EU clears Celanese to buy DuPont unit on divestment condition

EU clears Celanese to buy DuPont unit on divestment condition

The European Commission has approved the proposed USD11 billion acquisition of Dupont's mobility and materials business by U.S. chemicals company Celanese Corp (CE.N), on the condition that the latter divests a plastics-producing business, said Reuters.

Celanese announced the deal in February but had to offer remedies to address EU antitrust concerns. The combined entity would have been the largest producer of thermoplastic copolyester (TPC) in the European Economic Area and globally, with only a few alternative suppliers remaining. The product is primarily used by automakers.

The EU approval is conditional on Celanese divesting its global TPC business, including its production facility in Italy and certain brands. Celanese has proposed selling the business to Italian engineering plastics producer Taro Plast S.p.a.

“The commitments offered by Celanese, divesting a stand-alone business, fully remove our competition concerns as they ensure that a player will remain in the market,” the Commission’s competition policy head Margrethe Vestager said in a statement.

We remind, in February 18, 2022 DuPont announced it has entered into a definitive agreement with Celanese Corporation to divest a majority of the Mobility & Materials segment including the Engineering Polymers business line and select product lines within the Performance Resins and Advanced Solutions business lines for USD11.0 billion in cash, subject to customary transaction adjustments in accordance with the definitive agreement, which represents an enterprise value multiple of ~14x 2021 operating EBITDA.
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Uniper hires Technip Energies for H2Maasvlakte work

Uniper hires Technip Energies for H2Maasvlakte work

Uniper and Technip Energies have signed an agreement that awards the Front-End Engineering Design (FEED) study contract to Technip for the company’s H2Maasvlakte project, Uniper announced.

“As part of the FEED scope of work, a multidisciplinary team from Technip Energies will deliver the full FEED package, including a design for a large-scale water electrolysis system, the balance of plant as well as site integration,” The press release said. The contract will be “starting immediately,” Uniper said in the press release.

Uniper said that the H2Maasvlakte project was its “flagship hydrogen project” and the company is expecting to realise 100MW of electrolyser capacity for the production of renewable hydrogen by 2025. The project aims to gradually scale-up to a total electrolysis capacity of 500MW for renewable hydrogen by 2030 — the Dutch Government has set targets of building 500MW of electrolyser capacity by 2025 and 3-4GW by 2030.

Electricity for hydrogen production at Maasvlakte is due to be sourced from offshore wind developments, which according to Uniper, will have a capacity of some 7.4GW. In mid-September, Siemens and Shell announced that they had signed a memorandum of understanding (MoU) for collaboration on developing low-carbon and highly efficient solutions that support hydrogen production, with Shell citing specifically its Holland Hydrogen 1 (HH1) project in Maasvlakte with 200MW of electrolyser capacity — equivalent to about 0.73TWh/year of renewable hydrogen, ICIS data showed.

Maasvlakte, located near Rotterdam in the Netherlands, is home to “current and future customers from the chemical, energy, and petrochemical industry."

We remind, Technip Energies has been selected by PTTEP HK Offshore Ltd. to perform the Front-End Engineering Design (FEED) of the Lang Lebah Onshore Gas Plant 2 (OGP2) project located in Bintulu, Sarawak, in Malaysia. The FEED contract covers the design of an onshore gas plant including the integrated flow assurance of the native CO2 capture, compression and transportation via pipeline up to the offshore wellhead platform where it will be reinjected.
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OMV Petrom to build a new unit of aromatic products at Petrobrazi refinery

OMV Petrom to build a new unit of aromatic products at Petrobrazi refinery

OMV Petrom, the largest integrated energy company in South-Eastern Europe, invests approximately EUR 130 million in the next 3 years to build a new unit of aromatic products at Petrobrazi refinery, said the company.

The unit will function at modern BAT (Best Available Technology) operating standards with low environmental impact. The processing capacity of the new unit is about 1,500 tons/day of reformed gasoline.

Radu Caprau, member of the OMV Petrom Executive Board responsible for the Refining and Marketing activity: "The demand for gasoline continues to be robust in Southeastern Europe. In parallel with the development of our offer for alternative mobility products, we want to provide our customers with the products they need, at high environmental standards. Other significant investments will follow at Petrobrazi, both in the technological efficiency of the refinery as well as in the production of second-generation biofuels."

The process of replacing the existing aromatic products unit will be carried out between 2023 and 2025. The aromatic products unit currently functioning at Petrobrazi Refinery was put into production in 1961. This is the only facility within a Romanian refinery that can ensure gasoline at European standards.

The new unit of aromatic products will be put into operation in 2026. It will ensure continuity of production of gasoline with a volumetric benzene content of less than 1%, according to current European standards. At the same time, a larger amount of toluene will be possible to be obtained from the process of gasoline production. Toluene can be used to obtain commercial gasoline with improved octane number, but it can also be used as a solvent in the chemical industry to obtain paints, adhesives or in processes of obtaining leather products.

The Petrobrazi refinery has a total crude oil processing capacity of 4.5 million tons per year. Since 2005, OMV Petrom has invested over EUR 1.8 billion in the refinery, with a third of this investment contributing to reducing the environmental impact.

We remind, OMV, the integrated, international oil, gas and petrochemicals company headquartered in Vienna, Austria, will invest around EUR200 million (USD244 million) in biofuel production at the Schwechat Refinery in Austria.
OMV is currently investing in the Schwechat Refinery so it will be able to substitute large quantities of fossil diesel with biodiesel in an innovative co-processing approach.

OMV Petrom is the largest integrated energy company in South-Eastern Europe, with an annual Group hydrocarbon production of approximately 47 million boe in 2021. The Group has a refining capacity of 4.5 million tons annually and operates an 860 MW high-efficiency power plant. The Group is present on the oil products retail market in Romania and neighboring countries through approximately 790 filling stations under two brands – OMV and Petrom.
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BASF Group releases preliminary figures for the third quarter of 2022

BASF Group releases preliminary figures for the third quarter of 2022

BASF has released preliminary figures for the third quarter of 2022. Sales, income from operations (EBIT) before special items and EBIT are slightly above average analyst estimates, said the company.

Net income of BASF Group is expected to amount to EUR909 million. This is considerably below the prior-year quarter figure (Q3 2021: EUR1,253 million) and the average analyst estimates for the third quarter of 2022 ( EUR1,105 million). Net income contains non-cash-effective impairments on the shareholding in Wintershall Dea in the amount of about EUR740 million. These result from the partial write-down of Wintershall Dea’s participation in Nord Stream AG, which operates the Nord Stream 1 pipeline.

Sales increased by 12 percent in the third quarter of 2022 to EUR21,946 million (Q3 2021: EUR19,669 million). This was mainly driven by higher prices. Currency effects, primarily relating to the U.S. dollar, had a positive effect as well. Volumes declined compared with the prior-year quarter. Sales thus slightly exceeded average analyst estimates for the third quarter of 2022 (Vara: EUR21,076 million).

EBIT before special items amounted to an expected €1,348 million in the third quarter of 2022, considerably below the level of the prior-year quarter (Q3 2021: EUR1,865 million) and slightly above the analyst consensus for the third quarter of 2022 (Vara: EUR1,313 million). Increased prices for raw materials and energy could only partly be passed on through higher selling prices.

EBIT amounted to an expected EUR1,294 million in the third quarter of 2022, considerably below the figure for the prior-year quarter (Q3 2021: EUR1,822 million) and slightly above the analyst consensus for the third quarter of 2022 (Vara: EUR1,285 million).

The outlook published by the BASF Group for the 2022 business year in July remains unchanged. EBIT before special items continues to be expected between EUR6.8 billion and EUR7.2 billion.

BASF and Hannong Chemicals are planning to establish a production joint venture “BASF Hannong Chemicals Solutions Ltd.” BASF will hold 51% and Hannong Chemicals 49% shareholding, in the proposed joint venture. The joint venture will combine BASF’s strong technology and product innovation capabilities with Hannong’s highly efficient production capabilities to supply best-in-class non-ionic surfactant products to BASF and Hannong Chemicals, each with their own sales and distribution network, enabling the two companies to cater for increasing market demand.

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Covestro breaks ground in Antwerp for new aniline plant

Covestro breaks ground in Antwerp for new aniline plant

Covestro AG (Leverkusen, Germany) broke ground in Antwerp, Belgium for a new world-scale production facility for the manufacture of aniline, said the company.

With the Covestro breaks ground in Antwerp for new aniline plant. At the same time, by using state-of-the-art technology, we are increasing the energy efficiency of production and thereby the competitiveness of the Antwerp site,” says Dr. Klaus Schafer, Chief Technology Officer at Covestro. Dr. Georg Wagner, Covestro Site Manager in Antwerp, sees the investment as a crucial step into the future: “The groundbreaking ceremony for the expansion of our aniline production is an important moment for our site. The expansion of aniline production is part of Covestro’s global MDI strategy.

Covestro AG (Leverkusen, Germany) broke ground in Antwerp, Belgium for a new world-scale production facility for the manufacture of aniline. With the capacity expansion, the company is strengthening its European production network for the foam component MDI. For this purpose, Covestro is investing more than €300 million. The plant is scheduled to be operational – depending on the volatile economic situation – in early 2025. This will create around 40 new jobs.

The basic chemical aniline is an important starting material for many chemical products, including the rigid foam component MDI. The product is mainly used for the production of insulation materials for buildings and refrigeration equipment. Due to the global trend towards sustainability and climate neutrality, the global MDI market is expected to grow by around six percent per year in the medium term. Given the current high electricity and gas prices, especially in Europe, demand for efficient insulation is likely to further increase.

“Even in challenging times, we must not lose sight of our goals. With the expansion of our aniline production, we are addressing the further increase in demand from our customers for energy-efficient solutions for the insulation of buildings and refrigeration appliances. At the same time, by using state-of-the-art technology, we are increasing the energy efficiency of production and thereby the competitiveness of the Antwerp site,” says Dr. Klaus Schafer, Chief Technology Officer at Covestro.

Dr. Georg Wagner, Covestro Site Manager in Antwerp, sees the investment as a crucial step into the future: “The groundbreaking ceremony for the expansion of our aniline production is an important moment for our site. The capacity expansion will enable us to continue to ensure the sustainable and efficient supply of our MDI network in Europe. In doing so, we will continue to draw on the attractive infrastructure and logistics at the heart of the port, from where we also have direct access to the raw materials we need. This investment further anchors us here in Antwerp and also creates sustainable jobs for the future."

For policymakers in Antwerp, Covestro’s capacity expansion is making a positive contribution to development in the region. “Belgium is the second most important export country for chemistry and life sciences within the European Union after Germany. The sector of chemistry and life sciences is today one of the most important industries in Flanders and heavily invests in R&D and innovation. Last year alone 2.6 billion euro or more than half of all the industrial investments in innovation in Flanders were announced in this sector. Today is another milestone in this respect”, explains Jan Jambon, Minister-President of the Flanders region.

The new plant will use state-of-the-art technologies that will help to significantly increase the energy efficiency of production in Antwerp. Currently, around 20 percent of the steam required on site is covered by using process heat generated during production. The remaining steam is generated using fossil resources. With the commissioning of the new plant, the share of steam generated from process heat will double to 40 percent of local demand, and the use of fossil fuels will decline. The potential savings correspond to up to 27,000 tons of CO emissions per year. The new plant thus makes an important contribution to achieving Covestro’s goal of being operationally climate-neutral by 2035.

The expansion of aniline production is part of Covestro’s global MDI strategy. The aim is to strengthen the production network for MDI in view of a further increase in demand. In Brunsbuttel, Germany, Covestro already commissioned a new plant for the production of MDI using the particularly energy-efficient AdiP technology in 2020. In Tarragona, Spain, a new chlorine production plant based on the likewise particularly energy-saving ODC technology is nearing completion.

We remind, Covestro has now received the internationally recognized ISCC Plus mass balance certification for its Leverkusen and Dormagen sites. Together with the Krefeld-Uerdingen site, which was already certified a year ago, the company can now supply its customers with large product volumes from renewably attributed raw materials from all three Lower Rhine sites in Germany. These are selected polycarbonates, components for polyurethane (PU) rigid and flexible foams, PU coating and adhesive raw materials, thermoplastic polyurethanes (TPUs) and specialty films. They are characterized by equally good quality and properties as their fossil-based counterparts.

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