Albemarle launches USD1.3-billion stock offering, expects sequential sales increase

MOSCOW (MRC) -- Albemarle has commenced a USD1.3-billion common stock offering, to raise funds for multiple lithium expansion projects, according to Chemweek.

The projects are in Australia, Chile, and the US. Albemarle will also use the proceeds to pursue “opportunities in China,” and for short-term debt repayment and general corporate purposes, the company says.

Shares in Albemarle closed at USD169.35 on 2 February, and reached a 52-week high on 20 January. The company has about 106.5 million shares outstanding.

J.P. Morgan is acting as lead book-running manager and underwriter on the offering. The underwriters have a 30-day option to purchase up to USD195 million additional common shares.

Albemarle also said it expects fourth-quarter 2020 sales to total USD870-880 million, down 11-12% year-on-year (YOY), but ahead of USD746.9 million in sales during the third quarter. Net income is expected to total USD77-87 million for the fourth quarter, and quarterly adjusted earnings are expected to total USD1.11-1.19/share.

For the full-year 2021, Albemarle expects that “performance will improve relative to 2020 with continued economic recovery following the COVID-19 pandemic,” the company says. “We expect our lithium business to experience lower pricing, offset by higher volumes. Higher lithium costs related to project start-ups are expected to be partially offset by efficiency improvements.” Brome results are expected increase on higher volumes, while the catalysts business will see recovery a weak 2020, but will remain below pre-pandemic levels, Albemarle adds.

As MRC wrote before, in April 2018, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation. The acquired business primarily develops and manufactures proprietary and custom-manufactured single-site catalysts as well as metallocenes and activators used in the production of plastic resins. The transaction also includes a comprehensive series of highly optimized Ziegler-Natta catalysts for polyethylene production. The acquisition includes production plants in Baton Rouge, LA and Yeosu, South Korea; R&D and pilot plant capabilities; and an extensive portfolio of intellectual property.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).
MRC

MOSCOW (MRC) -- Brenntag, the market leader in chemical and ingredients distribution, has completed the process of changing from a German Aktiengesellschaft (AG), or stock corporation, to a European company, or Societas Europaea (SE), according to Chemweek.

The company says it is now doing business as Brenntag SE. The conversion, which was announced by the company's management and supervisory boards in 2019 and approved at its 2020 annual shareholders' meeting, came into force when it was entered into the commercial register on 1 February 2021.

Brenntag SE will keep its headquarters in Essen, Germany, and continue under the dual management of its management and supervisory boards. The conversion will not affect the responsibilities or composition of either board, the company says.

“Almost 17,500 people from more than 100 countries work for Brenntag, around 90% of them outside Germany," says Christian Kohlpaintner, chairman of Brenntag SE’s management board. "The SE is a supranational, up-to-date legal form that suits today’s corporate culture; it will strengthen our position and help drive Brenntag’s development.”

As MRC informed earlier, in April 2020, Brenntag sai it had acquired the operating assets of Suffolk Solutions’ (Suffolk, Virginia) caustic soda distribution business. Financial terms of the deal have not been disclosed.

We remind that November production of sodium hydroxide (caustic soda) in Russia were 111,000 tonnes (100% of the basic substance) versus 108,000 tonnes a month earlier. Overall output of caustic soda totalled 1,165,600 tonnes in the first eleven months of 2020, down by 1.3% year on year.
MRC

MOSCOW (MRC) -- Talks between Marathon Petroleum Corp and union workers at their St. Paul Park, Minnesota, refinery have stalled, with about 200 workers locked out following a 24-hour strike in January, the local Teamsters union said Hydrocarbonprocessing.

No talks have been scheduled after the latest talks last Monday, according to Scott Kroona, business manager of the Teamsters Local 120. “We remain willing and available to meet with union representatives to discuss a new contract and are committed to reaching an agreement that is satisfactory to all parties,” said a Marathon spokesman.

The workers have been locked out since Jan. 22 following a 24-hour strike at the refinery. Marathon said the refinery is being operated by “trained and qualified Marathon Petroleum personnel.” It does not anticipate supply disruptions in Minnesota or the Midwest region and expects to continue meeting customer commitments, it added.

Union carriers such as Barton Oil and Praxair and certain building trades are not crossing the picket line at the plant, and the refinery is running at lower-than-normal rates, Kroona said. Teamsters representatives said they continued to oppose Marathon’s proposal to cut union positions at the refinery.

As MRC reported earlier, US refiner Marathon Petroleum Corp is delaying all maintenance projects at its 102,000 barrel-per-day St. Paul Park, Minnesota, refinery for 2020 amid concerns related to the spread of the novel coronavirus. Several refiners have delayed planned maintenance at their plants this year due to concerns around the spread of the coronavirus among workers, or as part of capital and operational expense cuts.

Besides, Marathon Petroleum Corp idled its 166,000 barrel-per-day (bpd)refinery in Martinez, California beginning April 27 in response to the coronavirus pandemic’s hit to demand for refined products.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).
MRC

MOSCOW (MRC) -- Meet AmoMax-Casale: the sustainable, award-winning new ammonia synthesis catalyst jointly developed by Clariant and Casale. Thanks to significantly higher activity than previous catalysts, AmoMax-Casale makes ammonia production more efficient and less polluting than ever before, reported Hydrocarbonprocessing.

Producing ammonia (NH3) creates more carbon dioxide (CO2) emissions than any other chemical synthesis process. That’s why Clariant works relentlessly to enhance its ammonia synthesis catalysts, leading to step changes like the industry proven AmoMax 10, which changed the game of ammonia synthesis from magnetite-based to wustite-based catalysts. Now, there’s a solution that even surpasses the past generation AmoMax.

Born of Clariant’s catalyst expertise and Casale’s ammonia converter design know-how, AmoMax-Casale delivers an up to 30 percent higher efficiency factor, also thanks to a larger active surface area than previous generations of AmoMax. This striking performance surge significantly lowers the energy consumption of an ammonia plant, such leading to a major reduction in CO2 emissions.

The catalyst’s higher activity allows operation of the ammonia synthesis loop with considerably less pressure. This means the plant consumes less energy to produce ammonia, and hence generates less CO2 emissions.

Higher catalyst activity means higher conversion, so the plant will consume less energy for the recirculation of the process gas in the reactor loop. Again, less CO2 is emitted.

The combination of a higher active catalyst with the Casale design of converter internals makes the difference. This means, a typical ammonia plant producing 1600 tons/day, would save potentially US$ 300,000 annually on energy costs, and reduce CO2 emissions by up to 85,000 tons over the catalyst’s average lifetime of 15 years. Furthermore, AmoMax-Casale is capable of increasing the ammonia production capacity by up to 5%.

The benefits of AmoMax-Casale are not just theoretical. The catalyst has already proven its great performance in its first industrial reference at an ammonia plant in the Americas. The plant was upgraded to a Casale 3-bed interchanger using the AmoMax-Casale catalyst in late 2019 and is already reporting energy savings of 50,000 kcal/MT, which translates to an expected annual reduction of US$700,000 in costs, and 6.148 tons in CO2 emissions.

Casale and Clariant plan to continue to collaborate in further ammonia projects, as well as other future technologies that will help our customers achieve net zero CO2 targets.

As MRC informed earlier, in October 2020, Clariant (Muttenz, Switzerland) announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

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

According to MRC's ScanPlast report, PP shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

MOSCOW (MRC) -- Varennes Carbon Recycling, the landmark waste to biofuels plant in Varennes, Quebec, has now reached financial close, with investment agreements signed by Proman and its partners, Shell, Suncor, the Government of Quebec, and Enerkem, said Hydrocarbonprocessing.

As part of the investment agreement, Proman will be entitled to market the methanol produced from the plant, which, once the plant is in operation, could make Proman the largest marketer of bio-methanol globally.

The plant is expected to ramp up to a production level of 100,000 tons of bio and circular methanol per year, using Enerkem’s proprietary technology to convert non-recyclable waste into sustainable methanol, which can then be converted to other low-carbon biofuels such as ethanol and gasoline.

This method produces fuels with substantially less carbon intensity when compared to conventional fossil fuels, as well as ensuring that waste materials are recycled rather than being placed into landfill or burned. The bio-methanol produced has a wide range of possible applications in ground transportation, power generation and industry as well as a viable alternative marine fuel.

Proman’s Chief Executive, David Cassidy, said of the project: "Bio-methanol has enormous potential as our economies continue to decarbonise. Proman is committed to using our expertise in the methanol market and our unique integrated value chain to serve our customers’ evolving needs and contribute towards meeting global sustainability targets. Proman’s marketing, logistics, and operational experience is a perfect complement to Enerkem’s world-leading technology, and we look forward to working with all the project partners to making this innovative waste-to-low carbon fuels plant a great success."

The investment in Varennes Carbon Recycling marks Proman’s first investment in Canada. David Cassidy added: “We are excited to be a part of this partnership with the Canadian and Quebec governments and, thanks to Canada’s vision and leadership in sustainable energy, we hope it will be the first of many initiatives for Proman in Canada. We look forward to continuing our partnerships with the public and private sectors in Canada and globally to develop sustainable energy projects and reduce reliance on fossil fuels."

As per MRC, UPM (Helsinki, Finland) says it has started basic engineering and commercial studies for a potential 500,000-metric tons/year biofuels refinery, to be located in either Finland or the Netherlands, and is also under way with construction of a previously announced EUR550-million (USD667 million) biochemicals plant in Leuna, Germany.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, exluding producers' inventories as of 1 January, 2020).
MRC