Sika starts producing shotcrete admixtures in France

MOSCOW (MRC) -- Sika says it has started production of shotcrete admixtures at its main plant at Gournay-en-Bray, northwest of Paris, said Chemweek.

Shotcrete admixtures in the form of a set accelerator are used primarily in tunnel construction, and the company notes that the market potential is considerable. Europe alone is currently planning infrastructure-investment programs worth 750 billion Swiss francs ($834 billion) in total, with tunnel construction included in these programs, it says. Tenders have been issued for tunnel-construction projects with a combined length of 900 kilometers, with these projects set to come onstream over the next few years, according to Sika.

"The infrastructure construction market is generally characterized by a high level of resilience in crises. Even in 2020 capital spending remains strong. With the commissioning of the new facilities at the Gournay-en-Bray plant, our aim is to tap into business potential in France and in north and western Europe, and facilitate challenging shotcrete work in mining and tunneling projects with our specialty products. At the same time, we are strengthening our supply chain and competitiveness thanks to a sizeable reduction in logistics costs," says Ivo Schaedler, regional manager/EMEA at Sika.

The company notes that state investment is expected to drive the recovery of France’s construction sector in 2021, following a 4% contraction this year due to COVID-19. The French government’s stimulus program of SFr105 billion will include investment in the country's rail infrastructure and in extensive building renovations, the company says. More than SFr37 billion in investment will be channeled into the Grand Paris Express metro project by 2030, it adds.

As MRC reported earlier, in August 2015, Swiss specialty chemicals company Sika opened its forth production site in Russia. A new mortar factory and a plant to produce concrete admixtures were opened in Volgograd, in southern Russia. Thus, at the existing site in Lobnya, 30 km north of Moscow, a new production facility, which manufactures polymers for concrete admixtures, came on stream.

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.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.
MRC

Wacker to expand production of silane-terminated polymers

MOSCOW (MRC) -- Wacker is to begin construction on a new production line for silane-terminated polymers at its site in Nunchritz, Germany, this year, said the company.

Such hybrid polymers are used as binders for formulating high-quality adhesives and sealants, liquid waterproofing systems and environmentally friendly wood-flooring adhesives, among other applications. The investment budgeted for the construction project is in the mid double-digit million range. The production line will go onstream in 2022. Wacker intends to significantly expand its production capacities for hybrid polymers and to further strengthen its focus on specialty chemical products with this investment.

For over fifteen years, Wacker has manufactured silane-terminated polymers at its production site in Burghausen, Germany. Since then, the hybrid-polymer business has experienced robust growth, the company now ranking the second largest manufacturer of silane-terminated binders for adhesives and sealants. “Given the obvious rise in demand for such products, expanding our production capacity for hybrid polymers was a logical decision,” says Executive Board member Auguste Willems.

The location for the capacity expansion was selected on the basis of market access, availability of critical raw materials and, most importantly, production technology aspects. “We have the space for a fully integrated production line in Nunchritz, which we could even expand, should the need arise,” noted Willems.

Hybrid polymers rank among the most important growth fields for WACKER SILICONES at present. “Our innovative alpha-technology based silanes are used in the manufacturing process,” says Robert Gnann who heads the company’s silicones business division. “Hybrid polymers have a unique property profile. That’s why they are used for formulating particularly high-quality and high-performance adhesives and sealants. WACKER has established a unique selling point worldwide with its alpha-silane technology."

Silane-modified polymers enable the manufacture of environmentally friendly adhesives. “The sustainability aspect is steadily gaining traction with the formulation of adhesives and sealants as well. This is what attracts manufacturers and customers alike,” says Gnann. “The alpha-silane technology allows us to develop customized binders for an exceptionally wide variety of adhesives and applications. Demand for these kinds of adhesives will continue to increase in the coming years."

Wacker has produced silane-modified polymers since 2005. Appli-cations for hybrid polymers, which the company has marketed globally under the GENIOSIL brand, include adhesives and sealants as well as construction, assembly and wood-flooring adhesives. Product properties like hardness, elasticity and tensile strength can be varied in a targeted manner with hybrid binders and adapted to special requirements for adhesive or sealant applications. In addition, further hybrid polymers developed in a patented process open up numerous new application areas. These include water-repellent sealing membranes for flat roofs and balconies on the one hand, and extremely strong adhesives, grout mortars, crack-filling compounds, paints and wear-resistant coatings for concrete floors, on the other.

As MRC reported earlier, Wacker Chemie operates a 90 ktpa EVA compounding plant at the Ulsan site, consisting of two lines. The second line with a capacity of 40 thousand tons of products per year was launched in 2013.

According to MRC's DataScope, September EVA imports to Russia fell by 30,32% year on year to 2,38 tonnes from 3,420 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation dropped in January-September 2020 by 9,85% year on year to 26,340 tonnes (29,220 tonnes a year earlier).

Wacker Chemie manufactures and markets EVA dispersions under the VINNAPAS brand name. VINNAPAS polymer dispersions are used in a wide range of industries: for the production of complex thermal insulation systems, building and tile adhesives, plaster, building mixtures and mortars, cement sealing slurries and nonwovens.
MRC

Trinseo 3Q 2020 earnings surge on higher margins

MOSCOW (MRC) -- Trinseo reports third-quarter net income of USD106 million, up from USD22 million in the year-ago quarter on higher margins in most segments and cost-reduction initiatives, says the company, according to Chemweek.

Net income also included a USD50 million tax benefit. Revenue totaled USD752 million, down 18% year-over-year (YOY) from USD922 million on the pass-through of lower raw material costs. Sales volume was comparable YOY, says Trinseo, which cites strong demand recovery in automotive, tires, construction, and appliances. Adjusted earnings per share came to USD2.87, up from 67 cents in the year-ago quarter and well ahead of the average analyst estimate of USD1.86 as compiled by Refinitiv (New York).

“During the third quarter we observed significant demand recovery in many of our end markets. In addition, tighter market conditions led to higher year-over-year margins for styrene, polystyrene, polycarbonate and ABS,” says Frank Bozich, president and CEO. “We have seen demand momentum continue in October and we are cautiously optimistic that this will continue through the end of the year.”

The latex binders segment had sales of USD183 million, down 20% YOY almost entirely on the pass-through of lower raw material costs, says Trinseo. Volumes were slightly lower YOY as continued headwinds in graphical paper were not quiet offset by positive volume trends in board packaging, CASE applications, and textile, as well as the contribution of the Rheinmuenster acquisition. Adjusted EBITDA was USD20 million, down USD1 million YOY on a negative net timing variance partially offset by cost reduction initiatives.

Synthetic rubber sales totaled USD79 million, down 24% YOY, mainly on the pass-through of lower raw material costs. Demand in the tire market improved from the low levels of the second quarter. Adjusted EBITDA of negative $2 million was USD10 million below the year-ago quarter from both lower margins, including the impact of higher spot sales in ESBR, and lower fixed cost absorption from inventory reduction initiatives.

Performance plastics sales dropped 11% YOY to USD290 million, mainly on the pass-through of lower raw material costs. Adjusted EBITDA increased USD15 million to USD51 million owing to cost-reduction initiatives and expanded margins in polycarbonate and ABS resulting from tighter market conditions and improved customer mix. Sales volume into engineered materials applications decreased 3% YOY.

Polystyrene sales dropped 15% YOY to USD167 million. Lower pricing from the pass through of lower raw material costs reduced sales by 25%, but this was partially offset by higher sales volume owing to higher demand into essential applications such as packaging and appliances. Adjusted EBITDA increased USD4 million YOY to USD21 million on higher volume, particularly into appliance applications, as well as expanded margins in Asia and Europe resulting from high demand and industry utilization.

Feedstocks sales dropped 51% YOY to USD32 million owing to lower styrene pricing as well as lower styrene-related sales volume. Higher styrene margin and production propelled adjusted EBITDA to USD11 million, up YOY from breakeven.

Americas Styrenics, the joint venture between Trinseo and CPChem, turned in adjusted EBITDA of USD18 million, down USD7 million YOY, mainly on lower styrene margins in North America as well as volume-related impacts from COVID-19.

As MRC reported earlier, Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, 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 3 November. Effective Noveber 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 EUR110 per metric ton;
- STYRON and STYRON A-Tech and STYRON X- Tech and STYRON C- Tech high impact polystyrene grades (HIPS) - by EUR110 per metric ton;
- MAGNUM ABS resins - by EUR110 per metric ton;
- TYRIL SAN resins - by EUR80 per metric ton.

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 362,820 tonnes in the first nine months of 2020, down by 1% year on year. September total estimated PE consumption in Russia was 48,690 tonnes, up by 13% 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

Eastman Chemical sales fall 8.7%, volumes improve sequentially

MOSCOW (MRC) -- Eastman Chemical reports third-quarter net earnings of USD165 million, down 38% year on year (YOY), as volumes remained lower YOY due to the COVID-19 pandemic but improved sequentially, reported Chemweek.

Adjusted earnings of USD1.57/share was down 19.1% YOY but beat the analysts’ consensus estimate of USD1.37/share, as reported by Refinitiv (New York). Net sales fell 8.7%, to USD2.1 billion. Volumes fell 5% YOY, but in end markets hit hardest by the pandemic, such as transportation, building and construction, and consumer durables, showed signs of improvement over the second quarter.

“Demand across most of our end markets improved in the third quarter resulting in 10% higher sales revenue and almost 60% higher adjusted earnings sequentially,” says Mark Costa, Eastman chair and CEO. “This performance continues to demonstrate the value of having a diverse set of end markets and the benefit of our innovation-driven growth model. We also are continuing to aggressively manage costs, enabling us to significantly mitigate the financial impact of COVID-19.”

Additives and functional products earnings before interest and taxes (EBIT) fell 25.7% YOY, to USD107 million, on sales down 10.8% US742 million. Sales revenue decreased primarily due to lower sales volume, lower selling prices, and less favorable product mix. The negative impact of COVID-19 on demand resulted in lower sales volume of products sold in transportation end markets, particularly aviation fluids and certain coatings additives. Lower selling prices were attributed primarily to increased competition in tire additives. Cost pass-through contracts also contributed to lower selling prices.

Advanced materials EBIT declined 18.9% YOY, to USD129 million, on sales down 4.2%, to USD668 million. Sales revenue decreased due to lower sales volume, less favorable product mix, and lower selling prices. Sales volume recovered to 2% below third quarter 2019 due to strong recovery in auto demand and innovation and market development, particularly for product lines in Performance Films. Specialty Plastics also continued with strong and steady performance. Lower selling prices were attributed to lower raw material prices, particularly for paraxylene used in copolyester products.

Chemical intermediates posted EBIT down 8.8% YOY, to USD31 million, on sales down 12.6%, to USD506 million. Sales revenue decreased due to lower selling prices and lower sales volume across the segment. Lower selling prices were attributed to lower raw material prices. Lower sales volume was due to planned maintenance shutdowns and also attributed to the negative impact of COVID-19 on demand.

Fibers EBIT fell 19.6% YOY, to $41 million, on sales down 5.1%, to USD206 million. Sales revenue benefited from stable acetate tow sales volume but declined due to lower textile products sales volume attributed to the impact of COVID-19 and lower acetate tow selling prices, primarily due to previously negotiated multiyear contracts.

Assuming current economic conditions continue, Eastman expects fourth-quarter adjusted earnings similar to the prior year quarter of USD1.42/share. "With demand having improved throughout the third quarter and into October, we entered the fourth quarter with solid momentum,” Costa says. “However, the resurgence of COVID-19 is increasing uncertainty in the global economic outlook, further limiting visibility for the back half of the fourth quarter.”

As MRC informed previously, Air Liquide plans to invest over USD160 million in new capacity and upgrades to support a long-term agreement under which the company will supply additional gaseous oxygen, nitrogen, and syngas to Eastman Chemical’s Longview, Texas, facility.

We remind that in 2016, Eastman Chemical's chief executive Mark Costa announced that the company wanted to reduce its surplus ethylene and commodity intermediates, but did not intend to sell its cracker in Longview, Texas.

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

According to MRC"s ScanPlast report, Russia"s estimated PE consumption totalled 1,594,510 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.

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,500 people around the world.
MRC

European chlorine output decline continues, caustic soda stocks shrink

MOSCOW (MRC) -- Monthly chlorine production in Europe has declined 2.2% year on year (YOY) in September to 731,111 metric tons, with the daily average output of 24,370 metric tons also slipping by 1.7% from the daily average in August this year, according to latest figures from Euro Chlor, the European chlor-alkali industry association, said Chemweek.

The monthly figure for September makes it seven months in a row that European chlorine production has fallen compared with the equivalent period last year. Production has fallen in eight out of the first nine months of 2020, apart from February.

Chlorine production capacity utilization in Europe during September fell to 77.0% from 79.4% in the prior-year period, and was 1.1% down on August’s utilization rate, it says.

Caustic soda stocks in Europe were 13.4% lower in September compared with August at 227,330 metric tons, and also down 26,737 metric tons on the prior-year monthly total of 254,067 metric tons.

Euro Chlor’s figures are drawn from the EU-27 countries plus Norway, Switzerland, and the UK. The association represents 38 companies producing chlorine in 19 countries.

Chlorine, obtained by electrolysis of sodium chloride solution, and ethylene are the main raw materials for PVC production.

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.
MRC