BASF management, employees sign new Ludwigshafen site agreement through 2025

MOSCOW (MRC) -- BASF management and employee representatives have signed a new Ludwigshafen site agreement, according to Chemweek.

The agreement applies to the 34,000 employees of BASF at the site. It will run from 1 June 2020 until 31 December 2025 and replaces the current site agreement, which would have expired at the end of 2020.

BASF will continue to forgo forced redundancies for the duration of the agreement and will spend an average of at least EUR1.5 billion (USD1.6 billion) a year on investment, modernization, and maintenance at the site until 2025.

"We are facing a whole series of major changes, driven by demographic change, limited natural resources, and digitalization. The conditions under which we do business are changing at an ever-faster rate," says Michael Heinz, member of the board of BASF and site director. "If the Ludwigshafen site is to remain successful in a fast-changing business environment, we need to become more agile and flexible…With the new site agreement, we are supporting the necessary cultural change while also creating reliable framework conditions for our employees."

Sinischa Horvat, chairman of the works council of BASF, says, "Since the late 1990s, we have pursued two key objectives through the site agreements. The first is to demonstrate reliable and robust prospects for the development of the Ludwigshafen site through investments. The second is to lay out binding protective mechanisms for employees. We have achieved both of these once again in the agreement for 2025. Especially in view of the current crisis, the early conclusion of the 2025 site agreement is a strong, positive signal for the workforce and the region."

As MRC reported previously, BASF said in late April it will not be able to meet full-year sales and earnings guidance issued on 28 February and withdrew its outlook in advance of its first-quarter earnings report.

We remind that BASF has restarted its No. 1 steam cracker following a maintenance turnaorund. Thus, the company resumed operations at the plant on September 30, 2019. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- DuPont first-quarter sales and earnings fell year on year amid nylon pricing pressures and volume declines across the Transportation & Industrial and non-core segments, said the company.

Earnings were down due to the absence of prior-year gains in the Electronics & Imaging and Safety & Construction segments. These negatives more than offset "strong gross margin improvement” in Q1, the company said.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) fell in all of DuPont’s segments, with the exception of Nutrition & Biosciences. On an organic basis, total net sales were down 2% as 8% growth in Electronics & Imaging and 3% growth in Nutrition & Biosciences could not offset declines in other segments.||

The company has idled production at several manufacturing sites, predominantly production plants within its Transportation & Industrial segment, due to the current global automotive environment.

As MRC informed earlier, DuPont has launched “Operation Airbridge,” with the US Department of Health and Human Services (DHHS) and FedEx to speed production and delivery of medical garments made from DuPont’s Tyvek material. Operation Airbridge will enable expedited shipping of Tyvek garments critical to coronavirus disease 2019 (COVID-19) relief via air, instead of sea. FedEx Express will transport Tyvek roll goods from DuPont’s Richmond, Virginia, production plant to garment manufacturers in Vietnam. They will then return to the US with finished Tyvek garments to be added to the US Strategic National Stockpile.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

MOSCOW (MRC) -- Aramco provided an update on how the company is keeping its people and communities safe from COVID-19, while continuing to supply the world the energy it needs, said Hydrocarbonprocessing.

In our response to COVID-19 we have prioritized the safety, health and wellbeing of our employees, as well as our communities, around the world. We have implemented measures to reduce the risk of infection and to mitigate the virus’s impact on our people and our business. The company and its employees have also supported community efforts to combat the spread of COVID-19.

Our inbuilt systems for managing global crises ensure all our sites remain operational. Our supply chains also remain uninterrupted, as we continue to work with our partners to ensure safe delivery of materials.

Aramco’s President and Chief Executive Officer, Amin H. Nasser, said: “The world has encountered unprecedented complexities as a result of COVID-19, which have required high levels of agility and adaptability.

“The safety and wellbeing of our people has always been Aramco’s top priority and we continue to put them first in every decision we make.

“I am proud of how Aramco has responded to the challenge with a strong, united and compassionate approach, which stems from our deep-rooted community values. COVID-19 has no doubt created physical barriers, but it has also brought many of us closer together.

“We stand by our promise to do all that we can in the fight against COVID-19, helping those around us and delivering the world’s energy throughout this pandemic.

Last August, Saudi Aramco entered into a non-binding initial agreement to buy 20% stake in Reliance Industries’ oil to chemicals divisions with an enterprise value of USD75 billion. The oil to chemicals division included RIL’s Jamnagar refining complex, petrochemicals and fuels marketing businesses.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

MOSCOW (MRC) -- Turkey's Izmir refinery in Aliaga has suspended production as of May 5, as a result of the "negative impact of the global COVID-19 outbreak on petroleum products demand" and variable commercial conditions in domestic and international markets, reported S&P Global with reference to owner Tupras's statement.

Production at the Izmir refinery, which accounts for 40% of the company's crude processing capacity, was gradually ramped down before being halted completely on May 5.

Tupras said it expected to restart production on July 1.

Meanwhile, Socar is maintaining full production levels at its STAR refinery at Aliaga in Turkey, although with an altered product portfolio.

Turkish demand for diesel during the first 26 days of April declined sharply due to the coronavirus pandemic, energy ministry data showed. The weekly published data showed diesel demand for the period was 829 million liters, down 34% from the same period in 2019. Gasoline demand over the same period was 98 million liters, down 47%.

As MRC informed earlier, SOCAR Polymer plans to reach the design load for high density polyethylene (HDPE) plant no earlier than 2023. In 2020, SOCAR Polymer is expected to produce 97,400 tonnes of HDPE and 110,000 tonnes of polypropylene (PP). In 2023, the company is expected to be able to reach its design targets and produce 120,000 tonnes of polyethylene (PE) and 170,000 tonnes of PP. Thus, the production of HDPE relative to 2019 will grow by 2.5 times, PP - by 54%.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC

MOSCOW (MRC) -- Abu Dhabi National Oil Company (ADNOC) has begun a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown, reported Reuters with reference to a company spokesman's statement on Sunday.

The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said.

"We are gradually restarting our refining operations in Ruwais following our planned maintenance programme," the spokesman told Reuters.

As MRC informed earlier, in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.
MRC