Oqema acquires natural flavors, fragrances supplier

MOSCOW (MRC) -- The Oqema Group (Korschenbroich, Germany), a chemical distributor, says it has acquired Claus Nitsche & Sohn (Nitsche; Hamburg, Germany), said Chemweek.

Nitsche supplies essential oils, natural flavors, fragrance ingredients, and ingredient solutions, and the portfolio will complement Oqema’s flavor and fragrance range, the company says. Financial terms of the deal have not been disclosed.

Morton Schmidt, who has managed Nitsche for the past 11 years, will co-lead the company in the future. “Nitsche will initially act independently within the Oqema Group,” Schmidt says.

As per MRC, Azelis says it has signed an exclusive distribution deal for Mane’s (Le Bar sur Loup, France) flavor and fragrance products in the Benelux region, including Belgium, the Netherlands, and Luxembourg. The deal is effective from January 2021.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, 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-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.

Oqema had 2019 sales of about EUR900.0 million USD1.1 billion).
MRC

Aramco continues progress in digital transformation

MOSCOW (MRC) -- Aramco announced a strategic alliance with SAP Saudi Arabia to expand the digitalization of its Enterprise Resource Planning (ERP) systems. The agreement with SAP is another step in Aramco’s digital transformation journey, paving the way for further integration of new technologies in a rapidly evolving technological landscape, said Hydrocarbonprocessing.

The SAP ERP system will deepen the deployment of innovative IR4.0 technologies including cloud-based services, embedded analytics, mobility, machine learning, artificial intelligence, advanced analytics and Internet-of-Things solutions.

By extending the strategic alliance with SAP Saudi Arabia, Aramco’s contribution to the in-Kingdom business ecosystem will be enhanced through job creation, training and by localizing supplier services and R&D. In addition to enabling greater efficiencies, SAP’s Data Center in Saudi Arabia will offer new cloud solutions to Aramco and other companies.

Ahmad A. Al Sa'adi, Aramco Senior Vice-President of Technical Services, said: "We are committed to our digital transformation program, which is improving our ability to meet the needs of our customers around the world and setting a new standard for technology deployment in our industry. Technologies and solutions within digital transformation initiatives will touch all facets of our operations. This is just one more example of how we are applying best practice in this space and embracing 4IR solutions. It is an important milestone on our digital journey and also contributes to our iktva target."

Luka Mucic, Member of the Executive Board of SAP SE, Chief Financial Officer, said: “In 23 years of strong collaboration, Aramco and SAP have become strategic partners. With numerous co-innovation initiatives, we have jointly introduced oil and gas best practices, enhanced business operations, and expanded the horizon of opportunities in this industry. Aramco has taken the next step on their digital transformation journey and towards becoming an Intelligent Enterprise, implementing S/4 HANA and the Business Technology Platform amongst others."

SAP’s new platform will serve the entire Aramco organization, supporting the Company’s Digital Transformation Program and enabling new processes for a majority of the company’s enterprise applications and solutions. The new architecture leverages emerging technologies that will propel Aramco into a new era of Intelligent Enterprise and benefits include faster processing, intuitive user experience, real-time reporting, integration with cloud solutions and system consolidation, which reduces total cost of ownership.

As per MRC, Saudi Aramco's shareholders may consider selling more shares of the company if market conditions are right, reported Reuters with reference to the statement of the head of the kingdom's sovereign wealth fund (PIF), Yasir al-Rumayyan, in a televised news briefing. The Saudi government sold over 1.7% stake in Aramco in an initial public offering (IPO) in 2019 that raised a record USD29.4 billion. The listing has triggered more IPOs in the kingdom, which is also seeking to deepen its capital markets under reforms aimed at reducing its reliance on oil.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

Sanyo Chemical secures additional investment for battery affiliate

MOSCOW (MRC) -- Japanese chemical firm Sanyo Chemical Industries will provide additional financing to its subsidiary APB for the development of bipolar all-polymer lithium-ion (Li-ion) batteries, said Chemweek.

Sanyo will provide ?700mn ($6.8mn) of additional funds to start-up battery producer APB. Japanese casting and equipment producer Sintokogio and major private-sector bank Mitsubishi UFJ Financial will also invest a total of ?400mn in APB, although the exact breakdown of their contribution is unclear. The batteries will be manufactured at APB's Takefu factory in Fukui prefecture, with the production line to be set up by Sintokogio.

This latest round of funding takes the total that APB has secured for the project to ?10bn. This includes investments by Japanese firms in June and March. Sanyo aims to produce sample batteries by April next year and begin operations at the Takefu plant in the autumn of 2021.

The all-polymer batteries have higher energy density and storage compared with conventional batteries and are expected to enable EVs to achieve longer driving ranges. The batteries, which are made of resins, also have higher resilience to shock, while production costs are lower because of their simple bipolar structure.

Sanyo cancelled a business integration agreement with catalyst producer Nippon Shokubai in October. But Sanyo's development of bipolar all-polymer Li-ion batteries is unaffected by the decision.

As per MRC, Nippon Shokubai and Sanyo Chemical have postponed their plan to merge via a share transfer, which would have formed an integrated holding company named Synfomix Co. The deal was announced in May 2019. The companies had planned to establish the holding company on 1 October 2020, located in Kyoto, Japan, subject to regulatory approval.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, 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-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.
MRC

Saudi energy ministry approves ethane feedstock increase for Saudi Kayan

MOSCOW (MRC) -- Saudi Kayan Petrochemical Company said on Monday that the Ministry of Energy had approved its request to increase Ethane allocation by a maximum of (30) MMSCFD based on the availability of Ethane from Gas production future projects, said Chemweek.

In line with the terms and conditions stated in the allocation letter, Saudi Kayan is required to submit a plan to implement conversion projects, substitute Crude Oil with Sales Gas, and to liaise with the Saudi Basic Industries Corporation (SABIC) to maximise the benefits of feedstock, according to a bourse filing.

Saudi Kayan will work with the ministry to develop a timeframe to start utilising the additional feedstock, which will be announced with its positive financial impact accordingly.

As MRC wrote earlier, Saudi Kayan conducted a 21-day scheduled maintenance at its ethylene glycol (EG) and ethylene oxide (EO) facilities at Jubail, Saudi Arabia, starting on 1 February, 2020. The company said that some of its other facilities that rely on EG and EO feedstocks would also undergo periodic maintenance and improvements.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC

ACC provides USD1 million grant to Harris County, Texas, for air program

MOSCOW (MRC) -- The American Chemistry Council (ACC) Foundation has provided a USD1 million grant to Harris County, Texas, which will use the funds to purchase air monitoring equipment for its Community Air Monitoring Program (CAMP), reported Chemweek.

Harris County will also use the grant to obtain independent scientific support from Houston Advanced Research Center (HARC), including analysis and modelling of air quality data. To help with the analysis, HARC has been supplied with 30 years of private industry air monitoring data.

Harris County says the collaboration will help address emergency response issues identified by a gap analysis following chemical plant incidents in 2019. The county, which has a very heavy chemical industry presence, includes the municipalities of Houston, Deer Park, Galena Park, La Porte, Morgan’s Point, Pasadena, and portions of Baytown and The Woodlands.

“(W)e appreciate the opportunity to be a part of this groundbreaking initiative, which will help protect workers and communities throughout the Houston region,” says Chris Jahn, president and CEO of ACC. “One of the project’s important strengths is that in addition to providing local officials with an array of new air monitoring equipment, it also allows officials to draw on the scientific expertise of HARC. It’s a tremendous team effort that will greatly improve the county’s ability to collect, analyze and share information about air quality, especially during an emergency.”

As MRC informed previously, Royal Dutch Shell has reported an outage at its olefins plant in Deer Park, Texas, on 5 January, 2021. The plant flared for 16 hours following unspecified process upset. Maximum steam cracker operating rate in Texas falls to 89%.

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

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC