DSM completes sale of resins and functional materials business to Covestro

MOSCOW (MRC) -- DSM says it has completed the sale of the resins & functional materials businesses to Covestro for EUR1.6 billion (USD1.9 billion), including EUR1.4 billion in cash, as per the company's press release.

It included DSM Niaga, DSM additive manufacturing, and the coatings activities of the DSM advanced solar business, which together represented EUR1.01 billion of DSM’s 2019 total annual net sales and EUR133 million of DSM’s 2019 total EBITDA.

The deal was initially signed in September 2020 and remains subject to approval.

DSM expects to book a profit on the transaction of around EUR540 million.

Following analysis, Covestro expects permanent run rate synergy effects to build up to EUR120m/year from full integration by 2025, consisting of two-thirds cost and one-third revenue synergies.

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.

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 8,100 tonnes in January 2021, up by 20% year on year (6,800 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 2020 sales of EUR 10.7 billion, Covestro has 33 production sites worldwide and employs approximately 16,500 people (calculated as full-time equivalents).
MRC

MOSCOW (MRC) -- Chemical maker Dow Inc. is one of several industry firms involved in a new cross-border Canada-U.S. business group that’s developing a five-year plastics pollution plan for the Great Lakes, said Canplastics.

Founded by the Council of the Great Lakes Region (CGLR), the Circular Great Lakes is a new regional initiative focused on identifying projects to tackle plastic pollution in this region.

"Plastic waste and pollution are serious issues in the Great Lakes,” Mark Fisher, president and CEO of CGLR, said in a March 31 news release. “Circular Great Lakes will be the catalyst for identifying the transformational projects, forming the partnerships, and mobilizing the public-private sector investments required to ensure this valuable material never becomes waste in this region, North America’s economic engine."

Circular Great Lakes will work with partners including the Alliance to End Plastic Waste to develop a circular economy strategy for plastics in the region, setting the stage for targeted actions and partnerships over the next five years. “Priorities of the initiative include driving systemic changes necessary to close the loop for plastics in the region, shifting away from a linear, take-make-dispose economy, and materials management mindset,” the news release said.

In addition to Dow, founding corporate activation partners and funders of Circular Great Lakes include Charter Next Generation, Imperial, Pregis Corp., American Packaging Corp., and Rothmans Benson & Hedges.

As MRC informed earlier, Dow will spend approximately USD294 to install and operate air pollution control and monitoring technology at 4 US chemical facilities as part of a settlement with The Department of Justice (DOJ), the US Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ).

As per MRC, 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 the Federal State Statistics Service of the Russian Federation, mineral fertilizers accounted for the greatest increase in the January-February output. Production of benzene dropped to 113,000 tonnes in February 2021, compared to 120,000 tonnes a month earlier. Overall output of this product reached 241,000 tonnes over the stated period, down by 7.5% year on year.
MRC

MOSCOW (MRC) - The Ecopet plant (Kaliningrad) has increased the volume of exports of polyethylene terephthalate (PET) compared to 2019 to 21%, despite the situation due to the COVID-19 pandemic and the slowdown in economic growth, Business Russia reported.

The plant produces 690 tonnes of PET per day, increasing productivity during a pandemic by 4.5%. The company's export destinations are spread all over the world and include the USA, Ukraine, Tajikistan, Serbia, Germany, Poland, Slovakia, Holland, Kenya, Cyprus and other countries.

Earlier it was reported that Ecopet has developed a new brand of polyethylene terephthalate (PET). Thus, Ecopet notes that it is developing promising directions and has released a new brand of polyethylene terephthalate - Ekopet 64 FG, which is suitable for the manufacture of BOPET films and can be used in the production of polyester fibers, from which, in turn, nonwoven materials for technical purposes are obtained.

According to the ICIS-MRC Price Report, tensions on the Russian PET market continue in early April. The deficit in the spot market for granules will remain in the current month. Producer Senezh reported no free material on the spot in April. Ecopet plant also noted the absence of spot volumes of granulate in the current month.

Ecopet JSC is the largest producer of polyethylene terephthalate in Russia and Eastern Europe. PET of the Ekopet trademark is intended for the production of food containers and packaging, various products for technical and household purposes. The construction of the enterprise began in 2007 with an initial design capacity for the production of polyethylene terephthalate (PET) equal to 220 thousand tons per year, and in February 2011 the plant was put into operation, the first batch of PET brand Ekopet was produced. In 2018, the plant reached its full production capacity, which now amounts to more than 660 tons of products per day or 240 thousand tons per year.
MRC

MOSCOW (MRC) - Ecopet plant (Kaliningrad) has developed a new brand of polyethylene terephthalate (PET), the company said.

Thus, Ecopet notes that it is developing promising directions and has released a new brand of polyethylene terephthalate - Ekopet 64 FG, which is suitable for the manufacture of BOPET films and can be used in the production of polyester fibers, from which, in turn, nonwoven materials for technical purposes are obtained.

Also, in June 2020, the company passed the product certification procedure at the Russian Export Center and received the Made in Russia label. This increases the recognition of domestic products in foreign markets, and also confirms their quality, safety and environmental friendliness.

According to the ICIS-MRC Price Report, tensions on the Russian PET market continue in early April. The deficit in the spot market for granules will remain in the current month. Producer Senezh reported no free material on the spot in April. Ecopet plant also noted the absence of spot volumes of granulate in the current month.

Ecopet JSC is the largest producer of polyethylene terephthalate in Russia and Eastern Europe. PET of the Ekopet trademark is intended for the production of food containers and packaging, various products for technical and household purposes. The construction of the enterprise began in 2007 with an initial design capacity for the production of polyethylene terephthalate (PET) equal to 220 thousand tons per year, and in February 2011 the plant was put into operation, the first batch of PET brand Ekopet was produced. In 2018, the plant reached its full production capacity, which now amounts to more than 660 tons of products per day or 240 thousand tons per year.
MRC

MOSCOW (MRC) -- DSM is investing USD100 mln to back the launch of Hologram Sciences (Chicago, Illinois), a consumer-facing health technology company, said the company.

Royal DSM, a global science-based company in nutrition, health and sustainable living, announced the launch of Hologram Sciences, a consumer-facing company that will create brands targeting various health conditions. By combining health diagnostics, digital coaching and personalized nutrition, Hologram Sciences brands will provide consumers with more holistic solutions to manage their health. The mission-driven company combines top Silicon Valley talent, formerly of Uber, Fitbit and Facebook.

Hologram Sciences is backed with a USD100 million investment by Royal DSM, which has made personalized nutrition a key pillar in its nutrition strategy, allowing the company to combine a range of capabilities and resources to cover the entire personalized nutrition value chain all the way to the consumer. Hologram Sciences will provide state-of-the-art consumer-facing personalized nutrition solutions that have been clinically proven to address a variety of consumer health needs. As solutions are validated in-market, they will be available to DSM customers. Hologram will also work to incubate products with DSM customers and partners, based on the latest consumer insights and leveraging their agile approach.

As per MRC, DSM agreed another collaboration in 3D printing, coming after deal last week with US firm Nexa3D. The latest collaboration is with Nedcam, which originated as a spinoff from the Marine Research Institute Netherlands. Under that deal, Nedcam will offer “Fused Granulate Fabrication” (FGF) 3D printing, using DSM materials. The partners will also explore new applications in tooling, large-size and circular end-use parts.

As per MRC, 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 the Federal State Statistics Service of the Russian Federation, mineral fertilizers accounted for the greatest increase in the January-February output. Production of benzene dropped to 113,000 tonnes in February 2021, compared to 120,000 tonnes a month earlier. Overall output of this product reached 241,000 tonnes over the stated period, down by 7.5% year on year.
MRC