Saudi Aramco signs multiple deals worth USD11 billion in investment push

Saudi Aramco has signed 59 corporate procurement agreements (CPAs) worth a potential total of USD11 billion with up to 51 domestic and international manufacturers, as a part of its coveted in-kingdom total value add (IKTVA) localisation programme, said the company.

IKTVA is at the heart of Aramco’s long-term local content strategy and plays a crucial role for domestic contractors while also awarding large-scale deals to its pool of long-term agreement (LTA) contractors.

Aramco on Tuesday said that the agreements “are expected to reinforce Aramco’s robust supply chain and result in the development of materials manufacturing facilities in the kingdom".

“The 59 CPAs cover multiple strategic commodities, such as drilling chemicals, wellheads, switchgear, vibration monitoring systems, pipes, compressors, structure steel, fittings and flanges and air-cooled heat exchangers,” Aramco said.

Some leading international players that are part of the new agreement include Baker Hughes, Cameron Al Rushaid, Halliburton, Schlumberger, and TechnipFMC, the Saudi giant said.

“The CPAs fall under a strategic pillar of the Aramco IKTVA programme, wherein they are used to establish long-term agreements and commitments with supplier partners,” it noted.

As per MRC, Saudi Aramco said it plans to invest in a USD7 B project to produce petrochemicals from crude oil at its South Korean affiliate S-Oil Corp's refining complex in the port city of Ulsan. The project, named Shaheen, is the Saudi company's biggest investment in South Korea and will mark the first commercial use of Aramco and Lummus technology to produce chemicals from crude, Aramco said in a statement.
mrchub.com

Hexpol TPE have officially launched their line of medical TPEs with bio-attributed content, said Sustainableplastics.

Based on the mass balance principle, the new line expands the company’s growing portfolio of materials based on non-fossil feedstocks.

The new materials are a drop-in solution, offering identical properties as Hexpol’s conventionally produced medical TPEs. The company said they can replace the fossil polymers in their TPE compounds with the bio-attributed mass-balanced version, to create a 1:1 replacement.

“These mass-balanced TPEs allow customers to meet performance requirements while ensuring the regulatory status and, at the same time, working towards their sustainability goals,” said Inger Haag Olsson, a medical development engineer at Hexpol TPE.

Mass balance allows for a gradual increase of the bio-circular share using existing infrastructure with the target to reduce the use of fossil resources step by step. It is an approach to account for materials entering and leaving a system. The bio-circular feedstock is added at the beginning of the process, traced through intermediate transformations, and allocated to the end product. As both bio-circular and fossil feedstocks are mixed, it is not possible to guarantee a specific concentration in the final product. This is comparable to ‘green’ electricity, where consumers cannot be sure the electricity they use has come directly from renewable sources, but the overall share of green electricity in the grid rises in step with demand.

Third-party verification is required to audit the mass balance allocation and allow for correct product labelling. Hexpol TPE’s Swedish site was among the first TPE compounders to achieve the International Sustainability and Carbon Certification (ISCC PLUS) last year.

As per MRC, Hexpol has completed the previously announced acquisition of 100% of Union de Industrias C.A., S.A. (Unica) from Espiga Capital, a Spanish based Private Equity firm. Unica is a significant player in Rubber Compounds in Spain, supplying several demanding customers in the automotive, construction and agriculture sectors.
mrchub.com

SABIC, a global leader in the chemicals industry, has teamed up with Guangdong Jinming Machinery Co., Ltd., a plastic packaging equipment manufacturer and Bolsas de los Altos, a leading plastic film and packaging converter to support growth of polyolefin based innovative applications in the flexible packaging segment, said the company.

Engagement with value chain players remains critical to SABIC’s vision of bringing market driven innovation to customers. By exchanging mutual expertise on polymer technology and processing, this collaboration will secure the development of a robust applications pipeline based on current and future market trends.

Sustainability trends continue to transform the flexible packaging industry. As a result, incumbent film structures need to be updated to conform to latest circularity needs. A partnership involving SABIC’s deep materials knowledge, Jinming’s equipment manufacturing excellence and Bolsas’ converting capabilities can address these challenges. The collaboration will provide an outlet to test and validate performance of SABIC polyolefin resin products including polyethylene resin offerings from Gulf Coast Growth Ventures (GCGV) and from TRUCIRCLE™ , SABIC’s commitment to circularity for plastics. The collaborative efforts will feature installation of Jinming’s multilayer coextrusion machinery at Bolsas’ Mexico facility.

We remind, SABIC posted a 67.1% year-on-year drop in its third quarter net profit on the back of higher costs despite an increase in sales volumes. The company's third-quarter net income was weighed by higher cost of sales and an increase in selling and distribution costs.

mrchub.com

Sabic and PepsiCo have signed a memorandum of understanding at the Sabic Center for the Development of Plastic Applications - SPADC - in Riyadh, under which the two companies will collaborate on the implementation of a programme to promote a more circular economy for plastics in the Kingdom of Saudi Arabia, said Sustainableplastics.

According to Maaal.com — a Saudi financial and economic news site - Sabic and PepsiCo will address the various challenges standing in the way of achieving this goal, including the development of solutions for the use of recycled content in food and beverage packaging applications and the need for more awareness about the role of recycled plastics. The companies will also focus on the further expansion of the existing capabilities and recycling infrastructure in order to be able to meet these goals.

The scope of the memorandum includes working jointly - and with government agencies - to create favourable conditions for the circular economy efforts to succeed in line with the Kingdom’s 2030 environmental goals; and the goals of the Saudi Green Initiative.

Inaugurated in 2021, the Saudi Green Initiative unites ‘environmental protection, energy transition and sustainability programs within the Kingdom, with the overarching aims of offsetting and reducing emissions, increasing the Kingdom’s use of clean energy and addressing climate change’. The focus of the initiative is on emissions reduction, afforestation - some 10 billion trees will be planted across Saudi Arabia , the equivalent of rehabilitating 40 million hectares of degraded land - and land and sea protection.

PepsiCo has been active in Saudi Arabia for over 65 years. In September, the company hosted a special event at the King Abdullah Financial District (KAFD) in Riyadh commemorating the relationship between the two companies during which PepsiCo’s various initiatives in the country were highlighted.

Among others, these include PepsiCo’s sustainability strategy, its dedication to advancing a circular economy and promoting water replenishment through its PepsiCo Positive (pep+) strategy, which is is working to source crops and ingredients in a way that accelerates regenerative agriculture and strengthens farming communities. The company has also partnered with Diriyah Gate Authority (DGDA) to launch community recycling projects. These will help to collect plastic and increase recycling rates, underscoring the importance of reducing plastic pollution and safeguarding the environment.

We remind, Sabic posted a 67.1% year-on-year drop in its third quarter net profit on the back of higher costs despite an increase in sales volumes. The company's third-quarter net income was weighed by higher cost of sales and an increase in selling and distribution costs
mrchub.com

Eastman Chemical Co. has signed a deal to supply beverage giant PepsiCo Inc. from its proposed third chemical recycling plant, said Sustainableplastics.

"We are excited to have reached a definitive agreement with PepsiCo for our third planned molecular recycling facility, demonstrating our leadership position to create significant value in the circular economy," Eastman Chairman and CEO Mark Costa said in an Oct. 27 earnings release.

Eastman's first chemical recycling plant is set to open early next year in Kingsport, Tenn., where the firm is based. A second plant will open in Normandy, France, in 2025. Interzero Plastics Recycling of Germany will supply the French plant with PET household packaging waste as feedstock.

Eastman has not announced the location of the third chemical recycling plant, although the company has approached school district officials in Texas City, Texas, regarding the potential of tax breaks. In the third quarter, Eastman's sales roughly were flat at USD2.7 billion vs. the year-ago period. Net earnings fell almost 18 percent to USD301 million in the same comparison.

Sales for the quarter in Eastman's Advanced Materials unit — including Tritan-brand copolyester — were up 15 percent to USD888 million, with earnings before interest and taxes (EBIT) up almost 5 percent to USD131 million.

On Wall Street, Eastman's per-share price began the year around USD122 but closed near USD77 on Oct. 31 for a decline of almost 40 percent so far in 2022. Eastman employs 14,000 worldwide and posted sales of USD10.5 billion in 2021.

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.
mrchub.com