Lummus, TCG form digital JV

MOSCOW (MRC) -- Lummus Technology has formed a joint venture (JV) with TCG Digital aimed at the implementation of digital analysis and operative solutions for refining, petrochemical, and gas processing facilities, reported Chemweek.

The new JV business, Lummus Digital, will work with Lummus’s existing customers and potential clients, it says. TCG Digital and Lummus Technology are both subsidiaries of The Chatterjee Group (TCG; New York). The partnership will enable both companies “to build on their core competencies and strengths, addressing the fast-evolving needs of the refining and petrochemicals industry,” says Debdas Sen, TCG Digital CEO.

Lummus Digital will work with asset operators to provide big data, advanced analytics, artificial intelligence, process simulations, proprietary know-how, and advisory services, it says. The focus will be on digitalizing operations and assets to make them more profitable, efficient, safe, and to “provide flexibility to quickly adapt operations to take advantage of changing market dynamics,” it adds.

Lummus Technology was acquired in July from McDermott International for USD2.725 billion by Haldia Petrochemicals (Haldia, India), TCG’s flagship company, and investment funds affiliated with Rhone Capital.

As MRC informed earlier, in October, 2020, Lummus Technology announced that it had been awarded a contract by Enter Engineering Pte. Ltd. for the Shurtan Gas Chemical Complex in Uzbekistan. Lummus’ scope includes the design and supply of four proprietary Short Residence Time VI and VII type cracking furnaces, which will more than double the production of ethylene at Shurtan’s facility. Lummus was selected due to its leading ethylene technology position and its extensive experience with ethylene furnaces, having developed pyrolysis furnaces as part of its proprietary equipment portfolio.

Ethylene is the main feedstock for the production of polyethylene (PE).

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.
MRC

MOSCOW (MRC) -- Permodalan Nasional Bhd (PNB), one of Malaysia's largest fund managers, said it will sell its entire 56.3% stake in Chemical Company of Malaysia Bhd (CCM) for 292.8 million ringgit (USD71.37 million), according to Hydrocarbonprocessing.

CCM, a manufacturer and marketer of chlor-alkali chemicals and polymers chemicals used in rubber gloves, oleochemical, oil and petrochemicals, said in a bourse filing that it received a notification from PNB stating the fund manager has entered into a deal with chemical manufacturer Batu Kawan Berhad.

Under the agreement, PNB will sell 94.45 million ordinary shares to Batu Kawan that is equivalent to an 11.1% premium to CCM's closing price on Tuesday.

Shares of CCM opened 7.2% higher on Wednesday.

"This divestment is part of PNB's asset diversification strategy to rebalance the portfolio," PNB President and Group Chief Executive Ahmad Zulqarnain Onn said in a statement.

The sale will trigger a mandatory general offer by Batu Kawan for the remaining shares, but the acquirer said it intends to maintain the listing status of CCM.

As MRC reported earlier, September production of sodium hydroxide (caustic soda) in Russia were 108,000 tonnes (100% of the basic substance) versus 99,200 tonnes a month earlier. Russia's overall output of caustic soda totalled 945,600 tonnes in the first nine months of 2020, down by 1.6% year on year.
MRC

MOSCOW (MRC) -- Rohm (Darmstadt, Germany) has raised the price of methyl methacrylate (MMA) in Europe with immediate effect, or as agreements allow, citing ongoing strong demand and limited raw material supply, said Chemweek.

The price was increased as of 16 November by EUR50/metric ton (USD59), and follows a previous rise announced in October and implemented on 1 November by Rohm for MMA and other methacrylate monomer products in Europe, with that rise ranging from 2-5% depending on the product.

The company lifted sales control on MMA in Europe earlier in October, having imposed it in September, after resuming MMA production at its plant in Worms, Germany, following an annual maintenance turnaround. The Worms plant has a production capacity of 225,000 metric tons/year of MMA, with Rohm’s other MMA facility at Wesseling, Germany, having a nameplate capacity of 95,000 metric tons/year.

Earlier it was reported that Roehm had raised prices for methyl methacrylate (MMA) and related products in the US by 2-4% from November 1. In general, the supply of MMA is becoming increasingly limited, while the availability of acetone raw materials is also very limited. Demand in the construction segment remains robust due to strong demand from the housing market, while orders for acrylic sheets remain strong but are declining as demand falls from record highs seen earlier this year.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC"s ScanPlast report, October total production of unmixed PVC grew to 86,600 tonnes from 86,000 tonnes a month earlier, SayanskKhimPlast and Bashkir Soda Company increased their capacity utilisation. Overall output of polymer was 805,100 tonnes in the first ten months of 2020, which virtually corresponds to the last year"s figure. Two producers increased their production, whereas two other manufacturers reduced their output.
MRC

MOSCOW (MRC) -- Trinseo, a manufacturer of plastics, latex binders and synthetic rubber, announced that it has received mass balance certification for three families of products it manufactures in Europe, reported GV.

Trinseo Europe GmbH received the certification from the International Sustainability & Carbon Certification (ISCC), a globally applicable sustainability certification system that covers all sustainable feedstocks, including agricultural and forestry biomass, circular and bio-based materials and renewables, following an audit by TUV Nord. The certification was issued for three material families manufactured at three European sites: polystyrene (PS) from Tessenderlo, Belgium, polycarbonate (PC) produced in Stade, Germany and synthetic rubber from Schkopau, Germany.

ISCC’s mass balance system is designed to support bio-economy and circular economy initiatives, such as reduce reuse recycle which in turn will reduce negative impacts to natural resources and reduce climate emissions. Mass balance is a chain of custody model designed to keep track of the total amount of input (e.g. sustainable feedstock) throughout the production cycle and ensure an appropriate allocation to the finished goods. For example, recycled feedstock replaces an equivalent amount of virgin feedstock at the beginning of the value chain (input) to be allocated to the product (output) in such a manner that the input and output match.

“The mass balance certification is another step taken by Trinseo, as a material solutions provider, towards helping our customers reach their sustainability goals. I am proud that Trinseo does not simply talk about being sustainable or environmentally friendly, but it is taking a leadership role to drive sustainability in our industry. We will continue to invest in future-oriented solutions, from our product portfolio to our processes, in accordance to the 2030 Sustainability Goals we announced earlier this year,” said Andre Lanning, Vice President, Strategy, Corporate Development, Sustainability & Marketing Communications.

As MRC wrote earlier, 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.

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 PS 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) -- Croda says it has agreed to acquire the entire issued share capital of flavors and fragrances company Iberchem Group (Murcia, Spain) from investment company Eurazeo for EUR820 million (USD975 million) on a debt-free, cash-free basis, said Chemweek.

The sum will be funded via a combination of Croda's existing debt facilities and the proceeds of a ?600-million ($798 million) equity placing representing 8% of Croda's issued share capital, the company says. Acquiring Iberchem marks Croda's entry into the flavors and fragrances market. The transaction is expected to close by the end of 2020, Croda says.

The acquisition price represents a multiple of 20.5 times Iberchem's estimated 2020 EBITDA, according to Croda. “We have known Iberchem’s team for many years and their business is highly compatible with Croda’s. Iberchem stands out with its significant exposure to emerging markets, extensive product portfolio well placed to adapt to sustainability trends, strong customer focus and R&D capability, and 10-year track record of consistent year-on-year growth. By bringing our businesses together, we are creating a new, full-service offering to our customers in consumer-care markets and a compelling platform from which to grow the combined business in the years ahead,” says Steve Foots, CEO of Croda.

Eurazeo acquired 71.5% of Iberchem in 2017 for EUR405 million, less than half what Croda is paying for the business. Iberchem's management owns the rest of the company. Iberchem's sales have increased at a compound annual growth rate of 15% since 2010, Croda says.

The acquisition will help drive Croda’s objectives by focusing on faster-growing core consumer markets, adding a new, high-growth adjacency to its existing personal-care and home-care businesses, it says. After acquiring Iberchem, Croda will report under four sectors from 2021—consumer care, life sciences, performance technologies, and industrial chemicals. The newly created consumer-care sector will comprise the current personal-care business, the home-care business unit that currently sits within performance technologies, and Iberchem.

Iberchem will operate as an independent entity but with extensive support from Croda, the company says. According to Croda, Iberchem will continue to be led by its current management team, with the CEO of the company, Ramon Fernandez, committing to stay to provide continuity and a smooth transition to Croda.

Iberchem generated €174 million in revenue in 2019, and had EBITDA of EUR34 million, Croda says. It has continued to "trade well" in 2020, despite COVID-19, and its revenue forecast for 2020 is EUR187 million with an EBITDA of EUR40 million, Croda says. Iberchem generates 80% of its sales from fragrances, split evenly between personal-care and home-care products. The remaining 20% of its sales are from flavors. Iberchem has 14 manufacturing facilities and 10 R&D centers across 120 countries.

Croda expects the deal to generate synergies leading to annualized cost reductions of EUR25 million after three years and EUR48 million after five years.

As MRC informed earlier, Croda International (Goole, UK) says it has entered a partnership with Sentient Science (Buffalo, New York), an asset management and software services company, for the recommended use of Croda’s Rewitec additives for wind turbine gearboxes and main bearings.

As MRC informed earlier, Nexam Chemical has received an order from an existing customer in the area of PET additives for deliveries to the USA. The customer is a market-leading manufacturer of PET foam. It is the single largest order in the United States and also one of the largest ever for Nexam Chemical globally. Nexam Chemical has previously delivered products to this customer and this order confirms good growth in the business. The value of the order is SEK 9 million and applies to deliveries up to and including the spring of 2021.

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.

Croda acquired Rewitec in 2019 and began to offer to energy technology customers nano- and micro-particle-based additives to increase the durability of machinery by lowering friction and reducing wear, the company says. Prior to the acquisition in 2017, Sentient Science validated Rewitec’s DuraGear gearbox oil additives for use in wind turbine gearboxes, it says.

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