SABIC selects HSBC and Morgan Stanley to work on its specialty chemicals unit IPO

MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm, has selected HSBC and Morgan Stanley to work on the planned initial public offering (IPO) of its specialty chemicals business, reported ArabNews with reference to two sources familiar with the matter.

SABIC hired Saudi investment bank NCB Capital earlier this year to work on the public share sale, which sources said could raise several hundred million dollars.

The specialty chemicals business brings in about USD2 billion in sales each year for SABIC, which is controlled by state oil company Aramco, one of the sources, and a third source, said. The unit produces speciality engineering thermoplastic resins and compounds, composites, thermosets and additives, according to its website.

The country had a flurry of public offerings last year as companies tap into Saudi demand for shares since oil giant Aramco’s record IPO in 2019. Saudi Arabia is encouraging more companies to list in a bid to deepen its capital markets under reforms aimed at reducing its reliance on oil.

As MRC informed earlier, SABIC, a global leader in the chemical industry, is looking at converting plastic waste into a form of oil as part of its circular economy push and also plans to establish its first chemical recycling project after signing an initial agreement with Saudi Investment Recycling Company (SIRC), a unit of the Public Investment Fund.

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.

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.
MRC

MOSCOW (MRC) -- Clariant’s Additives business continues to step up support for the needs of China’s growth industries, with new top-class facilities to foster R&D and joint application technology developments at the One Clariant Campus (OCC), as per the company's press release.

Ahead of Chinaplas 2021, Clariant shares a taster of bio-based additives available to advance resource-efficient innovation in local market segments, highlights from its new sustainable solutions set for their regional debut.

The new Additives’ R&D Center will be integrated in the new Clariant Innovation Center China in Shanghai. It aims to bring faster lead times and more speed in development efforts for various application sectors including E&E, 5G, automotive, packaging, fibers & films, adhesives, coatings and inks. Supplementing Clariant’s additives’ production facilities in China, the R&D Center will offer customers unique, from-the-ground-up opportunities for joint development and application testing, at every step of the value chain. From polymerization to compounding and conversion, all the way to performance testing.

Located right in the main markets for Polyamide (PA), Polyester (PET) fibers, engineering thermoplastics & thermosets, and increasingly biopolymers, the new facility will feature a state-of-the-art plastics processing and testing laboratory equipped with related technologies such as for polycondensation, compounding, spinning, injection molding and foaming, and establish a broad range of relevant testing and analytical capabilities.

To support local manufacturers, Clariant has successfully introduced solutions from its AddWorks PKG series in China to further improve the inherent properties of polyolefins for the packaging of highly demanding new applications. This includes AddWorks PKG 113, designed for high speed Cast Polypropylene (CPP) and Biaxially Oriented Polypropylene (BOPP) resins providing excellent polymer melt protection and high film productivity, and AddWorks PKG 171 designed for vis-broken PP and for low discoloration PP applications. Both products will feature at Chinaplas 2021 alongside more new sustainable additive solutions for key market segments.

EcoCircle supports the transition from a one-way plastics value chain to a circular plastics economy by going beyond a simple product focus, looking at the entire value chain, and identifying the most sustainable and viable solutions. This includes the development of sustainable solutions for mechanical recycling and the use of certified renewable raw materials to produce high-performance additives. Qualifying products carry a designator based on their mass-balance or real renewable carbon content to help manufacturers identify products with key advantages. Among others, this includes Terra for products with a high renewable content, minumum 50% Renewable Carbon Index (RCI) based on mass balance certification or real renewable content; and VITA for products from natural origin with at least 98% RCI real renewable content.

New for the chinese market is the Exolit OP Terra range, renewable-based halogen-free flame retardants. A like-for-like drop in alternative to Clariant’s fossil based Exolit OP products, they achieve UL 94 V-0 rating with stable flame retardancy even after multiple recycling processes. Application areas include electronic and electrical equipment, and automotive components.

Licocare RBW VITA will also be presented to customers in China for the first time. Clariant’s fully sustainable, practically 100% renewable, non-food competing bio-additives solutions offer multiple processing and end-product enhancements to biopolymers, such as Polylactic Acid (PLA). And in doing so, Licocare RBW VITA opens up opportunities for brands to consider biopolymers as a viable, low carbon footprint alternative to fossil based-plastics. Clariant also introduces Licocare RBW 330 VITA, a new renewable-based solution that nucleates polyamides, reducing the cooling time and shrink/warp, yielding faster cycles, and leading to better molding costs.

As MRC reported earlier, in October 2020, Clariant 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.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

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) -- Aruba's state-owned refining company Refineria di Aruba (RdA) plans to sign a deal with Houston-based Eagle LNG Partners to build an LNG import terminal on the site of its idled refinery as soon as next month, said Hydrocarbonprocessing.

The terminal would allow Eagle to supply the Dutch Caribbean island's power company with natural gas, replacing high-sulfur fuel oil as the country's main fuel for generation, Reynold Arends said in a recent interview at RdA's headquarters in the town of San Nicolas at Aruba's southeastern tip.

Aruba has been seeking new partners for the 235,000 barrel-per-day refinery, which has been largely idled since 2012. Last year, U.S. refiner Citgo Petroleum Corp PDVSAC.UL - a unit of Venezuelan state oil company Petroleos de Venezuela PDVSA.UL - handed control of the site back to the government after abandoning an ambitious USD1.1 billion refurbishment plan.

RdA is also in talks with a consortium led by San Jose-based Quanten Llc over a USD3.5 billion plan to restart the refinery itself. Quanten's chief executive, Jeff Meyers, said in a recent interview alongside Arends the group would be ready to begin demolition in August and make the refinery fully operational within three years.

Quanten specializes in electrical services for large projects. Meyers said the consortium also includes KBR Inc KBR.N, energy services provider McDermott International Ltd MCDIF.PK and technology company Cisco Systems Inc CSCO.O. Those three companies did not respond to requests for comment. Gas imported by Eagle could also power the refinery, Arends said, and Eagle is considering using Aruba as a hub to export LNG elsewhere in the Caribbean region.

Eagle spokeswoman Linda Berndt said the company "continues to work with RdA and appreciates their support toward ultimate completion of the project."

As per MRC, U.S. refiner Citgo reached an agreement with Aruba to transfer control of the San Nicolas refinery to the island’s government, Citgo said, after the two parties last year suspended a contract to overhaul the facility. Citgo, a unit of Venezuelan state oil company Petroleos de Venezuela PDVSA.UL, has been under the control of the South American country’s opposition for more than a year after Washington slapped sanctions on PDVSA in a bid to oust socialist President Nicolas Maduro.

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

According to MRC's ScanPlast report, Russia"s estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- Saudi Industrial Investment Group (SIIG) and National Petrochemical Co. (Petrochem) decided to commence reciprocal due diligence on merger following the completion of the initial economic feasibility study, the companies said in separate statements to Tadawul on April 15, 2021, said Argaam.

The companies will also negotiate the terms and conditions and share information regarding the proposed transaction. SIIG appointed HSBC Saudi Arabia as financial advisor and Khoshaim & Associates as legal advisor concerning the proposed transaction.

On the other hand, Petrochem appointed GIB Capital as financial advisor and Abuhimed Alsheikh Alhagbani Law Firm as legal advisor. The companies aim to meet the requirements of the proposed merger before year-end, as well as present the proposed deal to their respective shareholders under applicable laws and regulations. The completion of the proposed merger is subject to several conditions, including obtaining approvals from the competent authorities.

SIIG and Petrochem are under no obligation to proceed with the proposed transaction, the statement noted. Therefore, the commencement of due diligence does not necessarily mean that the parties will reach a final and binding agreement or complete the proposed deal.

It is not possible to determine the event’s expected completion date and associated costs as it is subject to discussions between the companies and the due diligence results, the statements stated, adding any material developments will be disclosed in due course.

SIIG owns 50% of Petrochem. In September 2020, SIIG and Petrochem received approval from their respective boards to start initial discussions to study the economic feasibility of a merger.

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

According to MRC's ScanPlast report, Russia"s estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC

MOSCOW (MRC) -- South Korea's S-Oil has made an equity investment in a next-generation fuel cell company in a move to enter the hydrogen business, according to BusinessKorea.

Thus, S-Oil has acquired a 20% stake in Fuel Cell Innovations (FCI), a company that provides clean energy solutions based on fuel cells.

With the investment, S-Oil became the largest Korean shareholder of FCI, a Korea-Saudi Arabia joint venture. S-OIL is planning to promote the hydrogen business by forging a strategic partnership with FCI.

FCI has about 40 patents on solid oxide fuel cells (SOFCs). It has been cooperating with various companies and research institutes, including Solid Power, an Italian fuel cell company with which it cooperated to develop products suitable for the Korean and foreign markets.

FCI will invest 100 billion won by 2027 to expand its business areas into green hydrogen and set up production facilities with a capacity exceeding 100MW.

S-Oil is studying ways to cooperate when FCI enters overseas fuel cell markets such as the Middle East. S-Oil is also studying ways to enter the entire value chain of the hydrogen industry from hydrogen production to distribution and sales. In cooperation with Aramco, its largest shareholder, the company is considering launching businesses based on green hydrogen and ammonia and liquefied hydrogen production and distribution businesses.

As MRC reported earlier, S-Oil, South Korean petrochemical major, took off-stream its residue fluid catalytic cracker (RFCC) unit for a turnaround in June, 2020. The company undertook a planned shutdown at the unit by early-July, 2020. The unit remained off-line for about two weeks. Located at Onsan, South Korea, the RFCC unit has a propylene capacity of 705,000 mt/year.

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

According to MRC's ScanPlast report, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
MRC