Solvay exercises the first call option on a €700 million hybrid bond

MOSCOW (MRC) -- Solvay announces that its subsidiary Solvay Finance SA will exercise its first call option on its EUR700 million hybrid bond after having notified the Luxembourg Stock Exchange where the bond is listed, said the company.

This perpetual deeply subordinated bond, bearing an annual interest rate of 4.199%, is treated as equity under IFRS rules. Its repayment is due on May 12, 2019 at the end of the first 5.5 years.

Announcement follows the successful issuance of EUR300 million perpetual hybrid bond with a coupon of 4.25% on December 4, 2018. As a result, the overall quantum of hybrid bonds in Solvay's balance sheet will decrease from EUR2.5 billion end of December 2018 to EUR1.8 billion after the exercise of the call option, leading to a further reduction in financial charges.

"These steps reflect the ongoing focus on value creation through an efficient and cost effective capital structure and are an integral part of a prudent, investment grade, funding strategy," said Karim Hajjar, Solvay's Chief Financial Officer.

Solvay is an advanced materials and specialty chemicals company, committed to developing chemistry that addresses key societal challenges. Solvay innovates and partners with customers worldwide in many diverse end-markets. Its products are used in planes, cars, batteries, smart and medical devices, as well as in mineral and oil and gas extraction, enhancing efficiency and sustainability. Its lightweighting materials promote cleaner mobility, its formulations optimize the use of resources, and its performance chemicals improve air and water quality.
Solvay is headquartered in Brussels with around 27,000 employees in 62 countries. Net sales were EUR10.3 billion in 2018, with 90% from activities where Solvay ranks among the world's top 3 leaders, resulting in an EBITDA margin of 22%.
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Perstorp to launch expanded capacities for pentaerythritol at Arnsberg, Germany in May

MOSCOW (MRC) -- As the global demand for pentaerythritol (Penta) keeps growing, Perstorp is increasing the effective annual Penta production capacity at its Bruchhausen/Arnsberg plant in Germany by 12.5%, as per the company's press release.

The Penta polyols are widely used in resins for coatings in the building & construction and steel works industry, from architectural wood to marine paints.

"Our plant has successfully obtained the ISCC PLUS International Sustainability Carbon Certification, an important milestone in Perstorp’s ambitious Pro-Environment quest to become Finite Material Neutral. The expansion work at Site Bruchhausen started in June 2018 and is well on track for completion in May," confirms Ulrika Andersson, EVP Business Area Specialty Polyols & Solutions at Perstorp. "The added capacity and ISCC certification of Site Bruchhausen as well as introducing Voxtar production in Bruchhausen will significantly extend the security of supply of Voxtar ensuring a continued security to meet our customers increased demand of Pro-Environment Polyols", Ulrika concludes. Together with the company’s Stenungsund and Perstorp sites in Sweden, Bruchhausen is now a part of Perstorp’s strategic shift from fossil to renewable raw materials and energy. The independent third-party ISCC certified products comes with a Proof of Sustainability document which states the products contribution to sustainable sourcing according to the certified mass balance system.

"With Voxtar, back in 2010, we were the industry’s first supplier to launch a renewable Penta," says Jan Secher, President and CEO at Perstorp. "In 2018, our Pro-Environment Polyols was honored with a Frost & Sullivan European Bio-Based Materials Product Leadership Award. This and the recent ISCC certification of our Bruchhausen site and the addition of three new Pro-Environment families as well as full suite of Services underscores our committed support for advancing the circular economy by shifting towards raw materials derived from renewable and waste sources."

As MRC informed earlier, in December 2017, Perstorp launched world first portfolio of renewable polyols. Thus, Perstorp announced world’s first portfolio of renewable alternatives to the essential polyols Pentaerythritol (Penta), Trimethylolpropane (TMP), and Neopentyl glycol (Neo).

Perstorp is one of the world leaders in various sectors of the specialty chemicals market, it's pioneer in formalin chemistry, plastics and surface materials. Perstorp was founded in 1881 and is controlled by PAI partners,a major European private equity company. The company has around 1,500 employees in with 22 production plants in Europe, Asia and North America.
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98% of European plastics production covered by Operation Clean Sweep

MOSCOW (MRC) -- Operation Clean Sweep (OCS), the international program designed to prevent plastic pellets, flakes, and powder from being lost from factory floors and winding up in lakes and oceans, is being successfully embraced by European plastics processors, a new study shows, as per Canplastics.

Following the release of its first Operation Clean Sweep report in 2017, industry association PlasticsEurope made the OCS program a top priority in 2018, setting new targets for its members as part of its Plastics 2030 Voluntary Commitment.

"The number of OCS signatories doubled in Europe in 2018, reaching up to more than 500 companies handling plastics pellets,” Karl-H. Foerster, PlasticsEurope’s executive director, said in a statement. “More than 98% of the total European plastics production have now signed up to OCS."

PlasticsEurope is also strengthening its collaboration with the entire plastics value chain. The group announced that 250 new companies signed the pledge in 2018.

"The plastics industry remains fully committed to implementing solutions to end plastic waste in the environment. Working with the value chain for the implementation of OCS is an essential part of our 2030 Voluntary Commitment. Our aim is to drive best practices in pellet management and strive towards zero pellet loss,” Foerster said, “PlasticsEurope’s objectives for 2019 are to actively contribute to global industry efforts. Together with the plastics value chain, its aim is to develop an OCS certification scheme and continue to support the implementation of the OCS program as a way to deliver its voluntary commitment."

Operation Clean Sweep (OCS) is a stewardship program of the U.S.-based Plastics Industry Association and the American Chemistry Council’s Plastics Division. The Canadian Plastics Industry Association is the Canadian licensee of OCS and promotes the program to the Canadian plastics value chain.
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LyondellBasell to license Hostalen ACP to Lianyungang for Chinese HDPE unit

MOSCOW (MRC) -- LyondellBasell announced that Lianyungang Petrochemical Co., a subsidiary of Zhejiang Satellite, has selected its Hostalen Advanced Cascade Process (ACP) technology for a new high-density polyethylene (HDPE) facility to be built in China, as per Apic-online.

The plant, which will be located in Lianyungang, Jiangsu Province, will have a production capacity of 400,000 t/y of HDPE. Value of the license and a schedule for the project were not given.

"The market demands high-performance HDPE and LyondellBasell's multi-modal technology effectively meets these needs," noted Zhejiang Satellite Vice President Lu Wei Wei.

"Selecting LyondellBasell's low-pressure slurry process in our petrochemical complex will enable us to produce high-quality products reliably and economically."

As MRC wrote previously, in September 2016, LyondellBasell selected its La Porte, Texas, manufacturing complex as the site for a new high density polyethylene (HDPE) plant. The plant will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology and will have an annual capacity of 1.1 billion pounds (500,000 metric tons). Construction began in early 2017 with start-up planned for 2019.

LyondellBasell is one of the world's largest plastics, chemical and refining companies. The company manufactures products at 57 sites in 18 countries. LyondellBasell products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
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Evonik celebrates 40 years of PEBA

MOSCOW (MRC) -- In 1979, Evonik launched the thermoplastic elastomer polyether block amide (PEBA) under the brand name VESTAMID E from its largest global production site in the Marl Chemical Park, said the company.

Whether in sports equipment, hydraulic pressure lines in trucks, medical devices or 3D printed high-tech parts, Evonik’s polyamide 12 elastomers kept finding their way into new demanding applications over the past four decades. Right from the beginning, the high-performance polymer has stood out for its excellent low-temperature impact resistance, chemical resistance, high elasticity and good resilience. It was easy to process, dye or over-mold. From the beginning, the thermoplastic material offered a uniquely balanced property profile that enabled design-free implementation of demanding applications.

Performance and design are key attributes for the sports industry. The PA 12 elastomer molding compounds of Evonik quickly became the material of choice for items such as athletic shoes, ski, touring and hiking boots or later, decorative protective films for skis and snowboards.

Ski or hiking boots made of PEBA have remained lightweight, waterproof and wear-resistant to this day. They retain their flexibility even in cold conditions. Thanks to its excellent mechanical properties, the high-performance material can efficiently determine the wall thickness of shoes, which allows for optimizing production costs.

As MRC informed earlier, in June 2018, Linde Group and the specialty chemicals company Evonik Industries have concluded an exclusive cooperation agreement on the use of membranes for natural gas processing.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world.

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