3M restructures amid pandemic-led market shifts

MOSCOW (MRC) -- 3M will be restructuring and streamlining its business in the wake of shifts in the global economy caused by the coronavirus pandemic, said the company.

3M said the move will streamline its business and invest more in health care, e-commerce and home improvement. The company's restructuring efforts will cost the company up to USD300 million before taxes.

3M added this move will position the company for greater growth as global markets emerge from the pandemic. "The company will further enhance its operations and marketing capabilities," 3M said. "In operations, 3M will eliminate redundancies and better use analytics to drive additional efficiencies. In marketing, 3M will build on its success in utilizing data insights, accelerating global marketing programs, and activating digital engagements with customers."

3M cut 1,500 jobs back in January amid a trade war between the United States and China. "The COVID-19 [coronavirus] pandemic has advanced the pace of change and disrupted end markets around the world, increasing the need for companies to adapt faster," said Mike Roman, 3M chairman and CEO.

"As a result, we are taking further actions to streamline our operations, positioning us to deliver greater growth and productivity as global markets emerge from the pandemic," he said. Please also visit the ICIS topic page on coronavirus impacts and the oil price crash.

As it was said earlier, 3M Co said it would restructure its business into four operating units from five, as it looks to sharpen its focus on customers and boost growth. The company’s shares fell 1 percent in early trading after it announced the four units - safety & industrial, transportation & electronics, healthcare and consumer.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- OPEC+ members' decision to slowly ramp up production from next month will be balanced by increased demand as a result of the expected roll-out of coronavirus vaccines, reported Reuters with reference to Goldman Sachs' statement in a note dated Thursday.

The Organization of Petroleum Exporting Countries and Russia agreed on Thursday to ease oil output cuts by 500,000 barrels per day (bpd) to 7.2 million, from 7.7 million now, starting January.

"OPEC+ clearing the hurdle of exiting its current cuts in a coordinated way and its focus on both growing production and drawing inventories reinforces our conviction in a steady and sustainable rally in oil prices through 2021," Goldman said.

Goldman in its note also maintained its 12-month Brent price forecast of USD65 per barrel.

As MRC invofmed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40% in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

And in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- There was an explosion on Friday morning at Engen's oil refinery in Durban, a Durban metropolitan police official told Reuters, adding that police had not yet received reports about whether there had been injuries or deaths.

An Engen spokesman told Reuters he would comment later in a statement. According to Engen's website, the Durban refinery has a crude refining capacity of 120,000 barrels per day.

It is the second-largest crude refinery in South Africa.

As MRC wrote earlier, two people were killed in an explosion at Astron Energy’s 100,000 barrel per day refinery in Cape Town early on 2 July, 2020. The Western Cape’s emergency medical services said one male and one female died on site and seven people sustained minor injuries and were taken to hospital. The refinery, which Glencore acquired as part of an almost USD1 billion deal with Chevron, earlier this year completed a 400 million rand (USD23.69 million) upgrade to produce very low sulphur fuel for ships docking in Cape Town port. The shutdown comes at a crucial time for South Africa as it reopens after its COVID-19-related lockdown.

We remind that on 18 August, 2020, Chevron Corp reported a fire at its 112,229-barrel-per-day (bpd) Pasadena, Texas facility. "At this time, flames, smoke may be noticeable to the community. We are coordinating with local officials, and working to resolve the issue as soon as possible," the company reported on August, 19.

We also remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- The European Union is offering assurances on funding for poorer members and countries' ability to choose their own energy mix, as it strives for a deal next week on a tougher target to cut greenhouse gas emissions, according to EU documents and sources, said Reuters.

To get on track for its plan to have "net zero" emissions by 2050, the EU's executive Commission says the bloc must cut its net emissions at least 55% by 2030, from 1990 levels. The EU's current 2030 target is for a 40% cut.

Leaders from the 27 EU countries aim to approve the new target - by unanimity - at a summit on Dec. 10-11. The challenge is to draft a deal that all countries will support - including states concerned by the economic transformation required, such as Poland and Bulgaria, which want more analysis and conditions attached to the goal.

The latest draft conclusions for the summit, dated Dec. 1 and seen by Reuters, would see countries endorse the "at least 55" target and ask the Commission to make cash available to help poorer states invest in clean energy - a request made by countries including Poland.

It also said countries can "choose the most appropriate technologies" to cut emissions - wording likely aimed at states including Bulgaria, Slovakia and Romania, which in government papers seen by Reuters, have sought assurances that countries will be able to use nuclear power to curb emissions - and natural gas, in the case of Bulgaria.

EU officials described the latest text as progress, and said Brexit and a spat over the EU budget had so far not derailed the climate talks - though they said it was too early to tell if the text could yield a deal. "Everyone should be able to hop on the bus now, but you never know who decides to get off before the final stop," one official said. An official from a country that has not yet publicly endorsed the 55% goal said it planned to make "further suggestions" to the text before next week's summit.

As MRC informed earlier, auctions of carbon permits in the European Union's emissions trading system (ETS) next year will not start until late January or early February. For "technical reasons", auctions of permits on behalf of most EU countries, plus Iceland, Liechtenstein and Norway, will kick off later than usual, the Commission said. This year's EU ETS auctions began on Jan. 7. Poland auctions its permits separately.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- The agreement reflects a strategic collaboration between ABB and CORYS, with both companies committed to delivering advanced digital twin technology to help drive down capital and operational costs and reduce risks for customers, said Hydrocarbonprocesing.

Leveraging ABB Ability 800xA Simulator, ABB delivers complete digital replicas of a plant’s control system. Combined with CORYS’ dynamic high-fidelity Indiss Plus® process modeling simulator, customers will benefit from a complete digital twin solution, that supports training and allows operators to validate and test control strategies and production processes, as well as manage changes during the lifecycle of operations. The collective digital solution is expected to reduce capital expenditure in greenfield projects, by improving quality of the control applications, reducing number of late changes, training the operators and by reducing the number of commissioning and start up hours.

Colin Ward, Chemicals and Refining SVP for ABB Energy Industries said: “In today’s economy, our oil, gas and chemical customers are exploring all ways to maximize return on investment in operations. Digital twin modeling and simulation creates more confidence in executing projects – reducing cost, schedule and risk – and helps operators identify and understand improvement opportunities across an asset’s complete lifecycle."

Also applicable for use in brownfield sites, operators can utilize the ABB CORYS digital twin package to build intelligent models and run scenarios to increase performance of plant operations. This includes improving plant efficiency and availability, as well as reviewing and managing equipment and assets across the plant, enabling maintenance teams to build an effective condition-based maintenance programme.

Charles Rosmorduc, CEO of CORYS, said: “We are proud to enter into this strategic partnership to develop and integrate CORYS’ products with ABB allowing our mutual clients to improve safety and operational efficiency." This global framework formalizes a successful business relationship between the two companies.

As MRC informed earlier, MOL Group and ABB embark on a three-year collaborative project to transform Asset Integrity Management (AIM) across four key chemical and refinery sites in Europe. ABB has been awarded the contract to improve asset integrity across MOL’s downstream assets, through changing mindset, standardizing processes and software and ensuring integrity management is focused on the right equipment. The project spanning MOL DS Production plants in Hungary, Slovakia, and Croatia, will implement standardized asset integrity procedures in a move to drive production efficiency, improve safety and reduce risk.

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 density 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, excluding producers" inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
MRC