Lonza unveils new business structure; expects to post above-market growth to 2023

MOSCOW (MRC) -- Lonza (Basel, Switzerland) says it has developed a new structure for its pharma, biotech, and nutrition (LBPN) segment to increase “divisional end-to-end performance accountability” and to strengthen governance and process excellence from global functions, as the company proceeds with the previously announced divestment of its specialty ingredients (LSI) segment, said Chemweek.

The company expects double-digit sales growth, core EBITDA margin of around 33–35%, and double-digit return on invested capital (ROIC) for 2023, it says. “We have considered areas for review, now that Lonza has a dedicated focus on the pharma and biotech industry. Lonza’s structural and cultural blueprint will help us to achieve a harmonized ‘one business’ identity and provide a greater level of transparency on company performance to our investor and analyst community,” says Albert M. Baehny, chairman and CEO ad interim at Lonza.

The new structure of the LPBN segment comprises four business divisions: biologics, which represents 47% of the group’s sales; capsules and health ingredients, 27% of group sales; small molecules, 16% of sales; and cell, gene therapy, and bioscience, 10% of sales, according to Lonza. This structure will become operational from 1 January as the business is currently in a period of transformation, it says.

The company estimates that all of its business units will have a compound annual growth rate (CAGR) higher than that of their respective markets in the 2020–23 period. Lonza anticipates double-digit sales growth in this period, driven by biologics; small molecules; and cell, gene therapy, and bioscience businesses, it says. The CAGR for capsules and health ingredients for 2020–23 is expected to be in the low- to mid-single-digit range; for biologics in the low-double-digit range; for small molecules in the high-single- to low-double-digit range; and for cell, gene therapy, and bioscience in the double-digit range, it notes.

The estimated double-digit ROIC is driven by growth and margin expansion, Lonza says, adding that it is confident on delivering an improved core EBITDA margin, although it is committed to investing in future growth projects. Capital expenditures in 2021 and 2022 are likely to remain at 2019 levels, it adds.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
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Trinseo gets ISCC mass-balance certification for PS, PC, rubber

MOSCOW (MRC) -- Trinseo (Berwyn, Pennsylvania) says it has received mass-balance certification for three families of products that it manufactures at sites in Europe: polystyrene (PS), at Tessenderlo, Belgium; polycarbonate (PC), at Stade, Germany; and synthetic rubber, at Schkopau, Germany, reported Chemweek.

The certification was issued by International Sustainability & Carbon Certification (ISCC) following an audit by TUV Nord.

“The mass-balance certification is another step taken by Trinseo, as a material solutions provider, towards helping our customers reach their sustainability goals,” says Andre Lanning, vice president/strategy, corporate development, sustainability, and marketing communications.

Mass balance is a chain-of-custody approach to circularity that accounts for the intermingling of recycled, bio-based, and virgin petrochemical materials, in contrast to the alternative approach, physical segregation.

As MRC informed earlier, 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.
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Koch Separation Solutions and ADM collaborate to address water conservation in industrial operations

Koch Separation Solutions and ADM collaborate to address water conservation in industrial operations

MOSCOW (MRC) -- Koch Separation Solutions (KSS), a global leader in membrane filtration and ion exchange technology, announced it continues to build its relationship with ADM, the world’s premier agricultural origination and processing company, said Hydrocarbonprocesing.

Central to ADM’s philosophy and operations is its commitment to sustainability, and KSS has earned the confidence of ADM to become a preferred vendor of water, wastewater, and in-process separations applications based on premium services and reliable products. This mutually beneficial relationship will help ADM meet and exceed sustainability and business objectives by improving its processes, conserve water, and protect the environment.

“KSS’s industry-leading solutions are developed and constantly improved to ensure our customers’ operations, like those of ADM, are profitable and sustainable. In our long relationship with ADM, we have worked closely together to tackle important projects that are essential for society, and we’re excited to grow this relationship,” said Manny Singh, president of KSS. “Our increased collaboration with ADM will allow for greater synergy between our teams as we complement each other’s capabilities and search for greater ways to innovate that will benefit everyone."

KSS has been working with ADM on a variety of applications, many of which aim to successfully meet tighter discharge limits and/or recover water affecting their production plants. Designs of these applications, which were developed in collaboration with ADM’s Utilities Center of Excellence and KSS Process Engineering, have proven successful when piloted at ADM sites using a variety of membrane configurations. Most recently, ADM’s joint venture Stratas facility purchased a KONSOLIDATOR 544 FEG PLUS tubular Ultrafiltration system from KSS to treat oily wastewater prior to discharge. The system will operate under modified batch mode to retain oil for potential rendering and water for discharge and/or recovery. Additional projects are underway using the PULSION MBR membrane modules to treat wastewater from ADM’s production facilities and purify water for a variety of plant processes.

“For ADM, being a good steward of our culture and of our environment is part of who we are, and increasing sustainability through our operations is one of our top priorities,” said Mark Carroll, water/wastewater engineer of ADM. “Through the use of innovative technologies, we can achieve our sustainability goals while creating value for our customers. Our relationship with KSS is a testament to this, and our continuing collaboration with them will serve to enhance our work in the industries we serve."

As a leader in key industries worldwide, ADM and its numerous businesses are leveraging greater innovation for their customers while promoting increased sustainability in operations, such as through reducing energy intensity and conserving natural resources. ADM is a company with deep roots in agriculture and understands the importance of responsible stewardship of land, water, and air – all of which are critical to its business and the people it serves.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Linde and Shell team up to commercialize lower-carbon technology for ethylene

MOSCOW (MRC) -- Linde GmbH and Shell have announced an exclusive collaboration agreement on ethane-oxidative dehydrogenation (E-ODH) technology for ethylene production, as per Shell's press release.

The catalytic process is an alternative route to ethane steam cracking, offering the potential of economic advantages, acetic acid co-production and significantly lower overall carbon footprint through electrification of power input.

The two companies have been developing E-ODH independently for many years and this new collaboration brings together their complimentary patent positions, expert know-how and common commitment to a lower-carbon future. The agreement will enable accelerated deployment of this novel technology across the wider chemicals sector, with Linde marketing to customers under the name EDHOX.

"With the EDHOX process, we have not only developed a cost-efficient alternative but are also providing the petrochemical industry with a low-emission process”, said John van der Velden, senior vice president Global Sales & Technology at Linde Engineering. “For decades, we have been actively developing technologies for more sustainability in this industry - from efficiency improvements to carbon management and new process routes. We are convinced that Linde's EDHOX technology position will be strengthened by Shell?s intellectual property and know-how in this area."

Thomas Casparie, executive vice president of Shell’s global chemicals business, said: “Base chemicals are transformed into a range of finished products that help society live, work and respond to climate change. We look forward to our Shell in-house innovation going on to contribute to the collective reduction of carbon emissions from the manufacture of chemicals. It’s been great to work with Linde on this ambitious and creative combination of technology.”

As MRC informed before, TechnipFMC says it has been awarded a contract by Shell to supply eight new ethylene furnaces at the Moerdijk petrochemicals complex in the Netherlands. The contract is described as “significant” by TechnipFMC, a term it uses to cover value between USD75 million and USD250 million.

We remind that Shell will announce a major restructure by the end of the year as the company prepares to accelerate its shift toward its net-zero emissions goal by 2050, said CEO Ben van Beurden to employees. The restructuring will include workforce reductions as part of broader cost-cutting measures, although no figures have been decided yet, the CEO reportedly said during an internal webcast.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE).

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

COVID-19 - News digest as of 15.10.2020

1. Henkel's adhesives business achieved sales growth in third quarter

MOSCOW (MRC) -- Henkel has provided a business update for the third quarter and says that, based on preliminary figures, its adhesive technologies business unit achieved positive organic sales growth of 1.3% in the quarter, said Chemweek. All business areas in adhesive technologies showed a recovery in demand compared with the second quarter, the company says. Henkel notes that in the first nine months of 2020, adhesive technologies recorded a 6.8% decline in organic sales. “Despite the continued challenging economic environment as a result of the corona crisis, based on preliminary sales figures, Henkel delivered a strong organic sales growth of plus 3.9% in the third quarter. Sales reached around EUR5.0 billion [USD5.9 billion] and all business units contributed to the good performance,” says Carsten Knobel, CEO at Henkel. Based on the preliminary business performance in the first nine months, Henkel has provided new guidance for 2020, following the withdrawal of its full-year guidance in April due to the high level of uncertainty caused by the COVID-19 pandemic.


MOSCOW (MRC) -- Chevron CEO Mike Wirth on Oct. 13 defended the company's commitment to shale and said its upstream portfolio would remain weighted toward tight oil and gas, with fewer large, non-shale projects than in the past, while he acknowledged a less "enthusiastic" outlook for the shale sector generally, reported S&P Global. Speaking during the Energy Intelligence Forum, previously Oil & Money, Wirth said he did not foresee US crude oil production getting back in the next couple of years to its record highs of 13 million b/d before the coronavirus pandemic. He also said the major's entry into Israel, with the recent purchase of Noble Energy, fit with a trend toward more cooperation in the region, apparently referring to recent diplomatic moves in the Middle East, as well as multiple opportunities to meet gas demand.

MRC