LG Chem develops biodegradable new material

MOSCOW (MRC) -- LG Chem successfully developed a new biodegradable material that could realize mechanical properties equivalent to synthetic resins, according to GV.

Thus, LG Chem has recently developed a new material that significantly improved flexibility (elongation) and transparency compared to existing biodegradable materials through proprietary technologies and production processes.

The new material developed by LG Chem is said to be the only single biodegradable material with 100 % bio contents using corn-based glucose and crude glycerol and it is the only material in the world that manifested mechanical properties and transparency equivalent to synthetic resins such as PP (polypropylene).

In the case of existing biodegradable materials, other plastic materials or additives must be mixed to strengthen properties and flexibility, thus having constraints in properties and prices being different per supplier, but the new biodegradable material developed by LG Chem is a single homogenous material, thereby making it possible to achieve the quality desired by customers and properties for its specific use.

In particular, flexibility, which is a core factor, was improved by more than 20 times compared to existing biodegradable products, thus making it possible to maintain transparency even after processing and it is expected that the ripple effect in the eco-friendly packaging industry that normally uses biodegradable materials. Existing biodegradable material have been used as non-transparent packaging material products due to the nature of mixed materials.

In addition, as global disposable product usage regulations are becoming stricter especially focusing around the European Union, it is expected that it can be applied in many other fields such as plastic bags, air cap buffers, disposable cups, foaming products and mask felts, etc. where there is a growing demand for biodegradable materials. According to a market survey, the biodegradable materials market is expected to grow by 15 % a year from KRW 4.2 trillion in 2019 to KRW 9.7 trillion in 2025.

LG Chem was able to successfully develop new materials since it possessed proprietary platform technologies on core biodegradable materials. LG Chem possesses a total of 25 domestic and foreign patents such as for biodegradable polymers, composites, production method, etc. through preemptive patent applications.

Based on this, the LG Chem Future Technology Research Center conducted research on technologies to enhance the molecular weight of core biodegradable materials and to polymerize them, thus successfully developing new biodegradable materials with properties distinguishing itself from existing materials.

LG Chem recently received confirmation that over 90 % of the newly developed biodegradable material was decomposed within 120 days according to the industrial biodegradable certification standards of Europe from the German biodegradable materials international certification agency ‘DIN CERTCO’.

LG Chem plans to accelerate its entry into the biodegradable materials market based on new technologies it has procured while also expediting procurement of bio materials to expand its business. It is scheduled to conduct prototype evaluations for client companies in 2022 with the goal of mass production in 2025.

LG Chem CTO / President Kisu Ro said, “In a time where there is growing interest around the world on eco-friendly materials, it is very meaningful that we successfully developed biodegradable platform materials with proprietary technologies using 100% bio ingredients.” He added, “We will concentrate on R&D in the eco-friendly materials sector and become a leading company for a virtuous circulation of resources and for protecting the ecosystem.”

As MRC reported earlier, LG Chem, a South Korean petrochemical major, has shut down its naphtha cracker in Yeosu following a fire. The company said a fire broke out at its central control room at the Yosu cracker complex at around midnight local time (15:00 GMT) on 5 November. The country's largest chemical company said it was in the process of figuring out the cause of the fire. The facility can process about 1.2 million tonnes of ethylene per year (tpy).The cracker shutdown is expected to last at least three weeks.

According to MRC"s ScanPlast report, 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.

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.
MRC

COVID-19 - News digest as of 13.11.2020

1. Solvay to offer employees financial reward for their efforts during COVID-19

MOSCOW (MRC) -- Solvay says it will devote up to EUR16.0 million (USD18.9 million) of the cash it generates this year to provide a "special reward" to all its non-executive employees worldwide in recognition of their efforts throughout the COVID-19 pandemic, said Chemweek. The reward is on top of the company’s yearly bonuses and will be paid out before the end of the year, Solvay says. Solvay delivered record free cash flow of EUR801 million in the first nine months of 2020, and says this has allowed it to resume investments for the future, unlocking EUR60 million in capital expenditure, and enabled it to invest in its people.




MRC

Mitsui Chemicals income decreased on lower output in April-September

MOSCOW (MRC) -- Mitsui Chemicals' net income in the April to September period 2020 fell on the back of lower production amid poorer demand caused by the coronavirus pandemic, the producer said.

All business segments saw lower sales during the period as compared to the previous year, weighed by lower sales prices due to the fall in naphtha and other raw materials and fuel prices.

Naphtha cracker operating rates were lower than the same period of the previous fiscal year due to decreased demand of downstream products, which was impacted by coronavirus.

The company's polypropylene (PP) was affected by slowing demand for automotive products.

"It is still unclear as to when the pandemic will be contained, and the impact on the group’s performance is difficult to fully predict," the company said in a statement. "Depending on how the pandemic progresses, the group may possibly incur further losses from the third quarter onward," it added.

As MRC informed earlier, Mitsui Chemicals operated its naphtha cracker normally following a maintenance turnaround. Company resumed operations at the cracker on July 19, 2020. The cracker was shut for maintenance on June 11, 2020. Located in Osaka, Japan, the cracker has an ethylene capacity of 500,000 mt/year and a propylene capacity of 280,000 mt/year.

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.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

BASF restarts TDI output, FM still in place at Ludwigshafen, Germany

MOSCOW (MRC) -- BASF has restarted toluene diisocyanate (TDI) production at its 300,000-metric ton/year plant in Ludwigshafen, Germany, although output has not yet increased sufficiently for the company to lift a force majeure (FM) it declared in August, said Chemweek.

"BASF is in the process of starting up the TDI unit, [they] are currently producing but not yet at high enough levels to lift the force majeure,” says one market source close to the plant. “Downstream demand is good, and margins are strong, considering the fall in toluene contract price this month, hence [they] want to get up and running as soon as possible."

The company declared FM on 31 August after experiencing technical problems, and has tried to restart the plant since then, until now unsuccessfully, sources say. “We expect BASF to resume healthy production by end of November,” says a second market source. “They are online now but are not producing official levels to be able to lift force majeure."

The FM at Ludwigshafen has exacerbated tightness in the global TDI market, according to IHS Markit principal analyst James Elliott. BASF started operations at the Ludwigshafen TDI plant in November 2015, but has not been able to operate the site consistently at optimal rates due to production and technical issues that have caused delays and shutdowns, Elliott says. "The force majeure at our TDI plant in Ludwigshafen is still in place," a BASF spokeswoman says.

As MRC informed earlier, BASF had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4% year on year.
MRC

Wynnchurch Capital acquired EPS products company Drew Foam

MOSCOW (MRC) -- Private equity company Wynnchurch Capital has acquired Drew Foam Companies for an undisclosed sum, the US based company said in a statement.

Monticello, Arkansas-based Drew Foam makes custom fabricated and moulded expanded polystyrene (EPS) products for the packaging, building products and OEM/consumer end markets. It offers both fabricated block and shape moulding capabilities across four manufacturing facilities in the Southeast US.

Drew is “well positioned” to benefit from growing product categories, particularly in geofoam for construction applications and insulated shipping containers for cold chain applications in markets such as food and healthcare, Wynnchurch said.

Wynnchurch bought Drew from private equity firm Branford Castle Partners.

As MRC informed earlier, Nova Chemicals (Calgary, Alberta, Canada) has agreed to sell its expandable styrenics business to a subsidiary of Alpek (Monterrey, Mexico) for an undisclosed sum. The transaction is expected to close in the fourth quarter, it says. The sale encompasses Nova’s expandable polystyrene (EPS) and Arcel-brand resin product lines, with manufacturing facilities in Monaca, Pennsylvania, and Painesville, Ohio, as well as commercial operations in Asia, it says. The plant at Monaca has an EPS production capacity of 123,000 metric tons/year, with 36,000 metric tons/year of capacity for Arcel, as well as an R&D pilot plant. The facility at Painesville has an EPS capacity of 45,000 metric tons/year, according to Alpek subsidiary Styropek, which is acquiring Nova’s business.

As per ICIS-MRC Price Report, prices of Chinese and Russian EPS were in the range of UAH42,000-45,000/tonne CPT Kiev, including VAT, in the domestic market this week. Demand for material was moderate. Some traders were still selling quantities of Chinese material that were purchased in the previous months at lower import prices. Prices of the future quantities were under an upward pressure from higher import prices.

Branford owned Drew since 2018, when it bought the company from Gladstone Investment Corp, along with members of management and an unnamed co-investor, according to information on Drew’s website.

Founded in 1965, Drew is a leading manufacturer of custom EPS block and shape molding products in the Southeast U.S. The Company offers a diverse product offering, high level of customer service and a differentiated just-in-time delivery model. The Company is headquartered in Monticello, Arkansas, and operates manufacturing facilities in Tennessee, South Carolina and Georgia.

Wynnchurch Capital, L.P., headquartered in the Chicago suburb of Rosemont, Illinois, with offices in California and Canada, was founded in 1999, and is a leading middle-market private equity investment firm. Wynnchurch’s strategy is to partner with middle market companies in the United States and Canada that possess the potential for substantial growth and profit improvement.
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