Trinseo to keep Boehlen styrene plant

MOSCOW (MRC) -- Trinseo says feedstock supply issues that threatened the operation of its 300,000-metric tons/year styrene monomer (SM) plant in Boehlen, Germany, have been resolved, and the company is no longer “evaluating strategic options” for the asset, reported Chemweek.

“As part of this effort, a new raw material agreement was negotiated that is expected to make the plant economically feasible along with the added benefit of operational flexibility,” Trinseo says in its third-quarter earnings release.

In its first-quarter 2020 earnings release, issued in May, Trinseo said it had taken a USD38 million pre-tax charge for the impairment of “certain long-lived” assets in Boehlen and Schkopau, Germany. The company also said it had begun a consultation process with the Economic Council and Works Councils of Trinseo Deutschland regarding the disposition of the assets.

As MRC informed previously, 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. 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).

SM is the main feedstock for the production of polystyrene (PS).

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

MOSCOW (MRC) -- Veolia Middle East, the local subsidiary of Veolia, will construct the new recycling facility that can produce 14,000 tonnes of food-grade quality recycled raw material called rPET, said Reuters.

The facility will use advanced sorting technologies, as well as an efficient washing line and modern extrusion process to sort, shred and wash the PET before it is melted into regenerated raw material that can be used for food and beverage (F&B) packaging.

Multiple Abu Dhabi and Federal stakeholders, including Environment Agency – Abu Dhabi, Tadweer and Khalifa Industrial Zone Abu Dhabi (KIZAD), are supporting the new PET recycling facility to improve the circular economy in the region and offer advanced solutions to the global sustainability sector.

The new facility, which will be built in KIZAD, will incorporate Abu Dhabi and the UAE’s waste management strategy to eliminate waste from landfill, improve recycling and boost the circular economy.

AGS founder and CEO Sheikha Shamma bint Sultan bin Khalifa Al Nahyan said: "Through the development of this innovative facility, we aim to help consolidate Abu Dhabi’s position as a leader within the sustainability sector, while also further enabling a circular economy and encouraging habitual recycling.

"The economic impact of developing and operating this facility will be realised through both job creation and further opportunities in the emirate’s waste management sector. The results of this will showcase lucrative investment opportunities in Abu Dhabi to global markets."

The new plant will help achieve Abu Dhabi’s target to divert 75 percent waste away from landfills, while positioning Abu Dhabi as a leading contributor to global sustainability, according to His Excellency Dr Salem Al Kaabi, Director General of Tadweer, the government entity responsible for managing the emirate’s waste.

Over three billion soft drinks and PET water bottles are consumed each year in the UAE.

As MRC informed earlier, Valio and Tetra Pak present the first line of milk in eco-friendly packaging in Russia, which consists of more than 80% of cardboard and polymers of vegetable origin obtained from sugar cane. Valio announced that it will be the first Russian company to sell Tetra Pak milk from renewable vegetable raw materials.
Tetra Pak estimates that the use of such packaging will reduce the total volume of hydrocarbon-based polymers in Valio's product packaging by 52 tons per year, which will significantly reduce total CO2 emissions.

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.
MRC

MOSCOW (MRC) -- GAIL Ltd., state-owned petrochemicals manufacturer based in India, announced its results for the second quarter ended September 30, 2020, reported Kemicalinfo.

Petrochemicals Segment Q2 Results- QoQ: the segment’s net profit grew to Rs 176.31 crores for the period ended September 30, 2020 as against net loss of Rs 154.43 crores for the previous quarter. Net sales increased 37.9% to Rs 1684.72 crores for the period ended September 30, 2020 as compared to Rs 1221.69 crores during the previous quarter.

Petrochemicals Segment Q2 Results- YoY: the segment’s net profit grew to Rs 176.31 crores for the period ended September 30, 2020 as against net loss of Rs 82.32 crores for the prior-year quarter. Net sales grew 4.0%to Rs 1684.72 crores for the period ended September 30, 2020 as compared to Rs 1619.16 crores during the prior-year quarter.

Petrochemicals Segment Half-Year Results- YoY: the segment’s net profit grew to Rs 21.88 crores for the 6 months period ended September 30, 2020 as against net loss of Rs 309.35 crores for the prior-year 6 months period. Net sales dropped 6.4% to Rs 2906.41 crores during the 6 months period ended September 30, 2020 as compared to Rs 2731.92 crores during the prior-year 6 months period.

On the impact of current pandemic on its financial results, GAIL Limited in its stock exchange filing said, “The COVID-19 pandemic globally and in India has impacted business in general and caused slowdown of economic activity. The physical performance of the company has improved as compared to previous quarter and reached to almost normal levels.”

As MRC informed earlier, GAIL India Ltd has restarted its polyethylene (PE) unit in Pata, Uttar Pradesh. Thus, the company's 400,000 tons/year high density polyethylene (HDPE)/linear low density polyethylene (LLDPE) swing plant in Pata, Uttar Pradesh resumed operations just a couple of days after the company shut down the unit on 25 September 2020 due to feedstock supply disruption.

We remind that on 24 September 2020, a fire broke out at the Oil and Natural Gas Corporation (ONGC) gas processing plant in Hazira, India with no casualty or injury reported. As a result, the ruptured pipeline disrupted feedstock supply to GAIL. ONGC’s own petrochemical plant, namely ONGC Petro Additions (OPaL) was not affected by the incident as it is situated in a different location.

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.
MRC

MOSCOW (MRC) -- India’s diesel sales dipped in the first half of November after briefly recovering from the impact of the COVID-19 pandemic in October, raising concerns about industrial growth in Asia’s third largest economy, said Hydrocarbonprocessing.

Diesel sales by the country’s state-run refiners fell 5% during the first fifteen days of November compared with the year earlier period, to 2.86 million tons, according to provisional data compiled by Indian Oil Corp (IOC).

India’s diesel consumption, which accounts for about 40% of overall refined fuel sales in the country and is a key parameter linked to its economic growth, had risen for the first time in eight months in October. IOC, Hindustan Petroleum Corp and Bharat Petroleum own about 90% of India’s retail fuel outlets.

Lower diesel sales in the world’s third largest crude importer could be bad news for oil producers and refineries as the fuel accounts for the bulk of refiners’ output. However, industry officials say diesel demand typically picks up before the festival season, which runs from mid-October until early November, and slows down during and after it.

Sales of gasoline rose marginally to 1.03 million tons, the industry data showed, while sales of jet fuel were down 53% and liquefied petroleum gas sales fell 2%.

Activity in India’s dominant services industry also expanded for the first time in eight months in October. Indian government officials have cited higher power consumption and tax collections as indicators of demand returning to pre-COVID levels.

India’s daily COVID-19 case count has steadily declined since September, although it has the second highest total number of cases in the world.

As MRC informed earlier, India’s fuel consumption in October registered its first year-on-year increase since February, as slowing coronavirus cases and increased mobility accelerated an economic recovery. Consumption of refined fuels, a proxy for oil demand, rose 2.5% in October from the prior year to 17.78 million tons and nearly 15% higher from the previous month, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed.

As MRC informed previously, India’s top refiner Indian Oil Corp has been operating at 100% capacity since early November as local fuel demand has recovered.

We remind that IOC is expanding its petrochemical capacity by more than 70 per cent from its current 3.2 million tonnes a year. It is also on new technologies that reduces the cost of producing petrochemicals.

Ethylene and propylene are feedstocks for producing 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.
MRC

MOSCOW (MRC) - Hexion Inc. announced that Karen M. Fowler has joined the Company as its first Director of Diversity, Equity and Inclusion, said the company.

Fowler will be responsible for accelerating the organization’s diversity, equity and inclusion worldwide – including developing and implementing a strategy to attract, retain and develop diverse talent and promote an inclusive environment where associates at all levels can perform their best.

"At Hexion, we are committed to celebrating the diversity of our associates and creating an environment of inclusion,” said Craig Rogerson, Chairman, President and Chief Executive Officer. “Diversity and inclusion enhance creativity and innovation as team members come together with different information, opinions, and viewpoints. Diversity and inclusion encourage the search for novel information and perspectives, leading to better decision making and problem solving."

Fowler joins Hexion with more than 25 years of experience in driving change within organizations. Most recently, she served as the Director, Ohio Diversity Councils, National Diversity Council. In this role, Fowler consulted with C-suite leaders, business executives and HR Business Partners to build DE&I capability, as well as provide strategies and resources to guide members and corporate partners with their workplace diversity and inclusion efforts. Her experience also includes leadership roles within Thermo Fisher Scientific, Time Warner Cable, and The Ohio State University.

"To create a strong culture of inclusion and grow the diversity of our organization, it is critical to have an experienced leader to develop and execute our diversity, equity and inclusion strategy,” said John Auletto, Executive Vice President, Human Resources. “We are confident that Karen’s vast experience will enhance our approach to diversity, equity and inclusion across the globe, and Karen will be instrumental in ensuring Hexion is an industry leader in creating an environment of inclusion."

As MRC informed earlier, Hexion, a major American manufacturer of phenol and bisphenol A (BPA), has shut down its BPA plant in Pernis, the Netherlands for scheduled maintenance. Hexion is currently carrying out scheduled repairs at the enterprises for the production of epichlorohydrin with a capacity of 90,000 tonnes/year and bisphenol-A (BPA) with a capacity of 120,000 tonnes/year in Pernis in the Netherlands. The renovation began in early November and will last until the end of November, a company source added. The exact dates were not disclosed.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) rose in the first three quarters of 2020 by 32% year on year to 75,600 tonnes (57,200 tonnes a year earlier).

Based in Columbus, Ohio, Hexion Inc. is a global leader in thermoset resins. Hexion Inc. serves the global adhesive, coatings, composites and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries.

MRC