Ascend to acquire Italian compounding, masterbatch firms

MOSCOW (MRC) -- Ascend Performance Materials, an integrated polyamide (PA) 66 supplier, has signed an agreement to purchase Poliblend and Esseti Plast GD from D’Ottavio Group, according to Kemicalinfo.

The acquisition includes a manufacturing facility in Mozzate, Italy, the masterbatch portfolio of Esseti Plast GD and the engineering plastics portfolio of Poliblend, which consists of virgin and recycled grades of PA 66, PA 6, PBT and POM.

“This strategic acquisition marks an important transformation for our company as we grow our European manufacturing and distribution footprint,” said Phil McDivitt, Ascend’s president and CEO.

Giancarlo D’Ottavio, Poliblend’s president, will continue to run Poliblend’s operations and join Ascend’s European management team. “Combining the shared expertise of our companies creates opportunities to expand our reach while continuing to provide the high-quality products and service that our customers have come to trust,” said D’Ottavio.

Terms of the transaction were not disclosed. The acquisition is expected to close in the second quarter.

As MRC wrote previously, in May 2016, Ascend Performance Materials said it had put plans to build a propane dehydrogenation (PDH) plant on hold because of market conditions. The two-train project at Chocolate Bayou, TX, with a combined capacity of more than 1 million m.t./year of propylene, was expected to become the largest such facility in the United States and cost an estimated USD1.2 billion. It has already been delayed once from the original onstream date of 2016 to mid-2019. Ascend is expected to use the UOP Oleflex PDH technology.

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

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Ascend Performance Materials is a global leader in the production of Nylon 6,6.

Poliblend was founded in 1999 and offers compounding and masterbatch services, including color and additive concentrates that enhance the appeal and end-use performance of plastics products, packaging, and fibers.
MRC

MOSCOW (MRC) – Specialty chemicals company LANXESS has added a plant-based raw material variant to its Aktiplast PP product range, said the company.

These processing promoters for polymer blends are used in the production of tires and all kinds of technical rubber articles. Aktiplast PP-veg, which is based on renewable raw materials, was developed specifically in response to a customer requirement from Asia. In this way, the LANXESS Rhein Chemie business unit aims to enable rubber processors to reduce their CO2 footprint. An international tire manufacturer from Europe has already expressed great interest.

Unlike the conventional product, Aktiplast PP-veg is manufactured only from vegetable oils. The proportion of renewable raw materials in Aktiplast PP-veg is around 90 percent, so that its CO2 footprint is significantly reduced. The starting point are raw materials made from the fruits of oil palms. They are ecologically more sustainable than coconut palms, rapeseed or sunflowers, as they provide by far the highest oil yield per hectare of farmland area.

The processing promoter is particularly suitable for polymer blends based on natural rubber. It reduces the viscosity of rubber compounds and significantly improves injection and extrusion behavior, also in combination with functionalized polymers. Depending on the compound composition, the product improves scorch behavior, promotes vulcanization and ensures easy demolding without contamination of the mold.

This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accept any liability whatsoever arising directly or indirectly from the use of this document.

As MRC informed earlier, Vinmar Polymers America will distribute Lanxess Corp.'s high-performance plastics to customers in North America.

Earlier, Covestro closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to\\from Belarus) fell in January-November 2019 by 14% year on year to 70,700 tonnes (62,000 tonnes a year earlier).

LANXESS is a leading specialty chemicals company with sales of EUR 7.2 billion in 2018. The company currently has about 15,500 employees in 33 countries and is represented at 58 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.
MRC

MOSCOW (MRC) -- US crude stocks rose more than expected while gasoline and distillate inventories fell last week, reported Reuters with reference to the Energy Information Administration's statement.

Crude inventories rose by 7.5 million barrels in the week to Feb. 7 to 435 million barrels, compared with analysts’ expectations in a Reuters poll for a 3 million-barrel rise.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.7 million barrels in the last week, EIA said.

Refinery crude runs rose by 48,000 barrels per day in the last week, EIA said. Refinery utilization rates rose by 0.6 percentage points.

US gasoline stocks fell by 95,000 barrels in the week to 261.1 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 546,000-barrel rise.

Distillate stockpiles, which include diesel and heating oil, fell by 2 million barrels in the week to 143.2 million barrels, versus expectations for a 557,000-barrel drop, the EIA data showed.

Net US crude imports rose last week by 806,000 barrels per day in the last week, EIA said.
MRC

MOSCOW (MRC) --Indorama Ventures Public Company Limited (IVL), a global chemical company, announces its 2020-2023 Strategy at its Capital Markets Day, as per the company's press release.

Summary: IVL’s time-tested approach has generated strong returns for stakeholders through both the peaks and valleys of the chemical cycle.

We have a well articulated 2023 strategy focusing on 5 pillars: Cost Transformation via Olympus, Asset Full Potential, Adjacency Growth, Recycling Leadership, and our People.

In combined PET, we aim to strengthen our cost advantage while also driving the circular economy for PET by building a leading recycling business.

In Fibers, we are focused on operation efficiency, asset integration, and innovation to meet customer’s evolving needs, resulting in a business that delivers double-digit ROCE.

Our aggregated business continue to generate heathy operating cash flow, we continue to focus on working capital while simultaneously deleveraging the balance sheet.

We continue to invest in our people, put in place organization and governance structures and HR processes to ensure we have a healthy IVL for the future.

Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, "Going forward, IVL will continue to pursue our strategic themes, with the ambition of achieving double-digit ROCE, strong cash flows across the cycle and above average returns to shareholders. Historically, we have always remained strong through the peaks and troughs of the chemical cycle and expect to continue to outperform thanks to our highly experienced and professional management team."

This strategy was presented and agreed at IVL’s Global Management Conference (GMC), which includes over 200 members of IVL’s global leadership team, and was held January 30 – 31 in Bangkok, Thailand.

As MRC reported earlier, IVL commenced the commercial operations of its olefins gas cracker at Indorama Ventures Olefins (IVOL) plant in Westlake, Louisiana, the USA on 31 January 2020. The site has an ethylene production capacity of 440 kilotons per annum (KTA) and is highly integrated with the US Gulf Coast ethylene pipeline infrastructure for efficient distribution. This cracker is strategically positioned in the US gulf coast and allows to leverage shale gas availability. The facility is strategically positioned for long-term captive ethylene supplies to Indorama Ventures Oxide and Glycols (IVOG) plant in Clear Lake, Texas and the recently acquired integrated EO and PO assets in Port Neches, Texas.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of USD10.7 billion in 2018. The company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).
MRC

MOSCOW (MRC) -- Dow and Evonik have recently 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, according to Kemicalinfo.

The basis for the method, named HYPROSYN, has been created over the last few years by a team of over 100 Evonik employees. The key element is a novel catalytic system developed by Evonik researchers which allows for the direct synthesis of PG from propylene and hydrogen peroxide, in a process offering high yield and comparatively low energy consumption.

The total production of propylene glycol was 1.9 million metric worldwide in 2018. The molecule is used in the production of polyester resins and as a de-icing agent. It is also an important food additive and serves as a humectant and co-surfactant in many products in the home and personal care market.

"We are very pleased to be cooperating with Dow to bring the HYPROSYN process to market maturity. Dow is by far the largest producer of PG worldwide and a world leader in the field of material science. Dow’s technical and market experience will be invaluable in the scale up of our development” says Michael Traxler, the head of Evonik’s Active Oxygens business line.

A pilot plant is to be constructed at the Evonik site in Hanau by the end of 2020, with large-scale technical implementation to follow a few years later. "We believe that the new HYPROSYN direct synthesis technology will enable a more competitive route to produce PG with an improved environmental profile, providing us greater flexibility in serving our customers” says Andrew Jones, global business director for Propylene Oxide, Propylene Glycol, Chlor-Alkali and Vinyl at Dow.

"In addition to potential license revenue, this partnership also demonstrates how we create new areas of application for hydrogen peroxide and positions us as a preferred provider," said Traxler. In recent years, the molecule has become established as an important oxidizing agent for chemical synthesis - not least as a result of the HPPO process for the production of propylene oxide.

Evonik is one of the world’s largest manufacturers of hydrogen peroxide, one of the two starting materials for the HYPROSYN process. The company’s 13 production sites distributed throughout the world ensure an optimal supply of hydrogen peroxide (H2O2) with an annual capacity of more than 950,000 metric tons.

As MRC reported earlier, Dow plans to install a new furnace in its steam cracker at Fort Saskatchewan, Alberta, Canada, increasing its ethylene capacity, currently 1.42 million metric tons/year (MMt/y), by 130,000 metric tons/year. Dow will split the cost of the project and the incremental volume equally with an unnamed regional customer, according to CEO Jim Fitterling, who announced the news during the company's fourth-quarter earnings call. Start-up is slated for the first half of 2021.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.

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 36,000 employees.
MRC