Albemarle completes sale of Fine Chemistry Services Business to W. R. Grace for USD570 mln

MOSCOW (MRC) -- Albemarle Corporation, a leader in the global specialty chemicals industry, has announced that it has completed the sale of its Fine Chemistry Services business to W. R. Grace & Co. for approximately USD570 million, consisting of USD300 million in cash, and the issuance to Albemarle of preferred equity of a W. R. Grace & Co. subsidiary having an aggregate stated value of USD270 million, reported CISION.

The sale includes Albemarle's operations in Tyrone, Pennsylvania and South Haven, Michigan.

"The sale of our Fine Chemistry Services business has enabled us to unlock substantial value from our portfolio of quality assets," said Albemarle's CEO Kent Masters. "With the proceeds from this transaction, we have enhanced our available resources to execute our long-term growth strategy."

As MRC wrote previously, in 2018, W. R. Grace & Co. completed the USD416 million acquisition of the Polyolefin Catalysts business of Albemarle Corporation. The acquired business primarily develops and manufactures proprietary and custom-manufactured single-site catalysts as well as metallocenes and activators used in the production of plastic resins. The transaction also includes a comprehensive series of highly optimized Ziegler-Natta catalysts for polyethylene (PE) production.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

Albemarle Corporation, headquartered in Charlotte, N.C., is a global specialty chemicals company with leading positions in lithium, bromine and refining catalysts. The company actively pursues a sustainable approach to managing our diverse global footprint of world-class resources.

A leader in polyolefin catalysts and licensing, W. R. Grace has the world’s broadest portfolio of PP and PE catalyst technologies used to produce thermoplastic resins for a variety of applications. A leading innovator and strategic partner to its customers, Grace supplies catalyst solutions for all polyolefin processes, as well as PP process technology and process controls. Grace employs approximately 3,700 people in over 30 countries.
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1. Indian state refiners reduce daily gasoline and gasoil sales by about fifth in May on COVID-19 lockdowns

MOSCOW (MRC) -- Indian state refiners’ daily gasoline and gasoil sales declined by about a fifth in May from a month earlier as lockdowns to curb the second deadly wave of COVID-19 hit industrial activities and consumption, reported Reuters with reference to preliminary data. Daily gasoline sales in May fell by about 19% from April while diesel consumption, which is linked to industrial activity and accounts for over two-fifths of India’s fuel demand, fell by 19.9%, data compiled by state refiners showed. India’s factory activity growth slowed significantly in May as a rise in coronavirus cases whacked new orders and output, the Nikkei Manufacturing Purchasing Managers’ Index compiled by IHS Markit showed.

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MOSCOW (MRC) -- GS Caltex, a major South Korean petrochemical producer, is planning to start up its new mixed-feed cracker in Yeosu in June 2021, reported S&P Global.

This schedule is earlier than the initial plan of 2022.

The new cracker can produce 790,000 tons/year of ethylene and 430,000 tons/year of propylene.

As MRC informed before, this June, the company also plans to start up its new high density polyethylene (HDPE) in Yeosu with an annual capacity of 500,000 tons/year that would concentrate on producing the film (TR-144, TRB-115), blow molding (5520BN or BM593), and injection (6060 or 6060UV) grades.

The company also operates 180,000 tons/year polypropylene (PP) plant at the same complex.

The project is a 50-50 joint venture between GS Energy Corp. and Chevron Corp., costing 2 trillion won (USD1.84 billion) that started construction work in 2019.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
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MOSCOW (MRC) -- Russia's overall polypropylene (PP) production grew in the first four months of 2021 by 16% year on year to 693,900 tonnes. All Russian producers increased their output, with Nizhnekamskneftekhim and Ufaorgsintez being the exception, according to MRC's ScanPlast report.

Russian plants' total PP production fell to 160,500 tonnes in April from 182,600 tonnes a month earlier, ZapSibNeftekhim reduced its capacity utilisation because of a shutdown for a short turnaround. Russia's overall PP production reached 693,300 tonnes in January-April 2021, compared to 597,900 tonnes a year earlier. Five out of seven producers increased their capacity utilisation, with Poliom and SIBUR Tobolsk/ZapSibNeftekhim accounting for the greatest growth in the output.

The structure of PP production by plants looked the following way over the stated period.

SIBUR Tobolsk/ZapSibNeftekhim reduced their output in April, their total PP production was 76,500 tonnes versus 98,000 tonnes a month earlier due to the shutdown for a short scheduled maintenance. Tobolsk complex's PP overall output reached 363,200 tonnes in the first four months of 2021, up by 32% year on year.

Poliom (Omsk) maintained high capacity utilisation in April, and, as a result, produced about 17,500 tonnes of PP, whereas its production did not exceed 17,800 tonnes a month earlier. Overall, the Omsk plant produced 69,400 tonnes of PP over the stated period, up by 9% year on year.

Nizhnekamskneftekhim produced a little less then 18,600 tonnes of propylene polymers in April, which corresponded to the previous month's figure. The Nizhnekamsk plant's overall output of polymer reached 72,800 tonnes in January-April 2021, compared to 73,100 tonnes a year earlier.

Tomskneftekhim produced 12,800 tonnes of propylene polymers in April versus 13,100 tonnes a month earlier. The Tomsk plant's total PP output reached 51,400 tonnes in the first four months of 2021, up by 1% year on year.

Ufaorgsintez operated with higher capacity utilisation in April, the plant's total PP production was about 11,500 tonnes versus 11,400 tonnes a month earlier. The Ufa plant's overall output of polymer reached 44,300 tonnes in the first four months of 2021, down by 2% year on year.

Neftekhimiya (Kapotnya) produced 12,500 tonnes of PP in April, compared to 13,000 tonnes a month earlier. The plant's overall PP output reached 49,900 tonnes over the stated period, up by 1% year on year.

Stavrolen (Lukoil) produced slightly over 11,000 tonnes of propylene polymers in April versus 10,700 tonnes a month earlier. The Budenovsk plant's overall output of propylene polymers reached 42,900 tonnes in the first four months of 2021, up by 4% year on year.

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MOSCOW (MRC) -- US-based global thermoplastics resin distributor Nexeo Plastics has acquired Italian thermoplastics distributor and compounder Nevicolor, said the company.

In a deal that expands its European footprint, resin distributor Nexeo Plastics LLC has acquired Nevicolor SpA, a resin supplier and compounder based in Luzzara, Italy, for an undisclosed amount.

Headquartered in The Woodlands, Tex., Nexeo is an affiliate of GPD Companies Inc., a group of distributors formed by One Rock Capital Partners.

In a June 1 news release, Nexeo officials said that Nevicolor “has provided value-added thermoplastic resins, compounds and application development services for over 57 years.” The company’s products serve a variety of customers and suppliers in the industrial components, healthcare, automotive, advanced packaging, agriculture and electrical sectors. “Nevicolor serves more than 800 customers with a portfolio of over 3,000 grades of high-quality polymers, including recycled materials,” Nexeo officials said.

"This strategic acquisition increases GPD’s scale and affords Nexeo Plastics access to Nevicolor’s highly technical and analytical specialization,” said GPD CEO Paul Tayler. “Nevicolor has built a reliable network of international suppliers, and we look forward to continuing to serve its customers with the customized solutions they have come to expect."

"Our customers in Europe will now have access to a robust offering of tailor-made compounds, specialty polymers, lab services, and recycled material,” said Joost d’Hooghe, vice president of EMEA at Nexeo.

As MRC informed earlier, New York City-based Investment firm One Rock Capital Partners completed its acquisition of Nexeo Plastics, which is the plastics distribution business of Nexeo Solutions Inc., a subsidiary of Univar Inc.

MRC earlier said, Nexeo Univar Inc., announced that it has completed the acquisition of Nexeo Solutions, creating a leading global chemical and ingredients solutions provider. The combined company will conduct business as Univar Solutions, reflecting a commitment to combining the 'best of the best' from each legacy organization.

As MRC informed before, Russia's output of chemical products rose in March 2021 by 5.4% year on year. Thus, production of basic chemicals increased year on year by 6.7% in the first moths months of 2021. March production of polymers in primary form was 958,000 tonnes versus 861,000 tonnes in February. Overall output of polymers in primary form totalled 2,740,000 tonnes over the stated period, up by 8.5% year on year.

Nexeo Plastics is a leading global thermoplastic resins distributor, representing quality products from world-class suppliers, and serving a diverse customer base across North America, Latin America, Europe, Middle East, Africa and Asia. From material selection assistance to identifying supply chain and inventory solutions, we go beyond traditional logistics to provide value-added services across many industries, including automotive, healthcare, packaging, wire and cable, 3D printing and more
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