Sika hit record sales and profits for 2021

MOSCOW (MRC) -- Construction chemicals firm Sika tracked a record increase in sales and profits for 2021 in spite of challenges surrounding raw material pricing and supply constraints, said the company.

Operating profits increased as Sika was able to pass down price increases to its customers supported by cost management, recording growth across all regions. FCF was down due to increased inventory value and a higher level of investments.

Sika announced the acquisition of MBCC Group (formerly BASF’s construction chemicals business), subject to approval from the authorities, with conclusion of the deal expected in the second half of 2022.

Sika expects sales to rise by more than well above 10% in local currencies, surpassing Swfr10bn for the first time, which will drive an increase in earnings.

On the back of this Sika announced it is targeting growth by 6-8% a year in local currencies to 2023, with a margin range for earnings before interest (EBIT) in the range of 15-18%.

As MRC informed earlier, Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.
MRC

MOSCOW (MRC) -- Epsilyte (The Woodlands, Texas), a leading North American producer of expandable polystyrene (EPS), has announced an increase in its prices of all EPS grades for March shipments to keep pace with rising costs, said the company.

Thus, the price of the company's EPS grades will ris by 7 cents/pound (cts/lb) or USD154/tonne, effective 1 March, 2021 or as contracts allow.

Escalating freight and raw material costs that include availability concerns, along with current EPS supply and demand dynamics, warrant this adjustment.

As MRC reported earlier, Epsilyte rolled over its January EPS prices in the region for February shipments.

EPS is a rigid form of polystyrene (PS) used in insulation foams for the construction industry as well as for packaging.

According to ICIS-MRC Price report, demand for EPS generally remained in the Russian market at the previous week's level. Domestic EPS prices remained unchanged. Prices of SIBUR-Khimprom and Plastik, Uzlovaya's EPS were in the range of Rb187,000-197,000/tonne CPT Moscow, including VAT, this month.

Epsilyte is owned by private equity firm Balmoral Funds (Los Angeles, California). Epsilyte is one of North America’s leading producers of expandable polystyrene resin. The company is focused on solving customer needs for efficient, high-R value EPS. This includes reducing energy usage in buildings, ensuring safe and healthy food through innovative packaging technology, and participating in infrastructure investment both in the United States and abroad.

1. Neste to start Singapore SAF plant by 1Q 2023

MOSCOW (MRC) -- Neste plans to produce its first batch of sustainable aviation fuel (SAF) in Singapore by the end of 1Q 2023 after the COVID-19 pandemic delayed its expansion project, reported Reuters with reference to a senior executive's statement on Wednesday. "It's been delayed due to the pandemic as we were already hoping to be on stream in 2022," Neste's Executive Vice President for Renewable Aviation, Thorsten Lange, told Reuters. "But the revised plan is now fully on track." Neste produces renewable fuels, mainly from waste and residues such as used cooking oil, animal fat from food industry waste, fish fat from fish processing waste and residues from vegetable oil processing.

MRC

MOSCOW (MRC) -- Overall polypropylene (PP) imports into Belarus increased to 117,200 tonnes in 2021, up by 1.3% year on year. Demand exclusively for propylene homopolymers (homopolymer PP) increased, according to MRC's DataScope report.

December PP imports in the Republic of Belarus rose to 10,800 tonnes from 9,000 tonnes a month earlier. Local companies increased their purchasing of all grades of propylene polymers, in order to build up additional inventories for the first half of January. Overall PP imports of propylene polymers reached 117,200 tonnes in 2021 versus 115,600 tonnes a year earlier. Demand for exclusively homopolymer PP imports increased, whereas demand for propylene copolymers decreased.

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

December imports of homopolymer PP grew to 7,600 tonnes from 6,800 tonnes a month earlier, purchases in Russia and Azerbaijan increased. Overall imports of homopolymer PP reached 86,400 tonnes in 2021, up by 2.3% year on year.

December imports of propylene copolymers to Belarus were 3,200 tonnes versus 2,200 tonnes a month earlier, local companies increased their procurement of injection moulding block-copolymers of propylene (PP block copolymer) from Russian producers. Thus, overall imports of propylene copolymers reached 30,800 tonnes in January-December 2021, down by 1.2% a year earlier.

MRC

MOSCOW (MRC) -- Overall imports of unmixed polyvinyl chloride (PVC) into Belarus totalled 58,300 tonnes last year, up by 11% year on year, according to MRC's DataScope report.

According to the statistical committee of the Republic of Belarus, local converters reduced their purchasing of suspension in Russia due to seasonal factors. December imports were about 4,000 tonnes, whereas this figure was at 4,700 tonnes a month earlier.

Overall PVC imports reached 58,300 tonnes in 2021 versus 53,000 tonnes a year earlier.

Russian producers with the share of about 92% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Producers from Germany with the share of over 8% were the second largest suppliers.

MRC