Clariant to cut up to 600 jobs as profit falls

MOSCOW (MRC) -- The Swiss specialty chemicals firm Clariant says it will cut up to 600 jobs to save money after a drop in profit in 2019. The firm expects the slow economic situation this year to continue to affect demand, said Snbchf.

"For 2020, given the current sluggish economic environment and continued adverse foreign exchange conditions, growth will be more limited and additional efficiency measures have been defined for each of the businesses to support the margin increase," the Basel-based firm said in a statement on Thursday.

The move towards more cost efficiency will translate into a workforce reduction of approximately 500 to 600 positions over the next two years which is expected to save approximately CHF50 million (a little over USD51 million).

The Muttenz-based group currently employs around 17,200 people around the world. The announced job cuts correspond to 3-3.5% of the workforce. It is unclear exactly where Clariant plans to make the job cuts.

Last year, net profit fell to CHF38 million from CHF356 million in 2018, Clariant said. This was partly due to money being set aside in the second quarter linked to an ongoing competition law investigation by the European Commission into the ethylene purchasing market.

Sales fell slightly to CHF4.39 billion from CHF4.4 billion, the company said. "The Group has significantly reshaped its portfolio through the divestment of Healthcare Packaging in 2019, the announced sale of Masterbatches and the planned divestment of Pigments in 2020," it said, outlining ongoing structural changes.

Clariant replaced its chief financial officer on Tuesday and is still hunting for a new chief executive officer after the previous head left suddenly last year.

As MRC informed earlier, Clariant announced that it has been awarded a contract by Dongguan Grand Resource Science & Technology Co. Ltd. to develop a new propane dehydrogenation unit in cooperation with CB&I. The Dongguan plant will be one of the largest single-train dehydrogenation units in the world. Clariant's technology partner CB&I will base the plant's design on its Catofin® catalytic dehydrogenation technology, which uses Clariant's tailor-made Catofin catalyst and Heat Generating Material (HGM).

Propylene is the main feedstock for producing polyprolypele (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).

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC

Sinopec Beihai to shut refinery for turnaround in mid-May

MOSCOW (MRC) -- Sinopec Beihai Refining and Petrochemical, the subsidiary of one of the world's largest energy and chemical companies - Sinopec, will shut the entire refinery for maintenance over mid-March till mid-May, reported S&P Global.

As MRC informed before, Sinopec Qilu Petrochemical, another subsidiary of Sinopec, plans to shut the cracker unit in Tianjin in northeast China for scheduled repairs on 15 June, 2020. This cracking unit with a capacity of 900,000 tonnes of ethylene per year and 480,000 tonnes of propylene tons per year will be closed for scheduled repairs until 24 June, 2020.

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).

Sinopec corp. is one of the world's largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, production and transportation of oil and gas, oil refining, petrochemical production, production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity - fourth.
MRC

Chevron readies to resume pumping oil from Saudi-Kuwaiti Neutral Zone Wafra field

MOSCOW (MRC) -- Crude oil from the Wafra field in the Neutral Zone shared by Saudi Arabia and Kuwait could flow again as soon as this weekend after a nearly five-year hiatus, reported S&P Global with reference to joint operator Chevron's statement on Thursday saying it is preparing to restart operations.

Saudi Arabian Chevron, which operates the onshore field with Kuwait Gulf Oil Company, said it "has now embarked on a series of pre-start up activities, which includes efforts to ensure its workforce is ready to safely restart operations and then production."

Kuwaiti media reported Thursday that the two countries had authorized the resumption of joint operations at the field starting Sunday.

Chevron did not provide a timeline for when production would begin but said in its statement that while the field has been shut down, it has carried out "a robust maintenance and preservation program to maintain operational readiness."

The field, operated jointly by Kuwait Gulf Oil Company and Saudi Arabian Chevron, has been shut since 2015.

Wafra and the offshore Khafji field, which is jointly run by Aramco Gulf Operations Co. and KGOC but has been shuttered since October 2014, are at the center of a political dispute between the two countries that was resolved only in December after months of talks.

The fields are located in the Neutral Zone, an area straddling the border between Saudi Arabia and Kuwait, who agreed in 1970 to co-manage and share crude production equally.

Earlier Thursday, the International Energy Agency said output at Wafra could reach 80,000 b/d by the fourth quarter and then 145,000 b/d in a year, while Khafji production could hit 60,000 b/d by August and 175,000 b/d in a year.

Both Kuwait and Saudi Arabia have said the resumption of oil production from the fields would not clash with their output quotas, under the supply cut accord agreed by OPEC, Russia and nine other allies.

Saudi Arabia pumped 9.74 million b/d, according to the latest S&P Global Platts survey of OPEC production, well below its quota of 10.14 million b/d. Kuwait, meanwhile, produced 2.66 million b/d in January, in line with its cap, according to the survey.

We remind that in March 2018, Chevron Phillips Chemical Company LP successfully introduced feedstock and commenced operations of a new ethane cracker at its Cedar Bayou facility in Baytown, Texas. At peak production, the unit will produce 1.5 million metric tons/3.3 billion lbs. per year.

As MRC wrote before, US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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).

Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC

Wacker to cut 1,000 jobs by 2022

MOSCOW (MRC) -- Wacker Chemie will cut 1,000 jobs by the end of 2022 to save costs and prepare for a “harsher competitive environment”, said the company.

Munich-based chemical group Wacker Chemie AG has begun its “Shaping the Future” restructuring plan by announcing 1,000 jobs will be lost by the end of 2022 as it aims to save EUR250 million per year.

The company announced around 800 posts will be culled at German sites with administrative staff and people working in indirect and non-operational roles those at risk.

As far as possible, the job cuts will be realized through retirement, partial retirement schemes or termination agreements, Wacker said, emphasizing it wants to avoid redundancies among its manufacturing staff.

Chief human resources officer Christian Hartel said he was confident “good and fair solutions” could be negotiated with employee representatives. Wacker employs around 14,500 people worldwide, 10,000 of whom are based in Germany.

Wacker boss Rudolf Staudigl said the company “is preparing itself to take a tougher pace in the competition both in the polysilicon business and in our chemical divisions”.

Annual figures for 2019 published by Wacker last month indicated heavy losses after write-downs related to the company’s polysilicon division.

According to preliminary figures, published earlier, Wacker posted a net loss and negative earnings before interest and taxes (EBIT) in 2019. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell sharply and sales fell 1%.

As MRC informed earlier, in September 2019, following a construction phase lasting 20 months, Wacker Chemie AG brought a new spray dryer for the production of dispersible polymer powders on stream in Ulsan, South Korea. The plant is part of an ongoing site expansion aimed at boosting the company’s production capacity for dispersions and dispersible polymer powders in Asia.

We also remind that in 2013, Wacker launched a new EVA production plant - with an additional 40,000 tonnes annually - at its Ulsan site in South Korea back in February. The production capacity of the site has, thus, almost doubled then, making the plant complex one of the biggest of its kind in South Korea - thereby solidifying the company's global leading position in this segment.

According to MRC's DataScope report, in December last year, EVA imports to Russia decreased by 4.1% to 3.6 thousand tonnes from 3.76 thousand tonnes in December of the previous year, and by the end of 2019, imports of this type of ethylene copolymer in the Russian Federation decreased by 17.8% - to 39.55 thousand tonnes (48.09 thousand tonnes in January-December 2018).

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
MRC

Eastman appoints new director

MOSCOW (MRC) -- The Board of Directors of Eastman Chemical Company (NYSE:EMN) has elected Kim Ann Mink as a director according to the company's press release.

Dr. Mink is Chairman, President and Chief Executive Officer of Innophos Holdings, Inc., a leading international producer of performance-critical and nutritional functional ingredients, with applications in food, health and industrial specialties markets.

"We are pleased to welcome Kim Ann to Eastman’s Board of Directors. Having spent the majority of her career in specialty materials, Kim Ann brings invaluable experience and technical expertise to Eastman," said Mark Costa, Board Chair and CEO. "Her proven leadership and deep understanding of key end markets will enhance our Board’s continued direction of our innovation-driven growth strategy as an outperforming specialty company."

Dr. Mink, 58, joined Innophos in 2015 from the Dow Chemical Company where she served most recently as business president of Elastomers, Electrical and Telecommunications. Prior to joining Dow Chemical in 2009, she had previously served for more than 20 years at the Rohm and Haas Company (which was acquired by Dow Chemical) where she held roles of increasing responsibility, including corporate vice president and general manager for the Ion Exchange Resins business.

Dr. Mink received a bachelor's degree in Chemistry from Hamilton College and a Ph.D. in Analytical Chemistry from Duke University. She is a graduate of the Management Program at the Wharton School of the University of Pennsylvania.

As MRC reported earlier, in 2016, Eastman Chemical's chief executive Mark Costa announced that the company wanted to reduce its surplus ethylene and commodity intermediates, but did not intend to sell its cracker in Longview, 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).

Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in more than 100 countries and had 2017 revenues of approximately USD9.5 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,500 people around the world.
MRC