Arkema acquires Ashland’s performance adhesives

Arkema acquires Ashland’s performance adhesives

MOSCOW (MRC) -- Arkema is acquiring US-based Ashland's performance adhesives business in an all-cash USD1.65bn deal, said the company.

The transaction is expected to close by the end of this year. An agreement was signed today for the acquisition of Ashland’s Performance Adhesives business, a first-class leader in high performance adhesives for industrial applications in the United States with a unique and innovative product portfolio. This project is perfectly aligned with the Group’s ambition to become a pure Specialty Materials player by 2024.

"Following the recent divestment of PMMA and the start of the strategic review of Fluorogases, the acquisition of Ashland’s adhesives business is a fantastic opportunity to reinforce the Group’s presence in the US and to accelerate Bostik’s growth," the company said.

With estimated sales of around $360m and an estimated earnings before interest, tax, depreciation and amortisation (EBITDA) at around $95m in 2021, Ashland offers a portfolio of high performance adhesive solutions in high-value-added industrial applications, Arkema said.

Ashland’s Performance Adhesives business employs about 330 people and operates six production plants, mainly in north America.

As per MRC, Trinseo completed the EUR1.14 billion acquisition of Arkema's PMMA business in May. The EUR1.14 billion deal was announced in December and was expected to be completed by mid-2021. The company has seven PMMA plants, four in Europe and three in North America. Products are marketed under the Plexiglas brands in the Americas and Altuglas in the rest of the world. PMMA Manufacturing Arkema is an integrated business from methyl methacrylate (MMA) to PMMA, marketed under the Plexiglas brands in the Americas and Altuglas in the rest of the world.

The main sector consuming approximately 75% of MMA is the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's DataScope report, last month"s SPVC imports to Russia grew to 8,700 tonnes from 5,000 tonnes in June. Good seasonal demand and shutdowns for maintenance at two major Russian plants led to a surge in imports in July. Overall imports totalled 28,700 tonnes in the first seven months of 2021, compared to 27,900 tonnes a year earlier, with resin from China accounting for the main increase in imports.

Arkema is one of the world's leading chemical manufacturers headquartered in Colombes (near Paris, France). Founded in 2004 as a result of the restructuring of the French oil company Total, Arkema, with a turnover of EUR6.5 billion, has operations in 40 countries, 10 research centers around the world, and 85 plants in Europe, North America and Asia.
MRC

PE imports to Russia decreased by 13% in January-July

MOSCOW (MRC) - The imports of polyethylene (PE) to Russia decreased by 13% in January-July of this year and reached the level of 337,100 tonnes. The largest decrease in imports accounted for high-density polyethylene (HDPE), according to MRC's DataScope.

July PE imports exceeded 53,000 tonnes against 43,200 tonnes a month earlier, with HDPE and linear polyethylene (LLDPE) imports increased most of all. In general, the total volume of imports of ethylene polymers amounted to 337,100 tonnes for seven months of this year against 388,400 tonnes a year earlier. The main decrease in imports accounted for HDPE, and supply of linear polyethylene also significantly decreased.

The structure of HDPE imports by processing technologies for the period under review was as follows.

July imports of HDPE rose to 19,800 tonnes against 15,300 tonnes a month earlier, supplies of film and pipe polyethylene increased. In general, in January - July of this year, the total volume of external supplies of this type of polyethylene amounted to 118,200 tonnes, which is 29% less than a year earlier. The largest decrease in supplies accounted for film and blow moulding HDPE.

Last month, imports of low-pressure polyethylene (LDPE) did not exceed 9,500 tonnes, while in June this figure was 8,700 tonnes. During the period under review, the total volume of LDPE imports to Russia reached the level of 66,000 tonnes, which is 6% more than a year earlier.

July imports of linear polyethylene reached the level of 13,900 tonnes against 10,100 tonnes a month earlier, increased external purchases of film polyethylene in Europe and Saudi Arabia. The total volume of LLDPE imports amounted to 89,600 tonnes in the seven months of this year, down 15% year on year.

Last month, imports of other ethylene polymers, including ethylene vinyl acetate (EVA), amounted to 9,900 tonnes against 9,200 tonnes in June. In general, for the period under review, the total volume of external supplies of other ethylene polymers reached the level of 62,000 tonnes against 55,000 tonnes a year earlier.
MRC

COVID-19 - News digest as of 31.08.2021

1. Asian recyclers of film grade HDPE operate at low rates due to COVID-19

MOSCOW (MRC) -- Recyclers in Southeast Asia were heard operating with low capacity utilisation in the film grade high density polyethylene (HDPE) market due to COVID-19-led lockdown measures, reported S&P Global. Market sources also said persistent bottlenecks at ports in Asia and some maintenance-related plant closures are likely to hurt the supply of petrochemicals during the week of Aug. 30-Sept. 3.

MRC

Asian recyclers of film grade HDPE operate at low rates due to COVID-19

Asian recyclers of film grade HDPE operate at low rates due to COVID-19

MOSCOW (MRC) -- Recyclers in Southeast Asia were heard operating with low capacity utilisation in the film grade high density polyethylene (HDPE) market due to COVID-19-led lockdown measures, reported S&P Global.

Market sources also said persistent bottlenecks at ports in Asia and some maintenance-related plant closures are likely to hurt the supply of petrochemicals during the week of Aug. 30-Sept. 3.

As MRC informed earlier, Southeast Asian polyethylene terephthalate (PET) recycling companies will continue facing challenges with the availability of raw materials, due to the low collecting and processing rate, as a result of the COVID-19 pandemic.

According to MRC's ScanPlast report, June estimated HDPE consumption in Russia decreased to 125,900 tonnes from 128,300 tonnes a month earlier. Domestic producers raised their exports, while some producers' output decreased. Russia's overall HDPE shipments to the Russian market totalled 675,670 tonnes in the first six months of 2021, down by 6% year on year. Production increased by 12%, whereas imports fell by 33%.
MRC

Already tight US East Coast gasoline supplies face more pressure from Hurricane Ida

Already tight US East Coast gasoline supplies face more pressure from Hurricane Ida

MOSCOW (MRC) -- Tight supplies of gasoline on the US East Coast are being pressured by refinery outages from Hurricane Ida and the shutdown of a major pipeline that supplies fuel to the Southeast, reported Reuters.

At least nine refineries in Louisiana that account for 13% of US processing capacity on Monday had reduced or halted production, according to the US Department of Energy. Those plants process 2.3 million barrels per day of crude oil into gasoline and other fuels.

US retail gasoline prices could rise between 5 and 15 cents a gallon, estimated Patrick DeHaan, petroleum analyst at fuel tracker GasBuddy.

How much prices increase depends on how quickly refiners and the Colonial Pipeline, the largest fuel pipeline in the United States, can restore operations. Colonial on Sunday halted fuel transport from Houston to Greensboro, North Carolina.

The pipeline company said on Monday, as MRC wrote earlier, it expects to resume full service once the company assesses the impact of Hurricane Ida on operations. It is releasing fuel from storage terminals along the supply route to the Southeast.

Traders are monitoring Ida's effect on East Coast fuel markets. Gasoline stocks are 15% lower than the five-year average. "No amount of barrels of fuel the US can import can fill the gap of the Colonial pipeline," one fuel trader said.

Refiners said they have cut processing in part due to the power utility losses. Utilities across Louisiana and Mississippi cut power to nearly 1.2 million homes and businesses, according to tracking service PowerOutage.com.

As MRC informed previously, six refineries that process 1.92 million barrels per day of oil into gasoline and other petroleum products, either shut or curtailed some production, sources. That includes two Valero Energy plants in Louisiana that combined process 335,000 barrels per day and Phillips 66's 255,000 bpd Alliance, Louisiana, refinery.

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