Deepak Nitrite incorporates wholly owned subsidiary, DCTL

MOSCOW (MRC) -- Deepak Nitrite Ltd has incorporated a wholly owned subsidiary company named Deepak Clean Tech Limited (DCTL) with effect from 9th October, 2020, according to Kemicalinfo.

“Deepak Nitrite Limited has subscribed to the Memorandum & Articles of Association to the extent of 100% of Share Capital of Deepak Clean Tech Limited, which has been incorporated under the Companies Act, 2013 on October 9, 2020. By virtue of the same subscription, Deepak Clean Tech Limited became a wholly owned subsidiary of Deepak Nitrite Limited on October 9, 2020,” the company stated in its stock exchange fillings.

“DCTL shall carry out business in the field of manufacture of chemical intermediate products,” the company said.

Deepak Nitrite is known as a major manufacturer of chemical intermediates in India. It has a diversified portfolio of intermediates that cater to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and overseas.

The company’s products are manufactured across five locations. Company’s consolidated turnover for FY20 grew by 57% whereby revenues stood at Rs. 4,265 crore as against Rs. 2715 crore in FY19.

As MRC reported earlier, in April,2020, Deepak Nitrite’s fully-owned subsidiary Deepak Phenolics began production of isopropyl alcohol (IPA) at its plant in Dahej, Gujarat, India. The company confirmed in its official disclosure to the Bombay Stock Exchange that the company commissioned a 30,000 metric ton per annum plant at Dahej to make Isopropyl Alcohol (IPA) from Acetone, thus significantly reducing the country’s dependence on imports.
IPA is an important input in the production of essential pharmaceuticals and manufacturing of sanitizers.

We remind that the company started up its new phenol/acetone plant, located at Dahej in the state of Gujarat, on 16 August 2018. The plant, which is operated under Deepak Nitrite’s wholly-owned subsidiary Deepak Phenolics Limited, is able to produce 200,000 tonnes/year of phenol and 120,000 tonnes/year of acetone. There is also the potential for a capacity expansion in the future. Deepak Phenolics’ plant is the largest phenol/acetone plant in India.

Besides, Deepak Phenolics shut its phenol/acetone plant in Dahej on 25 March, 2020, because of the nationwide lockdown because of the spread of coronavirus. It resumed operations in late April, 2020.

Phenol is one of the main feedstocks for the production of bisphenol A (BPA), which, in its turn, is used for the production of polycarbonate (PC).

According to MRC's ScanPlast report, overall estimated consumption of PC granules in the Russian market reached 58,000 tonnes in January-July 2020, up by 22% year on year (47,500 tonnes).
MRC

Styrolution receives funding for new styrenics recycling research

MOSCOW (MRC) -- Styrolution has received Belgian government funding for new research into the potential recycling of styrenics using dissolution technology, said Chemweek.

The styrenics subsidiary of Ineos says it will be contributing to the ‘Remove2Reclaim’ project, which is researching the recycling of plastics and titanium dioxide using advanced dissolution and separation techniques for plastic additive removal. No financial details were given.

The project involves several leading research institutes in Belgium, with the aim of developing solvent-based extraction routes to remove additives such as titanium dioxide from different polymer matrices. Targeted polymers include polystyrene (PS), high-impact PS, and acrylonitrile-butadiene-styrene (ABS), according to Styrolution. The potential dissolution process will complement existing mechanical and depolymerization recycling projects, “rounding up the understanding of the broad range of recycling technologies available for styrenics,” it says. The research project is funded by the Flemish Agency of Innovation and Entrepreneurship.

As MRC reported earlier, in September, AmSty announced that it had joined Ineos Styrolution’s plans to build in Channahon, Illinois a 100-metric tons/day recycling facility based on the same technology.

According to ICIS-MRC Price report, October prices of Russian PS continued their upward trend. A shortage of material remained in the domestic market. Traders said Nizhnekamskneftekhim reduced its offer prices for this month's PS purchases to 40%. October prices of Nizhnekamskneftekhim's GPPS grew for the agreed with buyers quantities to Rb89,000-95,000/tonne CPT Moscow, including VAT, whereas HIPS - to Rb93,000-99,000/tonne CPT Moscow, including VAT.
MRC

PQ Group to sell microspheres unit to private equity, explore options for sodium silicates

MOSCOW (MRC) -- PQ Group announced plans to sell its performance materials business, a producers of glass microspheres for transportation safety and electronics applications, to private equity firm The Jordan Company (New York, New York) for USD6550 million, said Chemweek.

The performance materials business generated USD363.0 million in revenue and USD76.7 million in adjusted EBITDA during 2019.

The company has also announced plans to explore strategic alternatives, including a possible sale, for its sodium silicate and silicate derivatives unit, called performance chemicals. That unit, PQ’s largest reporting segment, generated USD685.1 million in revenue and USD154.3 million in adjusted EBITDA in 2019. It operates in diversified end markets, including food and beverage, coatings and personal care.

The plans are both part of a strategy to focus PQ on its catalysts and refining services businesses, which are “well positioned to use its technology and service offerings to help customers drive sustainability by more efficiently producing the lightweight polymers and clean fuels that are expected be in high demand going forward,” says PQ Group CEO Belgacem Chariag. The performance chemicals and performance materials segments account for over 60% of PQ Group’s annual revenues.

The performance materials sale is expected to close by the end of this year. Proceeds from the sale will go towards reducing debt and funding a special dividend of up to USD1.84/share. Goldman Sachs and Harris Williams are acting as financial advisors to PQ, while Ropes & Gray is acting as legal advisor. Kirkland & Ellis is acting as legal advisor to The Jordan Company. No timetable has been given for the potential sale of the performance chemicals segment.

As MRC informed earlier, in last December, PQ Group Holdings Inc. announced an agreement with INEOS Polyolefin Catalysts to commercialize certain polyethylene catalysts to customers of selected processes.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

EU methane strategy offers framework for immediate climate action

EU methane strategy offers framework for immediate climate action

MOSCOW (MRC) -- Environmental Defense Fund Europe welcomes the European Commission's Methane Strategy released this week as one of two new initiatives executive vice-president Frans Timmermans outlined to support a green recovery, said Hydrocarbonprocessing.

At least 25% of the planetary warming we experience right now is caused by methane emissions from human activities, including agriculture, production and use of fossil fuels, and landfill waste. Oil and gas methane present a particularly important opportunity, as it offers the most immediate and lowest cost option to reduce a potent greenhouse gas.

According to the International Energy Agency, the oil and gas industry can deliver a 75% reduction in methane emissions with technology available to it today, with more than half of this achievable at no net cost to the industry. "This new strategy puts Europe in the vanguard of international policy to reduce methane pollution. As the terrible effects of climate change bear down on all of us, Europe is recognizing that reducing oil and gas methane emissions is the most immediate and cost-effective step to slow the rate of warming now, and is a necessary complement to efforts to drive carbon dioxide pollution out of the economy.

"As the largest importer of internationally traded gas, the EU has a special responsibility to take on methane emissions. We are pleased to hear the Commission will evaluate the feasibility of an import standard on methane in parallel with continuing international dialogues and cooperation. We believe that a swift introduction of gas standards is essential to energy system integration and achieving the goals of the Green Deal, and we stand ready to assist the Commission in its investigations of how this could be done.

"Past progress has been hindered by difficulties in tracking emissions. But monitoring and detection technologies to reduce methane are improving every day. Europe's TROPOMI and Prisma satellites provide access to measured emissions data, while new satellites like MethaneSAT will generate even more precise information on methane emissions from oil and gas operations in remote corners of the world.

"Environmental Defense Fund Europe advocates for market-based solutions that help people and nature prosper. As a leader in advancing methane science and innovative policies to reach a net-zero energy future, we look forward to working with EU leaders to develop enabling legislation built off the Methane Strategy."

As MRC informed earlier, The European Commission has recently presented its 2030 climate target plan, in which it sets out a program to reduce EU greenhouse gas (GHG) emissions by at least 55% by 2030, compared with 1990, despite a call from the European Parliament in September for GHG emissions to be reduced 60% by 2030. The raised target puts the EU on a balanced pathway to reaching climate neutrality by 2050 and underlines the EU's continued global leadership in this area, ahead of the next UN climate conference (COP26).

As MRC informed earlier, in October, 2020, the European Commission adopted the EU's chemicals strategy for sustainability, describing it as the first step towards a zero-pollution ambition for a toxic-free environment announced in the European Green Deal.

We remind that Russia"s output of chemical products rose in August 2020 by 5% year on year. At the same time, production of basic chemicals increased year on year by 5.3% in the first eight months of 2020, according to Rosstat"s data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-August output. August production of primary polymers rose to 888,000 tonnes against 838,000 tonnes in July due to increased capacity utilisation at ZapSibNeftekhim, Stavrolen and Gazprom neftekhim Salavat. Overall output of polymers in primary form totalled 6,630,000 tonnes over the stated period, up by 15.2% year on year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

Nouryon and Atul receive environmental clearance to expand MCA production in India

Nouryon and Atul receive environmental clearance to expand MCA production in India

MOSCOW (MRC) -- Anaven, a joint venture of Nouryon and Atul, has received the environmental clearance for its 32,000 metric tons monochloroacetic acid (MCA) plant in Gujarat, India, said Chemweek.

Construction is due to be completed this year to supply MCA to the Indian market by the end of the year. Rob Vancko, Nouryon’s Head of MCA and Chairman of Anaven, said: “Our partnership with Atul will ensure we can efficiently meet growing demand from customers in India, supporting Nouryon’s ambition to grow in targeted end markets such as agriculture, cleaning, and personal care, particularly in emerging markets."

Sunil Lalbhai, Chairman and Managing Director of Atul said: “We are happy to receive the clearance to expand production of MCA, an essential ingredient for the growing Indian agricultural, personal care and pharmaceutical markets. We are on track to complete construction, testing and commissioning of the facility built using the world-class technology from Nouryon this year and expect to reach full production capacity in the first half of 2021.” The 50-50 joint venture will become the largest MCA plant in India. It will use chlorine and hydrogen manufactured by Atul to produce up to 32,000 metric tons of MCA per year, with the possibility to expand this to 60,000 metric tons per year in the future.

Atul will consume a portion of the MCA directly in its own production and the balance will be supplied to the Indian market. Nouryon is the leading global technology player in MCA. The company operates plants in the Netherlands, China, and Japan, supplying to customers who use it to produce crop protection products, cleaning and personal care products, pharmaceuticals, thickening agents for food, oil drilling, mining, and cosmetics.

Atul Ltd is currently trading at Rs5,901 down by Rs25.75 or 0.43% from its previous closing of Rs5,926.75 on the BSE. The scrip opened at Rs5,961 and has touched a high and low of Rs5,990 and Rs5,900 respectively.

As MRC wrote previously, in February 2019, Nouryon (formerly AkzoNobel Specialty Chemicals) announced that it would license its innovative continuous initiator dosing (CiD) technology to Karpatnaftochim, Ukraine’s largest polyvinyl chloride (PVC) producer. Nouryon’s patented CiD technology allows PVC producers to increase reactor output by up to 40 percent, improve product quality, and make the production process intrinsically safer - all with minimum capital expenditure.

According to MRC's ScanPlast report, Russia's overall PVC production totalled 718,500 tonnes in January-September 2020, down by 0.3% year on year. At the same time, only two producers managed to increase their PVC output.

MRC