Emergency exercise to take place at Unipetrol on 9 October, with short-term traffic restriction expected

MOSCOW (MRC) -- The production site of the Unipetrol Group in Zaluzi near Litvinov will host a planned emergency response exercise on Friday, 9 October 2020, said the company.

Traffic on adjacent roads will be stopped for five minutes during the drill. Warning signals will be heard from the site, and evacuation of people will take place. The training aims to vet Unipetrol’s internal emergency plan. "Safety is a top-priority topic for us. We conduct an extra emergency drill each year even though the law sets out the interval for the emergency plan check once in three years. During the upcoming exercise, we will put the emergency plan’s effectiveness to the test, as well as the up-to-datedness of the operational and safety documentation of the newly commissioned polyethylene unit, PE3, and cooperation of all emergency response units. This time, we will simulate an isobutene leak from a technology facility connected with an explosion and subsequent fire. We will train evacuation of people in the petrochemistry administrative building," explains Adam Jarosz, a member of the Board of Directors of the Unipetrol Group, who is responsible for the management of occupational health protection and procedural safety, the environment and investment projects.

In cooperation with the Police of the Czech Republic, the emergency liquidation training will also involve a test of the warning and notification system. It means that from 9.15 am, there will be a temporary five-minute closure of Road I/27 (between Most and Litvinov), Road III/0272 (towards Komorany), Road III/2541 (Towards Horni Jiretin), and Road III/02710 (from Most to Marianske Radcice).

As MRC informed earlier, Unipetrol has completed the highest ever investment in the Czech chemical industry. Following the completion of the respective tests, the company took delivery of the second part of the new polyethylene unit.

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.

The Unipetrol Group is the largest refinery and petrochemical company in the Czech Republic. It focuses on crude-oil processing and on the production, distribution and sale of vehicle fuels and petrochemical products – particularly plastics and fertilizers. In all these areas, it belongs among the important players on the Czech and Central European market. The Unipetrol Group encompasses refineries and production plants in Litvinov and Kralupy nad Vltavou, Paramo with its Mogul brand in Pardubice and Kolin, Spolana Neratovice, and two research centers in Litvinov and Brno. Unipetrol also includes a network of Benzina filling stations in the Czech Republic and Slovakia. With 417 filling stations, Benzina is the largest chain in the Czech Republic. Unipetrol is one of the largest companies in terms of turnover in the Czech Republic. It earned over CZK 130 billion last year and employs more than 4,800 persons. In addition to its business development, Unipetrol is proud to be a socially responsible corporation. Therefore, it pays an equal amount of attention to initiatives which focus on the cultivation and support of sustainable development, education, local communities, and the environment. In 2005, Unipetrol became a member of the PKN Orlen Group, the largest crude-oil processor in Central Europe.

MRC

COVID-19 - News digest as of 09.10.2020

1. European Court of Auditors warns that EU risks not meeting its plastic recycling targets for 2025, 2030

MOSCOW (MRC) -- The European Court of Auditors (ECA), which audits the EU's finances, says in a recent review there is a significant risk that the EU will not meet its plastic packaging recycling targets for 2025 and 2030, said Chemweek. ECA notes that the EU's 2018 update of its legal framework for plastic recycling reflects the EU’s increased ambitions and could help boost recycling capacity, but says the scale of the challenge facing the EU member states should not be underestimated. The auditors call for new and more accurate recycling reporting rules and a tightening of plastic waste export rules. Concerted action is needed to get the EU to where it wants to be in 5–10 years’ time, ECA says. According to the review, packaging alone, such as yogurt pots or water bottles, accounts for about 40% of plastic use and more than 60% of plastic waste generated in the EU. However, packaging has the lowest recycling rate in the EU at slightly more than 40%, ECA says. The European Commission’s plastics strategy, adopted in 2018, included an update of its 1994 Packaging and Packaging Waste Directive and doubled the EU's recycling target to 50% by 2025 with a goal of 55% by 2030. Reaching these targets would be a significant step toward achieving the EU’s circular economy goals, the auditors say. "To meet its new recycling targets for plastic packaging, the EU must reverse the current situation, whereby we incinerate more than we recycle. This is a daunting challenge,” says Samo Jereb, the ECA member responsible for the review. “By resuscitating single-use habits amid sanitary concerns, the [COVID-19] pandemic shows that plastics will continue to be a mainstay of our economies, but also an ever-growing environmental threat."




MOSCOW (MRC) -- Stolt-Nielsen has reported net profit of USD29.2 million for the third quarter, a substantial improvement on net profit of USD3.4 million in the prior-year period and USD3.6 million in the second quarter, despite sales that declined over 8% year on year (YOY) to USD474.0 million, according to Chemweek. The improved result was mainly driven by healthy volumes, lower fuel prices in its tankers and tank containers businesses, and lower overall administrative and general expenses, it says. “We are cautiously optimistic that the momentum of a strengthening chemical tanker market will continue,” says CEO Niels Stolt-Nielsen. “Longer term, the favorable supply/demand outlook should provide a good foundation for continued improved results at Stolt Tankers,” he says. For its Stolthaven tank terminals business, the company expects to see healthy demand in most regions, he says. Stolt’s tank containers business is also seeing “signs of improvement, particularly in Asia,” after a seasonally slow third quarter, he adds. While the global economic outlook remains uncertain, the company is also cautiously optimistic about the fourth quarter and beyond, based on the contract portfolio it has secured across its three logistics businesses, according to Stolt-Nielsen. The COVID-19 pandemic is still impacting scheduling in its tankers business, “necessitating costly rerouting of ships in order to make overdue crew changes,” he says. The company was able to secure five modern 26,000-deadweight metric ton stainless-steel chemical tankers in the secondhand market “at a very attractive price,” he notes. The tankers are expected to be delivered starting in December.

MRC

Trinseo announces retirement of two members from its Board of Directors

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, announced that two members of its board of directors, Stephen M. Zide and Christopher D. Pappas, have decided to retire from the board effective September 30, 2020, as per the company's press release.

In light of Mr. Zide’s and Mr. Pappas’ decisions, the board has appointed Jeanmarie Desmond and Matthew Farrell as their replacements, effective October 1, 2020 and November 1, 2020, respectively.

“On behalf of the Company and the board, I want to thank Steve and Chris for their leadership and dedication to Trinseo over the past 10 years,” said Frank Bozich, President and CEO, Trinseo. “They were both founding members of our board, and our success would not have been possible without them. I am personally thankful for their guidance and direction over the years and during my onboarding into the company.”

Mr. Zide has served as Chairman of the Board since 2010. Mr. Pappas served as the Company’s President and Chief Executive Officer from 2010 until his retirement in 2019 and has also been on the board of directors since 2010. As the board’s longest-tenured members, Mr. Zide and Mr. Pappas were instrumental in transitioning Trinseo from a carve-out business into a fully independent standalone public company.

“I’m grateful for the strong foundation that Mr. Zide and Mr. Pappas have created which continues to serve the Company,” Bozich continued. “Moving forward, we are excited to welcome Jeanmarie and Matthew to the board as we embark on a very exciting future and set out to achieve our strategic objectives and our recently announced sustainability goals. Their combined experience in the chemical space will be invaluable to our continued growth and innovation as a materials solutions provider.”

Jeanmarie Desmond is the former Executive Vice President and Chief Financial Officer of DuPont de Nemours, Inc. and has previously served as Vice President and Co-Controller for DowDuPont and as finance leader for the Specialty Products division following the merger of DuPont with Dow Chemical. Ms. Desmond brings substantial finance experience and extensive experience in the chemicals industry to the board of directors.

Matthew Farrell is the Chairman, President and Chief Executive Officer of Church & Dwight Co. Inc., serving since 2016 and as Chairman since 2019. Mr. Farrell served as Executive Vice President, Chief Financial Officer and Chief Operating Officer at Church & Dwight since 2014, and as its Chief Financial Officer since 2006. Mr. Farrell brings to the board of directors his experience as a chief executive officer, substantial financial and audit expertise and experience in the chemicals, industrial goods and consumer products industries.

As MRC reported before, Trinseo and its affiliate companies in Europe have announced a price increase for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) in Europe, according to the company's press release as of 5 October. Effective October 1, 2020, or as existing contract terms allow, the contract and spot prices for the products listed below rose as follows:

- STYRON general purpose polystyrene grades (GPPS) -- by EUR75 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR75 per metric ton;
- MAGNUM ABS resins - by EUR50 per metric ton;
- TYRIL SAN resins - by EUR30 per metric ton.

According to ICIS-MRC Price report, October prices of Russian PS continued their upward trend. A shortage of material remained in the domestic market. Traders said Nizhnekamskneftekhim reduced its offer prices for this month's PS purchases to 40%. October prices of Nizhnekamskneftekhim's GPPS grew for the agreed with buyers quantities to Rb89,000-95,000/tonne CPT Moscow, including VAT, whereas HIPS - to Rb93,000-99,000/tonne CPT Moscow, including VAT.

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

SK Capital closes purchase of Baker Hughes specialty polymers business

MOSCOW (MRC) -- Private equity firm SK Capital Partners has closed the acquisition from Baker Hughes of its specialty polymers business and renamed it NuCera Solutions, said Chemweek.

The acquisition was first announced in July. The newly named NuCera has manufacturing operations in Barnsdall, Oklahoma, and produces specialty low molecular weight olefin polymers, including differentiated functional polymers and high melting point polyethylene (PE) waxes. NuCera has appointed Steve McKeown as CEO and Shawn Ham as CFO, with immediate effect. McKeown was most recently president and COO at Galata Chemicals, while Ham served most recently as chief accounting officer at KMG Chemicals.

Morgan, Lewis & Bockius acted as legal counsel to SK Capital, with debt financing provided by KeyBanc Capital Markets. Evercore acted as financial advisor and King & Spalding served as legal counsel to Baker Hughes.

As MRC informed earlier, SK Global Chemical (SKGC), one of the largest producers of petrochemical products in South Korea, plans to permanently close cracking unit No. 1 in Ulsan (Ulsan, South Korea) on December 8 this year.
According to a letter from the company to its customers, production at this 190,000 tonnes of ethylene and 135,000 tonnes of propylene per year will be halted due to unfavorable market conditions. However, SKGC will continue to supply ethylene to its domestic customers from other crackers.

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.

SK Global Chemical is a division of SK Group, Korea's first refinery with over 50 years of experience. SK Group has over 70 thousand employees working in 113 offices around the world. Its largest enterprises produce mainly petrochemical products.
MRC

Stolt-Nielsen's profits rise, tanker market momentum builds

MOSCOW (MRC) -- Stolt-Nielsen has reported net profit of USD29.2 million for the third quarter, a substantial improvement on net profit of USD3.4 million in the prior-year period and USD3.6 million in the second quarter, despite sales that declined over 8% year on year (YOY) to USD474.0 million, according to Chemweek.

The improved result was mainly driven by healthy volumes, lower fuel prices in its tankers and tank containers businesses, and lower overall administrative and general expenses, it says. “We are cautiously optimistic that the momentum of a strengthening chemical tanker market will continue,” says CEO Niels Stolt-Nielsen. “Longer term, the favorable supply/demand outlook should provide a good foundation for continued improved results at Stolt Tankers,” he says. For its Stolthaven tank terminals business, the company expects to see healthy demand in most regions, he says. Stolt’s tank containers business is also seeing “signs of improvement, particularly in Asia,” after a seasonally slow third quarter, he adds.

While the global economic outlook remains uncertain, the company is also cautiously optimistic about the fourth quarter and beyond, based on the contract portfolio it has secured across its three logistics businesses, according to Stolt-Nielsen. The COVID-19 pandemic is still impacting scheduling in its tankers business, “necessitating costly rerouting of ships in order to make overdue crew changes,” he says. The company was able to secure five modern 26,000-deadweight metric ton stainless-steel chemical tankers in the secondhand market “at a very attractive price,” he notes. The tankers are expected to be delivered starting in December.

The chemical tankers business reported third-quarter operating profit of USD28.1 million, up from USD15.0 million a year earlier, with lower bunker costs and improved results from bunker hedging more than offsetting reduced revenue. Sales were USD25 million lower YOY at USD266.3 million, mainly because of fewer operating days and lower freight rates driven by the lower bunker prices, the company says.

The tank terminals segment saw operating profit rise USD3.2 million YOY to USD22.7 million, with results continuing to improve “as demand for chemicals used for packaging and healthcare products remained strong, offsetting weak demand for those bound for the automotive and construction sectors,” says Stolt-Nielsen. Sales were slightly lower YOY at USD59.8 million. The average terminals utilization rate slipped lower to 93.7% from 95.2% in the second quarter.

The tank containers business reported a rise of USD4.5 million YOY to USD17.5 million, reflecting lower move-related expenses, on sales of USD125.4 million, down almost USD10 million on the prior-year period.

We remind that, as MRC informed earlier, Anglo-Swiss company Ineos delivered its first US shale gas shipment into Rafnes, Norway on March 23, 2016. The INEOS Intrepid, the world’s largest LNG multi gas carrier, left the Marcus Hook terminal near Philadelphia on March 9, bound for Rafnes carrying 27,500 cubic meters of US ethane gas. Ineos said this is the first US shale gas shipped to Europe and represents the culmination of a long-term investment by Ineos.

To receive the gas, Ineos has built the largest two ethane gas storage tanks in Europe at Rafnes in Norway and Grangemouth in Scotland. Ineos uses the ethane from US shale gas in its two gas crackers at Rafnes and Grangemouth, both as a fuel and as a feedstock.

Ethylene and propylene are the main 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