tpy of ethylene.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- Hanwha Group has lost to US-based chemical company Chevron Phillips in a bid to acquire a 50% stake in global chemical company Sasol’s ethane cracking center (ECC) located in Louisiana, for which the South Korean conglomerate offered more than USD3 billion, according to Korean Investors.

Hanwha’s offer was believed to be much lower than Chevron’s bidding price in the competition which attracted other energy giants such as ExxonMobil, LyondellBasell, and Ineos. The heated rivalry eventually hiked up the price to 4 trillion won (USD3.3 billion), double the initial projection.

“Not only was there a significant price gap between Hanwha and Chevron, but the tables turned for good when Chevron eagerly accepted selling terms,” explained a source familiar with the deal on August 6.

Hanwha Solutions, the chemical arm of Hanwha Group, was one of the final and the only Korean bidder in the official tender. Other local bidders including LG Chem and private equity firm SJL Partners dropped out after the preliminary bid.

Hanwha was quite active in its efforts, creating a consortium with Daishin PE to raise about 2 trillion won. The company had planned to raise the remaining 2 trillion won in acquisition financing from multiple commercial banks.

Sasol has actively invested in the Lake Charles ECC complex in the US since 2014, injecting over USD12 billion in the development process which significantly increased the company’s debt.

Earlier in March, Sasol announced that it would consider selling some of its assets as part of the company’s measures to address financial challenges intensified by the global pandemic and the decline in oil and chemical prices.

This offered an attractive opportunity for industry peers to acquire a valuable asset at a modest price given that the 50% stake was valued around late 2 trillion at an early stage.

Hanwha was keen on acquiring a stake in Sasol to diversify its business structure. The Korean conglomerate operates a naphtha cracking center (NCC) which distills crude oil to extract the naphtha required for ethylene. The company had taken a growing interest in ECC because it uses shale gas to make ethylene which is cheaper and less volatile in production costs compared to naphtha.

Meanwhile, there had been concerns regarding the deal as it posed burdensome conditions for local players. When determining assets for sale, Sasol decided to sell mostly general products such as ethylene instead of high-value-added products within the ECC complex which prompted LG Chem to drop out of the bid.

There were also concerns about post-merger integration given that it would be difficult for domestic companies to control local staffing compared to global chemical companies that have more resources.

As MRC reported earlier, Sasol's world-scale US ethane cracker with the capacity of 1.5 mln tonnes per year reached beneficial operation on 27 August 2019. SasolпїЅs new cracker, the heart of LCCP, is the third and most significant of the seven LCCP facilities to come online and will provide feedstock to our six new derivative units at the company"s Lake Charles multi-asset site.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Sasol is an international integrated chemicals and energy company that leverages technologies and the expertise of our 31 270 people working in 32 countries. The company develops and commercialises technologies, and builds and operates world-scale facilities to produce a range of high-value product stream, including liquid fuels, petrochemicals and low-carbon electricity.

Hanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc., the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial services.
MRC

MOSCOW (MRC) -- Sinopec Zhongyuan Petrochemical, part of Sinopec Group, is in plans to bring on-stream its cracker following a maintenance turnaround, according to Apic-online.

A Polymerupdate source in China informed that, the company is likely to resume operations at the cracker by mid-September, 2020. The cracker was shut for maintenance on August 1, 2020.

Located at Henan in China, the cracker has a ethylene capacity of 220,000 mt/year and propylene capacity of 95,000 mt/year.

Zhongyuan Petrochemical also has polyethylene (PE) production capacity of 260,000 tonnes per year and polypropylene (PP) capacity of 160,000 tonnes per year at the same site. Besides, the company also plans to carry out maintenance on its 600,000-tonnes-per-year methanol to olefins (MTO) unit during the period of July 24 to Oct. 22.

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

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group"s key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.
MRC