Trinseo completes PMMA firm acquisition

Trinseo completes PMMA firm acquisition

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics and latex binders, has announced the completion of the previously disclosed transaction to acquire Aristech Surfaces LLC, a leading North America manufacturer and global provider of polymethyl methacrylates (PMMA) continuous cast, solid surface and architectural resin sheets serving the wellness, architectural, transportation and industrial markets, as per the company's press release.

This acquisition is another important step in Trinseo’s transformation efforts, focused on becoming a global specialty materials and sustainable solutions provider. The addition of Aristech strengthens Trinseo's position in acrylic solutions and broadens the company’s product portfolio offerings in important markets such as building and construction as well as consumer goods. Additionally, Aristech is expected to accelerate Trinseo’s growth in Asia. The increased exposure to new markets, and improved ability to generate cash and stable margins, is expected to ultimately lead to greater growth opportunities.

The acquisition includes the addition of approximately 300 employees across two manufacturing and R&D locations in Florence, Kentucky and Belen, New Mexico.

Aristech will continue to operate as a stand-alone entity within the Engineered Materials segment, while Trinseo continues the integration of the PMMA business it purchased earlier this year.

As MRC reported earlier, in May, 2021, Trinseo announced the closing of the previously announced transaction to acquire Arkema’s polymethyl methacrylates (PMMA) business. PMMA is a transparent and rigid resin with a wide range of end uses that augments Trinseo’s existing offerings across several end markets including automotive, building and construction, medical and consumer electronics.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

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.
MRC

ExxonMobil rejects three proposals in August to end Texas refinery lockout

ExxonMobil rejects three proposals in August to end Texas refinery lockout

MOSCOW (MRC) -- ExxonMobil rejected three proposals in August made by the union representing 650 locked-out workers at the company’s Beaumont, Texas, refinery, reported Reuters with reference to the company's statement.

“Over 120 days have passed since the initiation of the lockout, and the union has not presented an offer that came close to meeting the company’s objectives,” Exxon said in a message posted its website.

A spokesperson for the United Steelworkers union (USW) local 13-243, which represents the locked-out workers, was not immediately available for comment.

Exxon locked out the hourly employees at the 369,024 barrel-per-day refinery and adjoining lubricant oil plant on May 1 to avoid a strike as a 75-day labor peace period came to an end following the expiration of the contract.

The USW has said the company's last proposal, made in January, requires its members to give up long-standing seniority and would create a separate contract for workers in the lube oil plant from that for workers in the refinery.

As MRC informed earlier, in July, 2021, ExxonMobil began hiring additional temporary operators of its Beaumont, Texas refinery as a lockout of 650 union-represented workers runs into its 11th week. Exxon said then it took the decision to hire the new workers after four meetings with the United Steelworkers (USW) union local 13-243 failed to yield the results the company expected.

We remind that in mid-summer, 2021, ExxonMobil's Beaumont, Texas refinery was operating at about 60% of its 369,024-bpd capacity because of the lockout of union workers.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.

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

GS Caltex shut its new cracker in Yeosu for scheduled turnaround

GS Caltex shut its new cracker in Yeosu for scheduled turnaround

MOSCOW (MRC) -- South Korea's GS Caltex has shut its new mixed-feed cracker at Yeosu for maintenance on 27 August, 2021, reported S&P Global with reference to a company source.

This cracker is expected to resume operations on 7 September, 2021, after the turnaround is complete.

The new steam cracker, which was started around June 18, can produce 750,000 mt/year of ethylene and 410,000 mt/year of propylene.

As MRC informed before, this June, the company also started up its new high density polyethylene (HDPE) in Yeosu with an annual capacity of 500,000 tons/year that would concentrate on producing the film (TR-144, TRB-115), blow molding (5520BN or BM593), and injection (6060 or 6060UV) grades.

The company also operates 180,000 tons/year polypropylene (PP) plant at the same complex.

The project is a 50-50 joint venture between GS Energy Corp. and Chevron Corp., costing 2 trillion won (USD1.84 billion) that started construction work in 2019.

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 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
MRC

COVID-19 - News digest as of 02.09.2021

1. Crude oil futures down in Asia amid larger-than-expected US crude draw

MOSCOW (MRC) -- Crude oil futures settled lower during mid-morning trade in Asia Sept. 2, as the market was weighed by a larger-than-expected US crude draw against rising OPEC+ output, reported S&P Global. At 10:40 am Singapore time (0240 GMT), the ICE November Brent futures contract was down 35 cents/b (0.49%) from the previous close at USD71.24/b, while the NYMEX October light sweet crude contract was 43 cents/b (0.63%) lower at USD68.16/b. The OPEC+ alliance in its meeting Sept. 1 agreed to increase crude output by 400,000 b/d scheduled for October, which is also aligned with its current easing policy. "The alliance rubber stamped a previously announced 400,000 b/d increase at its monthly meeting, with very little resistance from any members. The decision was ultimately backed by a series of data which suggest the market remains tight," said ANZ research in a note Sept. 2.

MRC

Crude oil futures down in Asia amid larger-than-expected US crude draw

Crude oil futures down in Asia amid larger-than-expected US crude draw

MOSCOW (MRC) -- Crude oil futures settled lower during mid-morning trade in Asia Sept. 2, as the market was weighed by a larger-than-expected US crude draw against rising OPEC+ output, reported S&P Global.

At 10:40 am Singapore time (0240 GMT), the ICE November Brent futures contract was down 35 cents/b (0.49%) from the previous close at USD71.24/b, while the NYMEX October light sweet crude contract was 43 cents/b (0.63%) lower at USD68.16/b.

The OPEC+ alliance in its meeting Sept. 1 agreed to increase crude output by 400,000 b/d scheduled for October, which is also aligned with its current easing policy.

"The alliance rubber stamped a previously announced 400,000 b/d increase at its monthly meeting, with very little resistance from any members. The decision was ultimately backed by a series of data which suggest the market remains tight," said ANZ research in a note Sept. 2.

A note from ING research analysts Sept. 2 also pointed out that while OPEC+ acknowledges that there is still plenty of uncertainty related to COVID-19, they believe that fundamentals will continue to improve.

During their discussion, OPEC+ ministers reviewed an internal forecast that indicated global oil demand would far exceed supply through the rest of the year, by 1 million b/d in September, 1.1 million b/d in October, 800,000 b/d in November and 400,000 b/d in December. The group is next set to meet on Oct. 4.

Meanwhile, data from the Energy Information Administration showed US crude inventories fell by 7.2 million barrels to 425.4 million barrels for the week ending Aug. 27, bringing inventory levels to roughly 6% below the five-year seasonal average. Over the same period, gasoline stocks also rose by 1.3 million barrels to about 2% below the five-year seasonal average, while distillate stocks fell by 1.7 million barrels to about 9% below the five-year seasonal average.

Data released from the American Petroleum Institute showed a draw of 4.05 million barrels in US crude inventories for the week ending Aug. 27, far greater than the 1.62-million-barrel dip indicated in the previous week. The API report also showed gasoline inventories growing by 2.71 million barrels for the week ending Aug. 27, while distillate stocks dropped by 1.96 million barrels over the same period.

As MRC informed previously, crude oil stockpiles fell modestly in early August, while gasoline inventories dipped to their lowest level since November, according to the US Energy Information Administration. Crude inventories fell by 447,000 barrels in the week to Aug. 6 to 438.8 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel drop. Overall crude inventories have been on the decline for several weeks due to increased demand.

We remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
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