Hexion Inc. Names Karen M. Fowler as first Director of Diversity, Equity and Inclusion

MOSCOW (MRC) - Hexion Inc. announced that Karen M. Fowler has joined the Company as its first Director of Diversity, Equity and Inclusion, said the company.

Fowler will be responsible for accelerating the organization’s diversity, equity and inclusion worldwide – including developing and implementing a strategy to attract, retain and develop diverse talent and promote an inclusive environment where associates at all levels can perform their best.

"At Hexion, we are committed to celebrating the diversity of our associates and creating an environment of inclusion,” said Craig Rogerson, Chairman, President and Chief Executive Officer. “Diversity and inclusion enhance creativity and innovation as team members come together with different information, opinions, and viewpoints. Diversity and inclusion encourage the search for novel information and perspectives, leading to better decision making and problem solving."

Fowler joins Hexion with more than 25 years of experience in driving change within organizations. Most recently, she served as the Director, Ohio Diversity Councils, National Diversity Council. In this role, Fowler consulted with C-suite leaders, business executives and HR Business Partners to build DE&I capability, as well as provide strategies and resources to guide members and corporate partners with their workplace diversity and inclusion efforts. Her experience also includes leadership roles within Thermo Fisher Scientific, Time Warner Cable, and The Ohio State University.

"To create a strong culture of inclusion and grow the diversity of our organization, it is critical to have an experienced leader to develop and execute our diversity, equity and inclusion strategy,” said John Auletto, Executive Vice President, Human Resources. “We are confident that Karen’s vast experience will enhance our approach to diversity, equity and inclusion across the globe, and Karen will be instrumental in ensuring Hexion is an industry leader in creating an environment of inclusion."

As MRC informed earlier, Hexion, a major American manufacturer of phenol and bisphenol A (BPA), has shut down its BPA plant in Pernis, the Netherlands for scheduled maintenance. Hexion is currently carrying out scheduled repairs at the enterprises for the production of epichlorohydrin with a capacity of 90,000 tonnes/year and bisphenol-A (BPA) with a capacity of 120,000 tonnes/year in Pernis in the Netherlands. The renovation began in early November and will last until the end of November, a company source added. The exact dates were not disclosed.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) rose in the first three quarters of 2020 by 32% year on year to 75,600 tonnes (57,200 tonnes a year earlier).

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

Lummus Technology awarded contract for Shandong Yulong refining and petrochemical integrated project

MOSCOW (MRC) -- Lummus Technology announced that it has been awarded a technology contract by Shandong Yulong Petrochemical Co., Ltd., a subsidiary of China’s Nanshan Group, said Hydrocarbonprocessing.

Lummus will provide Master Licensor services for multiple licensed units, consisting of two mixed feed crackers, an EB/SM plant and two polypropylene (PP) lines. The scope includes technology licensing, process design package, training and advisory services, master licensor integration services and catalyst supply for the PP plant.

The plants will be part of Shandong Yulong’s 20,000 kta Refining and Petrochemical Integrated Project, a mega complex to be located in the Province of Shandong that recently received government approval.

"Being awarded the Master Licensor for multiple licensed units, and participation in such a large scale project in China, is very significant for Lummus” said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. “This award underscores our ability to deliver the best process technology from our comprehensive portfolio, ensuring that customers such as Shandong Yulong benefit from low operating expenses and high reliability throughout their entire asset lifecycle. It is also a testimony to our technology leadership, as we have captured many projects since China’s COVID-19 recovery."

The mixed feed ethylene crackers will utilize Lummus’ market-leading ethylene technology incorporating the SRT (Short Residence Time) VII cracking heaters that have the highest proven yields in the industry, and the low-pressure chilling train and patented multi-component refrigeration, which reduces investment costs and improves reliability by eliminating plant equipment. The EB/SM plants will utilize the Lummus/UOP EBOne and CLASSIC SM technologies for reliable and efficient production of ethylbenzene and styrene monomer, respectively. The PP plant will utilize Lummus Novolen Technology which demonstrates low overall capital and operating cost, while providing the best range in products and high reliability.

As MRC informed earlier. Haldia Petrochemicals (HPL), a flagship company of The Chatt­erjee Group (TCG), alo­ng with its international partner Rhone Capital has acquired US-based Lummus Technology at an enterprise value (EV) of USD2.725 billion (around Rs 20,590 crore) from McDermott International. In the joint acquisition, HPL’s share is at 57 per cent, the balance would be held by Rhone Capital. Under the new dispensation, Lummus Technology wou­ld function as a ‘standalone’ autonomous entity.

As MRC informed earlier, in late March 2020, India's private-sector Haldia Petrochemicals (HPL) shut its naphtha cracker after ports in the country declared force majeure to prevent the spread of the coronavirus.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC

OQ Chemicals hikes price globally for neopentyl glycol

MOSCOW (MRC) -- OQ Chemicals (Monheim am Rhein, Germany) says it is raising its prices globally for neopentyl glycol due to strong demand and increasing raw material costs, effective 1 December 2020 or as contracts otherwise allow, according to Chemweek.

The price of the oxo intermediate product in North America and Mexico is being increased by 8 cents per pound, while in South America it will rise by USD180/metric ton. In Europe the product price is being hiked to EUR150/metric ton (USD178), while in all other regions of the world the price will increase to USD180/metric ton, it says.

OQ Chemicals (formerly Oxea) last raised the price of neopentyl glycol, along with several other oxo intermediate products, in September when it increased prices in the Americas.

As MRC reported earlier, in September 2020, OQ Chemicals entered into an agreement to license its advanced proprietary technology for the production of ethylene and propylene derivatives to Duqm Refinery and Petrochemicals Industries Company (DRPIC) in Oman. DRPIC, a joint venture between Oman Oil Company and Kuwait International Oil Company, is a planned grassroots petrochemical complex at Duqm, Oman. In all, DRPIC awarded twelve license packages to international licensors.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

OQ Chemicals, formerly Oxea, is a global manufacturer of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavours and fragrances, printing inks and plastics. OQ Chemicals is part of OQ, an integrated energy company that delivers sustainability and business excellence. OQ operates in 16 countries and covers the entire value chain from exploration and production to the marketing and distribution of its products.
MRC

PTT Global Chemical puts plans for Ohio petrochemical plant on hold

MOSCOW (MRC) -- PTT Global Chemical has put plans for the construction of a massive petrochemical plant in eastern Ohio on hold while it conducts another feasibility study, reported Hydrocarbonprocessing with reference to The Columbus Dispatch.

The proposed project, which was announced in 2015, has faced a series of delays.

PTT has put the blame for previous delays on the COVID-19 pandemic, the US-China trade war and opposition from environmental groups. The pullout of one of PTT’s two partners on the project, South Korea-based Daelim Chemical USA, has also added to the list of problems. Now the company tells the Bangkok newspaper it must factor in the election of Democrat Joe Biden as president on its revisions.

The company's decision to review the project makes sense, said Kathy Hipple, a financial analyst with the Institute for Energy Economics and Financial Analysis, a Cleveland-based research group.

"There's still a lot of petrochemicals on the market. And demand is uncertain, post pandemic. But the broader (issue) is that the type of plastics that they were going to make -- the price has dropped a lot, since they first conceived of this project," she said.

"It no longer makes economic sense to invest USD10 billion in building a petrochemical complex, when the demand for this product is uncertain, the price for the product is very low."

It could be months before the feasibility study is completed.

"I expect it (the study) will be finished in the middle of next year at the soonest," Auttapol Rerkpiboon, the chief executive of PTT, told the Bangkok Post. PTT Global Chemical is a petrochemical arm of PTT.

The company remains committed to the project, and will continue to invest time and resources to it, PTT spokesman Dan Williamson said. He would not put a timeline on when the company will make a final investment decision.

It really comes down to a cumulation of risks, Hipple said.

"You might be able to interact with one risk factor and (the company) might be able to address a second risk factor. But take them all together, and then throw in uncertain regulatory (policy) at the most senior level," she said.

"If you're in the headquarters in Thailand, and you're trying to make ... sense of the crazy politics here. I wouldn't want to commit USD10 billion if I were a foreign company at this moment in US history. I would want to take a second look. That just seems like common sense."

The company's air permit for the project expires in June 2021, around the time when the feasibility study may be completed.

"They really have to make some choices, or they'll be going back through that (process) from scratch," said Megan Hunter, a staff attorney for Earthjustice, a non-profit that has represented a coalition of Ohio-based environmental organizations.

"There's a lot of hope for a different economic future, if this doesn't come in. This is yet another signal that there won't be all this effort and money invested into something that doesn't make sense for the valley," she said.

JobsOhio, the state’s economic-development arm, has poured USD70 million in loans and grants into the project, including site work. PTT says it has invested about USD200 million.

Belmont County is an attractive location for the plant because of its proximity to the plentiful, cheap natural gas of the Marcellus and Utica shale formations in Ohio, Pennsylvania and West Virginia.

Many estimates have pegged the value of the project at USD6 billion to USD8 billion, making it the largest economic development project in the state.

But every time PTT announces another delay, doubt grows about whether the company will proceed.

The state's economic development arm, JobsOhio, said the company remains committed to the project and is working closely with the company.

"The ethane feedstock at a major cost advantage, access to the Ohio River and the proximity to North American ethylene demand remains in Belmont County, and we consider this project to be very viable," JobsOhio spokesman Matt Englehart said.

"(The company) has expressed its belief in the long-term strategic importance of this transformational project, which would bring billions in investment while creating thousands of construction jobs and hundreds of permanent jobs."

As MRC wrote before, in June, PTTGCA said it delayed making a final investment decision to build the ethane cracker in US, which analysts estimate will cost USD5.7 billion, from the first half of 2020 to the first half of 2021 due to the coronavirus.

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

ccording to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

Global refinery maintenance activities are gradually getting back on track

MOSCOW (MRC) -- Refiners across the globe were severely impacted by COVID-19, which destroyed demand, reduced operations in several refineries and even compelled them to suspend operations, said Hydrocarbonprocessing.

Despite unfavorable conditions in the first three quarters of 2020, refiners are getting back to normalcy with seemingly improving market scenario, says GlobalData, a leading data and analytics company. In the beginning of 2020, several refiners were forced to slash capital expenditure (capex) to sail through the crisis. This led to postponement or rescheduling of planned maintenance activities in several refineries across various regions. Lockdowns imposed in many countries also resulted in supply shortage of spare parts and contract workers, preventing refinery operators to go ahead with their maintenance activities as per original schedules.

Haseeb Ahmed, Oil and Gas analyst at GlobalData, comments: “As companies slash costs to stay afloat amid falling revenues, they are unwilling to infuse additional capex into maintenance schedules. Several refiners have pushed maintenance activities to 2021, as they re-assess their business portfolios. For instance, Milazzo Refinery and Eni have postponed maintenance activities in their respective refineries to Q2 2021."

Several refiners deferred maintenance schedules to Q1, Q2 or late 2021. Workers safety has been one of the key concerns for refiners to delay maintenance. Refineries located in North America and Europe have been impacted the most, since the pandemic was widely prevalent in these regions during the initial stage. However, many of these refineries have started maintenance and are taking adequate precautionary measures – albeit with delays. While refineries across Asia have started their maintenance activities, refineries situated in Oceania, or in the Middle East are yet to start.

Ahmed continues: "The implications of delayed maintenance activities, such as reducing refinery and losing supply contracts, have weighed down several refinery operators. Although maintenance activities are back on track across many regions after a hiatus, it is unlikely that refiners can catch-up with their initial schedules. "While, operators are adjusting to the new norm of operating refineries, the gradual improvement in global economy provides a ray of hope to run refineries at their maximum potential and cover the lost ground."

As MRC informed earlier, chemical companies across the UK are “battling through the pandemic and the threat of a Brexit no deal”. According to the CIA’s latest quarterly survey of its members, chemical businesses saw a modest expansion in the third quarter with the survey’s sales diffusion index reaching 55.4 and export growth to non-EU countries registering 56.5. Any figure above 50 represents growth. The overall performance index was 51.5, beating forecasts, CIA says.

As MRC informed before, SABIC Europe declared a force majeure on its low density polyethylene (LDPE) supplies from Wilton, the UK on November 3, 2020. The company had shut its LDPE plant for a maintenance work in the first half of October. The Wilton unit is able to produce 400,000 tons/year of LDPE.

According to MRC's ScanPlast report, September estimated LDPE consumption in Russia fell to 23,930 tonnes from 47,610 tonnes a month earlier. Russian producers reduced their domestic LDPE shipments due to shutdowns for maintenance at production capacities in Ufa, Tomsk and Kazan. Russia's estimated LDPE consumption totalled about 406,500 tonnes in January-September 2020, which virtually corresponded to the last year's figure.
MRC