Evonik expands lipids production to support Pfizer/BioNTech COVID-19 vaccine

MOSCOW (MRC) -- Evonik Industries says it is expanding its partnership with BioNTech (Mainz, Germany) to increase supply security for the Pfizer-BioNTech COVID-19 vaccine and is investing in a short-term production expansion for specialty lipids, essential for messenger ribonucleic acid (mRNA) COVID-19 vaccines, reported Chemweek.

The company says that "commercial lipid quantities" are to be produced at Evonik’s Hanau and Dossenheim, Germany, sites as early as the second half of 2021. Further details have not been disclosed.

"The pandemic requires decisive action," says Christian Kullmann, chairman of Evonik. "We are therefore doing everything possible to supply our partners with the critical lipids they need. At the same time, we are expanding our production capacity and competencies along the entire value chain."

Lipids are fundamental to produce mRNA-based vaccines and only with an increase in lipid supply can the volume of vaccine be increased, Evonik notes. In mRNA-based vaccines, the mRNA is enclosed in a lipid nanoparticle (LNP) that is comprised of specific lipids, it says. The LNP protects the mRNA and delivers it safely into the cell, where it is released so that the vaccine can exert its effect, the company says.

It follows a similar announcement by Merck KGaA, which is expanding its partnership with BioNTech to accelerate the supply of lipids and increase the amount of lipid delivery toward the end of 2021.

As MRC informed earlier, in February, 2020, Dow and Evonik entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

Propylene is the main feedstock for the production of polypropylene (PP).

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, exluding producers' inventories as of 1 January, 2020).

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees.
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Chinese producers dumping refrigerant R-32 in the US, says USITC

MOSCOW (MRC) -- The US International Trade Commission (USITC) voted unanimously on 10 February that imports of difluoromethane (R-32) from China are being sold in the US at less than fair value, allowing the Department of Commerce to issue an antidumping order, according to Chemweek.

The USITC will issue its final report by 23 March.

Commerce began the investigation following a petition by Arkema, the sole US producer of R-32, in January 2020. R-32, also called HFC-32, is primarily used as a component of refrigerant blends owing to its relatively low global warming potential.

Commerce issued its preliminary determination on 19 January, finding dumping margins of 161-221%, with producer Taizhou Qingsong Refrigerant New Material at the low end and Zibo Feiyuan Chemical at the high end.

As MRC reported earlier, in December 2020, Arkema announced the proposed divestment of its PMMA business to Trinseo for an enterprise value of EUR1,137 million. This project is a new step in the group’s transformation, and is fully in line with Arkema’s ambition to become a pure Specialty Materials player by 2024.

We remind that Arkema said in June, 2020, that it had finalized the divestment of its functional polyolefins business to SK Global Chemical. The divestment was announced last year. Arkema says the sale forms part of its strategy to refocus the group’s activities on specialty materials.

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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Oil refineries are not national security assets

MOSCOW (MRC) -- National governments still tend to think about oil refineries as strategic assets that must preserved to provide fuel security in the event of armed conflict, but that reflects an outdated view of risks arising from modern warfare, said Hydrocarbonprocessing.

Exxon’s decision to convert a small refinery near Melbourne into an import terminal has sparked more anguish in Australia about the progressive closure of the country’s refineries and growing reliance on imported fuels. Like many other countries, Australia’s government views the maintenance of domestic refining capacity as a way to safeguard the supply of critical transport fuels in the event of an armed conflict or blockade.

In most oil-importing countries, the desire to protect domestic refining capacity stems from fears that a naval blockade or attacks on shipping could disrupt the supply of imported fuels such as gasoline and diesel. Even before the Second World War, governments had become increasingly concerned about the potential impact of blockades or attacks on shipping.

Pre-war British planning focused on how to maintain fuel supplies for the armed forces, industry and domestic transport in the event conflict with Germany or Japan led to attacks on tanker shipping. In the event, between 1940 and 1942, German submarine attacks on British and allied tankers succeeded in reducing oil imports and helped create severe fuel shortages at home as well as in other parts of the British Empire.

And in 1941, the U.S. decision to impose an embargo on crude and fuel sales to Japan was one of the factors that accelerated the outbreak of armed conflict between the two countries later in the year. Fears about fuel supplies are therefore understandable, but future conflicts are likely to be fought differently, which makes lessons from the Second World War less relevant.

The Second World War was fought in relatively slow motion with limited explosive power, mostly by slow-flying, limited-range bombers carrying small payloads, slow-moving ships and large slow-moving ground armies. In a slow-moving conflict, there is more time for an embargo or blockade to exhaust pre-conflict fuel inventories and undermine the willingness and ability of the belligerents to keep fighting.

Since 1945, however, the speed of armed conflicts has accelerated and the available explosive power has risen by several orders of magnitude. The development of long-range heavy bombers, short-range and inter-continental missiles, and nuclear weapons has fundamentally altered the speed and destructive power of conflicts. In a much faster-moving conflict, with much more explosive power, a slow-acting embargo or blockade is unlikely to be an effective strategy.

As MRC informed before, Total posted better than expected earnings in the fourth quarter as oil prices stabilized, and said it would change its name as part of a push to diversify and grow renewable power and electricity production. The French oil and gas major, which like rivals suffered in 2020 as fuel consumption tumbled during the pandemic, said it would rebrand as TotalEnergies as it tries over the next decade to reduce oil products to a third of its sales from over half now.

We remind that in November 2019, Total disclosed that itis evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.

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).
MRC

Air Products brings new plant on-stream in Malaysia

MOSCOW (MRC) -- Air Products’ first cryogenic nitrogen plant in the Bayan Lepas Free Industrial Zone, Penang, Northern Malaysia, is now operational, said the company.

Sharing the news yesterday (10th Feb), the industrial gas giant said the new facility will help meet customer demands from electrical and electronics (E&E), as well as other manufacturing industries. The Bayan Lepas Free Industrial Zone is one of Malaysia’s most vital economic powerhouses and is a high-tech industrial zone, home to many multinational E&E companies.

“Our latest investment puts us in an even stronger position in this important industrial zone as well as Penang to support the thriving E&E industry, which is a key growth driver of Malaysia’s industrial development,” said Alex Tan, President of Air Products Southeast Asia. "We strive to grow with our customers along their digitalisation and innovation journey by providing our safe, reliable and efficient solutions and excellent service."

Air Products already has existing infrastructure in Northern Malaysia. In Penang, its two advanced air separation units in the Prai Industrial Park, together with an extensive pipeline network that expands into the Bukit Minyak Industrial Park and the Batu Kawan Industrial Park, provide a strong and highly reliable gases supply to its customers.

Details about the cryogenic nitrogen project’s costs or capacities were not disclosed.

As per MRC, Air Products says it has agreed to collaborate exclusively with Thyssenkrupp on the development of green hydrogen supplies for sustainable chemicals, transportation, and power generation projects. Thyssenkrupp’s subsidiary Uhde Chlorine Engineers, a leader in large-scale electrolysis plant technologies, will supply specific engineering, equipment, and technical services for water electrolysis plants to be built, owned and operated by Air Products.

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).
MRC

Coca-Cola introduces new 100% rPET bottle to US market

MOSCOW (MRC) -- The Coca-Cola Company says it is introducing a new 13.2-oz bottle made from 100% recycled polyethylene terephthalate (rPET) in the US this month, with the initial rollout focused on Coca-Cola-branded products, reported Chemweek.

The company says other brands in the US, including Dasani and smartwater, are transitioning to 100% rPET bottles of various sizes.

Coca-Cola says the new bottle is “conveniently sized in a more sippable package.” The caps and label are not made from rPET, the company notes. Coke, Diet Coke, Coke Zero Sugar, and Coca-Cola Flavors in the 13.2 oz bottle will first be available in select states in the Northeast, Florida, and California, with national distribution to follow this summer.

“As part of a portfolio approach, 20 oz bottles made from 100% rPET are being introduced across Coca-Cola, Coke Zero Sugar, Diet Coke, and Coca-Cola Flavors beginning this month in California and New York and will continue to roll out this Spring in Texas,” says the company. “DASANI and smartwater will follow suit, introducing 20 oz bottles made from 100% rPET in March and July, respectively. Finally, in February, people in select markets will see a new 13.2 oz clear bottle from Sprite, also made from 100% rPET. The clear package makes it easier for bottles to be recycled and remade into new bottles. All Sprite packaging will transition to clear packaging by the end of 2022.”

In 2018, Coca-Cola pledged to collect and recycle the equivalent of one bottle or can for each one sold by 2030, to make 100% of packaging recyclable by 2025, and to use 50% recycled material in bottles and cans by 2030.

As MRC informed earlier, Coca-Cola will not ditch single-use plastic bottles because consumers still want them, the firm's head of sustainability told the BBC in late January, 2020. Customers like them because they reseal and are lightweight, said Bea Perez. The firm, which is one of the biggest producers of plastic waste, has pledged to recycle as many plastic bottles as it uses by 2030.

According to MRC's ScanPlast report, Russia's overall PET consumption totalled 71,830 tonnes in December 2020, up by 8% year on year. In 2020, PET consumption in all sectors (injection moulding, fibers/filaments, films) exceeded the level of 2019 by 17% and amounted to 717,310 tonnes.
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