Kemira announces exclusive partnership with Danimer Scientific to develop biodegradable coating

MOSCOW (MRC) -- Kemira announces exclusive partnership with Danimer Scientific to develop biodegradable coating for paper and board industry, said the company.

Partners evaluate Danimer Scientific’s NodaxTM PHA as commercial, fully biobased alternative for polyethylene to manufacture recyclable paper and board products from renewable sources. Kemira, a global leader in sustainable chemical solutions for water intensive industries and Danimer Scientific, a leading developer and manufacturer of biodegradable materials, today announced a partnership to develop biodegradable aqueous barrier coatings for more sustainable paper and board products.

The companies aim to manufacture coatings for limited commercial applications in 2021 before exploring broader production options. Coating in a paper or board product such as a coffee cup forms a barrier to keep moisture and grease from leaking through the cup material. The global barrier market is expected to grow by around 8% annually. The Kemira relevant dispersion barrier market size is currently EUR 500 million and growth rate around 10% per annum.

As the brand owner’s and consumer’s demand for sustainable paper and board products increases, this coating and surface treatment will ensure paper and board items are fully biodegradable in soil and water. Danimer Scientific’s biopolymer, Nodax™ (polyhydroxyalkanoate, PHA), is renewably sourced from the seeds of plants, such as canola and soy and is 100% biobased. Majority of paper and board products from cups to food packaging are currently coated with fossil fuel-based polyethylene which hinders the recyclability of the products and creates plastic waste.

"Evaluating PHA is one step in realizing our biobased strategy to deliver high quality, sustainable and circular packaging solutions. Sustainability is one of the main drivers of Kemira’s long-term growth and Kemira’s target is to reach biobased revenue of over 500 million euros by 2030. We are dedicated to our customer’s success as we increase the value of their end-products. This partnership with Danimer Scientific will bring new biobased and circular products to markets and is an important milestone in reaching our biobased growth targets,” says Antti Matula, SVP, Global Product Lines & Business Development for Kemira Pulp & Paper.

"PHA is a proven biodegradable alternative to fossil fuel-based materials. Partnering with Kemira will enable us to expand to paper applications, delivering a repulpable and biodegradable material without sacrificing the product quality that brands and consumers expect,” says John Moore, Senior Vice President of business development at Danimer Scientific. Danimer is producing its Nodax-brand PHA at a facility in Winchester, Kentucky.

It has also partnered with plastics manufacturers and consumer products companies which plan to transition a variety of plastic applications to renewables - including straws, food and beverage containers, flexible packaging, agricultural and medical applications.

The PHA biopolymer was originally developed by Procter & Gamble.

As MRC informed earlier, Kemira has signed a multi year extension of its polymer supply agreement with Ithaca Energy. Kemira says it has signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.

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

Covestro raises full-year EBTIDA forecast on improving business conditions

MOSCOW (MRC) -- Covestro says it now expects full-year 2020 EBITDA to total EUR1.44-1.50 billion (USD1.74-1.82 billion), compared with previous guidance of EUR1.2 billion, due to better-than-expected business conditions in the fourth quarter, according to Chemweek.

Relatively strong margins in the polyurethanes and polycarbonates (PC) businesses, in particular, are behind the improved guidance.

Covestro also expects full-year free operating cash flow to total EUR400-550 million, compared with guidance of EUR0-300 million previously, in line with the higher EBITDA guidance. Core volumes are expected to decline 5-6% year-on-year (YOY) for the full-year, unchanged from the previous forecast.

The company has increased its full-year guidance twice since economic conditions began to improve from the sharp COVID-19 downturn in June. The most recent increase in guidance came in October. Covestro reported improving sequential demand trends for the third-quarter.

In 2019, Covestro generated full-year revenue of EUR12.4 billion, and EBITDA of EUR1.6 billion.

As MRC reported earlier, Covestro has closed the sale of its European PC sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's estimated consumption of polycarbonate (PC) granules (excluding imports and exports to/from Belarus) rose in the first three quarters of 2020 by 32% year on year to 75,600 tonnes (57,200 tonnes a year earlier).

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc. With 2019 sales of EUR12.4 billion, Covestro has 30 production sites worldwide and employs approximately 17,200 people (calculated as full-time equivalents) at the end of 2019.
MRC

Azelis names managing director for Latin America

MOSCOW (MRC) -- Azelis says it has named Eduardo Salinas to the post of managing director/Latin America, with responsibility for leading the company’s further expansion into Latin America, reported Chemweek.

Salinas was previously a co-founder of High Chem Specialties Mexico, a specialty chemicals distributor in Mexico. He will report to Frank Bergonzi, CEO/Americas at Azelis.

Azelis entered the Mexican market in January with the acquisition of Megafarma, giving the company a foothold in the home and personal care, industrial cleaning, and plastic additives markets, among others. Megafarma general director Martin Hernandez will remain with Azelis and lead the company’s operations in Mexico, reporting into Salinas.

As MRC informed earlier, in October 2020, Azelis opened a new application and training center in Istanbul, Turkey. This center will service the Turkish food, personal care and pharma markets and will offer product advice, formulation development and technical research. Next to that, it will host customer meetings, interactive formulation workshops, supplier meetings and internal technical trainings.

We remind that Russia's output of chemical products rose in October 2020 by 7.2% year on year. At the same time, production of basic chemicals grew in the first ten months of 2020 by 6.3% year on year, 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-October output. October production of polymers in primary form grew to 857,000 tonnes from 852,000 tonnes in September. Overall output of polymers in primary form totalled 8,340,000 tonnes over the stated period, up by 17% year on year.
MRC

Nouryon launches ingredient to improve anti-viral paint sustainability and quality

Nouryon launches ingredient to improve anti-viral paint sustainability and quality

MOSCOW (MRC) -- Nouryon has launched Arquad GS, an innovative, environmentally friendly antimicrobial agent that enables the formulation of a robust and tintable anti-viral paint, said the company.

Nouryon will unveil Arquad GS to Asian markets during the CHINACOAT show, beginning tomorrow in Guangzhou, China, and plans to introduce it to other regions soon after. The introduction of this new product is important given the increased emphasis on surface cleanliness and germ prevention as a result of the COVID-19 pandemic. Research indicates that demand for hygienic coatings is expected to increase significantly, and the global anti-viral and anti-bacterial coating categories, specifically, are projected to hit double-digit annualized growth over the next five years. It's estimated that by 2026, the anti-viral paint category will be worth USD1.3 billion.

Asia is expected to experience the fastest regional growth in the anti-viral paint category, driven by a rapidly expanding Building and Infrastructure sector, which is one of Nouryon's four end markets. Global efforts to improve workplace safety and overall public health in the wake of the global pandemic is also driving category growth.

"Given current technologies, formulating a sustainable, anti-viral paint with good stability and tinting properties can be quite challenging," said Geert Hofman, Vice President Construction Specialties. "Nouryon's Arquad GS innovation is focused on solving complex customer challenges and addressing emerging market demands. This product will support our customers in developing anti-viral and anti-microbial coatings with excellent sustainability profiles and premium product attributes."

Arquad GS is an innovative anti-virus technology designed to deactivate viruses, such as influenza, that contaminate a paint's film surface. The environmentally friendly additive may be used to partially or fully replace traditional in-can preservative and anti-microbial agents. The product is compliant with China Green Label GB/T 35602-2017 and enables customers to formulate high-quality, low-VOC paint.

Arquad GS is also compatible with a broader range of emulsions, pigments, additives and tinters relative to conventional alternatives. The utilization of these paints contributes to healthier homes and working environments, and supports Nouryon's Commitment to a Sustainable Future.

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

Japan to make hydrogen major power source by 2030

MOSCOW (MRC) -- Japan will aim to make hydrogen a power source viable enough to produce the output of more than 30 nuclear reactors by 2030, the Nikkei newspaper reported. To achieve that goal in its bid to reduce carbon emissions Japan will have to make a technology now in its infancy commercially viable at scale, as the world accelerates an energy transition to prevent the worst impacts of climate change, reported Reuters.

The government will provide 2 trillion yen (USD19 billion) of funds to support efforts to make hydrogen viable as a fuel for electricity generators that burn without emissions, the Nikkei reported, without citing the source of its information.

Costs will have to be cut drastically to achieve a target of burning 10 million tonnes of hydrogen by 2030, with costs around 10 times higher for combustion of the fuel that only emits water vapour, the Nikkei said.

The industry ministry could not immediately comment on the report when contacted by Reuters.

The threshold has added urgency after Japan shifted its position recently and officially adopted a target of 2050 to achieve net-zero emissions.

With most of its nuclear sector still shut down after the Fukushima disaster in 2011, Japan relies heavily on carbon producing fuels like coal and natural gas.

The country will also aim to develop more renewable energy supplies to produce hydrogen for later use at times of plentiful sun or wind, the Nikkei said.

Japanese companies including Toyota Motor Corp on Monday said they established a new organisation, the Japan Hydrogen Association, to promote the creation of a hydrogen supply chain in the country.

By Monday 88 companies had joined the initiative, including Japan's biggest refiner Eneos Holdings Inc and trading house Mitsui & Co Ltd.

As MRC informed earlier, ENEOS Corporation (formerly known as JXTG Nippon Oil & Energy) took its larger naphtha cracker in Kawasaki off-line on 4 December 2020 for repairment after a technical issue reported at the butadiene separation unit in late November. The cracker was operating at 95% capacity before the shutdown in early December. The cracker with an annual capacity of 515,000 tons/year of ethylene, 300,000 tons/year of propylene, and 105,000 tons/year of butadiene would be shut for a month. The company’s smaller cracker at the same location is not affected by the issue.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC