Dow to sell trio of US Gulf Coast tank terminals to Vopak JV for USD620 million

MOSCOW (MRC) -- Dow has agreed to sell three of its chemical storage terminals on the US Gulf Coast for USD620 million to a joint venture (JV) between Vopak (Rotterdam, Netherlands) and investment firm BlackRock (New York, New York), said Chemweek.

The transaction includes marine and storage terminal operations and assets at Dow’s sites at Plaquemine and St. Charles, Louisiana; and Freeport, Texas, Dow says. The cash proceeds will be used for “value-enhancing opportunities consistent with Dow’s capital-allocation priorities” and demonstrates the company’s “continued evaluation of non-revenue-generating assets across its global portfolio,” it says.

The sale to the newly established Vopak Industrial Infrastructure Americas (VIIA) JV, owned equally by Vopak and BlackRock’s worldwide energy and power infrastructure fund, is expected to close before the end of this year, subject to regulatory approvals and other closing conditions in the US and EU.

Dow and VIIA will enter into long-term service agreements for storage and infrastructure services at the terminals. “Dow expects Vopak’s terminal expertise and capabilities will deliver additional operational efficiencies and opportunities for growth,” says Vopak. The long-term agreements will ensure “reliable and cost-advantaged services for existing Dow businesses at the in-scope sites,” according to Dow. Normal operations will continue throughout the divestment process, it says. All three terminals are situated alongside active Dow production complexes. VIIA and Dow “are working closely to ensure a seamless transition,” Vopak states.

The total storage capacity of the terminals is 852,000 cubic meters. Dow’s terminal at St. Charles is the largest with 73 chemical storage tanks with a combined capacity of 409,000 cu meters, with its terminal at Plaquemine incorporating 30 tanks with 303,000 cu meters of storage capacity for chemicals and refined products in total, Vopak says. The terminal at Freeport has 53 tanks with a total chemicals storage capacity of 140,000 cu meters, it says. The three assets also include 16.4 hectares of expansion land, 36 vessel berths, multiple pipeline connections, and rail and truck racks, Vopak adds.

The announcement demonstrates Dow’s “ongoing commitment to applying a best-owner mindset, supported by rigorous benchmarking, and a focus on disciplined capital allocation,” says Dow CEO Jim Fitterling. “The transaction will enable Dow to deploy cash towards value-enhancing opportunities in our core businesses consistent with our capital-allocation priorities including ensuring safe and reliable operations and paying down additional debt,” he says. In July, Dow announced the USD310-million sale of its rail infrastructure and assets at six sites in North America to Watco Companies (Pittsburg, Kansas). That deal is also expected to close during the fourth quarter.

Vopak already provides logistics partner services at several Dow locations worldwide. Vopak is “dedicated to contributing to the long-term success of Dow’s US Gulf Coast business,” says Vopak CEO Eelco Hoekstra. Describing the acquisition as a “unique expansion opportunity,” Hoekstra says the deal “fits perfectly into Vopak’s growth strategy for industrial terminals." Goldman Sachs acted as financial advisor to Dow, with Mayer Brown providing legal support.

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.
MRC

MOSCOW (MRC) -- MOL (Budapest, Hungary) says it has agreed to partner with polymer distributor Meraxis (Bern, Switzerland) for the development and production of recycled polyolefin compounds, said Chemweek.

The companies have signed a letter of intent to cooperate on the development of a new product portfolio, with Meraxis to supply MOL with post-consumer recyclate to be blended with MOL’s virgin polyolefin resins. MOL says the new products will be produced by its Aurora Kunststoffe (Neuenstein, Germany) subsidiary, with both companies to partner on distribution.

"We aim to use the combined expertise of the two companies to meet the increasing demand for high-quality plastic recyclates in the automotive, construction, and packaging industries,” says Meraxis CEO Stefan Girschik. “The potential offered by recyclates in the manufacture of high-quality plastic products is still far from exhausted. Strategic cooperations like this one, however, allow us to take a key step towards optimized recycling management," he says.

With regulations and customer preferences continuously changing, MOL has “identified the importance of using recycled material, no matter the industry,” says Gabriel Szabo, MOL’s executive vice president/downstream. The partnership will allow it to quickly develop recyclate recompounds that meet customer requirements and complement its virgin compounding development, he says.

MOL acquired recycled plastics compounder Aurora in November last year and says it is continuing with its transition from its traditional fuel-based downstream business model to a higher value-added petrochemical product portfolio.
MRC

MOSCOW (MRC) -- Hyundai Motor Group and SK Innovation Co. have agreed to cooperate in the development of a sustainable ecosystem for electric vehicle (EV) batteries that are key to the future mobility industry, said Chemweek.

The two parties announced today their plan to cooperate in diverse business areas related to the EV battery industry, including battery sales solutions, battery management service and battery reuse and recycling.
The collaboration stems from the companies’ shared need to create a battery value chain and strengthen eco-friendliness in business operations covering the entire lifecycle of EV batteries.

Unlike existing cooperation schemes between mobility companies and battery companies that tended to center on battery supply, the Hyundai-SK cooperation aims for a virtuous cycle of battery usage known as the Battery as a Service (BaaS), which includes lease or rental service. As a result, the cooperation is expected to catalyse the spread of diverse cooperation systems between mobility and battery companies.

Through this partnership, the two parties aim to strengthen the stability of the battery supply chain and create a virtuous cycle of resources from recycling to production; reduce carbon emissions; encourage optimal design that connects EVs and battery reuse, and create synergies by maximizing added value through the optimal design of batteries.

To enable cooperation, both sides are focusing on the initial process of collecting and verifying the battery pack of Kia Motors’ Niro EV model.

In particular, the two companies will seek solutions that can maximize value and eco-friendliness of EV batteries, including reuse of batteries that are no longer useable in vehicles in diverse applications such as the Energy Storage Systems (ESS); and battery recycling that extracts economically valuable metals such as lithium, nickel and cobalt.

These innovations are expected to enhance the value and competitiveness of the battery recycling industry, which will buttress the future EV era. Furthermore, Hyundai Motor Group and SK Innovation plan to synergize their respective affiliates’ business infrastructures and capabilities spanning diverse industries, thereby strengthening their battery competitiveness and expanding the growth of related sectors.

"Hyundai Motor Group’s cooperation with SK Innovation, a first-tier battery supplier for our Electric Global Modular Platform (E-GMP) that will be introduced in 2021, marks a critical first step in maximizing synergies between mobility and battery companies,” said Youngcho Chi, President and Chief Innovation Officer of Hyundai Motor Group. “We expect our cooperation to play an immensely positive role in strengthening Hyundai-Kia’s competitiveness in clean mobility as well as expanding the supply of eco-friendly EVs."

"This collaboration between Hyundai Motor Group, which is leading the popularization of EVs in the global market, and SK Innovation, which possesses the advanced technology in battery development and recycling, is highly meaningful in that the two have joined forces to collaborate across the entire EV cycle,” said Dongseob Jee, President of SK Innovation’s Battery Business. “Both companies will create a seamless collaboration system to explore new business opportunities across the whole battery value chain."

Apart from collaborating with SK Innovation, Hyundai Motor Group is striving to secure and open up new markets by collaborating with global players specializing in EV battery reuse, including Korea Hydro & Nuclear Power Co., Wartsila, OCI, and Hanwha Solutions. The Group, via the collaboration with SK Innovation Co., plans to fundamentally reinforce its technological competitiveness by securing technology and infrastructure, and expand its business areas.

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.
MRC

MOSCOW (MRC) -- The specialty chemicals group ALTANA is acquiring the business of TLS Technik GmbH & Co. Spezialpulver KG, an internationally leading manufacturer of metal powders for 3D printing, and thus strategically expanding its ECKART division, said the company.

"“By acquiring the TLS business, we are expanding our portfolio in 3D printing for industrial additive manufacturing and positioning ourselves in a technology market of the future,” says Martin Babilas, CEO of ALTANA AG. “With this step we are continuing to implement ALTANA's strategy of generating value-creating growth through targeted acquisitions, even in difficult economic times."

TLS, which is based in Bitterfeld, Germany, and has 25 years of experience, is regarded as one of the world's leading specialists in the production of high-quality metal powders for industrial 3D printing.

“TLS’ expertise in the production of metal powders and alloys for metallic 3D printing complements ECKART’s strengths as a specialist in the atomization of metals,” says Dr. Wolfgang Schutt, head of ALTANA's ECKART Division. “We are also strengthening ourselves in a targeted manner for functional applications.” For example, ECKART offers solutions for corrosion protection, products for the manufacture of aerated concrete, and fuels for space travel. In the course of the acquisition, ECKART will take over the production facility in Bitterfeld and around 40 employees. The transaction is subject to the approval of the antitrust authorities and to other customary closing conditions, and is expected to take place in the fourth quarter of 2020.

In addition, ALTANA announced the acquisition of the British company Aluminium Materials Technologies Ltd. (AMT). Besides others, the company developed the patented special alloy A20X for 3D printing, setting new standards in strength and weight. The technologically highly innovative special alloy enables the manufacturing of significantly lighter components with outstanding mechanical properties.

"AMT and its A20X alloy complement TLS’ capabilities, enabling us to offer users even more high-performance materials in the future, including in the aerospace industry, a key market for metallic 3D printing,” says Dr. Schutt. 3D printing permits decentralized, industrial production. The technology is revolutionizing the industrial value chain by making global supply chains more time and cost efficient. With the economic challenges posed by Covid-19, the importance of 3D printing will continue to grow.

In the future, ECKART will work with TLS and AMT experts to optimize and develop metal powders for 3D printing, thus opening up new areas of application. In doing so, ECKART is building on its core competencies: decades of expertise in materials production, efficient research and development, and access to international markets.

ALTANA is a global leader in true specialty chemicals. The Group offers innovative, environmentally compatible solutions for coating manufacturers, paint and plastics processors, the printing and packaging industries, the cosmetics sector and the electrical and electronics industry. The product range includes additives, special coatings and adhesives, effect pigments, sealants and compounds, impregnating resins and varnishes, and testing and measuring instruments. ALTANA's four divisions, BYK, ECKART, ELANTAS, and ACTEGA, all occupy a leading position in their target markets with respect to quality, product solution expertise, innovation and service.

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.

MRC

MOSCOW (MRC) -- Burckhardt Compression has entered into a memorandum of understanding to acquire the remaining 40% of Shenyang Yuanda Compressor, said Hydrocarbonprocessing.

Burckhardt Compression initially purchased a 60% interest in Shenyang Yuanda Compressor, a Chinese compressor manufacturer based in Shenyang, in March of 2016 and both companies have collaborated closely in the meantime. To finance the acquisition, Burckhardt Compression plans to issue a bond in the Swiss capital market.

Burckhardt Compression has held a call option to acquire the remaining 40% of Shenyang Yuanda Compressor’s outstanding shares since May 2020. The company plans to exercise this call option in November of 2020. In the years since the initial interest in Shenyang Yuanda Compressor was acquired, the company has expanded into more segments of the market, the product portfolio has been broadened to address a wider range of market needs, and Burckhardt Compression has gained direct access to a well established local supply chain. Compressors manufactured by Shenyang Yuanda Compressor have been available in selected export markets through Burckhardt Compression’s sales and distribution channels since 2019. Shenyang Yuanda Compressor employs approximately 650 people in China and generated sales of CHF 100 million in 2019. Burckhardt Compression is planning a maiden bond issue to be listed on the Swiss market to finance the acquisition of the 40% interest in Shenyang Yuanda Compressor.

A newly commissioned plant in Shenyang will commence operations as planned at the end of September, despite a six-week standstill earlier in the year due to the coronavirus outbreak. It will comprise a production area of 86,000 m2 on a total land area of 153,000 m2, thus having approximately 60% more production floor space than the two former sites combined. The new plant replaces both sites, which were engulfed by Shenyang’s rapid urban growth and are now located in the middle of the city. The current sites land will be handed back to the government. Construction costs for the new plant and the relocation costs will therefore be reimbursed by the Chinese government. The new plant marks an investment in the company’s future business development. Operations at the former two locations are being combined at the new site, where workflows and processes have been aligned with the latest standards and best practices to improve operational efficiency even more.

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.
MRC