Hexion to sell phenolic specialty, two other businesses

MOSCOW (MRC) -- Hexion (Columbus, Ohio) has agreed to sell its phenolic specialty resin, hexamine, and European-based forest products resins businesses for approximately USD425 million to private equity firms Black Diamond Capital Management (Greenwich, Connecticut) and Investindustrial (Luxembourg), said Chemweek.

The deal consists of USD335 million in cash and certain assumed liabilities, with the remainder in future proceeds to be based on the performance of the business, says Hexion. The transaction is expected to close in the first quarter of 2021, subject to regulatory approvals and other customary closing conditions, including works council consultation. The company expects to use the sale proceeds to invest in its business and further reduce its debt, it says.

The combined businesses being sold posted sales of approximately USD530 million for the last 12 months ended 30 June 2020, according to Hexion. The sale includes approximately 900 personnel and 11 manufacturing facilities worldwide, where phenolic specialty resins and engineered thermoset molding compounds are produced for end markets including building and construction, industrial, automotive, electronics, agriculture, and consumer, it says.

"We continue to strategically manage our portfolio providing us the ability to further strengthen our balance sheet and maintain a strong business going forward. As we proceed, we will leverage our differentiated technology and global manufacturing footprint to serve the diversified customers of our remaining businesses," says Hexion president and CEO, Craig Rogerson.

The businesses being acquired "boast globally recognizable brands and trademarks," say Black Diamond and Investindustrial in a joint statement. The equity firms have partnered in the past on a collective investment in Polynt (Scanzorosciate, Italy) and Reichold (Durham, North Carolina), which saw the two companies merged into Polynt-Reichold in 2017. "Black Diamond has prior experience investing in phenolic specialty resin businesses and looks forward to bringing that experience to the acquired businesses," they say.

Credit Suisse is acting as Hexion’s financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison as legal counsel. Hexion reported a first-quarter 2020 net loss in May of USD59 million, compared with a USD52-million loss in the year-ago quarter, with net sales declining 6.8% year on year to USD826 million.

As MRC informed earlier, Hexion, a major American manufacturer of phenol and bisphenol A (BPA), plans to close its BPA plant in Pernis (Pernis, The Netherlands) in early October for scheduled maintenance. This 120 ktpa BPA production facility will be closed in the second week of October and is expected to resume production in three weeks.

Phenol is the main raw material for bisphenol A (BPA) production, which in turn is used to produce polycarbonate (PC).

According to MRC's ScanPlast, in Russia, following the results of the first two quarters, the total estimated consumption of PC granulate in the Russian Federation (excluding imports and exports to Belarus) amounted to 47.3 thousand tonnes against 40.7 thousand tonnes in 2019. Total demand increased by 16%.

Hexion Inc., formerly Momentive Specialty Chemicals Inc., is a chemical company based in Columbus, Ohio. It manufactures thermosetting resins and related technologies and specialty products. Hexion has two divisions: the epoxy, phenolic and coating resins division and the forest products division.
MRC

MOSCOW (MRC) -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, released its annual Sustainability Report with the aim of affecting positive change and is focused on three transformational areas including plastic waste, climate change, and thriving societies, said the company.

LyondellBasell announced one of the most ambitious goals of the industry to produce and market two million metric tons of recycled and renewable-based polymers annually by 2030. The report showcases LyondellBasell's strategy and ambitions for the next decade.

"LyondellBasell has been on a multi-year journey to advance the circular economy, and we have made strides in mechanical and advanced recycling, as well as producing renewable-based products," said Jim Seward, Senior Vice President Research and Development, Technology and Sustainability. "Our goals underscore what we see possible in the next decade, and our sustainability ambitions require us to adapt our business models. When viewed through the lens of technology and innovation, our track record demonstrates our capacity to advance new collaborations and partnerships for the benefit of society."

Key elements of the LyondellBasell's Sustainability Report involve taking action on several fronts. It is the company's ambition to:
Produce and market two million metric tons of recycled and renewable-based polymers annually, increase its investment in the recovery and recycling of plastic, and accelerate solutions to end plastic waste.
Reduce its CO2 emissions by 15 percent per ton of product produced relative to 2015 levels by 2030.
Advance diversity, inclusion and equity in the workplace by accelerating initiatives, such as building diversity and inclusion (D&I) into our talent programs, implementing a D&I Officer position and involving a cross-section of leaders to serve as the D&I Council.

Join American Chemistry Council and Plastics Europe industry peers to ensure 100 percent of plastic packaging is reused, recycled or recovered by 2040.

Additionally, the company continues to increase recycling and work collaboratively across the value chain as evidenced by LyondellBasell CEO Bob Patel's instrumental role in the launch of the Alliance to End Plastic Waste and continued involvement as an officer of the organization. LyondellBasell is also developing advanced recycling with its MoReTec technology, has expanded its mechanical recycling product grades and color offerings through its 50/50 joint venture, Quality Circular Polymers (QCP), improved the design of plastics to increase recyclability, and worked with brand owners to increase product recyclability. Lastly, the company achieved the first parallel production of polypropylene (PP) and low-density polyethylene (LDPE) made from renewable raw materials at commercial scale.

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) -- The American Cleaning Institute (ACI) announced that it is postponing its annual convention due to the COVID-19 pandemic, said Chemweek.

The next in-person meeting will be held in January 2022 in Orlando, Florida. The decision was made after extensive surveying of member companies and in-depth assessments of travel policies and regulations. ACI asks members to continue to save the week of 25 January 2021 for a members-only ACI Virtual Summit.

This event will feature meetings of ACI’s expert standing committees, annual State of the Association address, policy and issue briefings, educational sessions on topics essential to the cleaning products industry, and opportunities to network with industry peers. “As the cleaning products industry has demonstrated over the last several months, we are resilient, we are essential to public health and well-being. and we will adapt successfully in the year ahead,” said Melissa Hockstad, ACI President and CEO.

As MRC informed earlier, crude prices were holding lower in midday US trading Sept. 25 as the market eyed rising COVID-19 cases in Europe as well as fresh hopes for more US stimulus spending. In Europe, resurgence of the coronavirus is prompting governments to reintroduce new restrictions on movement. Around 40% of Madrid's intensive care capacity is now taken up by people suffering from the virus, while on Sept. 24 France, the UK and Spain reported 16,096, 6,634 and 2,321 new cases, respectively -- the highest totals for those countries since spring.

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) -- BASF says it has acquired the worldwide distribution rights for Ventraco's (Amsterdam, Netherlands) rejuvenator products that enable complete recycling of old asphalt, branded RheoFalt, said Chemweek.

The agreement excludes Belgium, Luxembourg, and The Netherlands, where Ventraco will continue to supply the products, BASF says.

Road construction is growing worldwide alongside increased mobility, and the demand for new roads is accompanied by the need to renew existing pavement due to binder aging and compromised crack resistance on the surface, the company says. If the old asphalt is not recycled, the result is large quantities of waste, it says.

"Many roads will have to be renewed in the next few years. We estimate that the market volume worldwide and especially in the region of EMEA will increase sharply in the near future,” says Mario Sandor, head/business management, asphalt performance at BASF. The agreement makes it possible for “us to offer a sustainable solution for road construction and to meet these growing needs," Sandor adds.

As MRC reported earlier, BASF-YPC undertook a planned shutdown at its polystyrene (PS) unit in China on May 5, 2020. The unit restarted on June 20, 2020. Located in Jiangsu, China, the PS unit a production capacity of 200,000 mt/year.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics was 225,870 tonnes in the first half of 2020, down by 8% year on year. PS consumption increased by 2% year on year in June 2020, totalling 39,590 tonnes.

BASF-YPC Company Limited (BASF-YPC) is a 50-50 joint venture between BASF and Sinopec, founded in 2000, with a total investment of approximately USD5.5 billion. The integrated petrochemical site produces about three million tons of high-quality chemicals and polymers for the Chinese market annually. The products serve the rapid-growing demand in multiple industries, including agriculture, construction, electronics, pharmaceutical, hygiene, automotive and chemical manufacturing. All BASF-YPC plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and to minimize the environmental impact. BASF-YPC posted sales of approximately CNY 19.6 billion in 2019 and employed 1,942 people as of the end of the year.

MRC

MOSCOW (MRC) -- 3M announced that August sales increased 2% year-on-year (YOY) despite one fewer business day, and said it expects third-quarter revenues to be 2.5-3.7% higher than the 2019 quarter, said Chemweek.

"While significant global economic uncertainty remains due to the COVID-19 pandemic, the company estimates, with one month left in the quarter, its sales to be in the range of USD8.2 to USD8.3 billion for the third-quarter," 3M says. The company reported sales of USD8.0 billion the third quarter of 2019.

Sales increased 23% in Health Care, 6% in Safety and Industrial, and 3% in Consumer, while Transportation and Electronics declined 11%. Organic local-currency sales increased 6% in Health Care, 5% in Safety and Industrial, and 2% in Consumer, while Transportation and Electronics declined 11%.

On a geographic basis, sales increased 7% in EMEA (Europe, Middle East and Africa) and 4% in the Americas, while Asia Pacific declined 2%. Organic local-currency sales were flat in both the Americas (including the US, up 1%) and EMEA, while Asia Pacific declined 5% (including China up 6% and Japan down 15%).

The company suspended its guidance due to uncertainty created by the COVID-19 pandemic, but has been reporting monthly revenue figures.

As MRC informed earlier, SIBUR and 3M have signed an agreement to cooperate in product development and polymer recycling at SIBUR’s PolyLab. Thanks to their durability, strength, eco-friendliness and other advantages, such polymers as polyethylene and polypropylene are some of the most widely used synthetic materials, popular with the construction, utilities, automotive, healthcare, food and other industries.

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