Dow outlines targeted actions to deliver USD1 bn in cost savings in 2023

Dow outlines targeted actions to deliver USD1 bn in cost savings in 2023

MOSCOW (MRC) -- Dow Inc. outlined a series of targeted actions aligned to its previously stated plan to achieve USD1 bn in cost savings in 2023, said the company.

The proactive actions will further optimize the Company's cost structure in response to near-term macroeconomic uncertainty, while maintaining its long-term competitiveness across the economic cycle.

Specifically, Dow expects to realize USD1 billion in cost savings in 2023 through: structural improvements of USD500 million, maintaining a low cost-to-serve operating model.

Optimizing labor and services costs, including a global workforce reduction of approximately 2,000 roles. Shutting down select assets, while further evaluating Dow's global asset base, particularly in Europe, to ensure long-term competitiveness and enhance cost efficiency and increasing productivity via end-to-end process improvements.

Operating expense reductions of USD500 million, focused on near-term cash flow: decreasing turnaround spending, with a continued focus on maintaining safety and reliability. Reducing purchased raw materials, logistics and utilities costs; and Aligning spending levels to the macroeconomic environment.

We remind, Univar Solutions has been named as a distributor for Dow’s acrylic emulsion polymer products in the UK and Ireland. The products, which are include in Dow’s PRIMAL and UCAR LATEX brand portfolios, are used in construction for improving the properties of cementitious as well as non-cementitious applications.

Dow combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance leadership to achieve profitable growth and help deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates manufacturing sites in 31 countries and employs approximately 37,800 people. Dow delivered sales of approximately USD57 billion in 2022.

Technip Energies signs two MoUs for energy transition projects in Canada

Technip Energies signs two MoUs for energy transition projects in Canada

MOSCOW (MRC) -- Technip Energies announced signing two separate MoUs, one with PCL Industrial Management Inc. and another with Capital Engineering, to work collaboratively on efforts associated with energy transition markets in Canada, said Hydrocarbonprocessing.

Under the PCL agreement, Technip Energies services will include conceptual, front-end and detailed engineering, procurement, and technical capabilities with PCL leading constructability solutions, logistics evaluations, direct hire construction performance and execution solutions associated with hydrogen, ammonia, carbon capture, liquefaction, sustainable chemistry, and decarbonization solutions developments throughout Canada.

Technip Energies and Capital Engineering will work together to provide Front-End Engineering and Design (FEED), and Engineering, Procurement and Construction Management (EPCM) services.

With clear focus on the ongoing energy transition, the companies will explore opportunities involving industrial projects in areas such as carbon capture, hydrogen developments, sustainable fuels, and overall energy transition developments. Sean Ricketts, Houston Operating Center Managing Director for Technip Energies commented, "We are pleased to team up with PCL and Capital Engineering as we expand our services in Canada.

There are many energy transition opportunities throughout the country, and we bring our depth of knowledge and experience from both a technology and an engineering standpoint.”

Chris Pullen, Vice President and General Manager for PCL Industrial Management added, “PCL has a longstanding relationship with Technip Energies. The complementary capabilities of our organizations mean we can offer Canadian clients solid EPC solutions. We match Technip Energies well-established expertise in engineering and technology with our own strong history of delivering industry-leading planning, project management, and execution to energy transition projects.”

Scott Martin, Senior Partner with Capital Engineering adds “Capital is very excited to be jointly pursuing Canadian energy transition projects with Technip Energies. The combination of Technip Energies’ global expertise with Capital’s proven industry track record, knowledge of local requirements and Canadian project execution strategies provides a compelling offering to clients in this space.”

We remind, Technip Energies – as part of its long-term agreement with Aramco – has been awarded a contract to upgrade sulfur recovery facilities at Aramco’s Riyadh Refinery. This contract covers the implementation of three new tail gas treatment (TGT) units, improving the performance of the existing three sulfur recovery units (SRU) to comply with more stringent regulations for sulfur dioxide emissions, with recovery efficiency at more than 99.9%.

Imperial Oil to invest USD539 mln for renewable plant in Canada

Imperial Oil to invest USD539 mln for renewable plant in Canada

MOSCOW (MRC) -- Imperial Oil Ltd said on Thursday that it plans to invest CD720 mln(USD538.64 mln) to construct a renewable diesel facility near its Strathcona refinery at Edmonton, Canada, said Reuters.

The facility will use low-carbon hydrogen produced with carbon capture, storage technology and locally sourced feedstock, the Canadian oil major said.

Imperial said the project, first announced in August 2021, would produce 20,000 barrels of renewable diesel daily, while the production is expected to start in 2025.

The company, which has a deal with Air Products and Chemicals Inc for low-carbon hydrogen supply, said it is looking for third parties for bio-feedstock supply.

We remind, Canada will ban the manufacture and import for sale of single-use plastics in an effort to achieve zero plastic waste by 2030, according to Environment and Climate Change Canada. The ban covers single-use plastics including checkout bags, cutlery, food service ware, ring carriers, stir sticks and straws, the federal government stated in a news release published on June 20.

Sherwin-Williams Q4 earnings rise 41%

Sherwin-Williams Q4 earnings rise 41%

MOSCOW (MRC) -- Sherwin-Williams’ Q4 earnings before interest, tax, depreciation and amortisation (EBITDA) rose 41% year on year to USD752 mln, with sales rising at a faster pace than cost of sales, the US-based paint and coatings company said.

Sherwin-Williams reported revenue rose 9.8% to USD5.23 billion, short of forecasts. Earnings per share (EPS) of USD1.89 beat expectations.

The 320-basis point year-on-year improvement in gross margin was driven by sales growth and pricing actions, the company said. Volumes were flat, with demand strength in professional architectural and North American industrial end markets, but weakness in Europe and Asia end markets.

Sales, general and administrative expense, expressed as a percentage of sales, fell by 40 points to 29.8%.
The company saw a “modest” sequential decline in raw material costs from Q3 2022, it said.

"Sherwin-William.,delivered strong fourth quarter results compared to the same period a year ago, including high single-digit percentage sales growth, significant year-over-year gross margin improvement, expanded adjusted operating margins in all three segments, strong double-digit adjusted diluted net income per share growth and strong EBITDA growth," said CEO John Morikis.

We remind, Sherwin-Williams Company has announced an agreement to acquire Industria Chimica Adriatica (ICA), an Italian designer, manufacturer and distributor of industrial wood coatings used for kitchen cabinets, furniture and decor, building products, flooring and other specialty applications.

Cabot to invest in conductive carbon additives at Texas plant

Cabot to invest in conductive carbon additives at Texas plant

MOSCOW (MRC) -- Cabot Corporation announced that it plans to add conductive carbon additives (CCA) capacity in the United States to enhance its leadership position in the market and support the transition to electric vehicles (EVs), said the company.

Cabot plans to add conductive carbons capacity at their existing facility in Pampa, Texas, which is part of an approximately USD200 million planned investment program over the next five years focused on expanding the company’s CCA production in the United States.

The adoption of EVs plays a key role in the decarbonization of the economy, and the U.S. government has announced targeted efforts to build a domestic EV battery supply chain. As part of these efforts, federal and state governments have implemented a variety of programs in the form of grants, loans, and tax incentives. Cabot believes that many of these programs present potential funding opportunities for the company in its efforts to expand CCA production capacity in the U.S.

CCAs are an essential component of lithium-ion battery chemistry and are used to provide sufficient electrical conductivity to the active materials. Cabot has the broadest portfolio of CCAs including conductive carbons, carbon nanotubes (CNT), carbon nanostructures (CNS), and blends of CCAs to deliver optimal performance. Additionally, the company’s global footprint of manufacturing assets, technology labs and commercial resources enables regional supply security support for its customers.

Demand for critical battery materials, such as CCAs, for EV batteries is expected to continue to grow in the range of 20 to 30 percent globally over the next five years. Growth potential in the U.S. is expected to outpace global growth as penetration of EVs accelerates in the coming years. Cabot is committed to meeting the expected growing demand from its customers in the U.S. and helping to onshore critical battery components such as CCAs.

As part of its investment plans, Cabot expects to invest approximately USD75-90 million to produce 15,000 metric tons of conductive carbons annually at its existing facility in Pampa, TX. This project is expected to create approximately 75 high-quality jobs and is expected to commence operation at the end of calendar year 2025. In addition to a manufacturing plant, Cabot also operates a research and development facility and pilot plant in Pampa that focuses on developing new process technology for battery and other applications.

Cabot also intends to make additional investments to expand its U.S. manufacturing and technology footprint over the next five years with plans to invest in new CNT powder and dispersion capacity and to continue extending its portfolio of innovative products for battery applications.

We remind, Cabot, which recently pledged a net-zero emissions goal by 2050, has introduced the E2C FX9570 and E2C EX9620 products under the Engineered Elastomer Composites (E2C) product range to help reach its goal. The two novel solutions are designed to offer rubber producers options when developing products with high levels of durability in challenging operating environments. The newest composites will further support in enhancing durability and minimizing heat to benefit off-the-road tyres such as port and aircraft tyres, truck tyres used on rough surfaces, and in other industrial rubber goods exposed to high operating temperatures or harsh wear conditions.