Elkem opens silicones production facility at Shanghai to supply EV

MOSCOW (MRC) -- Elkem (Oslo, Norway) has completed and opened a new production workshop in Shanghai, China, dedicated to the development and manufacturing of specialized silicones for hybrid and electric vehicles, said Chemweeek.

This move further strengthens Elkem’s position as the largest silicones producer in China. China is the world’s largest single market for the production and sales of electric vehicles (EV). The global demand for EV’s is growing fast, and some analysts now expect EV’s to account for around a third of new car sales by 2030.

Increased sales of hybrids and EV’s represent a substantial growth opportunity for Elkem, particularly within silicones. An EV contains on average four times more silicones than a traditional car. Silicones contribute to safer, more reliable and more comfortable cars, as a key component in airbags, cables, hoses and tires, and Elkem is already a supplier to several of the world’s top EV producers.

A key challenge for EV automakers is to ensure that electrical and electronic parts in are efficient, reliable and safe. Elkem develops and produces silicones solutions like BLUESIL and CAF which ensure electrical integrity (durability, electrical insulation, fire resistance) and electronic components protection (sealing, bonding, and potting of parts) that are key features required in EV’s.

"The cars of the future will be powered by electricity and built and protected with silicones. Elkem is very proud to play a key role in making greener, safer and more sustainable cities, in line with our strategy of specialisation and growth, and Shanghai is the best place to ride the wave of transports electrification and renewable energy developments," says Elkem’s senior vice president for Silicones, Frederic Jacquin.

“Our new workshop – named Delta 2 – is the latest of our investments to illustrate that commitment. Delta in mathematics symbolizes the difference. I sincerely hope that by combining the entrepreneurship of our customers, the support and vision of local authorities, and the commitment and technology of Elkem teams, we will make that difference to create a better world, in Shanghai city, in China and all over the world,” says Jacquin.

Mr. Wu Bin, deputy chief of Minhang district, Shanghai, Mr. Tang WeiQun, deputy director of Xinzhuang Industrial Park (where Elkem Silicones Shanghai site is located), Mr. Claude Laubriet, Deputy Director of Elkem Silicones Asia Pacific, customers as well as local employees were recently gathered to attend a grand opening of the new facility.

The new workshop in Shanghai further increases the production capacity and represents a measure to accompany customers in their growth by providing customized and high-value products for the hybrid and electric vehicle market.
A first production batch has been completed, meeting all quality specifications. Elkem is also supplying advanced silicon products to leading EV manufacturers, and the company is positioning to supply advanced battery materials to the battery industry and EV market through its Northern Recharge project.

As MRC informed before, Elkem (Oslo, Norway) says it will invest 180.0 million Norwegian krone (USD19.7 million) in a new plant in Canada to pilot an industrial biocarbon process specifically for silicon and ferrosilicon production. The plant will be constructed near Elkem’s production site at Chicoutimi, Quebec, with start of construction planned for the second half of 2020, the company says. The project has received financial support from the Canadian government, the Quebec government, and the city of Saguenay, reducing Elkem’s net investment to NKr60 million.

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 density 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, excluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

MOSCOW (MRC) -- Diversified chemical company FMC Corporation says it will raise its quarterly cash dividend by 9%, reported Chemweek.

The dividend, now 48 cent/share, will be paid on 21 January 2021 to shareholders of record as of 31 December 2020

“Today's announcement reflects our policy to increase the dividend by at least the same rate of net income growth, as a part of our overall commitment to return excess cash to shareholders,” says Andrew Sandifer, executive vice president and CFO at FMC.

As MRC wrote previously, in 2012, FMC Corporation completed the acquisition of Phytone, a UK-based producer of natural colours. Phytone's natural colour products and formulations are used by the personal care, food, beverage and nutrition industries. FMC operates its businesses in three segments, including FMC BioPolymer, FMC Agricultural Products and FMC Alkali Chemicals.

And in 2017, FMC Corporation and DuPont announced the signing of a definitive agreement for FMC to acquire the portion of DuPont's Crop Protection business it had to divest to comply with the European Commission ruling related to its merger with The Dow Chemical Company. September 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.

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 year on year by 6.1% 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.
MRC

MOSCOW (MRC) -- Oil prices retreated Dec. 1 amid uncertainty surrounding an expected extension of OPEC+ production quotas after the group delayed its meeting to Dec. 3, reported S&P Global.

NYMEX January WTI settled 79 cents lower at USD44.55/b, and ICE February Brent fell 46 cents to USD47.42/b.
OPEC is hoping a couple of days away from the market's glare will allow cooler heads to prevail and rescue a deal to extend production cuts that analysts say is needed to prevent an oil glut in the months ahead.

Disagreements - at times vehement, according to sources - between Saudi Arabia and the UAE over how quotas will be managed and enforced led to a breakdown of formal OPEC talks on Nov. 30, and a meeting with Russia and other partners scheduled for Dec. 1 has now been pushed back by two days.

"The latest spat between Saudi Arabia and the UAE raises the risk of taking the energy market off the path towards rebalancing," OANDA senior market analyst Edward Moya said in a note. "The UAE resistance to delaying the output hike was not expected and will likely force OPEC+ to have production discussions become a monthly event."

NYMEX January RBOB settled 2.12 cents lower at USD1.2204/gal, and January ULSD was down 2.41 cents at USD1.3473/gal.

OPEC delegates had said the framework of a three-month extension favored by kingpin Saudi Arabia and several other members had been reached, but a deal has been held up by the UAE's insistence that quota-busting countries be held to account with so-called compensation cuts that have to date been largely unenforced, except on itself.

Without an extension agreement, the OPEC+ curbs are scheduled to ease from the current 7.7 million b/d to 5.8 million b/d from January, which many analysts have said could overwhelm the market given the recent surge in crude production from quota-exempt Libya.

Demand outlooks remain under pressure from the threat of renewed lockdowns as COVID-19 continued to surge across the US.

California Governor Gavin Newsom warned Nov. 30 he may need to take "drastic actions," including issuing stay-at-home orders, to curb swelling cases numbers

In New York, Governor Andrew Cuomo on Nov. 30 ordered hospitals to take emergency precautions in the face of rising cases loads and suggested the state could again implement lockdown measures similar to those this past spring.

Second-month RBOB futures settled Dec. 1 at a 1.22 cent/gal premium to the front-month contract, opening the first significant contango in that part of the forward curve since June 30. In contrast, the second-month RBOB settled in a 5.30 cent/gal backwardation compared with front month on the same date in 2019.

As MRC reported previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40% in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

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.
MRC

MOSCOW (MRC) -- SOCAR Polymer has expanded its portfolio of high-performance polypropylene (PP) resins with the addition of its first pair of random copolymers (RCPs), as per the company's press release.

These resins are designed to yield rigid packaging via thin-wall injection molding (TWIM), along with a host of other benefits.

SOCAR Polymer, based in Azerbaijan, currently is marketing these materials to customers in Russia and other countries in the Commonwealth of Independent States. The company suggests that these new RCP grades will qualitatively complement its portfolio of PP products intended for the segment of rigid packaging produced by thin-walled injection molding.

The two new grades are RB 4545 MO (with a melt flow index of 45) and RB 6545 MO (with a melt flow index of 65). Those viscosities account for the majority of TWIM items made from random copolymers, according to Milliken, whose Millad NX 8000 family of clarifiers imparts many of the key properties to the resins.

SOCAR Polymer started using Milliken additives after they were recommended by its licensor. During product development, the company decided to completely redevelop its RCP grades intended for TWIM applications. The resin maker re-engineered its products and introduced Millad NX 8000 to its formulation recipe. Milliken provided samples for development, and the two parties met at the K 2019 trade show in Dusseldorf to confirm the plan to proceed.

The aim of these materials is to provide the best possible balance between processability, good mechanical and optical properties, along with high-end aesthetics and excellent safety of the final molded products. The use of the Milliken clarifier provides superb transparency and clarity to the resulting resins, which enables the replacement of other plastic materials with the highly recyclable PP.

Additionally, these Millad NX 8000-modified grades can be processed at lower temperatures, and for shorter cycle times, which translates into energy savings for the injection molder. This independently verified lower energy usage allows brand owners to apply the UL Environmental Claim Validation label on injection molded packaging made with these PP resins, further emphasizing their sustainability commitment.

These latest SOCAR Polymer PP grades also yield parts with an excellent balance between stiffness (rigidity) and impact resistance, as well as with good antistatic and mold-release properties. They are food contact-approved, use no organic peroxides, and abide by SOCAR Polymer’s zero-phthalate philosophy, meaning that no catalysts and chemicals containing phthalate compounds are used at any stage of production.

The very good flowability of these grades make them ideal for high-transparency TWIM packaging applications such as caps and closures, containers and housewares.

As MRC reported previously, SOCAR Polymer plans to reach the design load for high density polyethylene (HDPE) no earlier than 2023. In 2019, SOCAR Polymer is expected to produce 48,200 tonnes of HDPE and 110,000 tonnes of PP. In 2020, these indicators will amount to 97,0004 and 140,000 tonnes, respectively. In 2023, the company is expected to be able to reach its design targets and produce 120,000 tonnes of polyethylene and 170,000 tonnes of PP. Thus, the production of HDPE relative to 2019 will grow by 2.5 times, PP - by 54%.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and 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.
MRC

MOSCOW (MRC) -- Aker Carbon Capture and MAN Energy Solutions have signed a technology-cooperation agreement to develop energy-efficient compression solutions for carbon capture and storage (CCS) applications with heat recovery, said Hydrocarbonprocessing.

The agreement supports the companies’ joint target to reduce the cost of removing CO2 emissions from industrial plants around the world. The cooperation builds on MAN’s experience in compressor technology, the integration of system components and their design and delivery, as well as Aker Carbon Capture’s proprietary amine technology and efficient carbon-capture process design.

"We are very pleased to formalize our good relationship with MAN Energy Solutions in the form of a technology-cooperation agreement. Through this partnership, we intend to further improve the process efficiency and thereby lower the cost of carbon capture to the benefit of our clients and the environment,” said Valborg Lundegaard, CEO of Aker Carbon Capture.

"Carbon capture and storage will play a major role in a decarbonized future. This technology contributes both to reducing emissions in key sectors directly, and to removing CO2 to balance unavoidable emissions, which is critical with regard to the targets of the Paris Agreement,” stated Dr Uwe Lauber, CEO of MAN Energy Solutions. “As experienced forerunners in the CCS field, we will build on our well-founded knowhow and work together on new, energy-efficient, environmentally-friendly CCS-technology solutions."

With CCS, captured CO2 is compressed before being liquefied and transported to a permanent-storage location. The two companies aim to develop carbon capture solutions that require less energy. The transfer of heat is key for CO2-capture plants’ improved, overall power-consumption with MAN Energy Solutions able to recover heat from its compression systems. Hence, the steam generated will cover nearly 50% of the power demand for Aker Carbon Capture’s capture plant.

The technology-cooperation agreement will run for seven years and forms the basis for project deliveries to carbon-capture plants. Solutions will be applicable for large facilities, such as the Heidelberg Cement Norcem cement plant in Brevik, Norway where Aker Carbon Capture will deliver a carbon-capture plant using the company’s patented and HSE-friendly CCS technology. Subject to parliamentary approval of the funding, this will represent the first time that CCS will have been deployed at scale at a cement factory anywhere in the world.

As MRC informed earlier, MAN Energy Solutions has announced the successful, remote commissioning of a compressor train at Uzbekistan’s largest chemical company, JSC Navoiyazot. This world-first was brought about when installation work for a new nitric-acid plant for fertilizer production was interrupted by the Covid-19 pandemic, with the MAN Energy Solutions’ commissioning team forced to leave the site due to the impending lockdown and associated travel restrictions within the country. In order to avoid any delays and additional costs for the entire project, MAN and the EPC contractor Casale S.A. – the global provider of integrated solutions for the production of fertilizers and chemicals ­– rapidly put in place an alternative plan to commission the machinery with remote supervision by MAN engineers using the company’s digital technology.

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 density 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, excluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC