Clariant sells its pigments business to consortium consisting of Heubach Group and SK Capital

Clariant sells its pigments business to consortium consisting of Heubach Group and SK Capital

MOSCOW (MRC) -- Clariant, a specialty chemicals major, is selling its pigments business to a consortium consisting of pigment maker Heubach Group (Langelsheim, Germany) and private investment firm SK Capital (South Korea), according to Kemicalinfo.

The combined business will operate under the Heubach name and create a leading global pigments business with annual sales of more than EUR 900 million (USD1.09 billion).

The transaction values Clariant Pigments at approximately EUR740 million (USD897 million), with an additional consideration of EUR46 million (USD55.8 million) contingent on the business unit’s financial performance in 2021.

As part of the transaction, Clariant will hold a minority stake in the combined company, demonstrating its continued commitment to the success of Clariant Pigments and the significant growth opportunities in the combination with Heubach.

The closing of the transaction is subject to customary conditions and approvals and is expected to occur in the first half of 2022.

Heubach is a global manufacturer of organic, inorganic and non-toxic corrosion protection pigments with four global production sites and approximately 1,000 employees.

Clariant Pigments is a worldwide supplier of organic pigments, pigment preparations and dyes, operates 13 global production sites and employs around 1,900 people.

As MRC reported earlier, in October 2020, Clariant announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.

Indorama completes acquisition of Texas PET recycling plant in a move to increase rPet capacity

Indorama completes acquisition of Texas PET recycling plant in a move to increase rPet capacity

MOSCOW (MRC) -- Indorama Ventures (IVL), a global petrochemicals producer, has completed its acquisition of CarbonLite Holdings’ facility in Texas as part of the company’s commitment to increasing polyethylene terephthalate (PET) recycling capacity, according to Hydrocarbonprocessing.

Now known as Indorama Ventures Sustainable Recycling (IVSR), the Dallas site is one of the largest producers of food-grade recycled pellets (recycled PET or rPET) in the US, with a combined capacity of 92,000 tons annually. The facility will recycle more than 3 billion PET plastic beverage bottles per year and support more than 130 jobs directly. IVL is the world’s largest producer of recycled PET for beverage bottles. With this acquisition, IVL expands its US recycling capacity to 10 billion beverage bottles a year, towards its global target of recycling 50 billion bottles (750,000 metric tons) annually by 2025.

Thailand-based Indorama Ventures entered the US PET market in 2003. In 2019, the company acquired recycling facilities in Alabama and California, bringing a circular business model to its US operations. The new acquisition in Texas allows IVL to better serve customers’ increasing need for recycled PET for beverages. America’s leading beverage companies have launched the ‘Every Bottle Back’ project to support the circular plastics economy by reinforcing the value of their fully recyclable PET bottles among consumers.

As MRC reported previously, earlier this month, Indorama Ventures Public Company Limited started developing a new technology center under its Integrated Oxides & Derivatives (IOD) business at The Woodlands, Texas. The new facility will be the company’s US research and development hub for new products used in the home, personal and industrial cleaning, agrochemicals, energy, lubricants, mining, and coatings markets.

According to MRC's ScanPlast report, Russia's estimated PET consumption grew to 263,660 tonnes in the first four months of 2021, up by 13% year on year. Bottle grade PET chips accounted fro 78.3% of the increase in consumption due to the virtual absence of exports and higher imports.

Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia Pacific, Europe and Americas. The company’s portfolio comprises Integrated PET, Olefins, Fibers, Packaging and Specialty Chemicals. Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of US$ 11.4 billion in 2019. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).

Massive fire at Lubrizol Illinois chemical plant could burn for days

Massive fire at Lubrizol Illinois chemical plant could burn for days

MOSCOW (MRC) -- Authorities are allowing a massive chemical plant fire in Rockton, Illinois, burn itself out, which could take several days, rather than risk chemical runoff spilling into the nearby Rock River, reported CBS Chicago.

Fire department officials said the air near Lubrizol's plant is safe at ground level, and no workers were injured in the explosion and fire at the Chemtool factory in Rockton, near the Wisconsin state line. The fire prompted a mandatory evacuation order near the plant.

The fire began around 7 a.m. at the Chemtool plant at 1165 Prairie Hill Rd. Some neighbors in the area reported hearing small explosions as the fire started burning. The company manufactures fluids, lubricants, and grease products for machinery.

More than 40 fire departments were called in to help contain the fire, fighting falling debris and grass fires in nearby yards.

Investigators late Monday were still trying to determine what caused the explosion.

As MRC informed earler, more than 5,250 tons of chemicals, oil and fuel additives burned in a massive fire at US specialty chemical firm Lubrizol in Rouen, France, in late September, 2019. Lubrizol managed to resume operations at its plant at Rouen in northwest France after the fire only in late December, 2019.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol is providing innovative solutions for its customers high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth. With headquarters in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 8,000 employees worldwide.

Pertamina put out fire at Calicap refinery

Pertamina put out fire at Calicap refinery

MOSCOW (MRC) -- Indonesia's state oil company PT Pertamina said on Sunday (Jun 13) it had extinguished a fire at its refinery in Cilacap, Central Java, and supplies were not impacted, according to CNA.

The fire broke out on Friday (Jun 11) near the bundwall area and benzene containers. Television footage showed a large blaze and smoke rising from the refinery, which Pertamina said has 200 oil tanks and has a processing capacity of 348,000 barrels a day.

Pertamina official Djoko Priyono said in a statement that the fire had been extinguished on Sunday morning and a cooling process was underway.

"Everything is in a good condition and extinguished," he said, adding that supplies of LPG and fuel were not impacted.

A Pertamina spokesperson said that an internal investigation into the cause of the fire was being carried out.

As MRC informed earlier, this was the second recent fire at a Pertamina refinery after one in March at its facility in West Java.

We remind that PT Pertamina shut its cracker in Indonesia for maintenance works from 18 March, 2020. This cracker with a production capacity of 578,000 tons remained off-stream until 18 April 2020.

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.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).

COVID-19 - News digest as of 15.06.2021

1. 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.