US chemical production up in August - ACC

MOSCOW (MRC) -- Chemical production in the US increased by 0.6% on a sequential basis in August, with gains in all regions of the country except the West Coast, reported Chemweek.

Most industry segments reported higher production for August, as well.

The recovery in manufacturing activity also strengthened in August, “with overall factory activity up 4.1% on a 3MMA [three-month moving average] basis,” ACC says. “Production increased for all key chemistry end-use industries that ACC tracks, with the strongest gains in appliances, motor vehicles, aerospace, foundries, iron and steel, refining, plastic and rubber products, tires, and apparel.”

On a year-on-year (YOY) basis, US chemical production fell 4.8% in August, the fifteenth consecutive month of declines. Production remains lower on a YOY basis in all regions of the country. However, there has been “an improvement over the past several months,” ACC says.

As MRC wrote previously, US chemical volumes are expected to drop nearly 10% this year as global economic activity contracts due to the impacts of COVID-19, according to the American Chemistry Council's (ACC) Mid-Year 2020 Chemical Industry Situation and Outlook. Volumes should recover in 2021 with a return to pre-COVID-19 output levels in the US by the second half of 2021.

We remind that Russia's output of chemical products rose in August 2020 by 5% year on year. At the same time, production of basic chemicals increased in the first eight months of 2020 by 5.3% year on year, according to Rosstat"s data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-July output.
MRC

MOSCOW (MRC) -- Axalta Coating Systems has appointed Hadi Awada as senior vice president, Global Transportation Coatings, effective 12 October, to lead its global light vehicle and commercial vehicle coatings businesses, said the company.

The Company is further announcing that Hadi Awada is joining Axalta as Senior Vice President, Global Transportation Coatings, effective October 12, 2020. He will lead Axalta's global light vehicle and commercial vehicle coatings businesses.

"I want to thank Steve for his many accomplishments at Axalta. Simply put, Axalta wouldn't be where we are today without Steve's immense contributions over the past seven years," said Axalta CEO Robert Bryant. "Steve shaped our Transportation business into the industry leader it is today. He and the team he built have accomplished major business wins, made immense strides in our China business and facilitated our entry into the automotive interior coatings space. Steve will remain on the Axalta team until November 2 to ensure an effective transition."

"I am thrilled to welcome Hadi to Axalta and our leadership team. He will play a pivotal role as we look to continue to grow and strengthen Axalta's Transportation Coatings businesses," said Bryant. "He is commercially focused with an impressive track record of leading businesses as they evolve to deliver for their customers. Moreover, he is keenly focused on developing intimate customer relationships and is a passionate leader of people. I'm confident Hadi and our exceptional transportation coatings leadership team will further accelerate the growth of our global light vehicle and commercial vehicle businesses in both existing as well as under-served adjacencies within the transportation industry."

Awada joins Axalta from Faurecia, a tier 1 automotive technology company, where he held roles of increasing responsibility. Most recently, he was President, Clean Mobility - North America, and a Member of Faurecia's North American Board of Management. In that role, Awada ran a multibillion dollar business and led efforts to develop and deploy new technologies to customers seeking sustainability and innovation. Previously, he worked in Germany, the U.K. and Asia in various business roles, including Vice President of Faurecia's emissions control technology business in China. After earning his B.A. from the University of Toledo, Awada began his career serving the Ford Motor Company.

"Axalta's entrepreneurial ethos is what drew me to this role. I look forward to helping Axalta identify new and emerging opportunities to develop products and services to meet the ever-evolving needs of our coatings customers," said Awada.

Awada joins Axalta from French automotive supplier Faurecia, where he was most recently president, Clean Mobility, North America.

As MRC informed earlier, Axalta Coating Systems Ltd. announced its financial results for the fourth quarter and full year ended Dec. 31, 2019. Net sales of USD1,098.4 million for the fourth quarter decreased 5.8 percent, including 1.3 percent negative foreign currency translation impact and a two percent impact from the sale of a consolidated Joint Venture interest in Q2 2019.

As MRC informed earlier, Axalta Coating Systems has completed its previously announced acquisition of the Spencer Coatings Group, a leading manufacturer of high performance industrial coatings for heavy-duty equipment, general industrial, oil and gas, and glass coatings segments.

As per MRC, Russia's output of chemical products rose in August 2020 by 5% year on year. At the same time, production of basic chemicals increased year on year by 5.3% in the first eight 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 January-July output. August production of benzene fell to 102,000 tonnes from 95,300 tonnes a month earlier due to scheduled shutdowns for maintenance at several producers. Overall output of this product reached 918,300 tonnes over the stated period, down by 0.9% year on year.

MRC

MOSCOW (MRC) -- PTT Global Chemical (PTTGC; Bangkok, Thailand) has signed an ethane supply agreement with Range Resources Corp. (Forth Worth, Texas) for PTTGC’s 1.5-million metric tons/year steam cracker project in Belmont County, Ohio, according to Chemweek.

Range will supply 15,000 b/d of ethane to a facility that includes an ethylene cracker with ethane feed capacity of 100,000 b/d and multiple facilities for creating ethylene derivative products.

The downstream configuration has yet to be decided, especially in view of Daelim Chemical USA’s (DCA) withdrawal from the project. PTTGC and DCA were equal partners in the project. PTTGC is in the process of seeking a new partner while working toward a final investment decision. This is likely to delay the completion of the project to 2027-28.

Original plans revolved around different configurations, including for the entire ethylene output being used to make the equivalent volume of high-density and linear low-density polyethylene (HDPE and LLDPE), or some of the ethylene used to make ethylene glycol. Most of the output would be sold on the US market.

As MRC reported earlier, in July 2020, state-owned Thai oil and gas company PTT Pcl said its US unit took a step forward on its proposed chemical plant in Ohio that will turn ethane into plastics with an agreement to develop a natural gas liquids storage facility. PTT Global Chemical America (PTTGCA) signed an agreement with Energy Storage Ventures LLC to build a facility to store and transport natural gas liquids (NGL) for PTTGCA's proposed complex.

Ethylene is the main feedstock for the production of polyethylene (PE).

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.
MRC

MOSCOW (MRC) -- Manali Petrochemicals said it has finalised plans to triple its annual production capacity for propylene glycol from 22,000 tonnes to 70,000 tonnes in two phases at an investment of Rs 150 crore, said Chemweek.

The capacity is proposed to be expanded initially to 46,000 tonnes to be completed in 18 to 21 months and then by another 24,000 tonnes. The entire project will be handled in-house by redesigning the current facilities to ensure cost-effectiveness and the most prudent budgetary practices.

On completion of the project, the company will meet a substantial part of the country's annual demand of about 100,000 tonnes of propylene glycol. Currently, a significant quantum is imported, which accounts for more than 75 per cent of the entire country's demand for propylene glycol. The substitution of imports will save significant import bills and will also propel India towards self-sufficiency in propylene glycol production capability.

The primary focus of the project will be to supply to two sectors -- pharmaceutical and food. The growth in demand expected in future in these two sectors will help Manali Petrochemicals meet its sales target post the expansion.
The revamp will also ensure environment-friendly practices. The company said that expansion will be fully funded via internal resources without recourse to any external borrowing.

Manali Petrochemical is part of Singapore-headquartered two billion dollar AM International Group. Chairman Ashwin Muthiah said the company's business strategy is aligned towards the country's dream of an Aatmanirbhar Bharat through the Make in India initiative.

"The investments are in tune with our credo of creating sustainable businesses which are future proof. We are building our plants through indigenous technology and investing in our home-grown R&D efforts with a clear focus on self-reliance and world-class domestic production," he said in a statement.

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.
MRC

MOSCOW (MRC) -- Arkema says its adhesives subsidiary Bostik plans to acquire Ideal Work (Treviso, Italy), a decorative flooring technologies company, reported Chemweek.

The transaction is in line with Arkema’s growth strategy in adhesives and complements Bostik’s range of flooring products for the construction market, the company says. The deal is expected to close in the fourth quarter of 2020.

The acquisition is also consistent with Arkema and Bostik’s CSR ambition, notably due to Ideal Work's micro-cement technology that uses solvent-free products or products with low volatile organic compound emissions, as well as recycled materials, the company says.

Ideal Work has annual sales of about EUR10.0 million (USD11.7 million) and employs 25 people, Arkema says.

As MRC informed previously, earlier this month, Arkema announced the start-up of a new world-scale industrial adhesives plant in Japan. Those new capacities will enable Bostik to serve its Japanese customers in the continuously growing markets of diapers, hygiene, packaging, labelling, transportation and electronics, said the company. This investment is in line with Bostik’s growth and geographical expansion strategy.

We remind that Arkema said in June, 2020, that it has finalized the divestment of its functional polyolefins business to SK Global Chemical. The divestment was announced last year. Arkema says the sale forms part of its strategy to refocus the group’s activities on specialty materials.

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.

Arkema is a global manufacturer in specialty chemicals and advanced materials, with 3 business segments - High Performance Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The Group reports annual sales of EUR8.8 billion. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.
MRC