RadiciGroup, acquisition of Ester Industries Ltd. completed

MOSCOW (MRC) -- The acquisition closing is now completed. RadiciGroup High Performance Polymers acquired the Engineering Plastics business of the Indian company Ester Industries Ltd., said the company.

Last May, RadiciGroup announced this important action aimed at strengthening its internationalization strategy, with an investment of around 35 million euros: the transaction allows RadiciGroup - in India since 2006 - to further reinforce its local presence through the acquisition of one of the main and historic players on the Indian market.

For RadiciGroup this is a significant industrial investment in which Ester Industries Ltd sells its newly built production plant in the city of Halol (Gujarat), West of India: compound lines, R&D laboratories, customers/suppliers contracts as well as its leading brand ESTOPLAST which includes different types of compounds used primarily in the Electrical/Electronic and Telecommunications markets.

Ester Industries Ltd - one of the leading Indian producers of polyester films, engineering plastics and special polymers - has seen in RadiciGroup the ideal partner to follow up on its consolidated experience in the engineering polymers business, in order to focus on the packaging film sector, a business the Indian firm intends to continue and strengthen.

The new production site, under construction, will become operational at the beginning of 2023, following the various transfers of tangible and intangible assets. As a result of the acquisition, the Group aims to achieve total annual sales in the Indian market of more than EUR 50 million.

We remind, RadiciGroup is to acquire the engineering plastics group of India-based polyester films player Ester Industries. The company will invest EUR35m in the business, which includes a production site near Gujarat that is due to be operational next year. The deal also includes the transfer of compound lines, research laboratories, customer and supplier contacts and Ester Industries compound brand ESTOPLAST.

RadiciGroup High Performance Polymers is a multinational organization with the capacity to manufacture and supply engineering polymers (based on polyamide, polyester and other materials) around the globe, with the backing of a production and sales network across all continents, as well as research and development increasingly focused on high-performance polymers.
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MOSCOW (MRC) -- Nalco Water, Ecolab’s water and process management business, will design, build, operate, own and maintain a new water treatment plant at Shell Jurong Island, a chemicals manufacturing site, said Hydrocarbonprocessing.

The plant is scheduled to commence operations in July 2023 and is expected to contribute to Shell’s water conservation ambition. Ecolab will oversee the design and build process, as well as the commissioning and operation once complete.

The design includes a stage that will pass water through a pre-treatment, ultrafiltration process so that even when there are wider variances in water quality passing through the feed, better consistency can be assured in the quality of the final product. Following the pre-treatment stage, there is also a reverse osmosis process that can treat up to 24,000 m3 of water per month.

Ecolab will assign a team of water experts from its Asia Pacific Regional Headquarters in Singapore and other offices in Southeast Asia, with the required operational expertise, to be based at the Shell Jurong Island facility. Combining this on-site expertise with the company’s advanced laboratory testing and technical knowledge will ensure that the water treatment plant runs smoothly and reliably.

Greg Lukasik, Senior Vice President and Market Head for Southeast Asia, Ecolab, said: “Our Ecolab Impact Goals focus on helping our customers save 300 billion gallons of water by 2030. Our purpose is to help our customers move towards more responsible water consumption, so we’re delighted to help Shell advance its ambitions with this new water treatment plant at Shell Jurong Island."

Ronald Doesburg, General Manager, Shell Jurong Island, said: “At Shell, our ambition is to conserve fresh water by reducing consumption and increasing reuse and recycling. To achieve this, we work with global technology organizations like Ecolab to advance our ambition to improve water management and promote circularity and water efficiency in our operations."

We remind, Mitsui Chemicals has asked Shell Catalysts & Technologies for its Shell S-896 catalyst, which is expected to provide important economic benefits from raw material (ethylene) savings and also help the organization meet the decarbonization goals for their ethylene oxide (EO) refinery in Osaka, Japan.
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MOSCOW (MRC) -- China’s refinery crude throughput remained near two-year lows in August due to outages at several state refiners and independent plants which curbed production amid thinning margins and tepid demand, said Reuters.

Refiners processed 53.66 million tonnes of crude oil last month, 6.5% less than a year earlier, according to data from the National Bureau of Statistics (NBS) on Friday. That is equivalent to 12.64 million barrels per day (bpd), which was a touch higher than 12.53 million bpd in July but still among the lowest processing levels since early 2020.

Throughput in the first eight months was 434.89 million tonnes, down 6.3% on a year before and equal to about 13.06 million bpd. China’s fuel demand has been hit hard this year as Beijing’s tough COVID-19 control measures stifled mobility and economic activity, with analysts predicting the first annual contraction in oil demand in two decades.

Affecting August output, Sinopec Shanghai Petrochemical Corp’s 320,000-bpd crude facility only resumed partial operation in mid way through the month after more than seven weeks’ of unplanned shutdown.

And PetroChina Wepec’s 200,000-bpd plant only resumed operation in late August after nearly a three months’ outage. Meanwhile, operations at independent refiners in the eastern refining hub of Shandong averaged at just under 65% of capacity in August, down from 70% in July, according to Chinese commodities consultancy JLC.

Independent plants faced policy headwinds with Beijing launching a new tax probe that is set to squeeze their profit margins. Friday’s NBS data showed China’s crude oil production last month slipped 0.2% from a year earlier to 16.94 million tonnes, with daily output at 3.99 million bpd.

Crude oil production in the first eight months rose 3.2% from a year earlier to 136.94 million tonnes (4.11 million bpd). Natural gas production was up 6.3% in August on the year at 17 billion cubic meters. Year-to-date production was up 5.5% at 143.7 bcm.

We remind, crude oil refining capacity has shrunk by a record 3.8 MM barrels per day from March 2020 to mid-2022 as demand expanded, setting the stage for fuel markets to remain very tight until at least mid-decade. The fall in capacity comes as oil demand rose by 5.6 MMbpd over the same period, the report released on Tuesday said. At the same time, about 2 MMbpd of net capacity is expected to come online by the end of 2023, with delays to these timeline likely to arise, the report said. "This puts pressure on all available refining capacity to run at high utilization levels to keep up with demand." Oil product markets experienced sharp upheaval since the COVID-19 pandemic was declared in March 2020.
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MOSCOW (MRC) -- MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) will be USD800/MT CFR Asian main ports for arrival September 2022, said the company.

The September 2022 ACP reflects the short term supply/demand situation in the Asian market.

We remind, MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) will be USD820/MT CFR Asian main ports for arrival August 2022. The August 2022 ACP reflects the short term supply/demand situation in the Asian market.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).

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MOSCOW (MRC) -- Shell announced that Ben van Beurden will step down as Chief Executive Officer (CEO) at the end of 2022, and that his successor will be Wael Sawan, said Hydrocarbonprocessing.

Wael’s appointment is effective January 1, 2023, when he will also join Shell’s Board of Directors. Ben van Beurden will continue working as adviser to the Board until June 30, 2023, after which he will leave the group.

Shell’s Chair, Sir Andrew Mackenzie said: “Wael Sawan is an exceptional leader, with all the qualities needed to drive Shell safely and profitably through its next phase of transition and growth. His track record of commercial, operational and transformational success reflects not only his broad, deep experience and understanding of Shell and the energy sector, but also his strategic clarity. He combines these qualities with a passion for people, which enables him to get the best from those around him. The outcome of the Board’s managed succession process resulted both in the appointment of an outstanding CEO and proved the strength and depth of Shell’s leadership talent. I look forward to working with Wael as we accelerate the delivery of our strategy."

Wael Sawan said: “It’s been a privilege to work alongside Ben and I’m honored to take over the leadership of this great company from him. I’m looking forward to channeling the pioneering spirit and passion of our incredible people to rise to the immense challenges, and grasp the opportunities presented by the energy transition. We will be disciplined and value focused, as we work with our customers and partners to deliver the reliable, affordable and cleaner energy the world needs."

Commenting on Ben van Beurden, Sir Andrew said: “Ben can look back with great pride on an extraordinary 39-year Shell career, culminating in nine years as an exceptional CEO. During the last decade, he has been in the vanguard for the transition of Shell to a net-zero emissions energy business by 2050 and has become a leading industry voice on some of the most important issues affecting society.

"He leaves a financially strong and profitable company with a robust balance sheet, very strong cash generation capability and a compelling set of options for growth. These were all enabled by bold moves he has led, including the 2016 acquisition of BG and the transformational $30 billion divestment of non-core assets that followed. He took firm, decisive action to marshal the company through the global pandemic, seizing the opportunity for a major reset to ensure we emerged fitter, stronger and equipped to succeed in the energy transition. Powering Progress, Shell’s detailed strategy to accelerate our profitable transition to a net-zero emissions energy business by 2050, was unveiled in February 2021 and was quickly followed by moves to simplify both our organizational and share structures. Ben’s legacy will frame Shell’s success for decades to come."

Ben van Beurden said: “It has been a privilege and an honor to have served Shell for nearly four decades and to lead the company for the past nine years. In my journey from LNG design engineer to CEO, I have been fortunate to work alongside so many talented people from diverse backgrounds – all committed to the company’s goal of providing the world with the essential commodities of modern life. I am very proud of what we have achieved together. I have great confidence in Wael as my successor. He is a smart, principled and dynamic leader, who I know will continue to serve Shell with conviction and dedication. I wish him and his family all the best for the journey ahead."

We remind, Mitsui Chemicals has asked Shell Catalysts & Technologies for its Shell S-896 catalyst, which is expected to provide important economic benefits from raw material (ethylene) savings and also help the organization meet the decarbonization goals for their ethylene oxide (EO) refinery in Osaka, Japan.

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