SCG increased sales by 33% in 2021

SCG increased sales by 33% in 2021

MOSCOW (MRC) -- Siam Cement Group (SCG) announced its performance throughout 2021 with positive results, said Kontan.

Management said that the operating income from the company's sales that had not been audited for 2021 was recorded at Rp 245.21 trillion (USD 16.58 billion). This figure increased by 33% yoy, driven by improved performance in each business line, particularly the price and sales volume of chemical products.

"Profit in 2021 was recorded at IDR 21.82 trillion (USD1.47 billion), an increase of 38% yoy, thanks to better performance in the chemical business," said SCG President and CEO, Roongrote Rangsiyopash.

Although it managed to get positive operating results, Roongrote said that SCG's business performance last year was plagued by several obstacles. These include inflationary pressures, rising costs of energy and raw materials, as well as the Covid-19 pandemic.

In the face of it all, SCG also encourages business transformation with various efforts. Such as implementing ESG principles in business operations, leveraging digital transformation to meet customer demands that help lower production costs and grow e-commerce, as well as developing new solutions to meet health trends and improve quality of life.

He added that revenue from sales in the fourth quarter of 2021 was recorded at Rp 62.03 trillion, an 8% qoq increase. Meanwhile, profit for the period was Rp 3.61 trillion (USD 249 mln).

Meanwhile, SCG's revenue from operations outside Thailand, including export sales from Thailand in 2021, was recorded at Rp 110.40 trillion (USD 7.59 bn). This amount contributed 46% of the total revenue from SCG sales, and was 44% higher than the previous year's realization.

As for SCG operations in ASEAN (except Thailand), revenue from sales in Q4-2021 increased 62% yoy, and contributed 29% of total revenue from SCG sales. "This figure includes sales from both local operations in each ASEAN market and imports from Thailand operations," he added.

As of December 31, 2021, SCG's total assets reached Rp 366.91 trillion (USD 25.79 bn), while SCG's total assets in ASEAN (except Thailand) were Rp 166.38 trillion (USD 11.70 bn) or 45% of SCG's total consolidated assets.

As per MRC, on 26 October 2021, a fire hit Thai petrochemical producer Siam Cement's (SCG) Map Ta Phut olefins complex. The fire broke out at a naphtha tank, which was empty at the time of the incident, because it had been shut for cleaning and maintenance. The cause of the fire is unknown.

As MRC reported earlier, Map Ta Phut Olefins Co Ltd (MOC), a subsidiary of Thailand’s SCG Chemical, has completed the maintenance work at its cracker in Map Ta Phut. Thus, the cracker with the capacity of 900,000 mt/year of ethylene and 450,000 mt/year of propylene was shut for a scheduled turnaround on 2 November, 2020, and fully resumed operations in the fourth week of December, 2020.

Nuseed and bp enter into strategic agreement for a sustainable low-carbon biofuel feedstock

Nuseed and bp enter into strategic agreement for a sustainable low-carbon biofuel feedstock

MOSCOW (MRC) -- Nuseed and BP Products North America Inc., have entered into a long-term strategic offtake and market development agreement, that will see bp, or its affiliates, purchase Nuseed Carinata oil to process or sell into growing markets for the production of sustainable biofuels, said the company.

Nuseed Carinata is a non-food cover crop that can be used to produce low-carbon biofuel feedstock that is independently certified, sustainable and scalable. Increased global demand for biofuels is being driven by the need to access sustainable sources of energy to help achieve global GHG reduction targets.

"Sustainable biofuels have a vital role to play in decarbonizing transport, said Carol Howle, executive vice president, trading & shipping at bp. By working with Nuseed, we can use their sustainable feedstock to help decarbonize challenging transportation sectors such as aviation, supporting the production of sustainable aviation fuel and other biofuels."

The agreement is for an initial 10-year term and will see Nuseed continue to develop and expand its existing network of growers, channel and supply chain partners to deliver Carinata oil to bp or its affiliates, with key steps of crop production independently audited and certified. The Carinata oil will be processed by bp or affiliates through its bio refining footprint and also sold into growing markets for the production of sustainable biofuels, utilizing the global reach of bp’s trading and shipping team to accelerate market adoption of Nuseed Carinata as a sustainable biofuel feedstock.

Nuseed is currently increasing commercial production in Argentina and planning expansion programs in South America and the U.S. Initial research and market development programs are also underway in Europe and Australia. bp expects to initially target low-carbon biofuel markets in Europe and North America.

bp is already an active participant in the biofuels supply chain. bp produces renewable diesel from biomass-based feedstocks, including in the U.S. where it recently announced a project to expand renewable diesel production capability to an estimated 2.6 MMbpy in 2022. Globally, the bp group aims to more than double its bioenergy portfolio by 2025 – and to quadruple it by 2030 – compared to 2019.

As MRC reported before, bp and Lukoil want to quit their Iraqi energy projects due to the current investment environment, the country's oil minister said in July, 2021, as OPEC's second biggest producer faces an exodus of international oil companies that want to exit unattractive contracts. Lukoil wants to sell its stake in West Qurna 2 to Chinese companies.

We remind that Russian energy major Lukoil (Moscow) is studying several potential petrochemical projects in Russia and Bulgaria, with investment decisions expected to be made on two of them in 2021.

bp is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. bp’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, bpP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.

Clariant launches 100% biobased surfactants, polyethylene glycols

Clariant launches 100% biobased surfactants, polyethylene glycols

MOSCOW (MRC) -- Clariant unveils its new Vita 100% bio-based surfactants and polyethylene glycols (PEGs) to help directly address climate change by helping remove fossil carbon from the value chain, as per the company's press release.

Industries are looking for ways to reduce their environmental footprints, and the demand for bio-based chemicals is set to grow strongly in the coming years. Clariant is assisting in the transition to a more sustainable bioeconomy and has a growing share of bio-based products and processing aids in its portfolio.

The introduction of 100% bio-based surfactants and PEGs significantly expands Clariant’s Vita designated ingredients. Vita products are based on renewable feedstocks and have at least 98% renewable carbon index (RCI).

“From the packaging to the many ingredients, a typical consumer product in coatings, personal care, home care, industrial, and agricultural applications still uses petrochemicals and therefore fossil carbon,” said Christian Vang, Global Head of Business Unit Industrial & Consumer Specialties, Clariant. “Switching to bio-based carbon chemistry remains a big challenge for manufacturers and by launching the Vita surfactant and PEG range we are offering them an important new solution to achieve this.”

Designed for natural formulations targeting a high RCI, the new Vita products support manufacturers in maximizing the bio-based carbon content of consumer goods such as detergents, hair and body shampoo, paint, industrial lubricants, and crop formulations.

Clariant uses 100% bio-ethanol derived from sugar cane or corn to create the ethylene oxide for its new surfactants and PEGs. The bio-based material is fully segregated along the value chain from the field to the final consumer product.

Because only bio-based feedstocks are used, the ingredients have significantly lower carbon footprints than their fossil-based counterparts. The Vita surfactants are CO? emissions savers: they can help save up to 85% of CO? emissions compared to their fossil analogues.

Importantly, in addition to setting the standard in a greener production, these new solutions are chemically equivalent to Clariant’s fossil versions, offering the same performance and efficiency to formulators and brand owners. Customers can currently benefit from more than 70 bio-based products, and the range will continue to be expanded to meet evolving market needs. In Q1 2022, double-digit kilotons of the bio-based surfactants and PEGs will be available for the worldwide business segments from Clariant IGL Specialty Chemicals.

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.

Petronas to collaborate with JAPEX on CCS solutions

Petronas to collaborate with JAPEX on CCS solutions

MOSCOW (MRC) -- Malaysian state-owned energy giant Petroliam Nasional Berhad, or Petronas, has signed a MoU with Japan Petroleum Exploration Co., Limited (JAPEX) to collaborate on CCS opportunities, including suitable CO2 storage solutions in Malaysia, according to Hydrocarbonprocessing.

Under the MoU, Petronas and JAPEX will perform technical maturation activities to unlock potential CCS solutions, which includes evaluating optimal capture, storage and transportation methods, as well as estimation of emissions, capture volumes and monitoring methods of CO2 stored underground.

This joint study will cover consideration of methods to capture and transport CO2 from the Petronas LNG complex in Bintulu and from outside Malaysia as a future possibility.

As MRC reported earlier, in January 2021, Petronas said it aims to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy.

We remind that in June 2019, Petronas and Saudi Aramco started operations at their new 1.2-million-tonnes-per-year naphtha cracker. The cracker is part of the USD2.7 billion joint-venture oil refinery and petrochemical project known as RAPID - or Refinery and Petrochemical Integrated Development - located in Pengerang in the state of Johor, at the southern tip of peninsular Malaysia.

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.

Petronas, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company wholly owned by the Government of Malaysia. The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration and production of oil and gas to downstream oil refining; marketing and distribution of petroleum products; trading; gas processing and liquefaction; gas transmission pipeline network operations; marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping; automotive engineering; and property investment.

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.