NOVA Chemicals appoints Avik Dey as new CFO

MOSCOW (MRC) -- NOVA Chemicals Corporation has announced Avik Dey will become Senior Vice President and Chief Financial Officer, effective June 15, as per the company's press release.

Dey succeeds Julie Beck, who will transition to the role of Special Advisor to the Chief Executive Officer.

Dey will be responsible for NOVA Chemicals’ finance, strategy, information technology, and government relations teams, reporting to Luis Sierra, President and CEO. He will become a member of NOVA’s senior executive committee and will be based in Calgary, AB.

Dey joins the company from the Canadian Pension Plan Investment Board (CPPIB) where he most recently served as Managing Director, Head of Energy & Resources. While at CPPIB, Dey held numerous board memberships and led the strategy to build the portfolio of one of the world’s leading private investors focused on energy transition. Throughout his 20-year career, Dey has invested over USD9Bn of private and public capital and is an established, highly regarded investor, entrepreneur, and corporate executive. He has held senior financial, accounting and control leadership positions across energy, investment management and professional sports in Canada and the US.

Dey currently serves as a director of Enactus Canada. He has recently served on the boards of Calpine Corporation, Seven Generations Energy, Wolf Midstream and Chaired the boards of Teine Energy and Crestone Peak Resources. Dey was named to Canada’s Top 40 under 40 for 2017 and holds a Bachelor of Commerce from the University of Calgary.

As MRC reported earlier, in May 2021, three leading resin makers – Canada’s Nova Chemicals Corp. among them –established a USD100-million investment fund to help finance recovery and recycling of polyethylene (PE) and polypropylene (PP) in Canada and the US. Nova, Dow Inc. and LyondellBasell Industries are contributing a total of USD25 million to start the Closed Loop Circular Plastics Fund, which they said they hope to grow to USD100 million with money from other corporate and financial investors. The fund is being managed by New York-based investment firm Closed Loop Partners.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is wholly owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates. The company develops and manufactures chemicals and plastic resins.
MRC

Astomos Energy buys carbon-neutral LPG cargo from Shell

Astomos Energy buys carbon-neutral LPG cargo from Shell

MOSCOW (MRC) -- Astomos Energy Corp, Japan's biggest importer and wholesaler of liquefied petroleum gas (LPG), said on Friday it had signed to buy from Royal Dutch Shell a cargo of LPG with offset carbon emissions, said Reuters.

The purchase of carbon neutral LPG cargo at the scale of the Very Large Gas Carriers (VLGC) is believed to be the world's first case, Astomos said in a statement.

The move comes as carbon reduction targets tighten around the world and global gas producers step up to offer cleaner supplies as more buyers commit to environmental targets.

Shell will use carbon credits from its nature-based projects to offset lifecycle CO2 emissions generated across the value chain from production to consumption, including transportation, Astomos said.

As MRC informed previously, in late May, 2021, Shell agreed to sell its controlling interest in a Texas refinery to partner Petroleos Mexicanos (Pemex) for about USD596 million. And in early May, Shell announced the sale of its 149,000 barrel per day (bpd) refinery in Washington to Hollyfrontier Corp.

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 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC

Colorado adopts statewide plastics ban

MOSCOW (MRC) -- Colorado lawmakers this week voted to join the growing list of states that ban plastic bags and polystyrene carryout containers at stores and restaurants, said CPR.

It will take a couple of years before Colorado’s ban takes effect, however, and the measure comes with a major exemption that interferes with the original intentions of legislators.

The ban was part of a yearslong attempt by Colorado Democrats and environmental activists to reduce the state’s reliance on and consumption of plastic. A bill introduced in the House in February received its final approval from the legislature Tuesday and needs only Gov. Jared Polis’ signature to become law.

Under the new bill, the state will charge customers 10 cents per paper or plastic bag used at most grocery stores, retailers and restaurants starting in 2023, according to the bill. The ban on single-use plastic bags and polystyrene containers often used for takeout food will begin in 2024.

Sixty percent of the bag fee will go to local jurisdictions for recycling or composting programs and related administrative costs, and the rest is for the businesses. People enrolled in a state or federal food assistance program do not have to pay the bag fee.

Once the ban is in effect, paper bags will still cost 10 cents, an additional effort by legislators to encourage customers to bring their own reusable bags.The US state of Colorado has passed a bill banning the single-use of plastic bags and expanded polystyrene (EPS) used for takeout food containers.

The bill outlines different timelines for the eventual phasing out of plastic. The EPS ban would begin in 2024.

Meanwhile, businesses will be able to provide customers with a single-use plastic bag or recycling paper bag for a 10-cent fee starting 1 September and ending 1 September 2022. After that, the store may only furnish a recycled paper bag at a 10-cent fee.

The Colorado bill comes after the state of Washington passed a bill last month that banned expanded polystyrene products and established a minimum recycled content for plastic bottles, jugs, and personal care products.

Many other states have enacted legislation surrounding curbing the use of plastic and enhancing recycling infrastructure. In May, Arkansas became the 13th state to enact recycling legislation, enabling greater adoption of chemical recycling. Florida, Wisconsin, Georgia, Iowa, Tennessee, Texas, Illinois, Ohio, Pennsylvania, Virginia, Oklahoma, and Arizona have passed similar legislation to promote advanced recycling.

As per ICIS-MRC Price Report, prices of Russian EPS remained at the previous week's level. Prices of SIBUR-Khimprom's spot EPS quantities were at Rb167,000-175,000/tonne CPT Moscow, including VAT. Plastik, Uzlovaya shipped material at Rb178,000-180,000/tonne CPT Moscow, including VAT, depending on the grade.

MRC

PPG appoints Markus Melkko as interim CEO of Tikkurila

PPG appoints Markus Melkko as interim CEO of Tikkurila

MOSCOW (MRC) -- PPG has announced that Markus Melkko has been named interim chief executive officer (CEO) of Tikkurila Oyj, effective immediately, in addition to his current responsibilities as its chief financial officer (CFO), as per the company's press release.

Following the closing of PPG’s acquisition of Tikkurila on June 10, 2021, Elisa Markula notified the Tikkurila board of directors of her decision to resign as president and CEO of Tikkurila to take a CEO role at another company in another industry sector. Elisa’s resignation will be effective on a date to be announced and she will remain with Tikkurila until then to ensure a smooth transition.

Melkko joined Tikkurila in 2019 and has served as CFO and a member of the management team.

As MRC reported earlier, PPG Industries received approval from the Federal Antimonopoly Service (FAS) of Russia on May 21, 2021, and thus, it received all necessary regulatory approvals to complete the tender offer to acquire Tikkurila. The company had announced that the tender offer will expire on June 4, 2021. PPG expected to complete the tender offer and close the transaction on or about June 10, 2021.

Tikkurila was established in 1862, and is headquartered in Vantaa, Finland. The company is a leading producer and distributor of decorative paint and coatings with operations in 11 countries and more than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states. Its brands include Tikkurila, ALCRO, Teks, Vivacolor, and Beckers. Tikkurila uses the Beckers brand only in its decorative paints in Scandinavian countries as well as in some parts of Eastern Europe under a license from Aktiebolaget Wilh. Becker, obtained in conjunction with its acquisition of Alcro-Beckers Ab in 2001. Tikkurila’s industrial paint business produces paints and coatings for the wood and metal industries, among others. The company employs approximately 2,400 people globally and reported sales of approximately EUR582 million in 2020.

PPG has developed and delivered the paints, coatings and materials for more than 135 years. With headquarters in Pittsburgh, the company operates in more than 70 countries and reported net sales of USD13.8 billion in 2020. The company serves customers in construction, consumer products, industrial and transportation markets and aftermarkets.
MRC

US PP exports down by nearly 13% YOY in Jan-Apr 2021

US PP exports down by nearly 13% YOY in Jan-Apr 2021

MOSCOW (MRC) -- US polypropylene (PP) exports reached 516,389 mt in the first four months of 2021, down by 12.9% from 593,327 mt a year earlier, reported S&P Global with reference to ITC data.

In January-April 2019, the US exported 553,460 mt of PP, up by 7% from 516,389 mt in the same period of 2021, but down by 6.7% from 593,327 mt in the January-April period of 2020, the date showed.

PP demand crashed amid the height of pandemic-related shutdowns in April 2020, but began rebounding as shutdowns eased and demand rose for durable goods like vehicles, homes and appliances.

Market sources said spot PP export volume availability has been largely nil for months, which was exacerbated by freeze-related shutdowns in February that prompted many force majeures by US producers that largely remain in effect.

PP exports are much more regional than those of other US-origin resins, with most outflows going to Mexico and Canada for use in producing vehicle parts and other durable plastics.

As MRC informed earlier, in May 2021, three leading resin makers established a USD100-million investment fund to help finance recovery and recycling of polyethylene (PE) and PP in Canada and the U.S. Nova, Dow Inc. and LyondellBasell Industries are contributing a total of USD25 million to start the Closed Loop Circular Plastics Fund, which they said they hope to grow to USD100 million with money from other corporate and financial investors. The fund is being managed by New York-based investment firm Closed Loop Partners.

PP is used to make durable plastics, such as dashboards and door panels in cars, plastic linings in appliances and carpet backing. It also is used to make non-woven fabrics for medical masks and gowns.

According to MRC's ScanPlast report, Russia's overall 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.
MRC