MOSCOW (MRC) -- Elkem, one of the world's leading suppliers of silicon-based advanced materials, is showcasing its wide range of innovative technologies and solutions at the 3rd China International Import Expo (CIIE) 2020 in Shanghai, China. The company is signing letters of intent with three Chinese customers, said Chemweek.
“China is the most important market for Elkem Silicones. After the initial impact of Covid-19, we now see demand recovering strongly. More than 50 percent of Elkem's employees are based in China. While ensuring the safety of our employees, we have made every effort to ensure the smooth supply of products to customers, and the revenue has also grown steadily," says Frederic Jacquin, Senior Vice President of Elkem Silicones.
"We are the largest silicones producer in China and our strategy is to continue to grow and develop high-end products supporting the dual circulation strategy which is to create products and solutions with a personal touch for our Chinese customers, but also for the rest of the world", says Jacquin.
During the CIIE 2020, Elkem Silicones has signed letters of intent with three Chinese customers, with a potential total contract value of more than NOK 1,3 billion (CNY 1 billion). "Elkem Silicones has enormous confidence in the development of the Chinese market. The three new partners have signed a cooperation agreement with us, which fully reflects their trust in Elkem. We are looking forward to working with Chinese customers on advanced materials shaping the future", says Larry Zhang, Vice President of Elkem Silicones and Director of the Asia-Pacific region.
As MRC informed before, Elkem (Oslo, Norway) says it will invest 180.0 million Norwegian krone (USD19.7 million) in a new plant in Canada to pilot an industrial biocarbon process specifically for silicon and ferrosilicon production. The plant will be constructed near Elkem’s production site at Chicoutimi, Quebec, with start of construction planned for the second half of 2020, the company says. The project has received financial support from the Canadian government, the Quebec government, and the city of Saguenay, reducing Elkem’s net investment to NKr60 million.
We remind that the COVID-19 pandemic has interrupted the development of Norway's offshore oil and gas projects, pushing up costs and postponing startups, the government and oil company Equinor announced. The costs of ongoing projects rose by 13.2 billion Norwegian crowns (USD1.4 billion) from a year ago on an inflation-adjusted basis, government documents showed, as COVID-19 restrictions stalled construction at several fields. "The COVID-19 pandemic and weakened Norwegian (currency) have negatively impacted some of the projects, but the combined project portfolio is still very resilient," Equinor said in a separate statement.
We also remind that BP and Equinor confirmed they are shutting in production on their platforms, while Chevron, BHP and others said they are evacuating some personnel and considering decisions on production reductions.
As reported earlier, Chevron Phillips Chemical, part of Chevron Corporation, still has not lifted force majeure on its polyethylene (PE) products after assessing the impact of Hurricane Laura to its Gulf Coast PE operations. The force majeure circumstances were declared on 1 September, 2020. CP Chem operates a 420,000 mt/year high-density polyethylene (HDPE) plant in Orange, Texas, and an 855,000 mt/year cracker in Port Arthur. The company plans to minimize the impact of the event and return to full PE deliveries as soon as possible.
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).
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