BASF Group releases preliminary figures for full year 2022

BASF Group releases preliminary figures for full year 2022

MOSCOW (MRC) -- BASF has released preliminary figures for the full year 2022. Expected sales of EUR87,327 million and expected income from operations (EBIT) before special items of EUR6,878 million are in line with the ranges forecast by BASF and at the level of average analyst estimates for 2022, said the company.

The BASF Group’s EBIT amounted to an expected EUR6,548 million in 2022, below the figure for the prior year (2021: EUR7,677 million) and below analyst consensus for 2022 (Vara: EUR6,836 million). This includes non-cash-effective impairments on a plant in the Chemicals segment.

Net income of BASF Group is expected to amount to –EUR1,376 million in 2022. This is considerably below the prior-year figure (2021: EUR5,523 million) and the average analyst estimates for 2022 (Vara: EUR4,768 million). Net income contains non-cash-effective impairments on the shareholding in Wintershall Dea AG in the amount of about EUR7.3 billion, of which EUR5.4 billion in Q4 2022. These impairments result in particular from the deconsolidation of the Russian exploration and production activities of Wintershall Dea due to the extensive loss of actual influence and economic expropriation. Wintershall Dea intends to fully exit Russia in an orderly manner complying with all applicable legal obligations. Accordingly, the Russian participations of Wintershall Dea have been re-evaluated and write-downs on the European gas transportation business have been made, including a complete write-down on the participation in Nord Stream AG.

Sales rose by 11 percent in 2022 to an expected EUR87,327 million (2021: EUR78,598 million) and were thus in line with the EUR86 billion to EUR89 billion range forecast by BASF. The average analyst estimates for sales 2022 of the BASF Group were EUR87,950 million according to Vara. The increase in sales was mainly driven by higher prices and positive currency effects. Volumes reduced sales.

EBIT before special items amounted to an expected EUR6,878 million, a decrease of €890 million compared with the prior year (2021: EUR7,768 million) and in line with the EUR6.8 billion to EUR7.2 billion range forecast by BASF. On average analysts had expected EBIT before special items of EUR6,949 million in 2022 according to Vara.

The average analyst estimates for EBIT before special items of the segments were exceeded in 2022 by Agricultural Solutions and Surface Technologies. EBIT before special items of Materials and Industrial Solutions almost matched average analyst estimates. EBIT before special items fell short of average analyst estimates in the Nutrition & Care and Chemicals segments. In Other, EBIT before special items was better than expected by analysts on average.

We remind, BASF has broken ground on the third and final phase of the methylene diphenyl diisocyanate (MDI) expansion project at its Verbund site in Geismar, Louisiana, announced in July 2022. The company will increase production capacity to approximately 600,000 metric tons per year by the middle of the decade to support the ongoing growth of its North American MDI customers.

BASF is a leading supplier, manufacturer, and innovation partner of plastic additives. Its comprehensive and innovative product portfolio includes additives that provide ease in processing, and heat and light resistance to a variety of polymers and applications including molded articles, films, fibers, sheets, and extruded profiles.

PureCycle and Port of Antwerp-Bruges announce location for first plastic recycling plant in Europe

PureCycle and Port of Antwerp-Bruges announce location for first plastic recycling plant in Europe

MOSCOW (MRC) -- PureCycle Technologies, Inc. (NASDAQ: PCT) and the Port of Antwerp-Bruges today announced that PureCycle intends to build its first polypropylene (PP) recycling facility in Europe in the port's fast-growing NextGen District located in Belgium, said the company.

The new plant is expected to have an annual capacity of 59,000 metric tons (130 million pounds), with opportunities to expand operations in the future since the 14-hectare plot can support up to four processing lines with an anticipated total capacity of approximately 240,000 metric tons (500 million pounds) per year (in total for all four processing lines). PureCycle is currently engaged in feedstock sourcing and financial planning with the intent to secure a final project timeline by mid-2023. Construction of the plant is expected to begin upon completion of the permitting process, which is currently anticipated in 2024.

NextGen District is a global hub for businesses seeking to advance the circular economy. The district is located at the Port of Antwerp-Bruges, Europe's second largest seaport. PureCycle was recently awarded a concessionaire contract during NextGen's competitive bid selection process.

PureCycle is already in active negotiations with potential feedstock and offtake partners and expects to commence commercial operations at its new European facility when construction of the first processing line is completed. The new polypropylene purification plant will not only supply the European market with PureCycle's UPR resin but is also expected to create 65-70 new jobs for local residents during the initial phase of the project. This project represents one of the largest investments announced in the NextGen District to date. Various funding options are currently being considered, including traditional financing sources as well as grants/subsidies for circular projects that are uniquely available in the EU.

With the company's flagship recycling plant in Ironton, Ohio expected to start pellet production in Q1 of 2023; a second plant in Augusta, Georgia under initial construction; and its first PP recycling plant in Asia currently on track to open in 2025, PureCycle is expanding globally and actively scaling its production capabilities.

We remind, SK geo centric (SKGC), a South Korean-based global leader in polypropylene (PP) production, and PureCycle Technologies, Inc. signed a joint venture agreement to operate the first Polypropylene recycling plant in Asia. SKGC will make a joint investment with PureCycle to build a plastic recycling plant in Ulsan, South Korea with an annual capacity of up to 60,000 tons. The plant, which is currently expected to be completed by the second quarter of 2025, will turn contaminated plastic feedstock into ultra-pure recycled ("UPR") resin that can be infinitely reused and recycled.

Natura PCR recycled LLDPE resin can be used in direct-contact food packaging

Natura PCR recycled LLDPE resin can be used in direct-contact food packaging

MOSCOW (MRC) -- Natura PCR recycled LLDPE resin can be used in direct-contact food packaging, said Recyclingtoday.

Natura PCR, a leading film recycler and postconsumer resin (PCR) producer, says it has received a letter of nonobjection (LNO) from the U.S. Food and Drug Administration (FDA) that enables the company’s 100-percent-recycled linear low-density polyethylene (LLDPE) PCR to be used in direct food-contact packaging applications, including packaging for foods stored at room temperature and for refrigerated and frozen foods.

The company says film and flexible packaging make up almost one-quarter of today's plastic generation, but only about 5 percent is recycled. Demand for PCR is expected to continue to grow in response to consumer-packaged goods companies' commitments to use recycled content and to pressures from consumers and regulators to increase PCR content in the packaging materials.

“This is a pivotal step toward making a real impact on meeting sustainable packaging goals of our customers,” says Jon Stephens, chief executive officer, Natura PCR. “The FDA’s LNO broadens the range of applications for our PCR products. We can now create a true cyclical value chain where plastic food packaging materials can be used where primarily virgin materials were utilized previously.”

We remind, QatarEnergy and Chevron Phillips Chemical Company LLC announced they will proceed on construction of a USD6 B integrated polymers complex in Ras Laffan Industrial City, Qatar. An agreement marking the positive final investment decision for the project was signed by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and by Bruce Chinn, President and CEO of Chevron Phillips Chemical, at a ceremony in Doha. The companies created a joint venture, Ras Laffan Petrochemicals, in which QatarEnergy owns a 70% equity share and Chevron Phillips Chemical owns 30%.

NaturaPCR is the manufacturing arm of Houston-based Avangard Innovative. Avangard and its affiliated entities hold a collective minority equity position in the company, and Houston-based WM holds a controlling interest in Natura PCR, which operates as an independent company.

Evonik Catalysts strengthen market position through further expanding its innovative portfolio

Evonik Catalysts strengthen market position through further expanding its innovative portfolio

MOSCOW (MRC) -- Evonik is pooling its expertise and integrating its alkoxides business into the Catalysts Business Line, said the company.

The extensive portfolio of heterogeneous catalysts is thus now complemented by homogeneous catalysts. An international network of production sites and the highly experienced alkoxides team will additionally strengthen the Catalysts Business Line, one of Evonik's growth areas, from January 2023.

The chemical industry is undergoing a profound transformational process. Driven primarily by sustainability issues such as the circular economy, CO2 reduction or decarbonization, catalysts are at the heart of this transformation, as they are needed for approximately 80 percent of all chemical processes.

The internal integration supports transformation of the chemical industry as well as the Catalysts expansion strategy on the way to becoming a leading global catalyst supplier for the chemical industry.

"Currently, the global market for catalysts is very fragmented," said Business Line Manager Sanjeev Taneja. "Against this backdrop, we continue our growth journey by providing innovative catalysts and adsorbents delivering sustainable customer value. We are gradually expanding our product and service portfolio in the direction of Next Generation Solutions - be it through targeted acquisitions or strategic collaborations thus enabling our customers master their own transformation. And we do this by offering catalysts that enable new sustainable production processes, products and applications. The integration of the alkoxides will boost our efforts.”

The main application of alkoxides is the production of sustainable biodiesel fuel from vegetable oils, used cooking oils or other fat-based waste. The use of alkoxides optimizes the process toward the highest possible yield of feedstock. In the synthesis of active ingredients and fine chemicals, alkoxides also find numerous applications in the life science industry.

One particularly promising prospect for alkoxides is the chemical recycling of PET plastic. Evonik is currently working with partners to split the polymer chains into the original monomers and thus regenerate the chemical building blocks that were used at the start of plastics production. These components can then be used to produce new polymers again for high-quality applications.

The Alkoxides business is managed as a separate product line within the Catalysts Business Line, and will be managed by Alexander Weber, a proven executive from the Alkoxides business and is being reported as part of Smart Materials division as of 1st January 2023. In Fiscal 2021, it generated a turnover of ~€300 m.

We remind, in 2021, Evonik began working on the construction of a new plant for the production of methylate in Southeast Asia. This will further strengthen Evonik’s global alkoxides business. Alkoxides are predominantly needed as catalyst for the biodiesel production as well as in synthesis applications in the pharmaceutical and agricultural industries. The size of the investment is in the mid double-digit million range.

Carbios, Novozymes collaborate on recycling of PET

Carbios, Novozymes collaborate on recycling of PET

MOSCOW (MRC) -- France-based green biotech company Carbios and Denmark-based biological solutions provider Novozymes have announced an exclusive long-term global strategic partnership, said Recyclingtoday.

The companies say the agreement ensures the long-term production and supply of Carbios’ proprietary polyethylene terephthalate- (PET-) degrading enzymes at an industrial scale for a biological PET recycling plant that is due to start production in 2025 in Longlaville, France, as well as Carbios’ future licensee customers.

The two companies have had a partnership since 2019 to develop enzyme-based solutions and address the sustainability challenge of plastic pollution, both within PET recycling and PLA biodegradation. Under the new agreement, the companies say they will extend their collaboration to develop, optimize and produce enzymes that will subsequently be supplied by Novozymes to all licensees of Carbios’ technology.

According to the companies, the partnership supports the large-scale industrial deployment of Carbios’ patented PET recycling technology, starting with Carbios’future industrial unit in Longlaville, which they claim will be the first biological PET recycling plant. Construction will begin later this year, with production set to start in 2025, and the processing capacity will be 50,000 tons of scrap per year.

“We are delighted to expand our partnership with Novozymes, the world leader in biological solutions, and to build on our strong existing relationship to provide a sustainable supply solution for our future customers,” Carbios CEO Emmanuel Ladent says. “Novozymes’ continued support is testament to our joint commitment to achieve a truly circular economy for plastics and textiles that will benefit the environment and be economically viable for all business partners.”

Novozymes Vice President of Marketing, Agricultural and Industrial Biosolutions, Hans Ole Klingenberg, says, “We are excited to advance our collaboration with Carbios by signing this exclusive agreement and to support the next phase of scaling this new business of biological plastic recycling. By providing biological solutions at a large scale, Novozymes is pleased to contribute in bringing Carbios’ biorecycling of PET plastics and fibers to market.”

We remind, Novozymes says that with the inauguration ceremony of the new biomass-based block at the Asn's Power Station, all energy to Novozymes in Kalundborg, Denmark, comes from sources other than oil and coal. This has become possible through an agreement among Novozymes, Novo Nordisk, Kalundborg Forsyning, and Orsted to phase out coal from Denmark's largest coal-fired power station unit, the Asn's Power Station, which is owned and operated by Orsted, and replace it with wood chips.