Sika strengthens its position in the USA by acquiring flooring adhesives business

MOSCOW (MRC) -- Sika,a producer of construction chemicals, has acquired the flooring adhesives business of DriTac, a US-based floor covering adhesives company with an especially strong position in wood floor bonding, reported Intrado GlobalNewswire.

The acquisition will contribute to Sika’s increased presence among floor covering installers and distributors, while accelerating Sika’s expansion in the Interior Finishing market in the USA. In 2020, the acquired business generated sales of CHF 20 million.

DriTac is a well-recognized brand in the US floor covering industry, with a strong reputation especially in the wood floor bonding segment. DriTac brings long-established customer and distributor relationships across the country that are highly complementary to Sika’s existing network, enhancing overall market access and market penetration.

The acquired business strengthens Sika’s growth platform for Interior Finishing in the USA with large potential for cross-selling of Sika’s other complementary products that include moisture-mitigation materials, surface preparation and self-leveling underlayment mortars, as well as tile setting materials. The DriTac product range, which includes polyurethane, modified silicone and water-based technologies, will further enhance Sika’s system solutions for floor covering applications and give customers access to a large, full-range portfolio.

As MRC informed earlier, in November 2020, Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.

We remind that Russia's output of chemical products rose in February 2021 by 5.3% year on year. Thus, production of basic chemicals increased year on year by 7.5% in the first two months of 2021, according to Rosstat's data. February production of polymers in primary form was 861,000 tonnes versus 196,000 tonnes in January. Overall output of polymers in primary form totalled 1,770,000 tonnes over the stated period, up by 8.4% year on year.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.
MRC

Chemours plans to net zero absolute emissions by 2050

MOSCOW (MRC) -- Chemours says it is looking to achieve a 60% absolute reduction of operations-related greenhouse gas emissions by 2030, and net zero greenhouse gas emissions by 2050, said the company.

In addition to refrigerants, Chemours is a major producer of titanium dioxide, industrial fluoropolymer resins and derivatives and other chemical solutions.

Last month, the company announced it was seeking to make significant reductions in emissions of HFC23 at its Louisville, Kentucky manufacturing site. A unique product used in ultra-low temperature refrigeration and the manufacture of semiconductors, HFC23 has a huge GWP of 14,800.

In its latest climate goal announcement, Chemours says that, under Scope 1 of the GHG Protocol, it will continue to enhance emissions control technologies at its manufacturing sites and drive energy efficiency improvements across its operations, reducing the volume of greenhouse gas emissions and energy use.

In addressing Scope 2 emissions, Chemours will increase the amount of electricity and other energy generated from renewable sources. The company is also in the process of defining goals related to indirect emissions from its value chain (Scope 3) and says it will announce them at a later date.

Chemours also announced the appointment of Sheryl Telford to the newly created position of Chief Sustainability Officer. Telford has more than three decades of experience in the environmental, safety and health fields in the government, utility and chemistry sectors. She joined Chemours upon its creation in 2015 as Director, EHS and Remediation before being named vice president, environment, health, safety and corporate responsibility in 2018.

As MRC informed earlier, Chemours will close its aniline and nitrobenzene site in Pascagoula, Mississippi state, by the end of the year. The First Chemical site produces aniline, nitrobenzene and nonylated diphenylamine (NDPA) lubricant antioxidant.The company has decided to exit the business and cease production at the site. Chemours said it was reviewing options for productive reuse of the site. Aniline is used to make polyurethanes, dyes and rubber chemicals among other products.

As MRC informed before, in December 2019, Chemours announced plans to sell its methylamines and methylamides unit to Belle Chemical, an affiliate of Cornerstone Chemical. The sales price was not disclosed. Thus, Chemours had signed a letter of commitment with Belle Chemical Co. to sell Chemours' methylamines and methylamides business and production facilities at the Belle location. Earlier in 2019, Chemours announced it would stop making methylamines and methylamides at the plant. In 2020, it planned to start dismantling the methylamines operations. Once Belle takes possession of the plant, most of the employees at Belle and others assigned in supporting roles at other locations will become part of Belle, Chemours said. Cornerstone makes acrylonitrile (ACN) and melamine at Fortier, Louisiana.

ACN is a feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to the ICIS-MRC Price Report, Plastik (Uzlovaya) increased the cost of ABS for Russian converters for the second half of March. So, unpainted material is offered by the plant at a price of Rb282,000-290,000/tonne, FCA Nodal, VAT included.

Chemours is a global leader in titanium technologies, fluoroproducts and chemical solutions, providing its customers in a wide range of industries with market-defining products, application expertise and chemistry-based innovations. Chemours ingredients are found in plastics and coatings, refrigeration and air conditioning, mining and oil refining operations and general industrial manufacturing. Chemours has approximately 9,000 employees across 37 manufacturing sites serving more than 5,000 customers in North America, Latin America, Asia-Pacific and Europe. Chemours is headquartered in Wilmington, Del.
MRC

Alpek reported higher sales in Q1

MOSCOW (MRC) -- Alpek swung to a Q1 net income because of higher sales, and it raised its guidance for 2021, said the company.

The following shows the company's financial performance. Figures are in millions of pesos. During the quarter, Alpek's plants operated without interruption, allowing them to capitalise on the disruption caused by winter storm Uri.

In addition, Alpek was able to sell natural gas. The following shows the financial performance of the company's Polyester segment.

During the first quarter, Asian integrated reference margins for polyester rose to an average of USD330/tonne, up 36% from the fourth quarter of 2020. The increase exceeded Alpek's forecast of USD245/tonne.

The polyester segment produces purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester fibres.

As per MRC, Nova Chemicals (Calgary, Alberta, Canada) has agreed to sell its expandable styrenics business to a subsidiary of Alpek (Monterrey, Mexico) for an undisclosed sum. The transaction is expected to close in the fourth quarter, it says. The sale encompasses Nova’s expandable polystyrene (EPS) and Arcel-brand resin product lines, with manufacturing facilities in Monaca, Pennsylvania, and Painesville, Ohio, as well as commercial operations in Asia, it says. The plant at Monaca has an EPS production capacity of 123,000 metric tons/year, with 36,000 metric tons/year of capacity for Arcel, as well as an R&D pilot plant. The facility at Painesville has an EPS capacity of 45,000 metric tons/year, according to Alpek subsidiary Styropek, which is acquiring Nova’s business.

According to ICIS-MRC Price Report, Russian HIPS and GPPS producers traditionally did not adjust their prices of material in the middle of the month. A shortage of Nizhnekamskneftekhim's material remained in the domestic market. The situation with the shortage of Russian polystyrene (PS) is also expected to remain in November.

Alpek operates two main business segments, focused on polyester, and plastics and chemicals, and is a leading producer of purified terephthalic acid (PTA) and polyethylene terephthalate (PET). It is also the largest EPS manufacturer in the Americas.
MRC

February crude exports drop from Saudi Arabia to eight-month low

MOSCOW (MRC) -- Saudi Arabia's crude oil exports fell to their lowest in eight months in February, the Joint Organizations Data Initiative (JODI) said on Monday, as the world's biggest oil exporter voluntarily capped output to support oil prices, said Hydrocarbonprocessing.

Crude exports fell to 5.625 million barrels per day (bpd), their lowest since June 2020 in February, from 6.582 million bpd in the prior month. Exports had risen for a seventh straight month, to their highest since April 2020, in January.

Crude output for February also dropped to its lowest since June last year at 8.147 million bpd, from 9.103 million bpd in January. Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC) and allies, voluntarily cut output by 1 million bpd in February, March and April as part of a deal with OPEC+ producers after new virus variants cast doubts over fuel demand.

Total crude and oil products exports fell to 6.86 million bpd in February from 7.75 million bpd a month earlier. The country's domestic refinery crude throughput fell to 2.281 million bpd, while crude stocks fell to 134.575 million barrels in February.

Exports of oil products rose to 1.23 million bpd in February and demand for oil products edged higher to 1.885 million bpd in the same period. Monthly export figures are provided by Riyadh and other OPEC members to JODI, which publishes them on its website.

As per MRC, China’s daily refinery throughput surged 19.7% in March from a year earlier, as refiners ramped up operations to meet robust fuel demand and to build up inventory before shutting down for overhaul. China processed 59.79 million tons of crude oil last month, data issued by the National Bureau of Statistics (NBS) showed on Friday. That is equivalent to 14.08 million barrels per day (bpd), easing off 14.13 million bpd averaged in the first two months. The strong year-on-year growth was in part due to a low base a year earlier when Chinese fuel demand was badly hit by coronavirus that forced refineries to slash production.

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

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC

Eni has announced closure of cracking plant of the subsidiary Versalis in Porto Marghera

MOSCOW (MRC) -- There is more uncertainty over Versalis’ plans for its Porto Marghera, Italy cracker closure following local media reports that the company has taken the earlier declaration for a Spring 2022 stoppage, off the table, said the company.

The Venice bio-refinery is preparing to eliminate the use of palm oil in its production of biofuels. Recently, it submitted documentation to qualify for an environmental impact assessment to build new units that will upgrade the feedstock pretreatment system installed in June 2018, which allow for the treatment of crude vegetable oils, used plant-based cooking oils and used animal fats.

Currently, the systems in Porto Marghera are able to process about 7.5 tonnes of used cooking oil and animal fats per hour; with the construction of the new biomass treatment lines, the entire production capacity of the EcofiningTM plant will be fulfilled with biological materials from the waste and residue chains, expanding feedstock options beyond those incentivised by European and national standards, thus definitively eliminating palm oil from the production of biofuels.

Since 2014 Eni's Venice biorefinery has produced hydrogenated vegetable oil (HVO), which is added to diesel fuel to meet European and national regulatory requirements which state that an increasing proportion of fuels must be made from raw materials from renewable sources. In 2020, with an authorised capacity of 400,000 tonnes per year, it processed around 220,000 tonnes of raw materials, of which more than 25% consisted of used cooking oils, animal fats and other waste vegetable oils. From 2023 Eni will no longer use palm oil in its production processes.

As per MRC, Versalis S.p.A. (San Donato Milanese), the chemical company of Italian energy major Eni, has licensed to Enter Engineering Pte. Ltd. a Low-Density Polyethylene/Ethyl Vinyl Acetate (LDPE/EVA) swing unit to be built as part of a new Gas-to-Chemical Complex based on MTO-Methanol to Olefins technology to be located in the Karakul area in the Bukhara region of the Republic of Uzbekistan.

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, excluding producers' inventories as of 1 January, 2020).

Eni is an Italian multinational oil and gas company headquartered in Rome. It has operations in in 79 countries, and is currently Italy's largest industrial company. The Italian government owns a 30.3% golden share in the company, 3.93% held through the state Treasury and 26.37% held through the Cassa depositi e prestiti. Another 39.40% of the shares are held by BNP Paribas.
MRC