MOSCOW (MRC) -- W. R. Grace & Co. stated that it will increase prices for its Fluid Catalytic Cracking (FCC) catalysts by 3 to 9% in 2021 based on product type and specific customer commitments, according to Stockhouse.
This increase will be effective July 1, 2021 or as contracts allow.
As the global refining industry recovers from the pandemic and margins for refined products have strengthened, Grace is seeing significant interest from refiners to rapidly return to using premium catalyst technologies to increase FCC unit profitability. Premium catalysts help relieve operating constraints, facilitate increased operating rates, and maximize product yields, thereby increasing profitability for refineries.
“Our FCC technologies, coupled with industry-leading technical support, have consistently outperformed alternatives, often returning value of more than a dollar per barrel to the refiner,” said Tom Petti, Grace’s President, Refining Technologies.
As Grace continues to deliver increasing value to its customers with premium technology, it also faces rising costs for certain key raw materials and energy, including aluminum-derived chemicals and natural gas, as well as freight and logistics cost increases. Grace remains focused on driving productivity through increased efficiencies; however, these efforts cannot completely offset current inflationary trends. The increase in catalyst prices will partially offset this inflationary trend while sustaining on-going investment in new technology, enhanced technical services, and leading manufacturing capabilities.
As MRC reported previously, earlier this month, Albemarle Corporation, a leader in the global specialty chemicals industry, announced that it had 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. The sale includes Albemarle's operations in Tyrone, Pennsylvania and South Haven, Michigan.
We remind that 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 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, polypropylene (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.
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.