Rohm to shut German hydroxyester plant for maintenance, sees strong start for MMA in 2021

MOSCOW (MRC) -- Rohm (Darmstadt, Germany) says it will shut down its hydroxyester plant in Worms, Germany, from 11-20 December for planned maintenance, reported Chemweek.

The company produces hydroxyethyl methacrylate (HEMA) and hydroxypropyl methacrylate (HPMA) monomer at the facility. Hydroxyesters are used mainly in coatings and reactive resins applications.

Rohm also says it is preparing “for a strong start of the methacrylates business in 2021,” and will use its integrated production and supply chain network to ensure high levels of service and reliability for its customers.

The methyl methacrylate (MMA) market has seen a shift in global dynamics since the summer, with prices firming and the market tightening in all major regions, it says. End-user demand for applications such as coatings and polymethyl methacrylate (PMMA) for plastic sheeting has continued to perform “stronger than anticipated for this time of the year,” it adds. The supply side, meanwhile, has been characterized by maintenance shutdowns and several supply issues in Asia and the US, it notes.

Disruptions in the global phenol-acetone chain have also continued to plague overall acetone availability, leading to price surges and a rise in raw material costs, according to Rohm. Physical product availability could remain an ongoing challenge “as the supply chain is stretched to its limits,” it says. The pandemic continues to pose a big challenge on shipping and logistics, while uncertainties remain regarding the impact of a hard Brexit, it adds.

Rohm lifted sales control mid-October in Europe for MMA after imposing it mid-September. The decision to lift sales control was lifted by the resumption of production in its plant in Worms following an annual maintenance turnaround. The facility at Worms has a production capacity of 225,000 metric tons/year of MMA.

As MRC wrote previously, the company raised its price for MMA in Europe on 16 November by EUR50 (USD59) per metric ton, following a previous rise in Europe on 1 November for MMA and other methacrylate monomer products.

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.
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Packaging supplier Cascades to close its Laval, Quebec plant

MOSCOW (MRC) -- Citing in part the effects of the COVID-19 pandemic on the marketplace, Quebec-based packaging supplier Cascades Inc. has announced that its Laval plant, which specializes in the manufacture of napkins for the away-from-home market, will be closing on June 30, 2021, said Canplastics.

In a Nov. 25 statement, officials with Cascade said the Laval plant, which has an annual converting capacity of 1.4 million cases, will move its production volume to other Cascades plants and filled by additional capacity. The plant currently employs 54 workers, and Cascades plans to offer to relocate as many employees as possible to its many other business units in Quebec.

"COVID-19 has severely impacted the number of visitors to restaurants, hotels and public buildings, markets served by the Laval plant,” said Jean-David Tardif, president and chief operating officer of Cascades Tissue Group. “This situation, combined with high logistics costs, prompted us to move production to other sites in order to optimize our operations, reduce our costs and create synergies. It is important to note that this decision will in no way affect product quality or the level of service we provide to our customers, or Cascades’ ability to meet demand for our products."

As MRC informed earlier, 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.

Founded in 1964, Cascades, which is headquartered in Kingsey Falls, Que., also operates a flexible plastic packaging division.
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DSM and Neste announce strategic partnership to create high performance materials made from sustainable feedstock

MOSCOW (MRC) -- Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, has announced that it will start a strategic partnership with Neste, the world’s leading producer of renewable diesel and sustainable aviation fuel and a forerunner as provider of renewable and circular solutions for the chemical industry, to enable the production of high performance polymers, as per the company's press release.

This enables DSM and its customers to reduce the carbon footprint of their own products whilst supporting the industry to transition to a circular economy.

In the new strategic collaboration, DSM Engineering Materials will start replacing a significant portion of the fossil feedstock used to date in the manufacture of its high performance polymers portfolio with feedstock produced from recycled waste plastics and/or 100% bio-based hydrocarbons. These polymers are used, for example, in the automotive, electronics and packaging industries.

Over the short term, the collaboration aims to replace several thousand tons of fossil feedstock in the production of polymers with alternative, sustainable feedstock: bio-based and waste plastic based hydrocarbons.

Neste produces its bio-based hydrocarbons entirely from renewable raw materials, such as waste and residue oils and fats. For the production of waste plastic derived feedstock, Neste focuses on plastics that cannot be mechanically recycled and have previously been directed to incineration and landfilling.

Thanks to being a drop-in replacement to commonly-used fossil feedstock in the polymers production, Neste’s products are suitable for existing production infrastructures and enables DSM to produce more sustainable products with consistently high quality using its existing processes.

All of the chemically recycled and bio-based materials within the value chain will have the globally recognized ISCC Plus certification and will not require re-qualification.

The new strategic cooperation underlines a strong commitment from both partners to contribute to a circular economy by collaborating throughout the value chain, and addressing the increasing consumer, societal and regulatory demand for more sustainable circular solutions.

Shruti Singhal, President DSM Engineering Materials said: “We have a long history of delivering tangible proof points of our commitment to sustainability. As a next step we are going to even further reduce our footprint and will offer a full alternative range of our existing portfolio based on bio- and/or recycled-based materials by 2030. Together with our upstream partner Neste and other value chain partners we’re ready to drive our industry forward, seize the sustainable opportunities ahead, and deliver on our purpose of creating brighter lives for all.”

Mercedes Alonso, Executive Vice President, Renewable Polymers and Chemicals from Neste said: “Neste and DSM are frontrunners in providing sustainable solutions to the market. Both companies have a similar sense of urgency towards creating a healthier future for our children. Neste is very pleased to announce this partnership with DSM through which we can further accelerate the industry transformation towards a more sustainable, circular economy. It is exciting to see how our 100% bio-based and waste plastic based products enable DSM to produce its high performance polymers portfolio with a reduced environmental footprint.”

As MRC informed earlier, in September, 2020, DSM formed a 50/50 joint venture (JV) with VDL Groep (Eindhoven, Netherlands), called Dutch PPE Solutions, to produce medical facemasks and establish the first permanent production of critical facemask components in the Netherlands. The companies are investing several million euros to purchase manufacturing equipment and build manufacturing facilities to produce meltblown polypropylene (PP), the critical material layer in medical facemasks that filters viruses, and make medical masks.

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, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
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Two-thirds of Canadian business owners negatively impacted by COVID-19

MOSCOW (MRC) -- Two-thirds (68%) of Canadian business owners continue to feel the negative impacts of COVID-19, a new study from CIBC finds, with more than half (57%) believing businesses in their area are in crisis mode and 43% believing businesses are in recovery mode, said Canplastics.

According to the study, top concerns are a reduced demand for their products and services (37%) and worries about the overall viability of operations (23%). Despite this, the majority (75%) of business owners remain optimistic they will rebound once the pandemic subsides.

“During these challenging times, Canadian business owners have shown incredible resilience by staying focused on fundamentals and being very nimble and creative,” said Laura Dottori-Attanasio, group head, personal and business banking, CIBC, in a prepared statement. “With so many feeling immediate pressures on revenues, we encourage owners to get advice about their overall financial situation including cash flow management and help managing debt levels."

Business owners have employed several strategies to continue operating, CIBC noted: a third (30%) have increased their virtual presence while a further 16% pivoted their business to operate completely online. To support cash flow, 56% have used at least one government program this year, and to limit costs, 35% are reducing operating expenses while 28% have cut employee hours. Half (52%) say they are counting on government support to survive.

Close to a third (29%) expect it will take between a year or two for things to get back to normal, with the majority (81%) agreeing the uncertainty of the current environment remains the hardest aspect to manage.

Other findings of the study include 72% of business owners say their present stress level is much higher than it was prior to the pandemic; 57% are looking to build the digital capabilities of their business; and 45% are looking to reduce their debt levels, while 41% are seeking more credit to help with operating capital and 40% are seeking advice to better manage cash flow.

Ethylene and propylene are feedstocks for producing polyethylene (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.
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COVID-19 - News digest as of 27.11.2020

1. Formosa Taiwan unit indefinitely delays USD9.4 billion Louisiana petrochemical complex

MOSCOW (MRC) -- FG LA, a division of Taiwan's Formosa Plastics Group, has indefinitely suspended construction on a USD9.4 billion petrochemical complex in Louisiana until the global coronavirus pandemic subsides and/or a vaccine is widely available, reporte S&P Global with reference to a spokeswoman's statement Nov. 23. "The widespread impacts of a global pandemic, including the challenge it creates in evaluating construction costs and the restrictions it has placed on international travel, are being felt across all industries and businesses, including FG," said Janile Parks, director of community and government relations, said in an email. "As a result, FG has deferred major construction until the pandemic has subsided and/or an effective vaccine is widely available." Work on multiple major petrochemical projects in the US was temporarily suspended or slowed in April and May, during the height of pandemic-related shutdowns that stymied construction activity. Startup dates were pushed back as much as a year for some projects, while others saw delays of a quarter or more.



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