Eastman Chemical Company drops 4% on reducing Q3 profit guidance

Eastman Chemical Company provided an update on its third-quarter 2022 financial results, said the company.

Third-quarter 2022 adjusted earnings per share (EPS) are expected to be approximately USD2.00. Previous expectations were for solid growth compared to third-quarter 2021 adjusted EPS of USD2.46.

“There are three main factors negatively impacting our volume and product mix in the third quarter,” said Mark Costa, Board Chair and CEO. “While demand across some end markets, including agriculture and personal care, is demonstrating resilience, demand has slowed more than expected in August and September, in particular in the consumer durables and building and construction end markets and the European and Asian regions. At the same time, logistics have been challenged by an acceleration of marine logistics issues on the U.S. East Coast, particularly impacting high-value specialty products in Advanced Materials bound for other regions. Operational issues have also impacted volume and product mix, as recovery of our polymer lines from an electricity outage in July at our Kingsport facility took longer than expected,” Costa added.

Commenting on higher costs in the quarter, Costa said, “Certain costs have trended higher than expected and are impacting third-quarter performance, particularly for natural gas in the U.S., which reached a 14-year high during the quarter. A stronger U.S. dollar against a number of currencies, including the euro and the yen, is also negatively impacting results.

“In response to these accelerating challenges and continued uncertainty, we are raising prices where appropriate to offset higher costs and implementing measures to control costs across the company,” Costa said. “As we close a challenging third quarter, our commitment to our growth programs is unwavering. Our investments have us well positioned as a leading specialty materials company, underpinned by our leadership position in the circular economy,” Costa concluded.

This update to our outlook does not include any impact from the recent rail embargo or the potential for a rail worker strike in the U.S. later this month. Eastman will announce third-quarter 2022 financial results after the close of U.S. equities markets on Thursday, October 27, and conduct a public teleconference to discuss results at 8:00 a.m. ET on Friday, October 28. Eastman expects to provide a fourth-quarter financial outlook at that time.

As per MRC, Eastman announced a planned increase of its Therminol 66 heat transfer fluid manufacturing capacity in Anniston, USA. The plant expansion is expected to be complete in 2024. With the expansion of its capacity for Therminol 66, Eastman increases its production volume for this heat transfer fluid in the US by 50?%. The expansion of the company’s plant in Annistion, USA, is expected to be completed in 2024.

Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2021 revenue of approximately USD10.5 billion and is headquartered in Kingsport, Tennessee, USA.
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Milliken started a new clarifier plant in Blacksburg, South Carolina, in the US, said the US-based specialty chemicals company.

The plant will increase by 50% the company's capacity to produce the polypropylene (PP) clarifier Millad NX 8000, the company said. It should reach full capacity by the end of the year.

Milliken did not disclose the capacity.

We remind, Milliken, an American polymer additives and coloring company, has launched a new masterbatch plant to increase the clarity of polypropylene (PP) in Blacksburg, South Carolina, USA. The plant will increase the company's masterbatch capacity by 50% to increase the clarity of Millad NX 8000 polypropylene (PP).

Milliken & Company is a diversified company that has been in business since 1865. The corporate headquarters is located in Spartanburg, South Carolina. The company operates in a wide variety of areas: the chemical industry, flooring, performance and protective textiles, and healthcare.
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MRC) -- Encina Development Group, LLC announced the first-ever production of high purity aromatics made entirely from end-of-life mixed plastics, said Hydrocarbonprocessing.

Encina has delivered its high purity monomer chemicals to customers and confirms that ongoing production will continue.

David Roesser, PhD, CEO of Encina stated, “Encina’s delivery of on-specification, circular chemicals is a major milestone for the company, as it validates our goal to deliver high purity ISCC+ chemical solutions for our customers on a global basis; the feedback from everyone has been overwhelmingly positive."

Encina operates a circular chemicals facility in San Antonio, Texas and recently completed an expansion phase with engineering and construction work undertaken by Chemex Global, LLC of The Woodlands, Texas. The facility is designed to accept mixed end-of-life plastics, which are then catalytically converted into circular chemicals for Encina’s customers.

"According to the EPA, less than 10% of plastics are currently recycled,” said Carlo Badiola, Senior Vice President of Engineering & Technology. “Encina’s large-scale solution being deployed next year will enable the diversion of 450,000 tons of mixed plastic streams from landfills or incineration to manufacture ISCC+ circular chemicals to help our customers meet their ongoing sustainability goals."

We remind, US-based plastics recycling start-up Encina plans to produce benzene, toluene and mixed xylenes (BTX) as well as propylene from its planned new USD1.1bn project in Point Township, Pennsylvania, US. The Point Township Circular Manufacturing Facility would use Encina’s proprietary fluidized catalytic system and consume 450,000 tonnes/year of mixed waste plastics, a company spokesperson confirmed. Construction is expected to begin in the autumn of 2022, and the facility is expected to be fully operational by the autumn of 2024.
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Venezuela's second largest refinery has suspended gasoline production following an internal electrical failure, four sources with knowledge of the situation said, as per Hydrocarbonprocessing.

Work was being carried out on Sunday to resume operations of the Cardon crude oil reformer and distiller, one of the sources said.

A blackout took place on Saturday afternoon at the facility, which has the capacity to process 310,000 bpd of crude, and although power has returned to the facility, production at the refinery remains halted.

"They have already fixed the fault, the light has returned, but everything is still stopped. The start-up process or protocol have begun, but you know that when they stop abruptly, it takes time (to resume operations)," one source told Reuters.

The Cardon refinery is part of the 955,000-bpd Paraguana Refining Center on Venezuela's Western coast. Venezuela's state company PDVSA did not immediately respond to a request for comment.

An intermittent scarcity of fuel has hit the South American country in recent years as PDVSA's aging refineries operate at a fraction of its 1.3 MMbpd joint capacity and as U.S. sanctions block the arrival of imported gasoline.

As per MRC, Venezuela's state oil and gas company PDVSA has restarted gasoline production at the country's second largest refinery after repairing a breakdown. The Cardon refinery's naphtha reformer, with a capacity of 45,000 barrels of oil per day (bpd), produces high-octane components for gasoline and is key to the country's gasoline supply. PDVSA commissioned it with an output of about 28,000 bpd about a fortnight ago.
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Toyota Tsusho Corporation announced that it has agreed via Toyota Tsusho (Shanghai) Co., Ltd. with NIPPON SHOKUBAI CO., LTD. on a joint capital participation in Hunan Fluopont New Materials Co., Ltd., said the company.

Recently, as battery electric vehicles and other electric vehicles are increasingly popularized, demand for lithium-ion batteries is increasing. This is because lithium-ion battery that uses electrolytic lithium salt for lithium-ion battery (LiFSI: lithium bis (fluorosulfonyl) imide) as electrolyte can solve various battery-proper issues such as reduced performance at extreme temperatures and service life.

Recently the number of battery electric vehicles and other electric vehicles are on the rise, and so is demand for lithium-ion batteries. Demand for electrolytic lithium salt for lithium-ion battery (LiFSI: lithium bis (fluorosulfonyl) imide) has been rapidly growing as LiFSI solves various battery-proper issues such as performance reduction and service life at extreme low and high temperatures.

Through this capital participation, Toyota Tsusho will commit to sales of LiFSI produced at Hunan Fluopont to electrolytic solution makers not only in China but also in Japan, other Asian countries and Europe, leveraging its global sales network.

Hunan Fluopont, , started to produce LiFSI in the second half of 2022 with a production capacity of 1,200 tons per year. To satisfy the rapidly soaring demand in the market, Hunan Fluopont intends to progressively increase its production capacity up to 12,000 tons per year by 2025.

In July 2021, the Toyota Tsusho group publicized its goal of reducing greenhouse gas (GHG) emissions by 50 percent by 2030 compared to 2019 and achieving carbon neutrality by 2050. In November of the same year, the group drew up its Carbon Neutrality Road Map 2030. Toyota Tsusho positions businesses that contribute to the reduction of GHG as one of its important strategic trajectories, of which the in-vehicle battery business is a pillar to grow for next generation. Toyota Tsusho group now operates businesses throughout the lithium-ion battery supply chain, covering upstream resource exploitation for lithium hydroxide and downstream battery manufacturing and battery reuse/rebuild businesses. Toyota Tsusho will contribute to the transition to a decarbonized society by promoting efforts for carbon neutrality through its global sales network.

As per MRC, Mitsubishi Chemical Corporation (MCC) and Toyota Tsusho Corporation have begun a joint-consideration to manufacture and sale ethylene, propylene, and their derivatives using bioethanol as a raw material, with an aim to commence operation in 2025. There is a growing need for plastic reuse and recycling to achieve the realization of a sustainable recycling-oriented society. There are also strong expectations for realizing a sustainable life cycle by using plant-derived materials.{ima
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