Beiersdorf to use Sabic renewable PP for cosmetics packaging

MOSCOW (MRC) -- Sabic says that Beiersdorf (Hamburg, Germany), a skin-care specialist, will be using certified renewable polypropylene (PP) from Sabic’s portfolio of second-generation bio-based materials to package its cosmetic products, as per the company's press release.

The new packaging products will be introduced in the market in 2021 and replace fossil-based virgin PP, the company says. Sabic’s certified renewable PP and polyethylene (PE) materials are derived from animal-free and palm-oil-free second-generation renewable feedstock, it says.

“The use of renewable raw materials in our product packaging represents a major lever for us to reduce our carbon emissions and improve our ecological footprint,” says Michael Becker, head/global packaging development at Beiersdorf. The company wants to make its packaging 100% refillable, reusable, or recyclable; increase the share of recycled material in plastic packaging to 30%; and reduce the use of fossil-based virgin plastic by 50% compared with 2019, by 2025, Sabic says.

From sourcing the raw feedstock to producing the polymers, each ton of Sabic’s bio-based PP and PE reduces CO2 emissions by an average of 4 kilograms compared with fossil-based virgin alternatives, the company says. It also cuts fossil depletion by up to 80%, according to a cradle-to-gate life-cycle analysis, Sabic says.

As MRC reported earlier, responding to calls from major brands in the consumer electronics business and electrics and electronics (E&E) industry as a whole for more sustainable materials, SABIC has announced that its engineering thermoplastics business is expanding its portfolio of CYCOLOY and LEXAN resins containing high levels of post-consumer recycled material (PCR). Typical applications for the portfolio will include consumer electronics and accessories such as chargers and adapters, printers, copiers and laptop housing.

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.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
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1. U.S. crude stocks soar 15 MMbbls amid record surge in net imports

MOSCOW (MRC) - U.S. crude oil stockpiles last week surged the most since April, jumping more than 15 million barrels, as imports rose and exports plunged, the Energy Information Administration said Reuters. The unexpected supply build and record rise in net imports stunned the oil market, which has been weighed down by low demand due to the coronavirus pandemic. "It defies the math that is in the market, for sure," said Bob Yawger, director of Energy Futures at Mizuho in New York. "Do U.S. refiners, at a time when they're closing refineries, need to increase imports by a million barrels a day? That's ridiculous."


MRC

MOSCOW (MRC) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in January 2021, according to the company's press release.

Thus, on 11 December, the company said ACP for MEG would be at USD670/MT CFR Asian main ports for arrival in January 2021, up by USD10/MT from December.

The November 2020 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its December ACP for MEG at USD660/MT CFR Asian main ports, up by USD10/tonne from November.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, in Russia, December contract PET prices were in the range of Rb68,100-71,000/tonne CPT Moscow, including VAT. Most producers raised their prices of material last week and expect further price increases by the end of this month.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC

MOSCOW (MRC) -- Ineos Oxide, an Ineos subsidiary, has declared force majeure on propylene output from one of the two steam crackers at Dormagen, according to Chemweek with reference to sources' statement to OPIS Thursday.

This declaration was not confirmed by Ineos. There are two steam crackers at Dormagen, one with a capacity of 670,000 metric tons/year and another with a capacity of 530,000 metric tons/year, according to IHS Markit data.

"We don't comment on the day-to-day running of our plant," said an Ineos spokesperson in response to an OPIS email seeking confirmation of force majeure declarations, type of production affected, and delivery volumes.

As MRC reported earlier, Ineos has also decrared force majeure on ethylene oxide (EO) deliveries from its 280,000-metric tons/year plant in Cologne, Germany. "We heard about the Ineos ethylene oxide force majeure earlier in the week," a market source said.

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

According to MRC's ScanPlast report, 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.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
MRC

MOSCOW (MRC) -- Arkema announces the proposed divestment of its PMMA business to Trinseo for an enterprise value of EUR1,137 million, as per the company's press release.

This project is a new step in the group’s transformation, and is fully in line with Arkema’s ambition to become a pure Specialty Materials player by 2024.

The offer values this activity at EUR1,137 million, i.e. 9.3 times estimated 2020 EBITDA.

The project offers great development opportunities for the PMMA business over the long term.

Arkema’s PMMA activity is an integrated business, from production of methyl methacrylate to polymethyl methacrylate, marketed under the well-known brands Plexiglas on the American continent and Altuglas in the rest of the world. This activity benefits from leading commercial positions with products primarily dedicated to the automotive, construction, signs & displays, and sanitary ware markets.

The business under divestment is very competitive, employs some 860 people and operates 7 production sites (4 in Europe and 3 in North America). Sales in 2020 are estimated at around EUR510 million for an EBITDA around EUR122 million, a solid performance in the context of Covid-19. In 2019, EBITDA was close to its historic high, at EUR160 million.

Trinseo, a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber, generated sales of US3.8 billion in 2019, and operates 17 production sites worldwide, with a workforce of 2,700 people. Arkema’s PMMA activity will complement Trinseo’s range of performance plastics (ABS, PC, etc.), and strengthen its positions in the automotive, construction and lighting markets. Hence, these highly complementary activity portfolios will offer new growth and development opportunities.

The offer received is based on an enterprise value of EUR1,137 million, and the capital gains tax is expected at around 15% of this amount.

With this proposed divestment, which comes after the sale of the functional polyolefins business to Korean group SK last June, the share of Specialty Materials sales within Arkema increases from 79% to 87% based on the 2019 proforma figures. The Group thus takes another major step in its transformation, with the ambition of becoming a pure Specialty Materials player by 2024, centered only around Adhesive Solutions, Advanced Materials, and Coating Solutions.

"This proposed divestment is fully in line with the Group's strategy presented at our Capital Markets Day last April. It will allow Arkema to continue to significantly reduce the share of its Intermediates segment and to consolidate its foothold in specialty materials with high technological content. Trinseo is a high-quality company which will be able to welcome in the best possible way PMMA’s management and highly professional teams, support its customers and partners over the long term, and capture the many growth opportunities for this sustainable and high performance material" stated Thierry Le Henaff, the Group’s Chairman and CEO.

The proposed disposal is subject to the approval of the relevant antitrust authorities and to an information and consultation process involving Arkema’s employee representative bodies. The deal is expected to be finalized mid-2021.

As MRC wrote before, earlier this month, Arkema completed the acquisition of Colorado Photopolymer Solutions (CPS), a US-based provider of photopolymer formulation services.

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.

Arkema is a global manufacturer in specialty chemicals and advanced materials, with 3 business segments - High Performance Materials, Industrial Specialties, and Coating Solutions - and globally recognized brands. The Group reports annual sales of EUR8.8 billion. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.
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