LG Chem to invest 10 trillion Korean won by 2025 for eco-friendly materials

MOSCOW (MRC) -- Shin Hak-chul, vice chairman of LG Chem, announced a large-scale investment plan worth 10 trillion Korean won in sustainable growth based on ESG, said Koreaittimes.

At a press conference held online on July 14, Vice Chairman Shin said that he plans to invest 10 trillion won by 2025, selecting eco-friendly sustainability business, battery-oriented e-Mobility, and develop new global innovation medicine. "Now, the criteria for measuring competitiveness in the business world should be based on 'Sustainability' in sales and operating profit," said Vice Chairman Shin. "This should be reflected in all business processes, strategies, investments, etc. From this perspective, we will innovate our business portfolio based on ESG and pursue sustainable growth."

Based on ESG, LG Chem selected three new growth engines to maximize growth potential of current businesses. The three new growth engines are bio materials, recycling, and renewable energy industrial materials, which will be invested 3 trillion Korean won in Sustainability businesses to foster them as future growth pillars of the petrochemical business.

LG Chem is planning to start full-scale production of the world's first Bio-balanced SAP product certified by ISCC Plus starting this month and supply it to global customers such as the U.S. and Europe. Bio-balanced SAP is an eco-friendly product that uses plant bio-renewable raw materials such as waste oil from Neste, Finland, and fossil fuels as basic raw materials.

As the bio-plastic market is expected to grow rapidly from 12 trillion Korean won in 2020 to 31 trillion Korean won in 2025, the company is also pushing for joint venture with Korean and foreign raw material companies to secure eco-friendly materials stably.

LG Chemicals is going to establish an eco-platform that provides eco-friendly packaging solutions and a virtuous cycle of plastic resources for cosmetics containers starting from the second half of this year. It is also pushing for joint research to apply recycled plastic materials such as Post Consumer Recycling (PCR) ABS to cosmetics containers.

The company is also planning to actively explore new business opportunities in markets for renewable energy industries such as POE/EVA for solar panels. To become the world's No. 1 comprehensive battery material company, it is planning to invest 6 trillion Korean won and foster a wide portfolio of products.

In the field of cathode materials business, it plans to start construction of a 60,000-ton Gumi plant annually in December this year with the aim of becoming a global leading company. The Life Science Business Headquarters will invest more than 1 trillion Korean won in the new medicine business with the goal of becoming a global medicine company with more than two innovative new medicines by 2030.

As it was said earlier, LG Chem announced on April 19 that it has obtained International Sustainability and Carbon Certification (ISCC) Plus certification for Bio-balanced products that were made from renewable plant materials such as waste oil and palm oil.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- Basic Chemical Industries (BCI) has signed a non-binding letter of intent with Union Chlorine's owners to acquire 49% of that company's ownership, said Argaam.

According to Arabiya Net, BCI said in a statement that Union Chlorine is a manufacturer of chlor-alkali based in the United Arab Emirates - Abu Dhabi.It added that it had signed a letter of intent with the companies owning Union Chlorine, namely Oman Chlorine, Horizon Energy, MS Union Chlorine and the Oman Industrial Development Company.

It clarified that the purpose of the letter of intent was to facilitate discussions and reach a final agreement to acquire 49% of the ownership of Union Chlorine for Basic Chemical Industries. Basic Chemical Industries said it would conduct due diligence to determine the financial impact of the acquisition on Basic Chemicals.

The deal aims to diversify BIC's product and market base by adding the UAE as a production market, and accessing Union Chlorine's extensive export base.It also aims to increase the productivity of BCI's core products such as caustic soda and hydrochloric acid, as well as add a new product calcium chloride to BCI's portfolio.

As per MRC, chlorine production in Europe increased 3.3% year on year (YOY) in January to 855,883 metric tons, with the average daily rate of 27,609 metric tons also rising 6% month on month from December’s daily rate of 26,045 metric tons, or 807,438 metric tons in total. It is the fourth consecutive monthly rise YOY in output, and the highest monthly total for two years, according to data from Euro Chlor, the European chlor-alkali industry association.

As per MRC ScanPlast, Russia's overall calculated consumption of caustic soda totalled 431,400 tonnes in January-May 2020. Demand for caustic this year increased by 7% compared with the same period last year (403,200 tonnes). Russia's imports of solid caustic soda have grown by 84% and reached 16,800 tonnes in the first five months of 2020 against 9,100 tonnes a year earlier.

MRC

MOSCOW (MRC) -- Polypropylene (PP) imports into the Ukrainian market totalled 59,500 tonnes in the first half of 2021, down by 3% year on year. Homopolymer of propylene (homopolymer PP) accounted for the main decrease in imports, according to MRC's DataScope report.

June PP imports to Ukraine dropped to 9,800 tonnes from 10,100 tonnes a month earlier, local companies significantly reduced their purchases of propylene copolymers in Europe due to a record high level of export prices. Overall imports of propylene polymers reached 59,500 tonnes in January-June 2021, compared to 61,100 tonnes a year earlier. At the same time, imports of propylene copolymers increased, whereas imports of homopolymer PP decreased substantially.

The supply structure by PP grades looked the following way over the stated period.

In the fist month of summer, imports of homopolymer PP to the Ukrainian market exceeded 7,500 tonnes due to a major increase in shipments from China, whereas this figure was at 6,600 tonnes in May. Thus, overall homopolymer PP imports reached 44,100 tonnes in the first six months of 2021, down by 8% year on year.

Last month's imports of block copolymers of propylene (PP block copolymers) were 800 tonnes, compared to 1,400 tonnes in May, shipments of injection moulding PP block copolymers from Saudi Arabia were completely ceased. 5,900 tonnes of PP block copolymers were imported in the first half of 2021, compared to 5,700 tonnes a year earlier.

June imports of statistical copolymers of propylene (PP random copolymers) decreased to 1,100 tonnes from 1,800 tonnes a month earlier, deliveries of pipe grade PP were reduced. Overall imports of PP random copolymer reached 7,800 tonnes in the first six months of 2021 versus 6,500 tonnes a year earlier.

Overall imports of other propylene copolymers totalled slightly over 1,800 tonnes over the stated period.

MRC

MOSCOW (MRC) -- The Federal Antimonopoly Service (FAS) has satisfied the petition of SIBUR, the largest petrochemical holding in Russia and Eastern Europe, to acquire 100% of the voting shares of TAIF holding, reported Vedomosti, citing the regulator's media service.

The company's business merger was announced earlier, on 23 April. The FAS believes that such a decision will "strengthen Russia's position as a non-resource exporter with full satisfaction of the interests of the domestic market," according to the ministry's message.

At the same time, the regulator issued an order to SIBUR on the fulfillment of a number of mandatory conditions for the transaction. Thus, the holding will have to meet the needs of the domestic market with its products. For example, the company will be able to process liquefied petroleum gas only partially, since in unprocessed form this type of raw material is used as fuel, partially for the needs of housing and communal services.

By the end of this year, SIBUR will have to submit to the FAS its draft trade policy for consideration, which will present a scheme for the sale of all goods produced by the company with a share of more than 50% in the Russian commodity market. In the same document, provisions will be enshrined that guarantee the protection of the rights of potential counterparties of the holding, which cannot be infringed upon, also through the creation of discriminatory or imposition of unfavourable conditions.

It is clarified that SIBUR will not be able to refuse to conclude supply contracts in Russia without economic or technological reasons. In addition, the company will be obliged to sell products under direct long-term contracts, given the possibility of efficient delivery of goods to the consumer, the FAS noted.

As MRC reported earlier, in April 2021, SIBUR Holding and TAIF announced the start of the merger of the oil and gas chemical businesses of the companies. As part of the merger, a company will be created on the basis of SIBUR Holding PJSC, in which the existing shareholders of TAIF will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises. The remaining stake in TAIF can be subsequently purchased by the merged company.

The combined group's overall capacities of eight base polymers will be at 5.7 million tonnes, or 70.7% of those operating in Russia. Today, SIBUR's capacity for base polymers is almost twice that of TAIF. SIBUR's eight production sites have a capacity of 3.9 million tons and TAIF has two plants (Kazanorgsintez and Nizhnekamskneftekhim) with a total capacity of 2.2 million tons.

As a result of the merger, the total capacity share of the new SIBUR-TAIF group will be 100% for the production of linear low density polyethylene (LLDPE), 87.4% - for polypropylene (PP), 80.8% - for high density polyethylene (HDPE) and 59.3% - for low density polyethylene (LDPE).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

SIBUR manufactures and sells petrochemical products in the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.).

PSC "TAIF" was established in 1995 and is the parent company of the group with the same name, which includes enterprises structured in four business areas: oil and gas processing, chemistry and petrochemistry (energy); investment and financial services; building; telecommunications and complex services, including trade. TAIF Group of Companies is a large Russian holding that controls 96% of the chemical, petrochemical and oil and gas processing industries in Tatarstan. The most important of its areas is the Chemical, Petrochemical and Oil and Gas Processing Divisions, which include the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.
MRC

MOSCOW (MRC) -- German supermarkets Lidl and Kaufland’s own-branded non-reusable bottles are now made from 100% recycled polyethylene terephthalate (R-PET), removing 48,000 tonnes of new plastic from the market, said ESM.

Recently, all disposable PET deposit bottles produced by “Schwarz Produktion” for Lidl’s and Kaufland’s own brands in Germany have been made of 100 percent recycled plastic (rPET), excluding the cap and label.

Each of these new bottles at Lidl and Kaufland, which belong to the Schwarz Group, is produced entirely from old bottles. The Schwarz Group achieved this significant developmental step in PET recycling through high investments in the recyclable materials cycle, partly self-developed solutions and know-how built up over many years.

As early as 2008, Lidl took on a pioneering role in the circular economy with the development of the “Saskia” recyclable bottle. The retail division now offers around 60 types of beverages in non-refillable PET bottles made from 100 percent recycled material. Lidl customers can recognize the bottles by the “verantwortlicher verpackt”(more responsibly packaged) logo. Lidl is also focusing on sustainability in its marketing campaign with posters made from recycled material.

At the Kaufland retail division, the bottles of around 50 beverage varieties by the K-Classic private label are made from 100 percent rPET. These bottles are marked with the “bewusster verpackt” (more consciously packaged) logo.

By increasing rPET use to 100 percent for non-refillable PET bottles, the Schwarz Group will save a total of 48,000 tons of new plastic and 79,000 tons of CO2 in 2021 – compared to PET bottles without recyclate, the company says.

As per MRC, Delta-Pak company (Rossosh, Voronezh region) plans to organize the production of fully recyclable polymeric combined polyethylene film (Full-PE), which is used for a wide range of food and non-food products. The project meets the objectives of the national project "Ecology" and the achievement of national development goals to create a comfortable and safe environment for life. During the implementation of the project, eight highly productive jobs will be created.

As per MRC ScanPlast, total estimated PET consumption increased by 15% in May compared to the same indicator a year earlier and amounted to 85,850 tonnes. Total estimated consumption amounted to 349,940 tonnes of PET in January-May 2021 in Russia, up 22% year on year.
MRC