ALPLA acquires packaging manufacturer Wolf Plastics

MOSCOW (MRC) -- Packaging supplier ALPLA Group is purchasing the Wolf Plastics Group for an undisclosed amount in a move to expand the company's product portfolio in Central and Southeastern Europe, according to Canadian Plastics.

Headquartered in Kammern, Austria, Wolf also has production facilities in Hungary and Romania.

The Austrian and Romanian competition authorities are currently examining the proposal, Alpla officials said in a news release.

Closure of the deal is subject to regulatory approval.

Wolf was founded in 1973, and supplies SMEs and international key accounts in the construction, chemical and food industries with buckets, canisters and bottles sectors. It currently employs about 210 workers at its three sites.

As MRC wrote previously, the ALPLA Group is investing more than EUR5m in an extrusion system for food-grade recycled polyethylene terephthalate (PET) made of used PET bottles at its site in Anagni, Italy.

According to MRC's ScanPlast report, Russia's estimated PET consumption totalled 411,200 tonnes in the first six month of 2021, up by 12% year on year. Russian companies processed 62,910 tonnes in June, compared to 85,890 tonnes a month earlier.

Headquartered in Hard, Austria, Alpla specializes in blow molded bottles and caps, injection molded parts, and preforms and tubes.
MRC

MOSCOW (MRC) -- Crude oil futures were higher in mid-morning trade in Asia Aug. 23 amid bargain hunting by investors after the rout in oil prices last week, with analysts noting the demand outlook remained optimistic as the West refrains from overly-strict restrictions to curb delta variant outbreaks, reported S&P Global.

At 10:58 am Singapore time (0258 GMT), the ICE October Brent futures contract was up 87 cents/b (1.33%) from the previous close at USD66.05/b, while the NYMEX October light sweet crude contract was 74 cents/b (1.19%) higher at USD62.87/b.

"Risk assets appear to have caught a strong bid this morning after last week's hammering and that's lifting crude, too," said Vandana Hari of Vanda Insights.

"Sentiment in the financial markets is tentatively turning upbeat on expectations that the US Fed may be willing to defer its tapering of asset purchases in view of the delta wave slowing economic growth," she added.

Both oil benchmarks last week posted their steepest declines since October last year as growing clusters of delta variant outbreaks globally and a strengthening US dollar threw off a recovery in global oil demand. Both benchmarks settled lower on the week by 7.66%-8.94%.

Nonetheless, some bright spots appeared amid the fresh wave of pandemic outbreaks worldwide.

Daily case numbers in China have fallen to single-digit figures in recent days in a sign that the government has brought the outbreak under control. The country most recently reported only four locally transmitted cases as of Aug. 21, according to the National Health Commission, down from 108 cases Aug. 10.

Cases in the US meanwhile have continued to climb, with the US Centers for Disease Control and Prevention reporting 157,450 cases Aug. 20 and a seven-day moving average of 137,188.

However, analysts at ANZ Research noted that ongoing vaccination drives in Europe and the US have limited the scale of restrictions in both regions despite rising caseloads.

"This has seen demand remain robust as mobility continues to improve. Overall, this should keep the market tight," the analysts said in a note.

Investors will be watching the Jackson Hole Symposium set to start Aug. 26 for cues on the US Federal Reserve's pace of tapering its massive bond buying program, which in turn will influence the strength of the dollar. The OPEC+ alliance is also set to hold its own meeting Sept. 1 to review policy, with some market sources expecting the group to hold off on easing supply in the wake of the recent resurgence in COVID-19.

As MRC informed previously, crude oil stockpiles fell modestly in early August, while gasoline inventories dipped to their lowest level since November, according to the US Energy Information Administration. Crude inventories fell by 447,000 barrels in the week to Aug. 6 to 438.8 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel drop. Overall crude inventories have been on the decline for several weeks due to increased demand.

We remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

MOSCOW (MRC) -- Evonik is extending its corporate venture capital activities in China with investments into GRC SinoGreen Fund V and Richland VC Fund III, as per the company's press release.

The two leading funds focus on advanced materials, high-end manufacturing equipment, digital transformation, and green technologies. They will strengthen Evonik’s activities in the region and will provide access to attractive technologies and business opportunities. Parties have agreed to not disclose the amount of the investment.

“China is one of the world’s fastest growing innovation leaders and therefore an attractive market for venture capital,” said Bernhard Mohr, head of Evonik Venture Capital. “By partnering with funds that have deep understanding of the innovation ecosystem in China and broad networks with local start-ups, Evonik is able to gain rapid access to new technologies and attractive business opportunities at an early stage.”

The Chinese venture capital fund GRC invests in material-focused green technology companies in China. GRC SinoGreen Fund V intends to focus on areas of circular economy, synthetic biology, 3D printing, battery materials and carbon materials. The investment marks a follow-up to Evonik’s participation in 2015 in the third fund of GRC (GRC SinoGreen Fund III).

Richland Capital invests in advanced materials and pays attention to new technologies such as advanced manufacturing equipment and digital technology. Therefore, it has set its investments focus on the value chain of materials, equipment and data, targeting strategic industries such as pan-semiconductor, e-mobility, digital manufacturing, 5G and alternative energy.

Evonik is a well-known corporate venture capital partner in China with a local presence since 2018 and several fund and direct investments over the years. The Venture Capital arm plays a strategic role in Evonik’s goal to become a best-in-class specialty chemicals company, by investing in innovative technologies and disruptive business models as well as enabling digital technologies.

As MRC reported earlier, in February, 2020, Dow and Evonik entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

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

According to MRC's ScanPlast report, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 33,000 employees.
MRC

MOSCOW (MRC) -- U.S. energy companies are moving to require that employees receive COVID-19 vaccinations as infection rates rise across the United States and energy workers, according to health surveys, remain among those most reluctant to get inoculations, said Hydrocarbonprocessing.

Calls to require vaccinations for employees who work closely together in oilfield and refinery operations come as the U.S. Food and Drug Administration on Monday fully approved the Pfizer-BioNTech shot. The second-largest U.S. oil producer, Chevron Corp, and refiner Valero Energy Corp will require jabs for certain field workers or new workers. Top oilfield services firm Schlumberger said last week some customers are requesting that its staff be vaccinated or tested before arriving on job sites.

"We continuously review our internal policies and procedures to ensure that we can meet our customers’ needs while prioritizing the health and safety of all our employees," a Schlumberger spokeswoman said in an email. San Antonio-based Valero this month became the first U.S. refiner to require vaccinations as a condition of employment for new workers at Texas and Louisiana oil refineries.

Oil producer Hess also said it will require workers at its U.S. Gulf of Mexico operations to be fully vaccinated by Nov. 1. In a statement, the company pointed to the "highly infectious nature" of the Delta variant and rising number of COVID-19 cases in the United States.

Energy and construction workers have some of the lowest vaccine uptake rates, according to an online survey led by Wendy King, an associate epidemiology professor at the University of Pittsburgh Graduate School of Public Health. Some 45% of extraction and construction workers said they were hesitant to get the vaccine, versus just 7.3% in the computer and mathematical professions, the May survey showed.

Chevron's mandate will cover offshore workers in the Gulf of Mexico, some onshore support staff, expatriates and employees who travel internationally, a spokeswoman said in an email. Earlier this month, Chevron postponed a full return of employees in California and Texas to offices because of a resurgence in coronavirus cases related to the fast-spreading Delta variant.

As per MRC, Chevron and other partners said they are investing in a startup to build modular waste-to-green hydrogen and renewable synthetic fuel facilities in northern California with tentative plans to eventually grow worldwide. The USD20 million investment in Wyoming-based Raven SR is focused on technology to develop combustion-free, green hydrogen for transportation that is cleaner than so-called blue hydrogen derived from natural gas.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

MOSCOW (MRC) -- Funds advised by SK Capital Partners, LP, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, today announced the acquisition of the Monomers, Polymers and European businesses of Deltech Holdings, LLC, said the company.

SK Capital has acquired a majority interest in the Baton Rouge, Louisiana-based business. Bob Elefante, one of Deltech’s original founders and current President and CEO, is retaining a significant ownership stake in the Company and will remain actively involved in the business, including serving on the Board of Directors.

"Deltech is a world leader in the production of high-performance aromatic monomers and specialized crystal polystyrene,” said Mario Toukan, a Managing Director at SK Capital. “Deltech offers an attractive product portfolio with leading market positions in niche technologies. Their portfolio includes vinyl toluene (VT), divinyl benzene (DVB) and para methyl styrene (PMS), in addition to their specialty crystal polystyrene. Deltech’s products deliver critical attributes to products across a diverse set of end markets, including coatings and adhesives resins, ion exchange resins, insulation and molded composites, to name a few."

Bob Elefante stated, "SK Capital is the ideal partner given its track record of successfully supporting the growth of entrepreneur-owned businesses in the specialty chemicals industry. We have a shared vision for the future of Deltech, built upon the Company’s unique product portfolio and long-term commitment to serving our customers."

"Deltech’s superior service and delivery, combined with their high-performance products, have made the Company a preferred supplier to key global customers," added Jonathan Borell, a Managing Director at SK Capital. "Their knowledge of specialty monomers manufacturing and applications is unmatched. We look forward to partnering with Bob and the Deltech management team to expand the commercial applications for their highly specialized monomers and polymers."

Deltech employs 135 people across its Baton Rouge headquarters and manufacturing facility, its additional manufacturing facilities in Troy, Ohio and Haverhill, United Kingdom, and its global field operations.

As per MRC, SK Capital Partners, LP, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, has completed its previously announced acquisition of Ipackchem Group SAS, a leader in sustainability-oriented barrier packaging.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.


SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. The firm seeks to build strong and growing businesses that create substantial long-term value. SK Capital aims to utilize its industry, operating and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth and profitability, as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $11 billion annually, employs more than 16,000 people globally and operates 153 plants in 28 countries. The firm currently has greater than USD5 billion of assets under management.
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