ExxonMobil and USW try different approach to resolve increasingly bitter dispute

MOSCOW (MRC) -- ExxonMobil and the United Steelworkers union (USW) hope to break an increasingly bitter dispute over a Texas refinery contract this week by taking a different approach of sending one negotiator each to contract talks instead of a whole team, reported Reuters with reference to company and union officials' statements.

Exxon seven weeks ago locked out 650 union workers at its Beaumont, Texas, refinery and lubricants plant after failing to reach agreement on a new contract. On Thursday, negotiators met for only the second time since the lockout but failed to make any headway and stopped talks after about two hours.

Talks have turned fractious. The union has accused Exxon of trying to dissolve seniority provisions, colluding to break the union and falsely claiming the union's seniority terms are unique.

After Exxon tweeted the job-seniority terms it wanted were no different than those at the company's Baytown, Texas, refinery, local 13-2001 union President Ricky Brooks called the tweet "factually untrue."

The USW has filed a complaint with the US National Labor Relations Board (NLRB) claiming Exxon violated labor laws by improperly monitoring employees and used company resources to launch an effort to dissolve the union.

An employee has circulated information to gain support for a petition to decertify the USW local that represents Beaumont workers, according to the NLRB complaint. Exxon told employees seeking information to contact its human resources department or the NLRB. A vote can be called if 30% of covered employees sign a petition and file it with the NLRB.

"We continue to meet and bargain in good faith with the union," said Exxon spokeswoman Julie King. "The company has at all times acted lawfully and will continue to do so."In another sign of tensions, the USW this month filed a federal lawsuit in Houston claiming Exxon refused to accept an arbitrator's decision involving two workers.

The lawsuit asked the US court to enforce a ruling calling for two union workers fired from its Baytown refinery to be reinstated and given back pay.

As MRC informed previously, Gov. John Bel Edwards and ExxonMobil Baton Rouge Refinery Manager David Oldreive have announced the company’s final investment decision for more than USD240 million in capital improvements at the ExxonMobil Baton Rouge Refinery.

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.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Ineos Styrolution, the global leader in styrenics, has announced the availability of mechanically recycled polystyrene in EMEA, said the company.

Production of the new "Styrolution PS ECO 440" is based on TOMRA's high-quality NIRsorting process delivering a polystyrene purity of more than 99.9%. The new material is available in white and light grey. This new polystyrene solution is suitable across a wide range of applications including food contact. It will enable customers to address their respective sustainability goals and contribute to the development of a circular economy. Styrolution® PS ECO is not only made from recycled material, it is also fully recyclable. This means the material offers true circularity with no need to downcycle.

The first available grade is Styrolution PS ECO 440 MR100 WHITE. The suffix "MR100" indicates that the material contains 100% post-consumer recycled content. Ineos Styrolution follows the concept of using Styrolution® PS ECO material behind a functional barrier making the material suitable for food contact applications such as XPS foam food packaging trays. The concept, which conforms with requirements under FC Regulation No 10/2011, is based on a layer of virgin polystyrene enclosing the recycled polystyrene.

Dr. Frank Eisentrager, Product Director PS EMEA, INEOS Styrolution says: "We will start production in EMEA with up to 1,000 tonnes in 2021, working very hard to grow volumes in line with our pledge to use on average 30% recycled content in products destined for polystyrene packaging in Europe by 2025." Jurgen Priesters, SVP, Circular Economy at TOMRA adds: "As the strategic partner in driving transformation, we are excited to contribute to a unique solution offering true circularity of polystyrene"

The new mechanically recycled polystyrene confirms once again that polystyrene is indeed made for recycling. The new solution complements Ineos Styrolution's ambitious efforts to commercialise recycled polystyrene based on advanced recycling technologies.

As Ineos Styrolution, a subsidiary of the major European petrochemical manufacturer Ineos, has resumed styrene production in Sarnia (Sarnia, Ontario, Canada), but has still not lifted the force majeure on its deliveries. The 445 thousand tonnes of styrene per year production facility was affected by a shortage of raw materials due to the shutdown of Nova Chemical's cracking unit in Corun (Corunna, Ontario, Canada). Force majeure was announced on 14, May.

According to MRC's ScanPlast, the estimated consumption of PS and styrene plastics in Russia amounted to 187,320 tonnes in the first four months of this year, which is 20% more than last year's consumption for the same period. The estimated consumption of PS and styrene plastics in April amounted to 49,370 tonnes, which is 35% higher than in the same month of 2020 (36,620 tonnes).

TOMRA was founded on an innovation in 1972 that began with the design, manufacturing and sale of reverse vending machines (RVMs) for automated collection of used beverage containers. Today TOMRA provides technology-led solutions that enable the circular economy with advanced collection and sorting systems that optimize resource recovery and minimize waste in the food, recycling and, mining industries and is committed to building a more sustainable future.

Ineos Styrolution is the leading global styrenics supplier, with a focus on styrene monomer, polystyrene, ABS Standard and styrenic specialties. With world-class production facilities and more than 90 years of experience, INEOS Styrolution helps its customers succeed by offering solutions, designed to give them a competitive edge in their markets. At the same time, these innovative and sustainable best-in-class solutions help make the circular economy for styrenics a reality. The company provides styrenic applications for many everyday products across a broad range of industries, including automotive, electronics, household, construction, healthcare, packaging and toys/sports/leisure. In 2020, sales were at 4 billion euros. Ineos Styrolution employs approximately 3,600 people and operates 20 production sites in ten countries.
MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and BASF, the world's petrochemical major, have announced the intention to expand their businesses with the production of styrene monomer (SM) based on circular feedstock, according to GV.

Trinseo has procured first supplies of SM based on circular feedstock from BASF for use in its Solution-Styrene Butadiene Rubber (S-SBR) and polystyrene (PS) products. Trinseo supplies S-SBR to major tyre manufacturers while its PS products are used in applications such as food packaging and appliances. The first few customers have already processed the material, said the company.

“By creating synergy across the value chain, the Trinseo-BASF collaboration is an important move towards helping our customers reach their sustainability goals as well as the development of a truly circular economy,” said Nicolas Joly, Vice President, Plastics & Feedstocks of Trinseo. “The initiative is also in line with Trinseo’s 2030 Sustainability Goals announced earlier this year.”

“CO2 emission reduction and a circular economy are BASF’s paramount targets. Using circular feedstocks instead of virgin fossil resources contributes directly or indirectly to an improved CO2 footprint of subsequent products,” said Klaus Ries, Vice President for BASF’s Styrenics Business Europe. “While our customer Trinseo procures biomass balanced (BMB) styrene for their downstream business already, styrene Ccycled will be available in the near future”.

As MRC informed earlier, in May, 2021, Trinseo announced that it can now supply recycled polystyrene (rPS) for food contact applications with the launch of the first yogurt pot integrating rPS, now on shelves in France.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

MOSCOW (MRC) -- BP will continue producing hydrocarbons for decades to come and will benefit from rising oil prices even as it reduces output as part of its shift to low-carbon energy, Chief Executive Bernard Looney told Reuters.

The recent rally in crude prices, which climbed on Tuesday to a more than two-year high above USD75 a barrel, is likely to continue, Looney said in an interview at the Reuters Events: Global Energy Transition conference. "There's a very strong possibility that these prices will sustain over the coming years, and if they do, that's very good for our strategy."

Higher oil prices mean BP will be able to raise more cash from selling assets that will go towards building its renewables and low-carbon business, as well as returning money to shareholders via share buybacks, he said. The 50-year old Irishman brushed aside investor concerns that BP might miss out on the rally because of its plan to slash oil output by 40% and grow its renewables output 20 fold by 2030 as part of its energy transition.

"As people understand we're going to be in the hydrocarbons business for decades to come, that concern has gone away a little bit," Looney said. "We want to run the best hydrocarbons business possible. We don't want to run the biggest hydrocarbons business possible."

BP's shares hit their lowest since the mid-1990s late last year, a bigger drop than any of its rivals, amid falling oil prices and investor concerns over its strategy. They have recovered strongly so far this year but are still around 30% below their pre-COVID-19 crisis levels.

"What we offer investors is a stable, resilient dividend," Looney said. "We're going to grow value from this company over the next five years." "We're going to offer you a sustainable investment proposition that I believe will grow value," he added. Looney said BP's energy transition will continue to evolve over time but added that he feels "at a good place" at the moment, even as investor pressure mounts on oil companies to tackle greenhouse gas emissions.

"We have leaned into this as hard as we can," Looney said. "We will continue to evolve the strategy, we will continue to evolve our targets. They will undoubtedly get bolder over time."

As per MRC, BP said it expected to hit its USD35 bn net debt target during the first quarter of 2021 after faster-than-expected progress on its disposals programme and a "strong" quarter driven by recovering oil prices. The oil giant had said previously it expected to meet its debt forecast by the fourth quarter of 2021 at the earliest, down from a level of USD51.4 bn a year ago and USD38.9 bn at the end of 2020.

As MRC informed earlier, Rosneft together with BP will develop the hydrogen business. Together they will study the prospects for new projects using renewable energy sources (RES), as well as the use of technologies for capturing, utilizing and storing CO2. Earlier in Russia, Gazprom and Novatek spoke about their intention to create a hydrogen business and new technologies for the disposal of harmful emissions.

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.
MRC

MOSCOW (MRC) -- Westlake Chemical Corporation has announced that it has entered into a definitive agreement with Boral Industries, a wholly owned subsidiary of Boral Limited, under which Westlake will acquire Boral’s North American building products businesses in roofing; siding, trim and shutters; decorative stone; and windows for USD2.15 billion in an all-cash transaction, according to Indian Chemical News.

The proposed transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2021, subject to the receipt of regulatory clearance as well as other customary closing conditions.

The combination of Westlake’s leading building products with Boral’s product lines creates a stronger business with significantly increased scale, greater product and geographical diversity, and enhanced growth prospects throughout the North American building products market. Westlake expects the proposed transaction to be accretive to its earnings in the first full year of combined operations and expects cost synergies of approximately USD35 million per year.

Boral’s North American building products businesses employ approximately 4,600 employees at 29 manufacturing sites in the United States and Mexico. Boral’s North American building products businesses generated revenues in excess of USD1 billion during the fiscal year ended June 30, 2020.

Westlake will purchase Boral’s building products businesses for USD2.15 billion in cash. The purchase price is subject to customary adjustments, including working capital adjustments.

As MRC reported earlier, Westlake Chemical, US petrochemical major, has lifted its force majeure (FM) on US polyvinyl chloride (PVC) and upstream vinyl chloride monomer (VCM), the company announced in a customer letter dated May 17. The letter said the company was "formally lifting the systemwide force majeure condition for PVC and VCM manufactured and shipped from its North American operations that was originally declared on Feb. 19" as a result of mid-February's deep freeze that "resulted in a shutdown/curtailment of our plant operations." The winter storm brought sustained subfreezing temperatures to the US Gulf Coast and much of the US, forcing widespread petrochemical shutdowns that included at least 57% of US PVC capacity.

According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
MRC