Husky introduces mid-volume PET preform system

MOSCOW (MRC) -- A new NexPET system from Husky Injection Molding Systems is described by the company as a game-changing mid-volume PET preform molding solution that can help producers introduce multiple new applications into the market quickly and cost effectively, said Canplastics.

The preform system benefits both established companies producing niche brands or smaller-run SKUs as well as emerging producers seeking a fast, low-risk entry into markets, officials with Bolton, Ont.-based Husky said in a statement. It also allows manufacturers to respond nimbly to shifting market trends, such as greater consumer demand for personalized products. COVID-19 has amplified this trend globally, said Robert Domodossola, president of Husky’s rigid packaging division. The pandemic has forced many producers to “rapidly adapt operations to scale up new applications like hand sanitizer, disinfectant, and other health, personal care, or cleaning related products,” said Domodossola.

The NexPET system can run up to a 48-cavity mold and is equipped with a number of productivity-enhancing features. According to Husky, advantages include: faster mold changeovers; different screw diameters to maximize production output flexibility; a Reflex PET clamp to distribute the right amount of force and maximize mold life;
rotating end-of-arm tooling with up to three cooling positions to ensure preforms are ejected at ideal temperatures;
intuitive, easy-to-use controls; adaptive system that automatically adjusts oil pressure to suit applications while conserving energy; capability to run recycled PET pellets and varying quantities of flakes.

As per MRC' ScanPlast, calculated consumption of polyethylene terephthalate (PET) reached 52,71o tonnes in September 2020, down 27% compared to the same time a year before. Total consumption of PET in Russia in the nine months of 2020 reached 530,750 tonnes, down 22% than the same indicator last year.

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HollyFrontier posts smaller-than-expected loss as fuel demand recovers

MOSCOW (MRC) -- U.S. refiner HollyFrontier Corp has posted a smaller-than-expected quarterly loss on the back of cost cuts and a recovery in fuel prices, said Hedocarbonprocessing.

Oil refiners have been forced to cut production and slash spending as they struggle with months of sluggish demand as coronavirus-led lockdowns wrecked the need for travel. While demand for fuel has gradually picked up with the reopening of economies, a resurgence in coronavirus infections has threatened the recovery.

The refiner said the amount of crude it processed rose 11.5% to 421,100 bpd in the third-quarter from the second, but was still 17% lower than a year earlier. It expects to run 360,000 bpd to 380,000 bpd of crude at its refineries in the current quarter.

The slump in demand for gasoline, coupled with investor push for clean energy, has pushed refiners to accelerate plans for retrofitting facilities to produce so-called renewable diesel made from cooking oil and fats. HollyFrontier said it would look heavily towards investing in its renewables business. It ran the last barrel of crude oil at Cheyenne refinery in Wyoming in August and had begun converting the facility to produce renewable diesel.

Last month, rival Valero raised its bet on the future of renewable diesel by allocating a larger portion of planned expenses to such projects, though it also cut its overall investment budget for the year. HollyFrontier now expects full-year capital expenditure to range between USD475 million and USD550 million, compared with its prior expectations of between USD525 million and USD625 million.

Its shares rose as much as 4.2% to USD19.51 after the company posted a loss of 41 cents per share, smaller than 53 cents loss expected by analysts, according to Refinitiv IBES.

We remind, HollyFrontier planned for its five refineries to run up to 81% of their combined throughput of 457,000 bpd in the third quarter of 2020. The refineries’ combined crude oil throughput will range between 340,000 and 370,000 bpd in the third quarter, Go said on a conference call with Wall Street analysts to discuss the company’s second-quarter results.

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

ccording to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
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LG Chem slashes PVC production rate following a fire at the cracker

MOSCOW (MRC) -- LG Chem has reduced the operating rates at its polyvinyl chloride (PVC) unit in Yeosu prefecture by 30-40% following the shutdown at the upstream naphtha cracker that curbs the supply of ethylene feedstock, reported CommoPlast.

The PVC unit has an annual capacity of 610,000 tons/year and currently running at 60-70% rates.

The producer has not disclosed the timeline to when the unit could resume normal operating rates.

As MRC informed earlier, LG Chem took off-stream its 1.16 million tons/year naphtha cracker on 5 November, 2020, following a fire incident at the main control room. It is estimated that the cracker would remain shut for 20 days.

According to MRC"s ScanPlast report, Russia's overall PVC production totalled 718,500 tonnes in January-September 2020, down by 0.3% year on year. At the same time, only two producers managed to increase their PVC output.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
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SIMONA plans to acquire the Turkish market leader for PVC foam sheets

MOSCOW (MRC) -- SIMONA AG plans to acquire 70 per cent of the ownership interests in MT Plastik AS, Duzce, Turkey. Established in 2007, MT Plastik is Turkey's market leader within the area of PVC foam sheets, said the company.

The products are used primarily in the field of digital printing, advertising and structural engineering. MT Plastik is a private owned company, employing around 50 people and generating revenue in excess of EUR11 million. The company exports approx. 60 per cent of its revenue, mainly to Europe. The planned acquisition is to be seen in the context of SIMONA's strategic realignment in Europe and will help to strengthen the Group's market position within the area of PVC foam products.

SIMONA wants to establish itself as Europe's market leader for PVC foam sheets with regard to quality, breadth of product portfolio and market share. In acquiring MT Plastik, a highly profitable and very well organised company with lean structures, SIMONA has laid the foundation. In addition, Turkey as a location and the high share of exports already achieved by MT Plastik gives access to other interesting markets in Europe and the Middle East.

The transaction combines the mature product portfolios of two companies with extensive experience and expertise. Customers will benefit from a greater focus on applications, a stronger market presence based on a dense network of competent distribution partners and improved logistics and services.

The existing owners of MT Plastik have committed themselves to the new alliance for the long term under the leadership of the current chairman and majority shareholder Tufan Kalkan and will retain 30 per cent of the interests.

Subject to the final approval of the antitrust authorities, the transaction is expected to be closed on 31 December 2020.

According to ICIS-MRC Price report, a shortage of PVC has remained in many regions of the world for the past few months because of scheduled and unscheduled shutdowns of the plants amid strong demand, and prices have broken records for the past few years. And this situation is reflected in the Russian market. In the autumn months, Russian producers virtually maintained their prices of suspension in dollars the same for the domestic market, whereas the weakening of the rouble against the dollar boosted prices for domestic consumers. Russian producers announced a price increase of on average of Rb3,000/tonne for November deliveries.
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Bayer swings to loss on EUR10-billion impairment, challenging ag markets

MOSCOW (MRC) -- Bayer swung to a third-quarter net loss of EUR2.74 billion (USD3.21 billion) from a net profit of EUR1.04 billion a year earlier on sales of EUR8.51 billion, down 5.1% on a currency- and portfolio-adjusted basis, said Chemweek.

The net loss includes non-cash impairment charges on intangible assets, and provisions, totaling EUR10.18 billion. They are mainly in Bayer’s agricultural division, crop science, in connection with potential future litigation in the US related to the company’s glyphosate-based herbicide Roundup™. Other special charges are from an ongoing restructuring program and litigation at Bayer’s pharmaceuticals business.

Bayer’s EBITDA before special items decreased by 21.4% year on year (YOY) in the third quarter to EUR1.79 billion, including a negative currency effect of EUR205 million, missing analysts’ consensus estimate by 12.7%. Crop science was the main driver of the miss with a big decline in third-quarter sales and earnings due partly to seasonal factors. Bayer has nevertheless confirmed its outlook for full year 2020.

“We saw a challenging quarter in our agricultural business, a recovery in our pharmaceuticals business, and strong growth at consumer health,” says Bayer CFO Wolfgang Nickl. “The impact of the pandemic is placing additional strain on our crop science division. We are also facing negative currency effects, such as the massive depreciation of the Brazilian real, which is weighing heavily on business in the world’s second-largest agricultural market."

The third quarter was “weak” with a “substantial impact of the pandemic,” and Bayer relied on “stringent cost management and the acceleration of our structural measures,” says Werner Baumann, Bayer chairman. Sales at the crop science business dropped 11.6% YOY, foreign exchange and portfolio adjusted, in the third quarter, to EUR3.03 billion. Business was down in North America in particular, and sales increased in APAC. EBITDA before special items swung to a negative EUR34 million from a positive €500 million in the year-earlier period, mainly due to the decrease in sales in North America. There was also a negative currency effect of EUR123 million, Bayer says.

Worldwide sales at the corn seed and traits segment fell by 39.9%, adjusted, with substantial declines in North America in particular due to higher product returns and lower license revenue arising from lower-than-anticipated planted acreages for corn this year. At the herbicides segment, sales declined by 12.7%, adjusted, against a strong prior-year quarter. Business was primarily down in North America, where sales in 2019 had shifted into the third quarter due to extreme weather conditions in the first half of that year.

Bayer says it continues to work on a joint proposal to address potential future Roundup™ claims together with plaintiffs’ counsel. Provisions taken by Bayer in the third quarter include an additional measure to cover the increased cost of a revised class plan, “as it is far enough along in the negotiations to know that the new plan will come in at approximately USD2 billion, an increase over the original cost of USD1.25 billion,” the company says.

Bayer says that approximately 88,500 claims in the litigation involving Roundup™ products are so far covered by fully executed master settlement agreements (MSAs), MSAs to be executed, or agreements in principle. At the end of June, Bayer reported that there were approximately 125,000 filed and unfiled claims. “Given uncertainties about eligibility and participation, this number will not be finalized until the settlement process is completed,” Bayer says.

Sales of Bayer’s pharmaceuticals business declined 1.8%, on a foreign-exchange and portfolio adjusted basis in the third quarter, to EUR4.23 billion with EBITDA before special items edging up 0.9% to EUR1.51 billion. “Thanks to stringent cost management, the division was able to grow its earnings and margin despite the decline in sales due to the negative overall impact of COVID-19 as well as negative currency effects of EUR48 million that additionally weighed on earnings,” Bayer says.

Sales of Bayer’s consumer health business increased 6.2%, adjusted, to €1.20 billion putting the division’s growth well ahead of industry market growth, the company says. The growth trend was driven by the nutritionals segment, with sales rising 21.4% due to the greater focus on health and prevention in connection with the COVID-19 pandemic as well as the launch of new products, Bayer says.

EBITDA before special items at consumer health increased by 12.3% to EUR301 million, primarily due to the substantial increase in sales and positive contributions from an efficiency program launched in late 2018.

Bayer has maintained its currency-adjusted group outlook for full year 2020 of an increase in sales to EUR43–44 billion and rise in its EBITDA margin before special items to about 28%. This would correspond to EBITDA before special items of about EUR12.1 billion after adjusting for currency effects. Bayer says it expects full-year sales and earnings to come under even greater pressure from currency headwinds.

As MRC informed earlier, Covestro (formerly Bayer MaterialScience) received its first delivery of certified renewable phenol from Borealis, to be used as a drop-in feedstock for the production of polycarbonate plastic. The phenol is manufactured by Borealis using renewable hydrocarbons feedstock supplied by Neste, sourced from waste and residual oils and fats.

As MRC reported earlier, Covestro has closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, overall estimated consumption of PC granules in the Russian market reached 58,000 tonnes in January-July 2020, up by 22% year on year (47,500 tonnes).

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc. With 2019 sales of EUR12.4 billion, Covestro has 30 production sites worldwide and employs approximately 17,200 people (calculated as full-time equivalents) at the end of 2019.
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