Solvay to increase PVDF capacity in France

Solvay to increase PVDF capacity in France

MOSCOW (MRC) -- Solvay is expanding its polyvinylidene fluoride (PVDF) capacity in Tavaux, France, to make it the largest PVDF production site in Europe, said the company.

Solvay S.A. (Brussels, Belgium) announced that it is expanding its production capacity of high-performance polymer Solef polyvinylidene fluoride (PVDF) at its site in Tavaux, France. Building on its previously announced PVDF capacity increase at its site in Changshu, China, this new project will expand its capacity in Europe to 35,000 metric tons per year (m.t./yr), creating the largest PVDF production site in the region. This investment will be completed by December 2023 and reinforces Solvay’s global leadership in this field, positioning it to capitalize on the growing demand for electric and hybrid vehicles.

The rapid growth of electric and hybrid vehicles is driving unprecedented demand for PVDF, a thermoplastic fluoropolymer used both as a binder and a separator coating in lithium-ion batteries which is essential for the creation of safer and longer-range performance.

The EUR300m investment will bring capacity to 35 tonnes/year to cater to the growing demand in the lithium-ion battery market, scheduled to come online by December 2023. Solvay expects its sales to the automotive market from its materials business segment to rise from around EUR800m in 2021 to more than EUR2.5bn by 2030.

As MRC informed earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities and delivered net sales of EUR10.2 billion in 2019. Solvay is listed on Euronext Brussels (SOLB) and Paris and in the United States, where its shares (SOLVY) are traded through a Level I ADR program.
MRC

LyondellBasell named to FORTUNE Magazine "World Most Admired Companies" List

LyondellBasell named to FORTUNE Magazine

MOSCOW (MRC) -- LyondellBasell has announced it has been named to FORTUNE Magazine's 2022 list of the "World's Most Admired Companies." LyondellBasell has received this distinction for five consecutive years, as per the company's press release.

"This recognition is a reflection of our team's relentless commitment to excellence," said Ken Lane, LyondellBasell's Interim CEO. "Every day, employees at LyondellBasell demonstrate integrity, innovation and focus and I'm both proud and humbled by their endless accomplishments."

In 2021, LyondellBasell built on its momentum, delivered strong business results and advanced its sustainability goals.
Highlights from the year include:

- Delivering record-setting financial results. The company's 2021 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding lower of cost or market inventory valuation (LCM) and impairments exceeded prior records by 15%.
- Launching the Circulen portfolio of polymers to advance the circular economy of plastics and support our ambitious goal to produce and market two million metric tons of recycled and renewable-based polymers annually by 2030.
- Increasing our climate ambitions to align with the Paris Agreement. The company announced goals to achieve net zero greenhouse gas (GHG) emissions from global operations by 2050 and a 30% reduction in scope 1 and 2 greenhouse gas (GHG) emissions from global operations by 2030.

As MRC wrote earlier, in July, 2021, Neste and LyondellBasell announced a long-term commercial agreement under which LyondellBasell will source Neste RE, a feedstock from Neste that has been produced from 100% renewable feedstock from bio-based sources, such as waste and residue oils and fats. This feedstock will be processed through the cracker at LyondellBasell’s Wesseling, Germany, plant into polymers and sold under the CirculenRenew brand name.

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 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

Neste (Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. The company is the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. In 2020, Neste's revenue stood at EUR11.8 billion, with 94% of the company’s comparable operating profit coming from renewable products.
MRC

Alpla and Coca-Cola plan to build a new PET recycling plant in southeastern Mexico

Alpla and Coca-Cola plan to build a new PET recycling plant in southeastern Mexico

MOSCOW (MRC) -- The USD60-million Planta Nueva Ecologia de Tabasco project will have the capacity to process 50,000 tonnes of post-consumer PET bottles per year, said Canplastics.

Austria-based packaging supplier Alpla and Coca-Cola FEMSA, said to be the largest bottler of Coca-Cola products in the world, are partnering in a joint venture to build a new PET recycling plant in Southeast Mexico. The USD60-million recycling plant Planta Nueva Ecologia de Tabasco – better known as PLANETA – will have the capacity to process 50,000 tonnes of post-consumer PET bottles per year, Alpla officials said in a Jan. 26 news release, which will result in 35,000 tonnes of recycled PET material ready for reuse.

Alpla said the location of the new facility is “in the region with the greatest potential for solid waste recycling…that will integrate 18 collection centres throughout south and Southeast Mexico." "The big challenge today is the handling of the materials after the consumption phase,” Alpla CEO Philipp Lehner said. “We are currently investing worldwide in systems to give plastic packaging a value – because then it is collected and recycled. With strong partners like Coca-Cola FEMSA at our side, we will be able to set up the necessary infrastructure and close the bottle cycle in as many regions as possible."

In collaboration with all of the companies that make up the Coca-Cola Mexican Industry (IMCC), Coca-Cola FEMSA is part of the global World Without Waste initiative launched by the Coca-Cola Co., which aims to make all packaging 100 per cent recyclable by 2025, integrate 50 per cent recycled PET resin into bottles, and collect 100 per cent of the packaging by 2030.

Alpla has had a presence in Mexico since 2005, when Alpla Mexico, Coca-Cola Mexico and Coca-Cola FEMSA opened Industria Mexicana de Reciclaje (IMER), said to be the first food-grade PET recycling plant in Latin America. The IMER facility has a production capacity of 15,000 tonnes of flakes from post-consumer PET per year. “Since its foundation, it has processed more than 140,000 tonnes of this material, which has been returned to the production cycle of new bottles,” Alpla said.

Coca-Cola, Nestle, Unilever and other major international brands have teamed up to fight a global problem. More than 70 companies have called for a reduction in the production of plastic in the world in order to protect the planet from the catastrophic consequences of the climate crisis.

Coca-Cola HBC has again been rated Europe’s most sustainable beverage company, and for the 11th consecutive year has been ranked among the top three beverage industry performers globally. The news was disclosed in S&P Global’s Annual Yearbook, which confirms the 2021 Dow Jones Sustainability Index (DJSI), one of the world’s leading sustainability benchmarks. Coca-Cola HBC was also given a Silver Award by S&P Global.
MRC

SABIC purchases Clariant 50% share in their JV Scientific Design

SABIC purchases Clariant 50% share in their JV Scientific Design

MOSCOW (MRC) -- Clariant, a focused, sustainable and innovative specialty chemicals company, has signed definitive agreements to divest its 50 % stake in the joint venture (JV), which owns Scientific Design Company Inc., to its long-term JV partner, SABIC, as per Clariant's press release.

SABIC is executing a call option raised in 2015 to acquire this stake, originally purchased by Sud-Chemie AG in 2003 and acquired by Clariant in 2011, pursuant to a change-of-control clause in the Joint Venture agreement.

Clariant reports a book value for the 50 % stake in Scientific Design Company Inc. of CHF 108 million as of 31 December 2020. Both Clariant and SABIC completed a comprehensive, arms-length due diligence process to value Scientific Design at USD 260 million and Clariant’s 50% share at USD130 million. Together with a profit-sharing agreement beginning on January 1, 2021 until the closing of the transaction, this represents an attractive valuation for Clariant’s 50% stake at around 12 times Scientific Design’s 2021 expected EBITDA, assuming a mid-2022 closing.

The final amount is payable at closing, which is subject to the receipt of the required regulatory approvals. The closing is expected to take place in mid-2022.

In 2020, Scientific Design Company Inc. generated sales of CHF 121 million. Scientific Design Company Inc., headquartered in Little Ferry, New Jersey, United States, is present in the development, licensing and catalyst supply of proprietary processes for the production of ethylene oxide (EO), ethylene glycol (EO/EG), bio-ethylene, bio-EO, bio-EG, EO derivatives, polyols and maleic anhydride. In addition to these technologies, Scientific Design Company Inc. produces proprietary catalysts and equipment for use in their own and other industrial processes.

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.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.

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.

SABIC is a diversified company manufacturing chemicals, industrial polymers, fertilizers and metals. It is the largest state-owned company in Saudi Arabia. Sabic is currently the world's second largest ethylene glycol producer, the third largest polyethylene producer, and the fourth largest polypropylene producer.
MRC

BASF expands its offering of polyamides and polyphthalamides in Europe

BASF expands its offering of polyamides and polyphthalamides in Europe

MOSCOW (MRC) -- BASF will start marketing several polyamide (PA) and polyphthalamide (PPA) grades in Europe that it acquired as part of the takeover of Solvay’s PA66 business, said the company.

These engineering plastics, previously sold as Technyl®, will continue at BASF under the established brand name Ultramid®. Customers globally will benefit from an extensive plastics portfolio including both PA66 grades and Ultramid® One J, a PPA based on PA66/6T. Thus, BASF will support its customers in developing innovative plastics solutions across all industries, for example for E&E applications like connectors and circuit breakers, for consumer and household electronics, and for autonomous driving and emobility.

The European Commission granted BASF approval for the acquisition of Solvay’s polyamide business subject to certain conditions. As a result, BASF started to successfully sell the integrated engineering plastics in growth markets in Asia as well as North and South America.

BASF and Solvay signed an agreement on the acquisition of Solvay’s integrated polyamide business in September 2017. The European Commission approved the acquisition in January 2019 under certain conditions, including the sale of Solvay’s polyamide 66 production plants in Europe. BASF concluded the acquisition of the polyamide business on January 31, 2020. Because of the backward integration for the key raw material adiponitrile (ADN), BASF now covers the entire value chain for polyamide 66 and improves its supply reliability. The business has been integrated into BASF’s Performance Materials and Monomers divisions.

BASF's Intermediates division develops, produces and markets an extensive range of more than 600 intermediates worldwide. The most important product groups include amines, diols, polyalcohols, acids and specialties. Intermediates serve, for example, as starting materials for coatings, plastics, pharmaceuticals, textiles, detergents and crop protection products. Innovative intermediates from BASF help to improve the properties of the products manufactured with them and the efficiency of production processes. The ISO 9001-certified Intermediates division operates from sites in Europe, Asia and North America. In 2020, the business sector generated sales to third parties of approximately EUR2.6 bn.
MRC