Poliom shut PP production

MOSCOW (MRC) -- Trinseo, a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, has announced that its Board of Directors authorized a quarterly dividend of USD0.40 per share, as per the company's press release.

The dividend will be a cash distribution payable on October 22, 2020, to shareholders of record as of the close of business on October 8, 2020.

Trinseo is a public limited liability company formed under the laws of Luxembourg. Under current Luxembourg tax law, distributions to shareholders via repayments of equity or share premium are not subject to Luxembourg withholding tax. Distributions made by Trinseo before 2020 were repayments of equity or share premium and were therefore not subject to Luxembourg withholding tax.

This quarterly distribution will be considered a dividend made on the common shares and is subject to a 15% withholding tax under Luxembourg law. Trinseo will deduct this tax from the dividends paid to our shareholders and transfer this tax to the Luxembourg tax authorities.

As MRC reported earlier, material suppliers Ineos Styrolution and Trinseo are advancing their plans to build what’s being called a "first-of-its-kind" polystyrene (PS) recycling in Wingles, northern France. The planned full commercial scale recycling facility will be capable of processing up to 50 tons-per-day of post-consumer PS feedstock, the companies said in a Sept. 17 statement, and is expected to be fully operational by mid-2023.

According to MRC's ScanPlast report, Russia's overall estimated consumption of PS and styrene plastics was 45,980 tonnes in July 2020, up by 18% year on year (39,080 tonnes a year earlier). Consumption of PS and styrene plastics in Russia was 268,750 tonnes in January-July 2020, down by 6% year on year.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
MRC

MOSCOW (MRC) -- Japanese multinational, through its subsidiary Kurita Europe GmbH, an international leader in waterprocess specialty chemicals, and UAE-based AquaChemie DMCC, a leading regional process industry player, have signed a strategic agreement to set up a joint venture company, under the name of Kurita AquaChemie, according to Big News Network.

The JV would leverage both companies' complementary strengths for water and process treatment chemicals solution for the refinery, petrochemicals, fertilizer, powerdesalination, paper, and metal industries in the GCC region.

Kurita AquaChemie to offer specialty chemicalservices to Chemical and other Process Industry in the GCC region New JV includes two production plants in Saudi Arabia and the UAE First unique JV between a strong multinational and an equally capable local partner GCC customers to benefit from higher-value offering with patentedinnovative Kurita productsservices The specialty chemicals market in the GCC region pegged at more than USD 350 millionKurita AquaChemie will operate the two new production plants in Dammam, Saudi Arabia, and Jebel Ali, Dubai, UAE, and be the single face for the wider GCC region's customers. These two production sites were commissioned in H1 2020. It is all set to offer solutions to customers, who would benefit from technologically innovative Japanese programs fully backed by local production, resources, and prompt customer service.

An agreement to officially form the new joint venture was physically signed in Dubai on September 30, 2020, by Lorenzo Carollo, CEO of Kurita Middle East, and Subrato SahaV Anandkumar, Directors of AquaChemie DMCC, in the presence of top JAFZA officials. Michiya Kadota, President of Kurita Group, Shingo Yamaga, Senior General Manager EMEA and Americas Operation of Kurita Group and Jordi Verdes, CEO of Kurita EMEA, Other Senior members from KuritaAquaChemie along with Media RepresentativesWell-wishers were online, present virtually to mark the occasion.

The regional hydrocarbon industry has witnessed steady growth in the past decade, with new industrial process units being added. Water and process treatment specialty chemicals are essential additives for such units.

The overall specialty chemicals market in the GCC region is currently pegged at more than USD 350 million. Water is the key to a sustainable future. But the region is still not comprehensively served in terms of technology and monitoring services. Hence, there is a definite need for a global player like Kurita to address these gaps.

Kurita AquaChemie is a unique joint venture collaboration between a strong multinational and an equally capable local partner. Kurita AquaChemie together has already a base of over 25 customers in the region. It would continue to invest focusresources to be the market leader in specialty chemicals in the next few years.

The new entity, with Kurita as the major shareholder, has come at an opportune time when the requirement is high, but options for customers are limited for such patented bespoke Japanese technology. Kurita commits around 3 per cent of its over USD 2B turnover on RD each year with greater than 3000 patents to leverage. Kurita is the only global chemical company qualified as a member of the NAI (Nature Stock Index), which shows its commitment towards environmentsustainability.

All these elements, which focus on optimizing waterenergy resources, can result in savings of up to 40%. Such solutions will be delivered over the strong foundation created by AquaChemie, through local infrastructure development in GCC countries, working relationships in the regional hydrocarbon industry, and professionals with years of experience in specialty chemicals' sales and service.

"To realize our dream of Kurita company philosophy, 'Study the properties of water, master them, and we will create an environment in which nature and man are in harmony', establishing the business fundamentals in middle east countries has been essential and indispensable for us. With this new joint venture company, we are very much excited to make the critical one step toward the dream, that allow us to provide our innovation and technologies directly to our customers in GCC, where there is a need for such solutions," said Shingo Yamaga, Senior General Manager EMEA and Americas Operation of Kurita Group, while commenting on the new joint venture agreement.

"I believe this operation fits perfectly into Kurita's long-term strategy that in recent years is undergoing impressive acceleration. A strategy we define as 'glocal' - think globally, act locally. With this joint venture, a reality is born that will speedily bring the global innovations that Kurita develops, locally, to the GCC region," added Lorenzo Carollo, CEO of Kurita Middle East.

"AquaChemie has always strived to become a formidable player in the specialty chemicals space, with>25 per cent year-on-year growth. Thus, when Kurita expressed interest in collaborating, we were immediately drawn by their globally trusted brand status, technology leadership, and deep-rooted pleasant Japanese culture," noted Subrato Saha, Director of AquaChemie DMCC, while confirming his company's role in the new enterprise.

"Kurita focuses on creating value for the water, paper, and process treatment industry and society by providing technologies that reduce water and energy consumption. To achieve the sustainability targets of our customers, we rely not only on the technology we have but also on the knowledge of local markets' specific needs. This is why the new joint venture is a perfect match for us," said Jordi Verdes, CEO of Kurita EMEA.

"When two forces combine, their efficiency double. With Kurita's technology leadership and AquaChemie's customer-centric approach reinforcing the new joint venture, our customers can now reap the benefits of higher efficiency, water, and energy savings, along with equipment/ process reliability. We want to continue expanding our innovative solutions, bring benefits to our customers, and focus on sustainable solutions through 2021 and beyond," said V Anand Kumar, Director of AquaChemie DMCC.

As most of the new company's chemicals will be manufactured in the GCC region itself, this will inherently reduce input costs and provide better product availability. All these factors will allow customers to obtain better plant efficiency, reliability, and utilization at competitive pricing. Globally proven technologies, delivered with a deep commitment towards Quality, Health, SafetyEnvironment, would be a blessing for the region.

Both Kurita and AquaChemie felt the need for a joint venture operation over the last two years. However, it took time to understand each other, doing the thorough due diligence of both parties' Middle East operations, commercial negotiation, and finalizing the joint venture modalities between the two companies. The ongoing global COVID-19 pandemic also set the merger back by a few months.

We remind that, as MRC informed earlier, in early May, 2020, Abu Dhabi National Oil Company (ADNOC) began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said.

And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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.

Kurita Europe GmbH, headquartered in Ludwigshafen, Germany, provides technologies for water, paper, and process treatment. Founded in 1989, the team consists of 550 employees at 12 different offices in Europe and the Middle East, covering the EMEA (Europe, Middle East, Africa) sales area. With production facilities, it contributes to a reliable supply chain for customers. Own RD centers, laboratories, and pilot test plants allow Kurita to develop continuously customized state-of-the-art technologies.

Kurita Europe is a subsidiary of Kurita Water Industries Ltd., headquartered in Tokyo, Japan. Founded in 1949, the Group has over 5,600 employees worldwide, generating a turnover of more than US$2 billion. Over 3,000 patents are proof of Kurita's innovative approach to a resource-saving consumption of water.

AquaChemie was established in Dubai, UAE, in late 2008. Since then, it has expanded its operation all across the GCC region, with a strategic presence in Hong Kong. AquaChemie DMCC is its flagship company, managing the chemicals business. AquaChemie is into specialty chemicals manufacturing, sales, distribution, services, and bulk terminal operation. It has corporate offices, manufacturing facilities, bulk storage terminal, warehouses, a fleet of ISO tanks, and operation skids in GCC countries. With a team of over 120 people, driven by expertise, experience, and ethics, AquaChemie is one of the fastest-growing chemicals companies in the Middle East.
MRC

MOSCOW (MRC) -- If they can maintain recent progress, US oil refiners should be able to bring stocks of diesel and other middle distillates close to normal levels in the first quarter of 2021, reported Reuters.

Distillate inventories were still 20% above the five-year average last week, but the surplus was down from 22% at the end of August, 27% at the end of July and 29% at the end of June.

Refining margins for distillate show tentative signs of recovery, based on futures prices for crude and ultra-low sulfur diesel delivered in March 2021, consistent with a normalization of stocks in the first quarter.

Forward margins have turned slightly higher, albeit from a very low level, for the first time since June, when there were still hopes for a rapid recovery in oil consumption after the first wave of the novel coronavirus.

To try to digest excess diesel stocks built up in the second quarter of 2020, refiners continue to restrain crude processing and configure their equipment to maximize gasoline production.

In the last four weeks, refiners have cut crude processing to almost 19% below the five-year average, while the volume of products supplied to the domestic market has been down by 13%.

Distillate production has been running 10% below the five-year average, while consumption is down by around 8% The ratio of distillate to gasoline production has remained close to multi-year lows in recent weeks.

The strategy is starting to pay off, with distillate stocks declining in four out of the last five weeks, after being basically flat over the previous two months.

If refiners can hold this course, excess inventories should be mostly absorbed over the next six months, with a resumption of more normal refining activity in the second and third quarters of 2021.

The principal risk is a severe resurgence of coronavirus or a second business cycle downturn over the northern hemisphere winter that cuts industrial diesel consumption and jet fuel demand even further.

As MRC informed earlier, 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. 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.

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) -- Sabic, a global leader in the chemicals industry, is collaborating with Fibertex Personal Care, one of the world’s largest manufacturers of spunbond nonwovens for the hygiene industry, to create a range of nonwovens using high-purity recycled plastics from SABIC’s TRUCIRCLE™ portfolio and services, said the company.

This will be the world’s first nonwovens range based on recycled plastics in the hygiene industry. The initiative is seen by the two partners as an exciting step towards a more sustainable supply chain and greater recyclability for nonwovens.

The new nonwovens will be made from SABIC’s circular polypropylene, using feedstock derived from previously used plastics, certified under the ISCC PLUS (International Sustainability & Carbon Certification) system. The material is part of the SABIC PURECARES™ portfolio of polypropylene for Personal Hygiene applications that was introduced at the beginning of this year. The certified circular PP material produced by SABIC is created from post-consumer mixed plastics that have been broken down into their molecular building blocks and then re-polymerized to create virgin plastics. The new material can be used as a drop-in solution while meeting the brand owner’s requirements for purity and consumer safety for the hygiene industry applications.

SABIC applies the “mass balance” approach to polymers offered as part of its TRUCIRCLE portfolio and services which spans design for recyclability, mechanically recycled products, certified circular products from feedstock recycling of used plastics, and certified renewables products from bio-based feedstock. The widely recognized ISCC PLUS certification verifies that mass balance accounting follows predefined and transparent rules. In addition, it provides traceability along the supply chain, from the feedstock to the final product. Fibertex Personal Care’s recent attainment of the ISCC PLUS certification is a result of an extensive experience and focus on sustainability. Fibertex Personal Care will provide certified circular nonwovens to its customers with their Comfort, Elite, Dual and Loft product range. These certified nonwovens can be adopted in downstream processes, without compromising convertibility, product properties or performance of the final product.

Mikael Staal Axelsen, Group CEO, Fibertex Personal Care, said: “This is an important step forward in supporting our sustainable strategy and important step in development and expansion of a supply chain for bio-based and circular polymers. SABIC’s TRUCIRCLE initiative makes this possible. We are proud to cooperate with SABIC in developing the first circular nonwovens for the hygiene market." Sergi Monros, Vice President of Performance Polymers & Industry Solutions for Petrochemicals at SABIC, said: “With Fibertex Personal Care’s expertise in nonwovens, brand owners can take full advantage of our innovative TRUCIRCLE solutions and PURECARES product portfolio and integrate them into their hygiene applications. We are working together to find further solutions to drive forward the circularity in the hygiene industry."

The solution supports a mutual wish to gradually replace fossil resources and thereby help reduce carbon emissions. SABIC and Fibertex Personal Care look forward to engaging further with the hygiene industry.

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