Milliken PP additive for thermoforming uses cleaner chemistry to deliver brighter look

MOSCOW (MRC) -- Designed for use by thermoformers, Milliken & Company’s Chemical Division’s latest high-performance additive for polypropylene (PP) homopolymers delivers an excellent balance of physical properties and superb aesthetics - all enabled through cleaner chemistry, as per the company's press release.

Hyperform HPN 909ei checks all those boxes, and more, as this formulation also addresses an important aspect for safety reassurance in the European Union. Tailored specifically to minimize migration, especially in food-contact applications, this new grade of Hyperform has one Specific Migration Limit (SML) less than the previous generation product. A lower number of SMLs means there is one less substance that must be monitored and tested for, reducing customers’ compliance burden. With this simplification, the reassurance of safety is even stronger. This is vital, given that this type of PP homopolymer is typically used to thermoform drink cups and lids, food packaging, and trays.

Traditional nucleating agents require customers to sacrifice impact to gain greater stiffness. Hyperform HPN 909ei, however, delivers improved stiffness (flexural modulus) while maintaining the impact performance. It also provides isotropic shrinkage (similar shrinkage in both directions, thereby reducing warpage) and a higher heat-deflection temperature, which offers improved heat resistance vital for hot-fill and microwaveable applications. It also helps to override the nucleation effects of pigments, thereby reducing design complexity.

Hyperform HPN 909ei achieves all this without sacrificing aesthetics. “In fact,” notes Bhavesh Gandhi, global product line manager for Milliken’s Chemical Division, “it yields products with excellent optical properties, including lower haze, reduced yellowing and an overall cleaner look. This can further enhance sustainability,” he says, “by allowing end users to replace other resins in various applications with highly recyclable PP, with its low overall carbon footprint.”

With its growing range of Hyperform HPN high-performance additives, Milliken continues to help converters improve their processing and enhance the performance of their final PP parts.

As MRC reported earlier, in September 2020, Milliken (Spartanburg, North Carolina) said it had joined the Polypropylene Recycling Coalition (PRC), an industry collaboration launched in July by The Recycling Partnership (TRP) aimed at improving recovery and recycling of PP in the US.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.

Milliken is an innovation company that has been exploring, discovering, and creating ways to enhance people’s lives since 1865. The company creates coatings, specialty chemicals, and advanced additive and colorant technologies that transform the way we experience products from automotive plastics to children's art supplies.
MRC

Grace to acquire Albemarle contract-manufacturing business for USD570 million

MOSCOW (MRC) -- WR Grace says it has entered into a definitive agreement to acquire Albemarle’s fine chemistry services (FCS) business for approximately USD570 million, including USD300 million paid in cash at closing and USD270 million funded through the issuance to Albemarle of non-participating preferred equity in a newly created Grace subsidiary, said Chemweek.

Grace expects to finance the cash portion of the transaction with a mix of cash and debt. The company will acquire Albemarle's contract-manufacturing facilities at Tyrone, Pennsylvania, and South Haven, Michigan, as part of the deal. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions, including receipt of certain regulatory approvals.

The terms of the agreement have been unanimously approved by Grace’s board, the company says. The transaction is structured to provide financial flexibility to Grace and it significantly strengthens and expands Grace’s existing pharma portfolio, the company says. The acquisition is expected to be accretive to Grace’s revenue growth rate, EBITDA margin, and adjusted earnings per share in 2021, Grace says. It adds approximately $60 million in full-year run-rate EBITDA in 2021, with EBITDA margins of more than 35%, it says.

Grace also expects modest near-term cost synergies with greater commercial and capital avoidance synergies over the longer term. The investment is aligned with Grace’s stated capital-allocation strategy and M&A criteria, the company says. Meanwhile, seller financing adds financial flexibility and capital efficiency, it says.

"This acquisition is strategically and financially compelling and aligns perfectly with our strategy of building a higher-growth portfolio by extending our existing capabilities into higher-growth, high-value end markets,” says Hudson La Force, president and CEO of Grace. “Combining these businesses strengthens our innovation and manufacturing capabilities and gives us scale that will further strengthen our customer value proposition and drive meaningful financial results for our shareholders.," La Force says.

Albemarle’s FCS business posted net sales of USD61.4 million and adjusted EBITDA of USD18.4 million in the fourth quarter of 2020. It is focused on contract manufacturing for the pharmaceutical, agricultural chemical, lubricants, and specialty chemical industries. The business's products include custom and generic active pharma ingredients (APIs) and registered starting materials (RSMs).

The divestment will leave Albemarle with three businesses: bromine specialties, catalysts, and lithium. "This transaction reflects our ongoing commitment to actively and continuously refine our portfolio as we focus Albemarle on its core, growth-oriented business segments. Fine chemistry services is a profitable business, and we have confidence that Grace is positioned to help it thrive," says Kent Masters, CEO of Albemarle.

Grace says that its board is working, meanwhile, with management and its financial advisors on a review of potential strategic alternatives to maximize value for shareholders. The process remains active and the company continues to pursue a number of potential opportunities, but there is no guarantee the review will result in any transaction or specific outcome, the company says. Grace does not intend to disclose developments unless or until the company determines that disclosure is appropriate or required, it says.

Goldman Sachs and Moelis & Co. are serving as Grace’s financial advisors and Fried, Frank, Harris, Shriver & Jacobson is serving as legal counsel to Grace on the transaction. Goldman Sachs, Moelis, and Wachtell, Lipton, Rosen & Katz are serving as advisors to Grace on the ongoing review of strategic alternatives.

BofA Securities is acting as exclusive financial advisor to Albemarle and Troutman Pepper Hamilton Sanders is acting as legal advisor to the company in connection with the transaction, Albemarle says.

As MRC informed previously, in April 2018, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased.
MRC

Reliance to shut PVC plant in Hazira for maintenance

MOSCOW (MRC) -- Reliance Industries Ltd (RIL) is planning to shut one of its polyvinyl chloride (PVC) plants in India in March 2021 for a brief turnaround, according to CommoPlast with reference to market sources.

The unit located in Hazira is Reliance’s largest PVC plant with an annual capacity of 360,000 tons/year and is expected to remain shut for 15 days.

Reliance owns three PVC plants in India with plans to construct a new unit, however, the producer has yet to reveal the exact timeline for the new project.

The existing operations include the 360,000 tons/year unit in Hazira, the 315,000 tons/year unit in Dahej, and the 80,000 tons/year unit in Vadodara.

As MRC informed earlier, RIL undertook planned shutdown at its PVC plant in Dahej in late May, 2017, and the facility remained off-line for around 3 weeks. Located at Dahej in Gujarat, India, the plant has a production capacity of 315,000 mt/year.

According to MRC's DataScope report, imports of suspension polyvinyl chloride (SPVC) into Russia slightly exceeded 500 tonnes in January, down by 68% year on year. At the same time, exports decreased by 15%. January SPVC imports to Russia fell to 500 tonnes from 1,600 tonnes and 6,000 tonnes in January and December 2020, respectively. High PVC prices in the foreign markets and long New Year holidays put serious pressure on import purchases of PVC from Russian companies.

Reliance Industries is one of the world's largest producers of polymers. The company produces polypropylene, polyethylene and polyvinyl chloride and other petrochemical products.
MRC

SK Group closes USD1.6-billion investment in Plug Power to develop hydrogen business in Asia

MOSCOW (MRC) -- SK Group, South Korea's largest energy provider and third-largest conglomerate, announced today the close of a USD1.6 billion investment and strategic partnership with Plug Power Inc., a leading provider of hydrogen fuel cell and fueling solutions enabling e-mobility, said Chemweek.

The partnership is part of a long-term, multi-billion dollar plan by SK to help lead the global transition to a hydrogen economy and make meaningful progress toward a more sustainable energy system.

Recognizing the importance of hydrogen as a clean alternative to traditional energy sources, SK Group has heightened its focus on building the infrastructure and developing the technology to make hydrogen energy a reality for global markets. SK Holdings, the holding company of SK Group, has established a Hydrogen Business Development Center taking the lead of the group's hydrogen long-term project that is comprised of members from SK's energy companies, including SK Innovation and SK E&S.

This new center will guide the companies' transition into the production and distribution of hydrogen energy, including the creation of a mass production facility and investments in global business opportunities. SK Group companies already are making strategic investments in their existing energy businesses and forming partnerships with global leaders in hydrogen energy technology.

As MRC reported previously, SK Innovation Co Ltd, the owner of South Korea's top refiner SK Energy, said in early February, 2021, that refining margins are expected to gradually recover this year on a pick-up in fuel demand as the impact of COVID-19 eases. The company, which has been battered by weak margins during the global pandemic, posted an operating loss of 243 billion won (USD218 million) in the October-December quarter.

We remind that SK Advanced is planning to start up the new polypropylene (PP) plant in Ulsan, South Korea this March 2021 as construction works are nearly completed. The PP unit is a joint venture between PolyMirae and SK Advanced, using the “Spheripol” process of LyondellBasell, and have an annual output of 400,000 tons/year. The unit will be utilizing the propylene output from SK’s 600,000 tons/year propane dehydrogenation (PDH) unit at the same complex. It is expected that SK Advanced would have a smaller propylene allocation for export once the new PP line comes online.

According to MRC's ScanPlast report, PP shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC

ADNOC acquires six VLCCs

MOSCOW (MRC) -- ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC), announced the acquisition of six Very Large Crude Carriers (VLCCs), according to Hydrocarbonprocessing.

Two VLCCs have already been deployed into the company’s fleet. ADNOC L&S has placed an order for three newbuild vessels with options, which will be delivered in 2022 and 2023, and purchased one additional existing vessel that will be joining its fleet shortly. These vessels are the first crude carriers to join the ADNOC L&S fleet, adding a total cargo capacity of 12 million barrels.

ADNOC L&S, which is currently the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE, is pursuing a major fleet expansion program. This will enable the company to provide better service to its global customers, while also supporting ADNOC as it expands its production and refining capacity and grows its new trading operations. ADNOC has established two new trading companies: ADNOC Trading, which is focused on crude oil and started derivatives trading in September 2020; and ADNOC Global Trading (AGT), a joint venture with ENI and OMV that focus on trading of refined products and began operations in December 2020.

Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services said, “The acquisition of these six VLCCs is one of our most significant growth steps to-date. This strategic move allows us to offer new services to our customers and supports ADNOC and its Trading entities to access new global energy markets, while also delivering incremental value and a new revenue stream to our business.”

“Given recent market conditions, we were able to purchase both existing and newbuild vessels at competitive prices. Owning these vessels will deliver cost efficiencies for our business, as opposed to chartering vessels, while also enabling us to provide a more reliable service to customers. These purchases also further reinforce our position as the largest, fully integrated logistics and shipping company in the region, paving the way for the transportation of greater crude volumes to customers across the world.”

The latest purchases by ADNOC L&S reflects the company’s continued focus on modernizing, growing and diversifying its fleet. Built to ADNOC’s specification, the newbuild vessels will be equipped with industry-leading Smart Ship technology. While the specialist manufacturing facilities for this type of VLCC are only available in a limited number of countries, predominantly in Asia, ADNOC L&S secured higher levels of In-Country Value (ICV) for this important contract by ensuring that Project Management and design work for the newbuild vessels is undertaken in the UAE. In addition, a team of young UAE nationals from ADNOC L&S will work closely with the design and project management teams to enhance their knowledge and experience in the design, construction and future maintenance of VLCC vessels.

The six vessels, each with a minimum length of 330 meters (1,082 feet), will have a 300,000 metric tonnes deadweight and the ability to carry nearly two million barrels of crude oil, adding a total of 12 million barrels capacity to the ADNOC L&S fleet. Two VLCCs were delivered in December and are already operational on key ADNOC Trading routes and one additional existing vessel purchased this week will join the fleet shortly.

The establishment of a new VLCC fleet comes as ADNOC progresses its plans to grow its oil production capacity. The company currently has a capacity of over 4 mbopd, which it intends to grow to 5 mbopd by 2030.

ADNOC L&S grew its fleet with 16 deep-sea vessels in 2020. In addition to its new VLCC fleet, the company confirmed the order of five newbuild and one recent second-hand Dual Fuel Very Large Gas Carriers (VLGCs) for AW Shipping, its Joint Venture with Wanhua Chemical Group, and recently announced the purchase of four bulk carriers (3 Ultramax and 1 Handysize).

These orders add to ADNOC L&S’s fleet of 120 owned vessels, which includes deep-sea shipping, offshore support and marine services vessels. The ADNOC L&S international trading fleet transports crude oil, refined products, dry bulk, containerized cargo, LPG and LNG on its owned and chartered vessels, supporting ADNOC’s operations locally and facilitating the shipment of commodities to global markets.

As MRC reported previously, in early May, 2020, Abu Dhabi National Oil Company (ADNOC) began a gradual restart of its Ruwais oil refinery complex after a scheduled maintenance shutdown. The Ruwais complex, which has capacity of 835,000 barrels per day, was shut down early this year, the ADNOC spokesman said.

And in late July 2019, ADNOC said its Ruwais refinery west cracker was offline for maintenance.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
MRC