Total expands lubricants business with acquisition of French firm

MOSCOW (MRC) -- Total Lubrifiants, a leading player in the global lubricants market, announced the acquisition from Houghton International of its aluminum hot rolling oil (AHRO), steel cold rolling oil (SCRO) and tinplate rolling oil (TPRO) activities in the North American and European Economic Area markets, said Chemweek.

The transaction includes the associated technical support services in both regions. The sale was a condition set by the U.S. Federal Trade Commission and the European Commission to approve the Quaker Chemical and Houghton International merger to push through. Quaker Houghton, the newly combined entity, said it received approximately USD37 million from Total S.A. The revenue of the divested product lines was approximately USD50 million, Quaker Houghton added.

"We believe that this acquisition will create value both for Total and our customers from these industries. It will strengthen our position in the industrial lubricants market, which is an important part of our strategic vision for the future," said Philippe Charleux, senior vice president, Lubricants & Specialties at the Marketing & Services Division of Total.

"Geographically we are strengthening our strong presence in Europe and expanding our activities and market penetration in North America, especially the U.S.A."

With this specially formulated range of hot and cold rolling oils, cleaners and accompanying fluid management services, Total is broadening its product portfolio to offer customers a fully integrated solution.

As MRC wrote before, in November 2019, Total disclosed that itis 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 overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

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

1. Oil refiners worldwide struggle with weak demand, inventory glut

MOSCOW (MRC) - Global oil refiners reeling from months of lackluster demand and an abundance of inventories are cutting fuel production into the autumn because the recovery in demand from the impact of coronavirus has stalled, according to executives, refinery workers, and industry analysts, Reuters. Refiners cut output by as much as 35% in spring as coronavirus lockdowns destroyed the need for travel. As lockdowns eased, refiners increased output slowly through late August. But in top fuel consumers the United States and elsewhere, refiners have been decreasing rates for the last several weeks in response to increased inventories, a sustained lack of demand, and in response to natural disasters.

MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, and a global leader in vinyl acetate ethylene (EVA) emulsions, has announced an increase in its September prices of vinyl acetate-based emulsions sold in the Americas, as per the company's press release.

The price increases below are effective for orders shipped on or after 15 September 2020, or as contracts otherwise allow, and are incremental to any previously announced increases.

Thus, prices of EVA emulsions rose, as follows:

- by USD0.03/lb - for the USA and Canada;
- by USD66/mt - for Mexico & South America.

As MRC reported earlier, Celanese also raised its September prices of EVA emulsions for China by CNY300/mt and for Asia outside China (AOC) - by USD50/mt, as well as for Europe, Middle East and Africa - by EUR50/mt.

According to MRC's DataScope report, June EVA imports to Russia fell by 22,5% year on year to 2,940 tonnes from 3,800 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-June 2020 by 8,16% year on year to 17,440 tonnes (18,980 tonnes a year earlier).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.
MRC

MOSCOW (MRC) -- Shanghai SECCO has restarted its polypropylene (PP) plant following an unplanned outage, according to Apic-online.

A Polymerupdate source in China informed that, the company resumed operations at the plant on September 16, 2020. The plant was shut for unplanned maintenance on September 11, 2020.

Located at Shanghai, China, the PP plant has a production capacity of 280,000 mt/year.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 654,600 tonnes in the first seven months of 2020 (calculated using the formula: production minus exports plus imports and without the producer's inventories as of 1 January, 2020).

Shanghai SECCO is owned by Sinopec Petrochemical, Sinopec Shanghai Petrochemical and Sinopec Shanghai Gaoqiao Petrochemical, with 30%, 20% and 50% holdings respectively.
MRC

MOSCOW (MRC) -- Ineos, one of the world’s largest manufacturing companies, has undertaken an unplanned shutdown at its No. 1 olefins unit at Texas cracker, according to Apic-onlne.

A Polymerupdate source in the US said, the company halted operations at the cracker for maintenance on September 18, 2020 owing to technical issues. Further details on duration of the shutdown could not be ascertained.

Located at Chocolate Bayou in Texas, the No. 1 Olefins unit has an ethylene production capacity of 1.07 million mt/year and propylene production capacity of 235,000 mt/year.

As MRC wrote before, in April 2020, Ineos and Plastic Energy agreed to collaborate in constructing a new plant to convert waste plastic into raw material to make new plastic. The new facility would be operational by the end of 2023.

We remind that in January 2019, Ineos announced Antwerp as the location for its new petrochemical investment. The EUR3 billion investment will be the biggest ever made by INEOS and is first cracker to be built in Europe in 20 years. The investment is a game changer for the chemical sectors and will bring huge benefits to the Belgium and wider European economies.

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

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.

Ineos is a global manufacturer of petrochemicals, specialty chemicals and oil products employing 22,000 people. It has 34 businesses, with a production network spanning 183 manufacturing facilities in 26 countries.
MRC