AdvanSix workers on strike at Virginia site

Labour unions representing about 340 workers have called a strike at the Hopewell, Virginia production site of US integrated nylon 6 producer AdvanSix, said the company.

The company does not currently have an estimate of when employees affected by the strike will resume activities or the timing for completion of labour negotiations, it said in an update on Friday. The dispute is about wages and salaries.

“While we bargained in good faith with the unions, we have taken substantial contingency measures and are well prepared to support safe, stable and sustainable operations and continue delivering for our customers while our Hopewell South workers are on strike”, said Erin Kane, CEO of AdvanSix.

The Hopewell manufacturing facility is one of the world’s largest single-site producers of caprolactam, according to information on AdvanSix’s website.

We remind, AdvanSix’s Q4 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28.1% year on year, to USD66.6m, on higher market-based pricing and the favourable year-on-year impact of planned turnarounds, said the company. These positive drivers were partially offset by a 15% decline in sales volume due to soft end-market demand and customer destocking, as well a lower operational performance, the company said.

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The ALPLA Group is entering a joint venture with HANA Innovation to produce recyclable, mono-material plastic pumps for soap, lotion, and shampoo dispensers, said the company.

South Korean company HANA Innovation previously developed its patented polypropylene ECO Pump that aspires for maximum recyclability; it can reportedly be manufactured from post-consumer recycled material and is designed with easy handling in mind. The pumps are set to become customisable in the future.

ALPLA began its production of standard pumps for soap and shampoo dispensers in Hyderabad, India, in 2020. By partnering with HANA Innovation, it hopes to continue its strategic growth in the injection moulding (IM) sector. The companies have also stated that their shared goal is to distribute pumps with patented plastic spring technology worldwide and offer complete systems, including the bottle.

“The potential for high-quality, recyclable pumps is enormous,” says Michael Feltes, global business development director IM at ALPLA. “As a system provider, we can offer the matching bottles at the same time. With this new partnership, we are combining our strengths as a globally operating company with the technological edge of HANA Innovation.”

We remind, Alpla, together with its partners Ecohelp SRL (Romania) and United Polymer Trading AG (Switzerland), have started production at their joint recycling plant in Targu Mures, Romania. The plant, located adjacent to the existing Ecohelp site in Targu Mures, has an annual capacity of around 18,000 tonnes of post-consumer-recycled PET (rPET) per year and aims to supply the southeast European market with food-grade rPET. The project has led to the creation of around 20 new jobs. The joint venture partners will host the official opening ceremony on 4 May 2023.

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Evonik is selling its site in Lulsdorf, Germany, and the associated cyanuric chloride business in Wesseling, Germany, to International Chemical Investors Group, said the company.

The parties have agreed not to disclose the purchase price. Lulsdorf is a substantial part of the Functional Solutions business line within Evonik’s Performance Materials division. Transfer of ownership is scheduled for mid-2023. The closing of the transaction is subject to antitrust clearance and approval by the competent Evonik committees.

ICIG is an established Luxembourg-based chemicals investor. The company has approximately 4,800 employees and generated sales of approximately €4 billion last year. It has expertise in the development of sites and business units that no longer are part of the core business of other enterprises.

“We wanted a reliable investor that is able and willing to leverage Lulsdorf’s potential effectively, and that is what ICIG offers,” said Christian Kullmann, chairman of Evonik’s Executive Board. “For Evonik, that means: We are taking the first step in the planned disposal of the three businesses in our Performance Materials division. For the site, its employees, and the town of Niederkassel, the sale provides excellent options for future development."

ICIG is taking over the entire site in Niederkassel-Lulsdorf (near Cologne) and the associated cyanuric chloride business in neighboring Wesseling, including more than 600 employees and all production plants. ICIG already has subsidiaries operating in chlorine chemistry and specialty chemicals and wants to expand the businesses in Lulsdorf and Wesseling.

ICIG has given contractual assurances that the sale will not alter the rights of the employees at the sites.

In conjunction with the divestment of this site, Evonik is realigning the three businesses of the Functional Solutions business line. With this sale, Evonik will completely divest the production of potassium derivatives and cyanuric chloride, which takes place exclusively in Lulsdorf and Wesseling.

As planned, Evonik is retaining the business with alkoxides for biodiesel, which are produced at two further sites apart from Lulsdorf. This business was integrated into the Catalysts business line in the Smart Materials division effective January 1, 2023. ICIG will produce alkoxides at the Lulsdorf site exclusively for Evonik until 2027. In total, the businesses to be divested generated sales of approximately EUR260 million in 2022.

We remind, Evonik Catalysts is fully on track to expand its production capacities for activated nickel powder catalysts marketed under the KALCAT and Metalyst brands at its production sites in Hanau, Germany, and Dombivli near Mumbai, India.

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North American chemical railcar traffic fell for a fifth straight week, with loadings for the week ended 1 April down 5.1% year on year to 47,024, led by a decline of also 5.1% in the US, according to the latest freight rail data from Association of American Railroads.

For the first 13 weeks of 2023 ended 1 April, North American chemical rail traffic was down 3.5% year on year to 589,979 railcar loadings, with US traffic down 6.8%, to 419,176 loadings.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, chemical producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

We remind, North American chemical railcar traffic fell for a third straight week, with loadings for the week ended 18 March down 2.2% year on year to 45,200, led by a 5.8% decline in the US, according to the latest freight rail data by the Association of American Railroads (AAR). For the first 11 weeks of 2023 ended 18 March, North American chemical rail traffic was down 3.5% year on year to 496,589 railcar loadings, with US traffic down 7.2%, to 352,779 loadings.

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NOVA Chemicals Corporation announced the appointment of Mr. Roger Kearns as President and Chief Executive Officer, effective June 12, 2023, said the company.

Mr. Kearns most recently served as the Chief Operating Officer of Westlake Corporation, the global diversified manufacturer of essential products (NYSE: WLK) with 15,000 employees, which recorded net sales of USD USD15.8bn and annual net income of USD2.2bn in 2022.

Mr. Kearns succeeds Mr. Danny Dweik, who has served as interim President and CEO of NOVA Chemicals since October 2022. Mr. Dweik will remain a member of NOVA’s Board of Directors and return to his role as Head of Industrials and Business Services at Mubadala Investment Company (Mubadala), the USD284bn Abu Dhabi-based investor.

Mr. Kearns is a senior executive with extensive international leadership experience in both the commodity and specialty chemicals environments. During his tenure at Westlake, he formerly served as Executive Vice President, Performance and Essential Materials, driving large-scale revenue growth and leading the acquisition of Hexion’s global epoxy business.

Mr. Ahmed Yahia Al Idrissi, Chairman of NOVA Chemicals, said: “Roger has impeccable industry knowledge, operational depth and a proven track record in driving performance improvements, combined with the ability to mobilize and lead large organizations. We are confident he will deliver NOVA’s 2030 vision of becoming North America’s leading sustainable polyethylene producer.”

We remind, OVA Chemicals Corporation announced that it has signed a long-term Virtual Power Purchase Agreement (“VPPA”) with Shell Energy North America (Canada), Inc. to purchase 20 MW of renewable power and associated emissions offsets beginning in spring 2023. The power will be produced by BluEarth Renewables Inc. (“BluEarth”) at its Hand Hills Wind Project near Drumheller, Alberta upon the project’s commercial operation.


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