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

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

MOSCOW (MRC) -- During the spring shutdown of a hydrogen plant in northern Alberta, Canada, Mammoet was contracted to provide crane services for the planned maintenance of the high-priority facility, according to Hydrocarbonprocessing.

The Fort McMurray team provided approximately six cranes, ranging in size from an 18-tonne carry deck all the way up to a 385-tonne crawler crane. To perform the large number of hoists required, Mammoet’s team supplied a variety of crane types, including several RT and AT cranes. At the center of the “sea of red booms” was a massive LR 1350 crawler crane configured with a luffing jib, proudly towering above the rest.

In the pursuit of growth for Mammoet’s operations and employees, the company aims to provide opportunities for skill development both on and off the jobsite. Besdies, Mammoet helps its workforce to expand their knowledge and impact as professionals and as people and continue to push for positive changes in the industry.

As MRC informed previously, tasked by company Grupa Azoty ((Tarnow, Poland), one of the main players on the European fertilizer and chemical market, Mammoet has recently completed the first scope of work that will lead to the construction of the propane dehydrogenation and polypropylene (PDH/PP) blocks of its client’s chemical facility. The project took place in the town of Police, in the northwest of Poland, and involved the lifting and transport of more than 480 items from a small port to the construction site six kilometers away.

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

MOSCOW (MRC) -- Indorama Ventures Public Company Limited, a global petrochemical producer, has started developing a new technology center under its Integrated Oxides & Derivatives (IOD) business at The Woodlands, Texas, said the company.

The new facility will be the company’s U.S. research and development hub for new products used in the home, personal and industrial cleaning, agrochemicals, energy, lubricants, mining, and coatings markets.

“Extensive designing and engineering of the research center will start in coming months, and full occupation is expected in early 2022,” IVL said.

It will be a hub for IOD research in the Americas, with links to sister facilities in Australia, India, and China.

IVL’s integrated oxides and derivatives site at The Woodlands, Texas, was acquired from Huntsman in January last year.

The Woodlands facility will also support IVL’s fibres and PET segments on various sustainability projects.Extensive designing and engineering of the research center will start in coming months, and full occupation is expected in early 2022. It will be a hub for IOD research in the Americas, with links to sister facilities in Australia, India, and China. The Woodlands facility will also support IVL’s Fibers and PET segments on various sustainability projects. IVL, the world’s biggest maker of fully recyclable PET bottles, is investing USD 1.5 billion to towards its recycling and net zero targets.

As per ScanPlast, Russia's calculated consumption of polyethylene terephthalate (PET) grew to 263,660 tonnes in the first four months in 2021, up 13% compared to the same period in the previous year.
78.3% of the increase in consumption falls on the share of bottled PET chips due to the virtual absence of exports and an increase in the volume of imports.

MRC

1. Crude oil futures slip in Asia after hitting fresh highs

MOSCOW (MRC) -- Crude oil futures slipped during mid-morning trade in Asia June 11 after settling at fresh highs as the OPEC Monthly Report for June reinforced a positive demand outlook for the second half of the year, reported S&P Global. At 10.50 am Singapore time (0250 GMT), the ICE August Brent futures contract was down 57 cents/b (0.79%) from the previous settle at USD72/b, while the NYMEX July light sweet crude contract was down 51 cents/b (0.73%) at USD69.83/b. The ICE Brent contract settled at USD72.52/b on June 10, the highest in over a year after the front month contract settled at USD72.62/b on May 16, 2019. Additionally, the NYMEX light sweet crude contract settled at USD70.20/b on June 10, and was last higher at USD71.92/b on October 16, 2018, S&P Global Platts data showed.


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