Germany takes control of stakes in Rosneft oil refineries

Germany takes control of stakes in Rosneft oil refineries

MOSCOW (MRC) -- Shell said it was "unaffected" by the German government's decision to place the PCK Schwedt oil refinery under a trusteeship, effectively taking control away from Russian majority owner Rosneft, said Reuters.

It is unclear who will step in to replace Rosneft as operator of the 233,000 barrel per day refinery, which Shell has sought to sell out of.

"Shell remains unaffected by this order as a 37.5% shareholder in PCK Schwedt and will continue to comply with its contractual obligations in accordance with its own shares," Shell said in an emailed statement.

"We do not want to speculate about measures in the context of the continued operation of the refinery in Schwedt (or other locations) that may or may not be taken by the government."

Shell in May said PCK Schwedt held no strategic value for its business. Last year it tried to sell its stake to Vienna-based Alcmene but the move was pre-empted by Rosneft, which sought to increase its 54% stake. That move was put on hold by the German government in March.

We remind, the German government is looking at bringing the PCK Schwedt refinery, partially owned by Russian energy firm Rosneft, under state control. German Chancellor Olaf Scholz and Economy Minister Robert Habeck are expected to hold a news conference on Friday presenting details of the plans, Spiegel reported, citing government sources.

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Evonik is driving growth through innovations

Evonik is driving growth through innovations

MOSCOW (MRC) -- Innovations play a key role in aligning Evonik consistently with sustainability. They are also important to leverage sustained growth, said the company.

In 2021, Evonik’s innovation growth fields generated more than €500 million in additional sales compared with 2015, for example, with sustainable solutions for health, cosmetics, and membranes. That was an increase of a good 40 percent compared with the previous year. Technologies enabling the transportation of medical active ingredients in the body, for example, lipid nanoparticles for mRNA-based vaccines, were particularly successful.

Harald Schwager, deputy chairman of Evonik’s executive board, who is responsible for innovation: “Our innovative capability is a key factor in leveraging profitable and resource-efficient growth.” The good development of our innovation growth fields is clear evidence of this. Our research pays off: Innovations give us access to additional new business.” In the ten-year period to 2025, Evonik aims to generate additional sales of over €1 billion with its innovation growth fields. “I am firmly convinced that we will achieve this goal."

Schwager wants the success story of the innovation growth fields to continue beyond 2025. “Climate change, population growth, and geopolitical uncertainty are confronting humankind with new and in some cases, unprecedented challenges,” he says. Evonik has therefore refocused Creavis as a strategic innovation unit and business incubator. It develops innovations for key issues of the future—for a hydrogen economy and circularity, efficient and environment-friendly agriculture, and knowledge and data-based business models. Schwager: “The new growth areas at Creavis could develop into innovation growth fields with comparable sales potential."

Evonik research and development expenses amounted to €464 million in in 2021. The majority is spent on research in the chemical production divisions, with a smaller amount being channeled to Creavis. Relative to sales, the R&D ratio was more than 3 percent in 2021. Worldwide, the Evonik Group has around 2,600 R&D employees.

Evonik's new chief innovation officer, Ralph Marquardt, aims to strengthen the company's innovative strength even further in the future. Marquardt, who has a doctorate in chemistry and joined Evonik in 2006, has acquired the necessary experience, for example, through leadership roles in various business areas. Sustainability is his central focus. He is convinced that as a specialty chemicals company Evonik can make a big contribution to a livable future. “Our innovations are essential if we, as a society, want to curb climate change, avoid the use of fossil raw materials, and feed the growing world population,” he says.

In May, Evonik announced that it will be investing more than €3 billion in Next Generation Solutions, in other words, products with superior sustainability benefits, in the period up to 2030. The goal is for them to account for more than 50 percent of sales. In the same period, a further €700 million will be invested in Next Generation Technologies, i.e., the ongoing development of production processes and infrastructure to avoid CO2 emissions. Innovations will be needed to meet the sustainability targets associated with this billion-euro investment program.

We remind, business line Coating Additives of Evonik Industries AG (Essen, Germany) is expanding production capacity of ACEMATT precipitated matting agents at its Taiwan manufacturing facility. The significant capacity increase will help meet growing demand for matting agents in Asia, with the capacity expansion expected to be completed by the second half of 2023.

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 EUR15 billion and an operating profit (adjusted EBITDA) of EUR2.38 billion in 2021. Evonik goes far beyond chemistry to create innovative, profitable and sustainable solutions for customers.
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Rosneft successfully completed yuan bond placement

Rosneft successfully completed yuan bond placement

MOSCOW (MRC) -- Rosneft successfully completed its debut CNY-denominated bond issue in Russia. The coupon rate was set at 3.05% per annum, the placement volume - CNY15 billion, said the company.

The market investors’ strong demand allowed raising a record funds amount in yuan at the lowest rate among bond placements in Russia. The debut bond issue by the Company became the largest market corporate bond placement in the history of the Russian market. This confirms the Company’s highest credit quality (ruAAA rating assigned by Expert RA), as well as a high degree of investor confidence in Russian oil and gas sector.

002P-12 series exchange-traded bonds with a 10-year maturity were registered on September 14, 2022 by the Moscow Exchange. The nominal value of one bond is CNY 1,000. Coupon payments will be paid twice a year. The bond issue has an offer in 2 years.

The issue was arranged by Russian Regional Development Bank, Gazprombank, Credit Bank of Moscow, and BC REGION; with DOM.RF, Bank Zenit, Russian Agricultural Bank and IC VELES Capital acting as co-arrangers.

The funds raised through the bond placement will be used in accordance with the approved Rosneft Business Plan to finance the investment program.

Pursuant to the instruction from the President of the Russian Federation, Rosneft is gradually shifting to foreign trade settlements in Russian rubles and national currencies of friendly countries, while optimizing its debt portfolio structure. The Company's current debt burden is the lowest since the end of 2013. Net debt / EBITDA ratio gradually decreases over the last seven quarters.

As per MRC, Rosneft failed to sell oil in a jumbo tender after demanding prepayment in roubles, meaning the country's top oil company will need to find ways to divert more crude to buyers in Asia via private deals. The failure of the tender highlights a growing struggle by the Kremlin oil major to sell oil due to sweeping Western sanctions on Russia for the invasion of Ukraine.

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Tessenderlo Group to grant a permit for the construction of a second gas plant in Belgium

Tessenderlo Group to grant a permit for the construction of a second gas plant in Belgium

MOSCOW (MRC) -- Tessenderlo Group was informed of the decision by the Flemish Minister of Justice and Enforcement, Environment, Energy and Tourism to grant a permit for the construction of a second 900 MW gas plant in Tessenderlo, Belgium, said the company.

Tessenderlo Group will now prepare for its participation in the next Capacity Remuneration Mechanism (CRM) auction in September 2022.

In March 2022, Tessenderlo Group submitted another permit application to the Flemish Region for the construction of a new 900 MW combined cycle gas turbine (CCGT) power plant in Tessenderlo (Belgium). In view of future auctions, Tessenderlo Group adjusted its previously submitted project (an investment of approximately 500 million EUR) to respond to the objections that led to the refusal of that application.

Tessenderlo Group is a diversified industrial group that focuses on agriculture, valorizing bio-residuals, energy, and providing industrial solutions with a focus on water. The group employs more than 4,800 people, is a leader in most of its markets and recorded a consolidated revenue of 2.1 billion EUR in 2021. Tessenderlo Group is listed on Euronext Brussels and is part of Next 150 and BEL Mid indices.

We remind, Performance Chemicals, which is a business unit of Tessenderlo Group, is changing its name to Kuhlmann Europe. Under the new banner of Kuhlmann Europe, the business unit decided not only to look to its future but also to return to its roots and its illustrious founder: Frederic Kuhlmann. For almost 200 years, the business unit has played an essential role in wastewater treatment and potabilization, disinfection, and health.

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RadiciGroup, acquisition of Ester Industries Ltd. completed

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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