Sika Joins Supply Chain Sustainability Initiative TfS

MOSCOW (MRC) -- Sika announced on 25th, Feb that the company has joined the ‘Together for Sustainability’ (TfS) initiative as a new member, reported Kemicalinfo.

The organization, founded in 2011, aims to improve sustainability practice within the supply chain of the chemicals industry.

According to Sika, sustainability is a key feature and a central element of its growth strategy.

"With this membership, Sika sets clear targets for compliance with sustainability and quality standards in procurement and within the supply chain," the company stated.

Sika is the 25th member and will apply global standards for environmental, social and governance performance of supply chains. The TfS program is based on the UN Global Compact and Responsible Care principles, and allows Sika to assess and evaluate the performance of its suppliers in various aspects. This includes environmental, labor & human rights, ethical and sustainable procurement performance in order to achieve measurable improvements and its own sustainability performance.

Marcos Vazquez, Head of Sika Group Procurement said, "Joining TfS will allow Sika to learn and exchange with its members best practices in sustainability, and to actively participate in the improvement of sustainability practices within the supply chains of the chemical industry."

Bertrand Conqueret, TfS President said, "By joining TfS, Sika will benefit from the TfS framework, collaborative mindset and robust tools to assess and improve the sustainability performance of its supplying companies while at the same time increase its own responsible sourcing program. Sika together with the other 24 TfS member companies, will contribute to shaping the future of the chemical industry and its customers. "

Sika’s overriding goal is to reduce CO2 emissions per ton manufactured by 12% until 2023. Climate Performance is one of the target areas of Sika’s Growth Strategy 2023. Due to the importance of the topic, Sika is processing CO2 reduction programs covering all regions and countries.

As MRC reported earlier, in August 2015, Swiss specialty chemicals company Sika opened its forth production site in Russia. A new mortar factory and a plant to produce concrete admixtures were opened in Volgograd, in southern Russia. Thus, at the existing site in Lobnya, 30 km north of Moscow, a new production facility, which manufactures polymers for concrete admixtures, came on stream.

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).

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.
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MOSCOW (MRC) - ChemChina plans to invest CNY50 billion in the construction of a cracking unit in Dongying, Shandong Province, Polymerupdate reports citing a market source.

The project is in a preliminary stage and no details were available at the moment. The company is also awaiting project approval from the government of Shandong.

If approved by the government, ChemChina will build its first cracker.

As previously reported, ChemChina is in talks with another major chemical company, Sinochem, on mergers and acquisitions.

It was previously noted that Beijing sees the deal between Sinochem and ChemChina as a plan to rationalize and consolidate its disparate state-owned enterprises, with the result that major market leaders will be created.

It was previously reported that for the first time ChemChina plans to acquire the Sinochem Group became known in October 2016.

Ethylene and propylene are the main raw materials for the production of polyethylene (PE) and polypropylene (PP), respectively.

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).

China National Chemical Corporation, commonly known as ChemChina, is a Chinese state-owned chemical company in the product segments of agrochemicals, rubber products, chemical materials and specialty chemicals, industrial equipment, and petrochemical processing.
MRC

MOSCOW (MRC) -- Belarusian state energy company Belneftekhim said that the country’s refineries were currently working at half their capacity and had refined 1.8 million tonnes of oil in January and February, said Reuters.

Belarus is locked in a row over oil supply with Russia, and flows to Belarus slowed dramatically from Jan. 1 after Minsk and Moscow failed to agree terms for supplies.

As per MRC's DataScope, overall imports of unmixed polyvinyl chloride (PVC) into Belarus increased by 19% in 2019 year on year, totalling 38,800 tonnes. Local converters slightly reduced their purchasing of PVC in December 2019, overall imports totalled 3,400 tonnes, compared to 3,300 tonnes a month earlier. Russian producers with the share of about 82% of the Belarusian market were the key suppliers of resin to Belarus over the stated period. Producers from Ukraine and Germany with the share of 8% and 6%, respectively, were the second and third largest suppliers.

Also, December 2019 PP imports to the Belarusian Republic were 9,600 tonnes, compared to 9,800 tonnes a month earlier, local companies reduced their purchasing of PP in Russia. Overall imports of propylene polymers reached 109,400 tonnes in January-December 2019, compared to 99,500 tonnes a year earlier, demand increased for all PP grades, with propylene copolymers accounting for the greatest growth.
mrcplast.com

MOSCOW (MRC) -- Hexion Inc. announced that it has entered into a definitive agreement to sell its manufacturing site in Yumbo, Colombia to a joint venture led by Master Paints & Chemical Corporation, said the company.

"We believe the Yumbo site’s diversified manufacturing capabilities and strong track record of safe operations will serve Master Paints well going forward".

The Yumbo site produces decorative paints under the Algreco® brand name, among others, as well as private-label paints. The site employs approximately 150 associates and had 2018 revenue of approximately $15 million. The site includes resin manufacturing capacity for both alkyd and water-based paints, as well as asphalt production capabilities. The site operated within Hexion’s Forest Products Resins Segment. No other terms of the transaction were announced.

"We believe the Yumbo site’s diversified manufacturing capabilities and strong track record of safe operations will serve Master Paints well going forward,” said Craig Rogerson, Chairman, President and CEO. “Considering the site serves primarily a consumer-facing paint business, the transaction is consistent with our ongoing portfolio optimization as we further position the Company for profitable growth. I would like to thank our associates at the Yumbo site for their many contributions and I am confident they will have exciting opportunities ahead."

Earlier it was reported that Hexion in mid-January announced force majeure for the supply of BPA from the plant in Deer Park (Deer Park, Texas, USA). It was expected that this enterprise with a capacity of 140 thousand tons of BPA per year will resume its work in mid-February.

Large manufacturers of BPA and epoxy in the United States are companies such as Hexion, Huntsman and Olin.

Bisphenol A is used as a hardener in the manufacture of plastics, as well as plastic-based products. It is one of the key monomers in the production of epoxy resins and polycarbonate (PC).

According to the ICIS-MRC Price Report, in December last year, imports of PCs and compositions to Russia excluding supplies from Belarus amounted to 1,400 tonnes compared to 1,520 tonnes a month earlier and 1,110 tonnes in December 2017. According to the results of last year, in general, imports of PCs and compositions to Russia excluding Belarus grew by 13% to 16,200 tonnes against 14,300 tonnes in 2017.

Based in Columbus, Ohio, Hexion Inc. is a global leader in thermoset resins. Hexion Inc. serves the global adhesive, coatings, composites and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries.
MRC

MOSCOW (MRC) -- Saudi Arabia, the world's largest crude exporter, maintained its exports at close to a year-high of 9.373 million b/d in December as the kingdom dipped into its crude stockpiles, reported S&P Global with reference to data released Monday by the Joint Organisations Data Initiative showed.

Saudi Arabia's crude production fell to a three-month low of 9.594 million b/d in December but exports were stable, with the OPEC member having managed to boost shipments sharply towards the end of the year after the September 14 attacks.

The kingdom has had to bolster its production to replace inventories drawn in the wake of the Abqaiq attacks in September. Stockpiles hit a 15-year low of 152.5 million barrels that month.

Saudi Arabia's December exports were stable from November, when they breached an 11-month high.

Production in December fell by 296,000 b/d after averaging 9.89 million b/d the previous month.

Total Saudi crude oil inventories were 155.199 million barrels as of the end of December, compared with 167.013 million barrels the previous month.

This is down 11.814 million barrels for the month, which explains why, despite a sharp fall in production, exports remained steady.

Domestic refinery runs rose marginally to 2.32 million b/d in December from 2.31 million b/d in November.

But refining runs are expected to fall steadily in the first three months of 2020 due to scheduled maintenance at some of its plants.

Saudi Arabia's 140,000 b/d Riyadh refinery, the 400,000 b/d Petro Rabigh plant and the 440,000 b/d Satorp refinery were scheduled for partial maintenance during the first quarter, according to sources.

Total Saudi oil products exports in December fell 121,000 b/d to 1.05 million b/d.

The kingdom's direct use of crude burned for power generation rebounded to 374,000 b/d from 342,000 b/d in November.

Combining the exports, refinery runs and direct-use figures indicates Saudi Arabia supplied 10.07 million b/d to the market, compared with 9.926 million barrels

Saudi pumped 9.74 million b/d, according to the latest S&P Global Platts survey, with exports largely stable while refinery runs were down due to planned maintenance. That is 400,000 b/d below its quota of 10.14 million b/d as it seeks higher oil prices to carry out major economic reforms.

The kingdom self-reported production of 9.75 million b/d in January.

Saudi energy minister Prince Abdulaziz bin Salman has pledged to hold the kingdom's output at around 9.74 million b/d in early 2020, as long as other OPEC+ members respect their quotas.

The armed drone attack on two key Saudi Aramco facilities in September temporarily knocked down nearly 5% of the world's global oil supply, but production and capacity were back to normal by the end of the year, Saudi officials said at the time.

As MRC informed before, in October 2019, McDermott International was awarded a contract by Saudi Aramco and Total Raffinage Chimie (Total) for their joint venture (JV) Amiral steam cracker project at Jubail, Saudi Arabia. Amiral is a JV in which Aramco holds 62.5% and Total the rest. The plant, designed to produce 1.5 million metric tons/year (MMt/y) of ethylene, will be one of the world's largest mixed-feed crackers.

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).
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