Trinseo to close Arkema acrylics deal by mid-year

MOSCOW (MRC) -- Trinseo is on track to acquire Arkema’s polymethyl methacrylate (PMMA) business, the producer said.

In December, Trinseo announced that it agreed to buy the business for EUR1.14bn. Arkema’s PMMA business has consistently delivered good margins and cash flow, and it also serves many of Trinseo’s end markets. CEO Frank Bozich said that the acquisition of Arkema’s acrylics business is part of Trinseo’s strategy to grow the business in areas with higher margins and less cyclicality.

"We are still on track to close this transaction by mid-year, at which time we also hope to have concluded our efforts around the exploration of a potential sale of the synthetic rubber business,” said Bozich. The move to sell its synthetic rubber business was part of Trinseo’s plan to reduce its leverage and preserve its financial flexibility.

The business makes solution styrene butadiene rubber (SSBR) as well as emulsion styrene butadiene rubber (ESBR). It also makes nickel polybutadiene rubber (Ni-PBR) and neodynium PBR (Nd-PBR). The synthetic-rubber business had net sales of USD319.7m in 2020.

The business reported USD1.7m in adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA), versus USD299.5m for the company as a whole in 2020.

As per MRC, Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced a price increase for all polycarbonate (PC) grades in Europe.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) totalled 89,300 tonnes in 2020, up by 14% year on year (78,500 tonnes a year earlier).

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.8 billion in net sales in 2019, with 17 manufacturing sites around the world, and approximately 2,700 employees.
MRC

MOSCOW (MRC) -- Lanxess has announced a global price increase for iron oxide and chrome oxide pigments with immediate effect, reported Chemweek.

The company’s inorganic pigments business unit is the world’s largest manufacturer of synthetic iron oxides and a leading producer of inorganic chrome oxides.

Prices for iron oxide pigments have been hiked by EUR110/metric ton (USD132), with chrome oxide pigment prices rising by EUR220/metric ton. Customers will be contacted individually regarding the specifics of the measure as it applies to their products or regions, it says.

The iron oxide and chrome oxide products are used in applications such as colorants for building materials, paints and coatings, plastics, paper, and other applications.

As MRC informed before, in January, 2021, Lanxess completed the sale of its membrane business to French resource management firm SUEZ. The deal was previously announced in July, 2020, as Lanxess realigned its water treatment technologies segment, resulting in the sale of its reverse osmosis membrane business.

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.

Lanxess is a leading specialty chemicals company with about 19,200 employees in 25 countries. The company is currently represented at 74 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. Through Arlanxeo, the joint venture with Saudi Aramco, Lanxess is also a leading supplier of synthetic rubber.
MRC

MOSCOW (MRC) -- Avient, formerly PolyOne, has reported fourth-quarter net income from continuing operations of USD74.2 million, up from USD6.4 million, on net sales up 51% year-on-year (YOY), to USD997.0 million, according to Chemweek.

Earnings totaled 52 cents/share, up 73% YOY and ahead of analysts’ consensus estimate of 45 cents/share, as reported by Refinitiv (New York, New York). The inclusion of the former Clariant masterbatches business boosted results, as did strength in healthcare, packaging and consumer markets.

“Every segment and end market grew over the prior year fourth quarter,” says Avient chairman and CEO Robert Patterson.

Colors, additives and inks segment sales more than doubled YOY, to USD525.8 million from USD226.7 million, on the inclusion of Clariant’s masterbatches business, while segment operating income also more than doubled, to USD57.5 million from USD27.2 million. This was mainly because of the inclusion of the former Clariant masterbatches business, the acquisition of which closed on 1 July.

Distribution segment sales increased 12% YOY, to USD305.1 million, while segment operating income was up 6%, to USD18.0 million. Specialty engineered materials segment sales increased 7.4% YOY, to USD190.6 million, while segment operating income grew 61.7%, to USD30.4 million.

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

MOSCOW (MRC) -- Carbon black manufacturer Orion Engineered Carbons (Houston, Texas) says it will raise prices by 20% globally for acetylene black after a period of investment in its production plant in France “to better serve the growing market demand for acetylene black used in lithium-ion (Li-on) battery production,” reported Chemweek.

The price increase takes effect on 1 March 2021 or as contracts allow.

Following Orion’s acquisition from LyondellBasell in 2018 of the plant at Berre l’Etang, France, the company has “adjusted the facility’s strategic focus,” which required new investment, it says. “The company has also been confronted with rising costs for packaging, transportation, and environmental obligations,” it adds.

Acetylene black is an ultra-pure specialty carbon black distinguished by its high electrical and thermal conductivity, and is used in applications such as Li-on batteries and high-end electrical cables.

As MRC informed earlier, in late 2015, Orion Engineered Carbons acquired Evonik's 52% stake, and DEG's 15% stake, in Qingdao Evonik Chemical (QECC). QECC is a carbon black joint-venture established by Evonik, DEG and Jiaozhou Finance Investment Center in 1994, in Qingdao, China.

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.

Orion Engineered Carbons is a worldwide supplier of Carbon Black. The company offers standard and high-performance products for Coatings, Printing Inks, Polymers, Rubber and other applications. Our high-quality Gas Blacks, Furnace Blacks and Specialty Carbon Blacks tint, colorize and enhance the performance of plastics, paints and coatings, inks and toners, adhesives and sealants, tires, and manufactured rubber goods such as automotive belts and hoses.
MRC

MOSCOW (MRC) -- Lanxess has taken another major step on the road to climate neutrality: the specialty chemicals company inaugurated a nitrous oxide reduction plant at its site in Antwerp on February 10, Belgium, said the company.

The plant breaks down around 500 metric tons of nitrous oxide per year, which is equivalent to the climate impact of 150,000 metric tons of CO2. Lanxess has invested around EUR 10 million in its construction. A second plant is scheduled to start up in 2023 and is expected to eliminate a further 300,000 tons of CO2 equivalents (CO2e).

"We are committed to the Paris Agreement to limit global warming to less than two degrees Celsius. The new nitrous oxide reduction plant in Antwerp is a key building block in LANXESS becoming climate-neutral by 2040,” explained LANXESS Board of Management member Hubert Fink. At the same time, he highlighted the economic benefits of the climate protection measures, saying that “Climate protection is a business case for us. On the one hand, we are becoming an even more sustainable partner for our customers. On the other, we are reducing our costs because we need fewer certificates from the European Emissions Trading System and use less energy thanks to innovative technologies."

As per MRC, Lanxess is continuing the systematic expansion of its production for synthetic iron oxide pigments. The company is the only supplier worldwide to produce these pigments using the Laux process.

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).
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