AkzoNobel and Itaconix finalize bio-based polymer application agreement

MOSCOW (MRC) -- AkzoNobel’s Specialty Chemicals business has finalized the first application agreement for bio-based polymers to result from its collaboration with specialty polymers company Itaconix, as per the company's press release.

Announced earlier this year, the joint development agreement involves AkzoNobel’s Performance Additives unit developing applications for Itaconix polymers to be used in the coatings and construction industries.

"We are pleased to be announcing the first in a series of agreements to develop these polymers for commercial use," said Peter Nieuwenhuizen, RD&I Director for AkzoNobel’s Specialty Chemicals business. Nieuwenhuizen detailed the development during a presentation today at the BIO World Congress on Industrial Biotechnology in Montreal.

"Being able to incorporate polymers made from renewable bio-based raw materials will give a significant sustainability advantage for our customers and also fits closely with our own Planet Possible sustainability agenda of doing more with less," he said.

Under the agreement, Itaconix will contribute its proprietary polymers from itaconic acid, which are obtained from sugars through fermentation. Continued Nieuwenhuizen: "In addition to applications in coatings and construction materials, bio-based polymers have the potential to be used in a range of other everyday essentials, ranging from improving water quality to cleaning and hygiene products."

Dr. Kevin Matthews, CEO of Itaconix, added: "This is the first commercial step in our joint development agreement to collaborate on delivering valuable solutions to AkzoNobel customers with the novel performance of our polymers. We are excited to further strengthen our relationship with AkzoNobel and look forward to combining their deep application knowledge with our unique chemistries to build key product positions in these large and important markets."

Nieuwenhuizen also pointed out that the collaboration with Itaconix is another example of AkzoNobel’s approach to embracing open innovation to help find more sustainable solutions. The company recently announced the winners of its Imagine Chemistry open innovation challenge, which included start-ups working in fermentation and with bio-based raw materials.

As MRC informed before, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings. The transaction includes relevant technologies, patents and trademarks, as well as two manufacturing plants in the United Kingdom and South Africa. Completing this transaction also positions AkzoNobel as a full service coatings provider for the protection and maintenance of wind turbines, providing essential protection to wind power stations around the globe.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has declared a quarterly dividend of USD0.46 per share on its Series A common stock, payable on August 7, 2017, as per the company's press release.

The dividend is payable to stockholders of record as of July 28, 2017.

As MRC informed before, Celanese Corporation raised the price for emulsions sold in Europe. Effective July 1, 2017, or as contracts otherwise allow, the following price increases applied:

- EVA - EUR75/tonne;
- VAM Homopolymers (PVAC) - EUR75/tonne;
- VAM Copolymers - EUR75/tonne;
- Pure Acrylics - EUR180/tonne.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,300 employees worldwide and had 2016 net sales of USD5.4 billion.
MRC

MOSCOW (MRC) -- Europe must be prepared to respond in kind if the United States' proposed new sanctions against Russia end up hurting its companies, an influential German industry association said on Thursday, reported Reuters.

US lawmakers reached an agreement on Wednesday paving the way for the US Senate to pass a bill as early as this week to impose the new sanctions on Russia and bar President Donald Trump from easing them without Congress' approval.

The European Union fears the new US restrictions could be an obstacle to its companies doing business with Russia and threaten the bloc's energy supply lines, but the 28-country bloc is divided over how to respond.

The head of the German Committee on East European Economic Relations said potential damage to European energy sector companies with business interests in Russia could justify counter-sanctions.

"It's the last thing we want, but we must keep the option open," Michael Harms told a news conference in Berlin.

"The sanctions they want against pipeline projects seem designed to boost US energy exports to Europe, create US jobs and strengthen US foreign policy."

Unlike the United States, whose growing production of shale gas has slashed its reliance on energy imports, much of Central Europe depends on imports of Russian gas through a vast latticework of pipelines.

"Imposing sanctions that hit a third party, namely Europe, and at the same time promoting the American economy with the slogan 'buy American gas' - that's pretty striking," said Kurt Bock, chief executive of Germans chemicals giant BASF?, which drills for gas in Russia.

The EU has imposed its own sanctions against Russia over its role in the Ukraine crisis, and Germany has taken a particularly tough stance towards Moscow.

Last week Reuters reported that Germany was urging Brussels to add four more Russian nationals and companies to its blacklist over Siemens gas turbines delivered to Ukraine's Crimea region, annexed by Moscow in 2014.

German economy minister Brigitte Zyries complained on Thursday that Washington had abandoned the "common line" it has maintained with Europe over Russia.

But despite the EU sanctions and Europe's criticism of Moscow on other fronts as well as Ukraine - including allegations that Russian spies are meddling in Western elections - Russia remains a crucial business partner for Germany.

On Thursday, the Committee raised to 20% its forecast for growth in German exports to Russia in 2017, compared to 10% in its previous forecast.

As MRC informed before, Russia's overall output of chemicals increased in the first six months of 2017 by 7.4%, despite lower production in May and June, according to Rosstat. According to the Federal Service of State Statistics, last month's production of basic chemicals dropped by 1.4% from May 2017. This reduction was 1.5% a month earlier. However, production of basic chemicals grew by 7.4% year on year. June output of ethylene was 257,000 tonnes, compared to 260,000 tonnes a month earlier, lower production in April was caused by a scheduled shutdown for maintenance at Angarsk Polymers Plant. Overall, over 1.5 m tonnes of this olefin were manufactured in the first six month of 2017, up by 10.2% year on year.
MRC

MOSCOW (MRC) -- W. R. Grace & Co., a supplier of polyolefin catalyst technology and polypropylene (PP) process technology, has contracted to license its UNIPOL PP Process Technology to Canada Kuwait Petrochemical Corporation (CKPC), a 50/50 JV between Pembina Pipeline Corporation of Canada and Petrochemical Industries Company K.S.C. of Kuwait, as per Hydrocarbonprocessing.

The new installation will be part of CKPC's proposed integrated propane dehydrogenation/PP facility located in Sturgeon County, Alberta. If built, the PP line would be the world's largest single train, capable of producing 550,000 mtpy of PP, including homopolymer, random copolymer, and impact copolymer thermoplastic resins.

This is Grace's 16th new UNIPOL PP technology license since 2012 and its second in Canada. Grace's all gas-phase UNIPOL PP Process Technology provides the advanced and broad range of homopolymers, random copolymers, and impact copolymers in the industry.

As MRC informed earlier, in July 2016, BASF closed the previously announced transaction to divest its global Polyolefin Catalysts business to W. R. Grace & Co. Earlier, W.R. Grace acquired Dow's Unipol PP process licensing and related catalyst business for USD510 million in 2013.
MRC

MOSCOW (MRC) -- SK Innovation Co Ltd, the owner of South Korea's top refiner, said on Thursday that it expects solid demand to keep refining margins healthy in the second half of this year, as per Hydrocarbonprocessing.

Buoyed by strong demand for oil products, refining margins in Asia are hovering near five-month-highs, sitting at USD7.43 per barrel on Thursday, Reuters data showed.

"We expect refining margins to remain favorable on the back of solid demand," the owner of SK Energy said in an earnings statement.

A day earlier, S-Oil, the country's third-largest refiner, also said refining margins were expected to remain stable in the second half, boosted by demand growth from China and India.

SK Energy said diesel demand was expected to improve, driven by demand from emerging countries and a global economic recovery.

"The main drivers will be growing diesel demand from China and India," said Lee Yun-hi, head of corporate planning office at SK Energy.

Lee said gasoline margins are expected to increase gradually or remain flat in the third quarter from the previous quarter, backed by refinery maintenance plans in Mexico and demand from Africa and South America.

Fuel oil is also likely to stay strong amid falling supply from Russia and lower levels of heavy crude oil as major crude exporters such as Saudi Arabia have cut supplies of heavy crude to comply with OPEC-led production cuts, he said.

SK Innovation said crude distillation units (CDU) at its refineries in Ulsan and Incheon operated at 81% of capacity on average in the second quarter, down from 91% in the previous quarter due to its planned maintenance.

SK Energy has no large-scale maintenance plans in the third quarter and beyond, but has some small-scale maintenance plans which will not affect the refiner's run rates, Lee said.

For the April-June period, operating profits fell 62% to USD378.4 MM over the same period a year ago due to a drop in crude oil prices and maintenance, according to the company statement.

As MRC wrote before, in early February 2017, South Korea's SK Innovation said it would acquire Dow Chemical Co's ethylene acrylic acid (EAA) business for USD370 million, a move that will expand its range of high value-added chemical products.
MRC