DSM completes share buy-back program

MOSCOW (MRC) -- Royal DSM, a global purpose-led, science-based company in Nutrition, Health and Sustainable Living, says it has recently completed the repurchase of 1.4 million of its own shares at an average price of EUR98.40 (USD111.4), for a total consideration of EUR137.8 million, reported Chemweek.

The repurchase follows the company’s announcement on 2 March that it would cover commitments under share-based compensation plans and shares for stock dividends, DSM says.

DSM has also decided to cancel the rest of its EUR1-billion share buy-back program, announced in February 2019, the company says. The decision to cancel the buy-back follows the acquisition of Erber Group, announced in H1 June, 2020, and is a "prudent measure" in the COVID-19 environment, the company says.

Under the program, DSM repurchased 5.4 million shares for a total consideration of EUR600 million in 2019 and another 1.3 million shares for a total consideration of EUR145 million in 2020, bringing the total number of shares repurchased to about 6.6 million for a total consideration of EUR745 million, the company says.

As MRC informed earlier, this month, Royal DSM and Clariant, a focused, sustainable and innovative specialty chemical company, announced an agreement for DSM to take over certain parts of Clariant’s 3D printing business portfolio.

We remind that in June 2020, TechnipFMC and Clariant Catalysts entered into a joint development agreement for the demonstration and commercialisation of Clariant’s new state-of-the-art AcryloMax propylene ammoxidation catalyst for the production of acrylonitrile (ACN).

Besides, in May 2020, Clariant’s CATOFIN catalysts was selected by Advanced Global Investment Co. (AGIC), a joint venture between Advanced Petrochemical Company (APC) and SK Group, to build a PDH facility in the Middle East.

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

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.

Neste and Jokey target to develop the market for rigid packaging

MOSCOW (MRC) -- Neste and Jokey, a leading international manufacturer of rigid plastic packaging, have started collaborating with a target to develop the market for rigid packaging from sustainable renewable and recycled materials for food and non-food applications, said the company.

By promoting the use of more sustainable materials in packaging, such as those produced with Neste’s hiqh-quality drop-in hydrocarbons produced from renewable and recycled raw materials, the partners wish to help other companies using such rigid plastic packaging to meet their materials-related sustainability targets. The joint aim of Neste and Jokey is to work towards a future with an increasing share of renewable and recycled materials and a plastics economy built upon solid circular value chains.

Jokey produces rigid plastic packaging, such as buckets, boxes and trays, which are up to 100% recyclable. Jokey packaging for food and non-food goods stands for the highest level of quality, hygiene, ease of use and innovation. Neste’s product for plastics production consists of renewable and recycled components derived from biomass, such as various waste and residue oils and fats, as well as chemically recycled plastic waste. It is very well suited for high-quality rigid packaging applications. The plastics produced with Neste’s renewable and recycled feedstock are compatible with existing production and recycling infrastructures, and their quality is identical to conventional plastics – they can be used safely even in sensitive applications, such as in healthcare and food packaging.

"With the Jokey Eco Concept 2.0, we are setting ourselves a sustainable development guideline. Our packaging is already designed to meet the requirements of a circular economy. We always look forward to exploring new paths and to inspiring insights with Neste, which will make our future even more sustainable", says Michael Schmidt, Chief Procurement Officer at Jokey SE.

"We see a great match between Neste’s and Jokey’s solid commitments to sustainability. We are inspired by the opportunity to support Jokey in its mission to offer their customers packaging solutions based on sustainable materials from renewable and recycled sources. We are equally delighted to join forces with Jokey to contribute to the industry’s transformation towards a circular plastics economy," says Mercedes Alonso, Executive Vice President, Renewable Polymers and Chemicals at Neste.

While aiming to deepen their collaboration, Neste and Jokey are inviting other value chain partners to join in their mission to develop circular plastics value chains and more sustainable plastics solutions.

According to MRC's ScanPlast report, April estimated HDPE consumption in Russia fell to 69,130 tonnes from 78,220 tonnes a month earlier. ZapSibNeftekhim significantly increased its export sales to China. Overall HDPE imports to the Russian market totalled 377,450 tonnes in the first four months of 2020, which corresponds to the last year's figure. Production increased significantly, and exports also grew by 5 times.

Solenis signs distribution agreement with German producer of oleochemical additives

MOSCOW (MRC) -- Solenis (Wilmington, Delaware) says it has signed an exclusive distribution agreement with Peter Greven (Euskirchen, Germany), a leading manufacturer of oleochemical additives, said Chemweek.

Under the terms of the agreement, Solenis will be the authorized distributor for Peter Greven's calcium stearate dispersions for paper coating applications in the EU, UK, and Russia, effective immediately.

"Calcium stearates are used in paper coating formulations, mainly in printing grades, as lubricants to facilitate the process of coating the paper," says Jose Santolaya, director/product management, EMEA at Solenis.

"The cooperation will strengthen both Peter Greven's and Solenis's market position in the paper industry," says Peter Greven, managing director at Peter Greven.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Chevron-led Kazakh consortium fulfilling OPEC+ cuts for May-June

MOSCOW (MRC) -- The Chevron-led consortium that operates Kazakhstan's largest oil field, Tengiz, is imposing production cuts in line with government legislation covering May-June and is not yet aware of additional restrictions for July, reported S&P Global with referenceto its statement June 19.

In production since 1993, Tengiz is the mainstay of Kazakhstan's crude production and the CPC export blend loaded on the Black Sea coast. It accounts for 40% of Kazakh oil production, with output of 667,000 b/d in the first quarter. A major coronavirus outbreak at the site by the Caspian Sea has disrupted a USD46.5-billion expansion project expected to lift output to 900,000 b/d in 2023.

Kazakhstan has acknowledged a failure to fulfil production cuts agreed in April among the OPEC+ group of countries in response to collapsing demand and global oversupply. On June 18, the country's energy ministry said over-supply in the first 12 days of May had amounted to 3.13 million barrels, resulting from "industry inertia," and would be compensated through additional cuts in August and September.

S&P Global Platts estimates Kazakhstan's production was 160,000 b/d above its quota of 1.319 million b/d over the full month. The country told an OPEC+ monitoring meeting this week it would cut an extra 15,000 b/d in July and 50,000 b/d in August and September.

In emailed comments, Chevron said the TCO consortium was playing its part in production cuts, although it gave no indication of plans beyond June, following an agreement by the OPEC+ group to extend the first phase of cuts, totaling 9.7 million b/d, into July.

"TCO, as a law-abiding company, is following the Republic of Kazakhstan's government decree imposing oil production limitations in May and June and is not currently aware of additional legislative action. We remain focused on safe and reliable operations and continuously strive to meet the expectations of our shareholders," Chevron said, adding it was "generally TCO's policy not to comment on commercial matters."

A provisional program for CPC crude loadings for July suggests a sizable increase from June to 1.31 million b/d. This is close to Kazakhstan's production quota for May and June, however, not all CPC crude is produced in Kazakhstan, about 10% being from Russian oil fields in the northwest portion of the Caspian Sea.

The OPEC+ agreement in any case only covers crude oil, and not condensate, sizeable volumes of which supplement crude oil in the CPC crude stream. Kazakhstan's third largest hydrocarbon field, Karachaganak, is primarily a gas and condensate field, with liquids output of around 220,000 b/d in 2019.

TCO said this month that work on the Tengiz expansion project, known as the Future Growth Project-Wellhead Pressure Management Project, was now 77% complete, and it was "taking actions to safely execute the projects key critical-path activities."

Chevron, which is a 50% shareholder in TCO, has cut its capital spending plans for this year by almost a third, indicating that Tengiz will account for a significant portion of the savings.

The other shareholders are ExxonMobil, on 25%, state-owned KazMunaiGaz on 20% and Lukoil subsidiary LukArco on 5%.

We remind that, as MRC informed before, in late May, 2020, Borealis said it will not proceed with the development of a multi-billion-dollar integrated steam cracker and polyethylene (PE) project in Kazakhstan. “The decision to discontinue this project is based on a thorough assessment of all aspects of the prospective venture and impacted by the effects of the COVID-19 (coronavirus disease 2019) pandemic as well as the increased uncertainty of future market assumptions,” Borealis states.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim.

Teijin increases capacity of carbon fiber in Germany

MOSCOW (MRC) -- Teijin says that its subsidiary Teijin Carbon Europe (Heinsberg, Germany) has increased the production capacity of chopped carbon fiber by 40%, according to Chemweek.

The company says that it is responding to the growing demand from European electronics manufacturers in recent years, as well as the current increase in demand for compounds for medical devices.

Teijin says that European customers' demand has been partly met by its Mishima plant in Japan. With the increased German capacity, Teijin can now "react more flexibly to inquiries in the European market."

Other product types of its brand Tenax short fiber-chopped, pelletized or milled - are produced at facilities in Japan and the US, it says. They are supplied in a variety of sizings to be used, besides thermoplastic materials, with thermosets and in water-based processes.

As MRC reported before, Teijin Ltd. is expanding its footprint in Europe with Teijin Automotive Center Europe GmbH, a new base in Wuppertal, Germany, that will house technical functions for the company’s automotive composites business.

Polypropylene (PP) is used in the production of autocomponents, as well as yarns and fibre.

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.

Teijin is a technology-driven global group offering advanced solutions in the areas of sustainable transportation, information and electronics, safety and protection, environment and energy, and healthcare. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 150 companies and around 17,000 employees spread out over 20 countries worldwide.