Rohm hikes price of MMA in Europe on strong demand, limited supply

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.

MRC

MOSCOW (MRC) -– Ascend Performance Materials has launched several new grades of its HiDura long-chain polyamides (PA) for engineered plastics, monofilaments and cable ties. HiDura polyamide 610 and 612 are designed to provide exceptional dimensional stability and long life with enhanced resistance to chemicals, impact and abrasion, as per the company's press release.

Ascend, the largest fully integrated producer of PA66 resin, has developed multiple new grades of HiDura PA610 and 612 for use in automotive fuel system and brake line applications, cable ties for solar power systems, battery seals and monofilaments for brush bristles.

“Customers choose Ascend because they can rely on our materials’ performance in some of their most challenging applications,” said Kaan Gunes, HiDura business manager. “We developed HiDura to endure in extreme conditions and uses. Whether used in a connector for solar panels or as brush bristles, our customers can count on HiDura LCPAs to perform well over the life of the application.”

“Our customers are responding to broader shifts in the market and their products’ reliability is a key differentiator,” said Isaac Khalil, senior vice president of Ascend’s polyamide business. “We support our customers’ growth plans with high-performance materials and the application development, processing and technical expertise to get the most out of those materials.”

As MRC wrote previously, in May 2016, Ascend Performance Materials said it had put plans to build a propane dehydrogenation (PDH) plant on hold because of market conditions. The two-train project at Chocolate Bayou, TX, with a combined capacity of more than 1 million m.t./year of propylene, was expected to become the largest such facility in the United States and cost an estimated USD1.2 billion. It has already been delayed once from the original onstream date of 2016 to mid-2019. Ascend is expected to use the UOP Oleflex PDH technology.

Propylene is the main feedstock for the production of polypropylene (PP).

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.

Ascend Performance Materials is a global leader in the production of Nylon 6,6.
MRC

MOSCOW (MRC) -- BASF and PETRONAS will close a butanediol (BDO) plant at their joint venture site in Kuantan, Malaysia, in the first quarter of 2021, said Chemweek.

BASF PETRONAS Chemicals (BPC) intends to shut down the unit, which produces BDO and derivatives, by March 2021, the companies said, due to “significant” overcapacity in the region due to new investments by competitors into coal-fired production units.

“The decision to close the BDO plant will have long-term strategic benefits to BPC and its stakeholders, given the shift in business landscape as well as its unfavourable long term prospect,” said PETRONAS Chemical CEO Datuk Sazali Hamzah.

BPC managing director Marko Murtonen noted the company would work to provide assistance to employees affected by the move, without stating how many workers at the site will be losing their jobs. No other production units at the site are affected, the companies said in a statement.

As MRC informed earlier, BASF and Petronas were considering jointly investing around EUR1bn (USD1.34bn) to produce specialty chemicals in Malaysia.

However, Petronas and German chemical company BASF said they had scrapped a proposed joint venture to develop a specialty chemicals production facility in Malaysia. The proposed partnership was terminated because both parties couldn't agree on the "terms and conditions" for the project in the southern state of Johor, the companies said in a joint statement.

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