Huhtamaki plans to divest its Russian operations

MOSCOW (MRC) -- Huhtamaki has decided to initiate the process to divest its operations in Russia. This follows an earlier decision to stop all investments in Russia at the outbreak of the invasion of Ukraine, according to GlobeNewswire.

Huhtamaki considers that the current evolution of the situation and the long-term outlook in Russia will prevent the realization of its growth strategy and long-term ambitions in the country. Huhtamaki will continue to prioritize investments that capture the significant growth opportunities in the rest of the world, in line with its global ambitions and 2030 Strategy.

The safety and wellbeing of all our colleagues remain of paramount importance. Huhtamaki has four manufacturing units in Russia, employing approximately 700 people and has successfully supported global and local customers over the last 30 years. The net sales in Russia represent approximately 3% of the Group’s total net sales.

Huhtamaki will explore the market for potential buyers and will maintain its operations during this transitional period, subject to supply chain availability, to meet its contractual and regulatory obligations and to safeguard employees and customers.

As MRC informed before, in August 2021, Huhtamaki (Finland) signed an agreement to acquire Turkey's Elif Holding A.S., a major supplier of environmentally friendly flexible packaging, for EUR412 mn (USD483 mn). The acquisition was in line with the Finnish packaging manufacturer's growth strategy to 2030 in terms of geographic reach, technological capabilities and product mix. This allows Huhtamaki to expand its flexible packaging production capacity in Turkey, which the company considers to be one of the countries with the greatest growth in the future.

We remind that in December 2019, Huhtamaki completed the acquisition of the majority of the business of Everest Flexibles (Pty) Limited a privately-owned flexible packaging manufacturer in South Africa. The annual net sales of the acquired business is approximately EUR 40 million and it employs altogether approximately 460 people. The business was acquired for an enterprise value of EUR 58 million.

Huhtamaki is a global specialist in packaging for food and drink. With our network of 80 manufacturing units and additional 24 sales only offices in altogether 35 countries, we’re well placed to support our customers’ growth wherever they operate. With 100 years of history and a strong Nordic heritage the company operates in 38 countries and 114 operating locations around the world. The compay's 2021 net sales totaled EUR 3.6 billion. Huhtamaki Group is headquartered in Espoo, Finland.
MRC

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders, and synthetic rubber, and its affiliate companies in Europe, have announced a price increase for all PULSE polycarbonate (PC)/ acrylonitrile-butadiene-styrene (ABS) and for all MAGNUM ABS automotive market products in Europe, according to the company's press release.

Effective April 1, 2022, or as existing contract terms allow, the contract and spot prices for the products stated above rose as follows:

- PULSE PC/ABS resins - by EUR230 per metric ton;
- MAGNUM ABS resins - by EUR200 per metric ton.

Note: Utility surcharges are not included in the above price changes and are in addition to these amounts.

As MRC reported earlier, Trinseo last raised its prices for all PULSE PC/ABS grades and MAGNUM ABS products in Europe on January 1, 2022, by EUR200 per metric ton.

According to ICIS-MRC Price report, in Russia, Plastik, Uzlovaya raised April prices of its material for various buyers. Thus, lots of 20 tonnes of uncoloured ABS were sold by the plant at Rb408,000-410,000/tonne FCA Uzlovaya, including VAT.

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 $4.8 billion in net sales in 2021 and has 26 manufacturing sites and one recycling facility around the world and approximately 3,400 employees.
MRC

MOSCOW (MRC) -- Kraton Corporation announces a significant investment in its alpha methyl styrene (AMS) resins facility in Niort, France. Kraton expects the investment will result in a 15% production increase at the Niort manufacturing facility by 2023, said Hydrocarbonprocessing.

In addition to the capacity increase, Kraton anticipates the investment will lead to a 70% reduction in solvent consumption, creating a favorable impact on the product life cycle by the end of 2022.

Kraton's AMS resins, also known as pure monomer resins, are sold in high-end applications such as tread enhancement additives for premium tires and as high-performance tackifying resins in fast-growing adhesive markets. Kraton's SYLVATRAXX tread enhancement additives improve the overall performance of tire treads in terms of wet grip, low rolling resistance and durability, thus enabling safer driving, better fuel efficiency and range. Due to increasingly stringent car emission standards across the globe, these high-performance additives have seen substantial demand growth.

"The rise in electric vehicles (EV) also contributes to this growth, as the increased EV weight and higher torque bring new challenges in tire performance," said Torsten Schmidt, Vice President of Commercial, Kraton Pine Chemicals. "Our SYLVATRAXX products continue to gain popularity across the entire tire value chain as they enable our customers to meet these new requirements."

As per MRC, Kraton Corporation announced its CirKular+ performance enhancement series C2000 and C3000 have been approved as fully compatible with recycling of polypropylene (PP) containers in Europe according to RecyClass. Pellets containing 5 wt.% of either CirKular+ C2000 or C3000 resin blended in an injection molding PP grade matrix were tested according to the Association of Plastic Recyclers (APR) critical guidance for PP rigid containers.

As MRC wrote before, in April, 2021, The American company Kraton announced that the US Environmental Protection Agency (EPA) has granted an emergency exemption for the use of its new sulfonated polymer, which rapidly inactivates the coronavirus. The Environmental Protection Agency has issued an emergency permit for the use of the polymer in the states of the United States, Georgia, Utah and Minnesota for specific applications to protect against the COVID-19 virus.

Kraton Performance Polymers, Inc., comprised of the functional division of Kraton Polymers LLC and its subsidiaries, is the world's leading manufacturer of specialty polymers and styrene block copolymers (SBCs). The company's manufacturing base consists of five factories, including a central plant in Belpre, Ohio, as well as factories in Germany, France, Brazil and a joint manufacturing venture in Japan.

mrchub.com

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, and latex, has announced the company is raising its prices of all styrene acrylic and acrylic latex products sold into the carpet market in North America, as per the company's press release.

The present price increase is effective May 1, 2022, and will be USD0.10/dry lb. as contracts allow.

This price rise is necessary to offset rising raw material and transportation costs.

As MRC reported earlier, Trinseo is targeting to begin construction of its world-class chemical recycling plant in Europe by the end of 2022. The company announced that plans for this plant are progressing rapidly. In late 2021, Trinseo contracted with global technology provider Synova and global engineering services company Worley, and is currently working on an engineering package and preparing Trinseo’ s Tessenderlo, Belgium site for recycling operations.

The plant will be dedicated to recycled polystyrene (rPS), meeting increased demand for the material as brand owners seek sustainable options. It will process 15 kilotons of rPS flakes annually that will be converted into high quality recycled styrene to enable further production of polystyrene (PS) and/or a styrene derivative including Acrylonitrile Butadiene Styrene (ABS) and Styrene Acrylonitrile (SAN).

PS is one of the most widely used plastics and can be fully circular.

According to MRC's ScanPlast report, January 2022 estimated consumption of PS and styrene plastics in Russia rose by 9% year on year, totalling 49,170 tonnes. Russia's estimated consumption of all PS grades increased year on year. Thus, consumption of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) was 33,020 tonnes in January 2022 (up by 3% year on year), consumption of expandable polystyrene (EPS) was 8,520 tonnes (up by 1% year on year), whereas ABS consumption was 7,450 tonnes (up by 76% year on year).

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 USD4.8 billion in net sales in 2021 and has 26 manufacturing sites and one recycling facility around the world and approximately 3,400 employees.
MRC

MOSCOW (MRC) -- GE Power Conversion will supply 19 electrical motors to power water-cooling tower pumps manufactured by Ruhrpumpen. The motors will support the build of a large refinery located in Dos Bocas, Mexico, according to Hydrocarbonprocessing.

The refinery is slated to become the biggest refinery in Mexico, anticipated to produce approximately 340,000 bpd. Construction of the refinery started in June 2019, and the facility is set to commence commercial operation in late 2022. It will play a key role in Mexico’s National Refining Plan in efforts to become more energy self-sufficient.

The innovative electro-mechanical design of GE’s C7 Series Induction Motors promotes high efficiency to support energy savings and low noise levels to help reduce environmental impact. With increased power density and state of the art manufacturing, the C7 Motors are optimized to support a refinery of such a large caliber.

“We’re excited to be a part of this momentous initiative and see our equipment play a role in supporting an entire country as it works towards achieving energy self-sufficiency. It’s been a pleasure to partner with Ruhrpumpen on this project and to continue delivering high-quality technology and more reliable and sustainable electrical solutions for industrial applications,” said Gagan Sood, GE Power Conversion Americas CEO.

As MRC informed earlier, Mexico's state-run Petroleos Mexicanos would likely reduce oil sales to Europe and Asia before the United States, its main market for oil exports, after its Dos Bocas refinery begins operations, a Valero Energy Corp VLO.N executive said in late January, 2022.

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 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
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