Sika posts 20% jump in Q1 2022 sales

Swiss construction chemicals maker Sika AG reported a 20% jump in its first-quarter sales, as the broader construction industry benefited from an upturn in projects after the pandemic, as per the company's press release.

The company, whose chemical additives strengthen and waterproof concrete, said sales came in at 2.39 billion Swiss francs (USD2.57 billion) for the three months ended March 31, compared with 2.1 billion francs in the year-ago period. Sales in local currencies rose 21.9%.

Sika confirmed its annual sales forecast of crossing 10 billion francs for the first time in 2022, driven by a more than 10% sales jump in local currencies.

Sika, whose products are also used by car makers as adhesives, has forecast annual sales growth of 6%-8% in the years up to 2023 and an operating profit margin of 15%-18% from 2021.

After a series of acquisitions, Sika aims to increase its share of the construction chemicals market to 12% by 2025 from around 10% now.

As MRC reported previously, Sika has recently closed the transaction related to the divestment of the European industrial coatings business. The deal, which includes Sika's European industrial coatings business with the main location and manufacturing facility in Vaihingen, Germany, was announced on 19 August last year.

We remind that earlier this year, Sika acquired Canada’s Sable Marco Inc, which manufactures cementitious products and mortars, for an undisclosed amount. Sable Marco is headquartered in Pont Rouge, near Quebec City, and generates annual sales of Swiss francs (Swfr) 20m (USD22m). The acquisition “should open up new opportunities for Sika in the eastern region of Canada and clearly improve Sika’s access to the retail distribution channel,” the company said.

We also remind that Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories.
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Clariant increases prices across its Catalysts business portfolio, said Hydrocarbonprocessing.

Effective immediately, or as contracts permit, Clariant will implement price increases across its Catalysts portfolio.

The price adjustments are driven by the significant escalation of energy and key raw materials costs, as well as the continued increase of freight and logistics costs.

We remind, Technip Energies and Clariant announced that they have signed a cooperation agreement for the implementation of Clariant’s sunliquid cellulosic ethanol technology. By choosing Technip Energies, sunliquid customers can benefit from combining Clariant’s proven technology with Technip Energies’ deep experience as an engineering, procurement and construction (EPC) contractor to build advanced biofuel plants.

As MRC wrote previously, Clariant has recently announced that its StyroMax UL3 catalyst is demonstrating successful results at Risun’s new styrene monomer (SM) plant located in Tangshan, China.

We remind that 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.

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.
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Avantium N.V., announces that it has signed a conditional offtake agreement with Sukano AG for the development of antiblock masterbatches for PEF (polyethylene furanoate) film applications, according to SpecialChem.

To this end, Sukano and Avantium have conducted comprehensive lab trials in Sukano’s in-house R&D laboratory, producing biaxially oriented PEF films for packaging applications.

With PEF from Avantium’s FDCA flagship plant, Sukano will develop masterbatches for PEF resins, facilitating fast adoption in many diversified markets and thus accelerating the growth of PEF.

Avantium recently announced that it has started the construction of the world’s first commercial plant for the production of FDCA (furandicarboxylic acid) from plant-based sugars. FDCA is the key ingredient for making the sustainable, circular and high-performance plastic material PEF.

Sukano and Avantium have joined efforts in the development of antiblock masterbatches for PEF film applications. To this end, Sukano and Avantium have conducted comprehensive lab trials in Sukano’s in-house R&D laboratory, producing biaxially oriented PEF films for packaging applications.

Avantium expects that construction of this FDCA flagship plant is completed by the end of 2023, enabling the commercial launch of PEF from 2024 onwards. In 2021, Avantium generated offtake commitments for half of the Flagship Plant’s capacity.

The collaborative development work has resulted in two prototype masterbatches capable of providing antiblock performance of the surface of biaxially oriented PEF film. Both developed antiblock masterbatches offer a significant friction reduction and improve clarity without interfering with the performance of the stretched PEF films.

The availability of antiblock masterbatches opens the possibility to further develop PEF and PEF-based films at (pre-)industrial scale equipment.

As MRC reported before, earlier this month, Avantium N.V., announces that it has reached financial close for the construction of its FDCA flagship, plant in Delfzijl, the Netherlands. The world’s first commercial FDCA factory is set to produce 5 kilotonnes of FDCA (furandicarboxylic acid) per annum, the key building block for the 100% plant-based, recyclable polymer PEF (polyethylene furanoate).
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MRC) -- Amcor announced it is the first company to purchase certified circular polyethylene material using ExxonMobil’s Exxtend technology for advanced recycling, said Hydrocarbonprocessing.

Amcor will leverage this new material across its global portfolio, providing customers in healthcare and food industries with more recycled content in a variety of solutions and applications. Increasing the use of advance recycling materials, such as circular polymers, is one way Amcor is meeting its sustainability pledge to develop all of its packaging to be recyclable or reusable by 2025. The use of these materials will significantly add to the 113,000 metric t of recycled material Amcor used in its packaging in fiscal year 2021. The technology behind advance recycling materials allows plastic waste to be converted into brand new products that are no different in quality and performance from ones made with virgin raw materials, providing customers peace of mind and the benefit of increasing the use of recycled content in their packaging.

“Using advanced recycled materials is yet another step forward in Amcor meeting the challenges of our industry and offering our customers more sustainable packaging solutions,” said Amcor Chief Commercial Officer Peter Konieczny. “By leveraging ExxonMobil’s Exxtend technology across our global product portfolio, Amcor is providing a true differentiator for our customers and the environment."

"We are proud to see our relationship with Amcor expand with our Exxtend technology to help address their sustainability goals, as well as those of their customers,” said David Hergenrether, Vice President, Polyethylene, ExxonMobil. “We look forward to working closely with Amcor to develop products that meet customer expectations for high-performance PE products, while helping to recycle plastic waste."

Using its Exxtend technology, ExxonMobil offers certified circular polymers with the International Sustainability and Carbon Certification Plus certification, which is widely recognized as an effective standard for certifying the circularity of chemical products that result from advanced recycling operations via mass balance attribution.

As per MRC, Amcor announced its support for the launch of the U.S. Plastics Pact’s Roadmap to 2025, an aggressive national strategy for how the U.S. Pact, Amcor and other signatory organizations – known as Activators – will achieve four 2025 targets.

Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home- and personal-care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiate brands, and improve supply chains through a range of flexible and rigid packaging, specialty cartons, closures, and services. The company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and made using an increasing amount of recycled content.
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US President Joe Biden made a renewed push for new tax credits for sustainable aviation fuel (SAF), a key part of reducing carbon emissions from air travel, reported Reuters.

Biden last year called for tax incentives for low carbon jet fuel, made from waste and vegetable oils as part of a broader climate and social spending package that is stalled in Congress. The White House is targeting 20% lower aviation emissions by 2030 and those incentives are crucial to making the fuel competitive.

"We brought together the government agencies, aircraft manufacturers, airlines, fuel producers, airports," Biden said at an event in Iowa, arguing the push would result in "advanced, cleaner and more sustainable fuels for American aviation."

National Air Carrier Association President and Chief Executive Officer George Novak praised Biden "for recognizing the critical role that sustainable aviation fuel will play in further reducing the airline industry's carbon footprint."

Airlines face pressure from environmental groups to lower their carbon footprint and have pledged to use more SAF. Biden cited American Airlines and United Airlines' support for SAF and said biofuels were key to decarbonize aviation.

The push to accelerate carbon cutting in aviation is part of Biden's target of making the US net carbon neutral by 2050.

It comes as the US and Europe are trying to boost production of SAF, which is now made in minuscule quantities from feedstocks such as used cooking oil, and can be two to five times more expensive than standard jet fuel.

As MRC wrote before, Honeywell and Oriental Energy have recently jointly announced that a SAF production facility with an output capacity of 1 MMtpy will be built in Maoming, Guangdong Province in China. The new facility will help meet a growing SAF demand, facilitate GHG emission reduction in aviation fuel production through the deployment of innovative technologies and support China’s goals to reduce CO2 emissions and achieve carbon neutrality by 2060.
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