Bayer taps Elanco for chief transformation, talent officer

MOSCOW (MRC) -- Bayer’s supervisory board has announced the appointment of Sarena Lin to the company’s management board as chief transformation and talent officer, effective 1 February, according to Chemweek.

She will be responsible for human resources, strategy, and business consulting and “drive the accelerated transformation of Bayer,” the company says. She will also serve as labor director. Lin will be based at Bayer’s Leverkusen, Germany, headquarters.

Lin will join Bayer from Elanco Animal Health, where she is a member of the executive committee, responsible for transformation and technology. She was born in Taipei, Taiwan, and previously worked in senior positions at McKinsey and Cargill, among other companies.

Elanco acquired Bayer’s animal health business in 2020.

As MRC reported earlier, Covestro closed the sale of its European polycarbonates (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.

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.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to\\from Belarus) rose in January-November 2020 by 18% year on year to 83,600 tonnes (70,600 tonnes a year earlier).
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Inovyn technology selected for new chlor-alkali plant in Turkey

MOSCOW (MRC) -- Inovyn (London, U.K.) has been selected by Koyuncu Group to supply chlor alkali technology as part of a EUR16 million investment at a new production facility in Konya province, Turkey, said Chemweek.

Inovyn will provide BICHLOR bipolar electrolyzers for a new 33,000-m2 facility that will produce chlorine, caustic, sodium hypochlorite and hydrochloric acid. The new facility will have an annual production capacity of 50,000 tons, with potential for further investment in the production of derivatives in the future.

Engineering, construction and start-up for the project will be provided by Vespro A.S., an experienced supplier of process equipment for chemical and industrial plants, both domestically and internationally. The project duration is 15 months and production is planned to start by the beginning of 2022.

Ibrahim Koyunco, Chairman of the Executive Board of Koyuncu Group, states: “When selecting the technologies for our investment, choosing environmentally friendly, sustainable and energy efficient cutting-edge technology was essential."

Terry Healy, Business Manager for INOVYN Electrochemical Technology, said: “We are pleased to be recognized as electrochemical experts and a trusted partner with a significant track record for high-quality products. We look forward to a successful project with Vespro and Koyuncu, delivering on our commitment to reducing the overall lifecycle cost for our customers."

As MRC reported earlier, the November production of sodium hydroxide (caustic soda) in Russia amounted to 111 thousand tons (100% of the main substance) against 108 thousand tons a month earlier. For eleven months of the year, the total production of caustic soda amounted to 1,165.6 thousand tons, which is 1.3% less than the same indicator of the previous year.
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Lotte Chemical plans to acquire JSR elastomers business

MOSCOW (MRC) -- Lotte Chemical has recently completed its due diligence on potential acquisition of JSR’s elastomers business, according to Chemweek with reference to a local press report from Business Korea.

Lotte Chemical has selected Nomura Securities as its lead manager for the acquisition, says the report.

JSR’s elastomers unit produces emulsion styrene-butadiene rubber (E-SBR), solution styrene-butadiene rubber (S-SBR), polybutadiene rubber, and isoprene rubber. IHS Markit data says that JSR is the largest producer of SBR in Japan, accounting for a combined capacity of 210,000 metric tons.

Lotte Chemical established a joint venture (JV) with Versalis (Milan), the chemicals arm of Eni (Rome), and has been operating 100,000-metric tons/year S-SBR facilities for high-performance tires since 2017.

The press report says that the JV has been making losses in this business. It is not easy for new companies to enter the S-SBR sector due to difficult quality certification procedures set by existing customers such as automakers, adds the report. The report says that the acquisition will help Lotte Chemical to meet product standards required by global tire manufacturers.

Lotte’s flagship products include butadiene and styrene monomer, used as raw materials for synthetic rubber. Lotte will be able to enjoy huge synergies by absorbing the elastomers division from JSR, says the report.

It says that JSR plans to sell its elastomers business for a price of up to 1 trillion South Korean won (USD908 million). Press reports quoting industry experts say that JSR’s elastomers business suffered a loss in the aftermath of COVID-19 in 2020, a factor that will be reflected in price calculation.

As MRC reported before, South Korea’s Lotte Chemical has restarted its fire-hit naphtha-fed steam cracker in Daesan. Thus, the facility begins trial runs of naphtha on 7 December, 2020, and the company achieved commercial production on 8 December. The cracker was shut on March 4, 2020m following an explosion, which injured more than 30 people.

Lotte Chemical runs two naphtha crackers in South Korea. One cracker is located in Daesan county in Seosan which can produce 1.1 million tonnes per year of ethylene with the other 1.2 million tonnes per year cracker in the southwestern city of Yeosu.

Styrene is the main feedstock for the production of polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics totalled 454,990 tonnes in the first eleven months of 2020, which corresponds to the last year's figure. November estimated consumption of PS and styrene plastics grew by 4% year on year to 45,830 tonnes.
MRC

Ineos Styrolution to build demo plant for ABS production using recycled feedstock

MOSCOW (MRC) -- Ineos Styrolution, the styrenics subsidiary of Ineos, says it will build a demonstration plant at its manufacturing site in Antwerp, Belgium, to test production of acrylonitrile-butadiene-styrene (ABS) plastic from recycled feedstock, said Chemweek.

The demo plant will complement another demo unit planned by Styrolution’s ‘ABSolutely Circular’ project partner Indaver (Mechelen, Belgium), a waste management company. Both plants are part of the ABS circular recycling project, which is supported by the EU’s LIFE program.

The company “is still open for new partners to start working with us on the demonstration plant,” says Styrolution’s Bart van der Zee, technical R&D project lead. “I invite technology providers to join us on our mission,” he says.

Styrolution and Indaver announced in December 2020 they would collaborate as technology partners for the four-year project to produce ABS from recycled feedstock, and that they would be funded by the LIFE program, the EU’s funding instrument for environment and resource efficiency.

The two companies also linked up mid-2019 for the chemical recycling of post-consumer polystyrene (PS) waste. Indaver has large-scale treatment facilities in Antwerp, with plans for a 15,000-metric tons/year demonstration chemical-recycling installation to be operational in 2021.

As MRC informed earlier, Ineos Styrolution plans to raise prices for acrylonitrile butadiene styrene (ABS) by 7 cents per pound (USD154 per tonne) from February 1. The company also sought a similar increase in ABS prices from December 15 by two of its brands. The intention to raise prices stems from rising raw materials and logistics costs associated with the production and supply of ABS, the letter said.

According to the ICIS-MRC Price Report, ABS imports to Russia grew by 4% in the first ten months of this year compared to the same period last year and amounted to 29,100 tonnes against 28,000 tonnes. The share of South Korean supplies amounted to 62% (18,200 tonnes) against 57% (16,100 tonnes) in January-October 2019.
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Asian Paints reports 49% net profit growth for Q3 QoQ FY20-21

MOSCOW (MRC) -- Asian Paints Limited., an Indian paints and coatings manufacturer, announced its results for the third quarter ended December 31, 2020, according to Kemicalinfo.

The company’s net profit increased 49.1% to Rs 1238.34 crores for the period ended December 31, 2020 as against net profit of Rs 830.37 crores for the previous quarter.

Net sales grew 27% to Rs 6886.39 crores during the period ended December 31, 2020 as compared to Rs 5432.86 crores during the previous quarter.

The company’s net profit grew 62% to Rs 1238.34 crores for the period ended December 31, 2020 as against net profit of Rs 764.43 crores for the prior-year quarter.

Net sales increased 25.4% to Rs 6886.39 crores during the period ended December 30, 2020 as compared to Rs 5490.11 crores during the prior-year quarter.

“Demand conditions continued to exhibit a strong recovery across business segments, spread over most regions in the third quarter of this financial year,” said Amit Syngle, Managing Director & CEO, Asian Paints Limited.

Mr Syngle said that “the domestic Decorative business delivered a powerful performance with more than 30% volume growth led by a strong performance in premium and luxury portfolios. The Home Decor foray of Asian Paints got a big fillip from a strong performance of the Home Improvement business. “

“The Industrial coatings business delivered a robust performance, particularly in Protective coatings and Auto OE businesses which rebounded in a big way, benefited by resurgence in the industrial activity,” Syngle said.

“The International business recorded a double-digit volume growth, strongly led by good growth in Asia and Middle East. Profitability across businesses has been well supported by a good Sales mix and some excellent work in cost optimization & sourcing measures pursued strongly through innovation programs,” he added.

As MRC reported previously, in early May, 2020, Reliance Industries Ltd. (RIL) announced that it was considering selling its stake in India’s largest paint maker valued at about USD989 million as the conglomerate steps up efforts to trim its debt. RIL was in discussions with banks for a potential sale of its 4.9% stake in Asian Paints Ltd. through a series of block trades. Reliance holds the stake through Teesta Retail. The size and timing of any potential sale haven’t been finalized, and Reliance could decide not to pro-ceed with a deal, the people said then. The sale of stake in Asian Paints is part of RIL’s string of fundraising plans unveiled in order to bolster investor confidence, even as the crash in oil prices pulled down profit at the company’s oil-to-chemicals business.

We remind that in November 2019, Reliance Industries confirmed plans to invest 700 billion Indian rupees (USD9.75 billion) to establish a crude-oil-to-chemicals (COTC) complex at the company's Jamnagar, India.

The MCC/HSFCC complex will have combined capacity for 8.5 million metric tons/year (MMt/y) of ethylene and propylene, and total extraction capacity for 3.5 MMt/y of benzene, toluene, and xylenes. It will also have combined capacity for 4.0 MMt/y of paraxylene and orthoxylene. The steam cracker will have combined capacity for 4.1 MMt/y of ethylene and propylene, and feed crude C4s to a 700,000-metric tons/year butadiene extraction plant. Reliance will also add 1.3 MMt/y of p-xylene capacity at existing plants at Jamnagar.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
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