BASF and BMW rely on renewable raw materials for automotive coatings

BASF and BMW rely on renewable raw materials for automotive coatings

MOSCOW (MRC) -- The BMW Group is the first carmaker to place its trust in more sustainable automotive OEM coatings certified according to BASF’s biomass balance approach, said Hydrocarbonprocessing.

The BMW Group has chosen to use BASF Coatings’ CathoGuard 800 ReSource e-coat at its plants in Leipzig, Germany, and Rosslyn, South Africa, and the iGloss matt ReSource clearcoat throughout Europe. Using these more sustainable product versions for vehicle coatings enables CO2 avoidance of around 40% per coating layer; this will reduce the amount of CO2 emitted in the plants by more than 15,000 metric tons by 2030.

The BMW Group produces an average of around 250,000 vehicles every year at its plants in Leipzig and Rosslyn. As a corrosion protection technology with optimum protection of edges, the CathoGuard 800 e-coat helps millions of cars live longer. Its biomass-balanced version, CathoGuard 800 ReSource, adds a reduced carbon footprint to the e-coat application’s material efficiency, without changing the product’s formulation.

In BASF’s biomass balance approach, renewable raw materials like bio-based naphtha and biomethane from organic waste are used as raw materials when manufacturing primary chemical products and are fed into the production Verbund. The proportion of bio-based raw materials is then arithmetically assigned to certain sales products according to a certified method. This attribution model is comparable with the principle of green electricity. An independent certification confirms that BASF has replaced the quantities of fossil resources required for the biomass-balanced product sold with renewable raw materials.

As per MRC, BASF and SINOPEC have broken ground for the expansion of their Verbund site operated by BASF-YPC Co., Ltd. (BASF-YPC), a 50-50 joint venture of both companies in Nanjing. The expansion includes new capacities of several downstream chemical plants and a new tert-butyl acrylate plant, to serve the growing demand from various industries in the Chinese market.

As MRC reported earlier, in November 2021, BASF increased its production capacity for advanced additives at its wholly-owned site in Nanjing, China. The new asset with state-of-the-art technologies will allow BASF to produce high molecular weight dispersing agents, slip and leveling agents and other additives locally for Asian markets.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.

Braskem Q1 net profit increased by 67%

Braskem Q1 net profit increased by 67%

MOSCOW (MRC) -- Braskem’s first-quarter net profit increased by 67% year on year on the back of a double-digit growth in sales, said the company.

Cost of goods sold in January-March 2022 surged 47% year on year to USD4.15bn, the company said on 11 May.

Recurring earnings before interest, tax, depreciation and amortization (EBITDA) for the period, however, declined 27%, partly on lower sales volumes in Brazil and Europe and the appreciation of the Brazilian real against the US dollar.

There was also “normalization of international spreads for main chemicals, PE [polyethylene] and PP [polypropylene] in Brazil, for PP in the USA and for PE in Mexico,” it said.

As per MRC, Braskem, the largest polyolefins producer in the Americas, as well as a market leader and pioneer producer of biopolymers on an industrial scale, announces the release of three new sustainable 3D printing filament product offerings for the additive manufacturing market. These first of their kind products include 3D printing filaments produced from bio-based ethylene vinyl acetate (EVA) filament derived from raw sugarcane as well from recycled polyethylene and polypropylene (PE/PP) blended filaments with, or without, carbon fiber.

As per MRC, Lummus Technology announced a partnership with Braskem, the largest biopolymer producer in the world, to license green ethylene technology. Lummus and Braskem will license worldwide technology to produce green ethylene and accelerate the use of bioethanol for chemicals and plastics, supporting the industry's efforts towards a carbon neutral circular economy.

As MRC wrote earlier, in late 2020, Braskem announced its latest sustainability ambitions to significantly expand its efforts to eliminate plastic waste in the environment by 2030 and to achieve carbon neutrality by 2050.

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.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).

Asian Paints net profit down to Rs 8.5 Billion in Q4 FY22

Asian Paints net profit down to Rs 8.5 Billion in Q4 FY22

MOSCOW (MRC) -- Asian Paints Ltd., a paints and coatings manufacturer based in India has reported financial results for the period ended March 31, 2022, according to Kemicalinfo.

The company’s net profit declined by 0.2% to Rs 8.5 billion for the period ended March 31, 2022 as against Rs 8.52 billion for the period ended March 31, 2021.

Net sales increased by 18.5% to Rs 79.73 billion during the period ended March 31, 2022 as compared to Rs 67.26 billion during the period ended March 31, 2021.

The company’s net profit fell by 3.5% to Rs 30.30 billion for the full-year period ended March 31, 2022 as against Rs 31.39 billion for the full-year period ended March 31, 2021.

The company has reported net sales of Rs 294.81 billion during the full-year period ended March 31, 2022, an increase of 33.9% as compared to Rs 220.15 billion during the full-year period ended March 31, 2021.

The company has reported EPS of Rs 31.59 for the full-year period ended March 31, 2022 as compared to Rs 32.73 for the full-year period ended March 31, 2021.

“It was yet another quarter of solid and strong double-digit value growth across all businesses, despite the prevailing uncertainty around Covid, macro-economic challenges and heightened geopolitical tensions,” Asian Paints Managing Director & CEO Amit Syngle said.

“The domestic decorative business grew strongly, registering 8% volume growth and 20% revenue growth on a high base, while international business managed to deliver double-digit revenue growth for the quarter despite severe challenges in key markets,” he added.

As MRC wrote before, in December 21, Asian Paints Ltd announced that it will invest Rs 960 crore to expand the manufacturing capacity of its facility situated at Ankleshwar in Gujarat. The company has signed a memorandum of understanding (MOU) with the Government of Gujarat commencing the proposed expansion of manufacturing capacity of paint from 1.3 lakh KL to 2.5 lakh KL and resins and emulsions from 32,000 MT to 85,000 MT, Asian Paints said in a regulatory filing. The expansion is to be completed in the next 2-3 years at a total investment of Rs 960 crore approximately on plant and machinery at the current prevailing prices.

Asian Paints Ltd is mainly engaged in the business of manufacture and selling of paints and coatings.

Evonik presents next phase of strategic transformation

Evonik presents next phase of strategic transformation

MOSCOW (MRC) -- Evonik, one the world's petrochemical majors, is embarking on the next phase of its strategic transformation, as per the company's press release.

Sustainability is being integrated fully and systematically into all elements of the strategy: portfolio management, innovation, corporate culture. “Driven by our purpose, Leading Beyond Chemistry, in recent years we have made good progress both strategically and financially,” Christian Kullmann, chairman of Evonik's executive board, told investors and analysts at the company's Capital Markets Day. “In the next phase of our transformation, we are executing targeted and massive investments in green growth and making sustainability our central innovation driver.”

Evonik is aligning its portfolio completely to its three growth divisions: Specialty Additives, Nutrition & Care, and Smart Materials. “The businesses we are withdrawing from on strategic grounds are being optimally set up to give them a responsible route to a good future,” said Kullmann. Preparations are already under way for the exit of all three businesses of Performance Materials - Superabsorbents, Functional Solutions and Performance Intermediates. Evonik aims to find new owners or partners for each of these three businesses in the course of 2023.

The proceeds from the divestment of the Performance Materials businesses and the operating cash flow in the coming years will be channeled to the green transformation. By 2030, Evonik aims to invest more than EUR3 billion in Next Generation Solutions - products with superior sustainability benefits. That is around 80% of annual growth investments. In the same period, a further EUR700 million will be invested in Next Generation Technologies, i.e., the optimization of production processes and infrastructure to avoid CO2 emissions.

Evonik aims to reduce its footprint by significantly cutting both direct and indirect greenhouse gas emissions from production and processing. With the support of Next Generation Technologies, Evonik will reduce its scope 1 and 2 emissions by 25%, from 6.5 million metric tons at present to 4.9 million metric tons by 2030. This goal is fully consistent with the requirements of the Science Based Targets (SBTi) initiative, which Evonik is committed to. At the same time, the investments in sustainability are profitable: By investing EUR700 million in Next Generation Technologies, Evonik will cut its operating costs by more than EUR100 million a year up to 2030.

The repositioned Research, Development & Innovation unit is also fully integrating sustainability into the management of Evonik’s innovation activities. “Our RD&I targets are right on track to generate additional sales of more than EUR1 billion with our innovation growth fields by 2030,” said Harald Schwager, the executive board member responsible for innovation. “Our innovative capability is a key factor in leveraging green and profitable growth.”

Evonik’s aspirations are supported by its venture capital activities. A new Sustainability Tech Fund with a total investment volume of EUR150 million will strengthen the sustainability targets by investing into innovative technologies and business models. The focus is on new technologies that will reduce emissions as well as on innovations that have a high technological fit with the Next Generation Solutions.

As part of its strategic transformation, Evonik has also reviewed its mid-term financial targets. “Despite the current challenging environment, we are confirming our core targets: an adjusted EBITDA margin of between 18 and 20%, a cash conversion rate of over 40 percent, and ROCE of around 11%,” said Evonik’s chief financial officer, Ute Wolf. In line with the full alignment to high-growth, less cyclical specialty chemicals, Evonik now aims to achieve an organic sales CAGR of over 4 percent. Up to now, the target was volume growth of over 3%. The annual capex budget increases successively from the current level of around EUR900 million to a level between EUR900 million and EUR1 billion over the next years - as a result of investments in Next Generation Technologies to save CO2 emissions.

As MRC reported earlier, in March, 2022, Evonik launched a new biosurfactant produced from renewable feedstocks.
The rhamnolipids are produced at Evonik’s plant in Slovenska Lupca, Slovakia following a triple-digit million-euro investment in the site, which is scheduled to be completed by the end of 2023. The biosurfactant range is made using feedstocks which are locally sourced and fully biodegradable, meeting demand for low-emission, low-impact cleaning products in the market.

We remind that in February, 2020, Dow and Evonik entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.

Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of EUR12.2 billion and an operating profit (adjusted EBITDA) of EUR1.91 billion in 2020. Evonik goes far beyond chemistry to create innovative, profitable and sustainable solutions for customers. About 33,000 employees work together for a common purpose: to improve life today and tomorrow.

Brenntag Q1 sales, earnings increased sharply

Brenntag Q1 sales, earnings increased sharply

MOSCOW (MRC) -- Brenntag’s first-quarter sales and earnings rose strongly despite increased supply chain woes emanating from the war in Ukraine, said the company.

The company said the healthy financial metrics for Q1 were achieved despite the “exceptionally challenging market environment” during the quarter, following Russia’s invasion of Ukraine in February which disrupted even further supply chains in Europe. "In Q1, we saw strong price increases driving the outflow for working capital and thus impacting our free cash flow negatively,” said Brenntag’s CFO, Kristin Neumann.

"However, we continued to benefit from good margin management and were able to utilise business opportunities which translated into a high operating EBITDA over operating gross profit conversion ratio." While the company confirmed its previous financial guidance for this year, it added that the war in Ukraine and its “geopolitical and economic consequences” were very difficult to predict.

"While Brenntag expects a strong first half of 2022, the current environment contains great uncertainties and a forecast for the development in the second half is hardly possible at present,” it said. "Brenntag expects the overall geopolitical, macroeconomic, and operational conditions to remain highly challenging."

As MRC reported earlier, last summer, Brenntag acquired all operating assets and business of Matrix Chemical, LLC. The company is a solvents distributor and the largest distributor of acetone in North America with sales of around USD 200 million year to date in 2021.

Along with phenol, acetone is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 7,800 tonnes in January 2022, down by 4% year on year (8,100 tonnes a year earlier).

BCD Chemie, a Brenntag Group company, is headquartered in Hamburg, Germany. It focuses on the pan-European marketing of industrial and performance chemicals. As a link between manufacturers of high-quality chemical raw materials and users from many industries, BCD Chemie provides B2B sales solutions for a wide range of industries and applications. Profound market knowledge, competent product and application consulting as well as comprehensive expertise in chemical-technical and market-analytical contexts form the basis of its philosophy of modern chemical distribution.