Chemours, DuPont, Corteva settle PFAS claims for USD1.18 bn

MOSCOW (MRC) -- The Chemours Company, DuPont de Nemours, Inc. and Corteva, Inc. announced they have reached an agreement in principle to comprehensively resolve all PFAS-related drinking water claims of a defined class of public water systems that serve the vast majority of the United States population, said the company.

The class includes water systems with a current detection of PFAS1 at any level and those that are currently required to monitor for the presence of PFAS under EPA monitoring rules2 or other applicable laws. This includes but is not limited to systems in the South Carolina aqueous film-forming foam multi-district litigation (“AFFF MDL”).

The companies will collectively establish and contribute a total of USD1.185 billion to a settlement fund (“water district settlement fund”). Contribution rates will be consistent with the binding Memorandum of Understanding between the companies reached in January 2021, with Chemours contributing 50 percent (about USD592 million), and DuPont (about USD400 million) and Corteva (about USD193 million) collectively contributing the remaining 50 percent. The settlement amounts will be funded by the companies in full and deposited into the water district settlement fund within ten business days following preliminary approval of the settlement by the Court.

Upon finalization of a definitive agreement, expected within the second quarter of 2023, the settlement will be subject to approval by the United States District Court for the District of South Carolina. As part of the approval process, the Court will establish a timetable for notice to class members, hearings on approval, and for class members to opt out of the settlement. The companies will have the right to terminate the settlement if opt-outs exceed specified levels.

The following systems are excluded from the settlement class: water systems owned and operated by a State or the United States government; small systems that have not detected the presence of PFAS and are not currently required to monitor for it under federal or state requirements; and water systems in the lower Cape Fear River Basin of North Carolina (which are included only if they so request).

If a settlement cannot be finalized and approved and plaintiffs elect to pursue their claims in court, the companies will continue to assert their strong legal defenses in pending litigation. The companies deny the allegations in the underlying litigation and reserve all legal and factual defenses against such claims if they were litigated to conclusion.

We remind, Chemours, a US-based company, has awarded KBR to enhance the technology and capacity of its Nafion-branded ion exchange materials platform. The contract is part of Chemours' USD200 M investment initiative that seeks to expand the Nafion membranes and dispersions technology platforms, which supports the increasing hydrogen economy.

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MOSCOW (MRC) -- Chemours and BWT FUMATECH Mobility received approval from regulators with the European Commission and China to create a joint venture that will focus on making membranes used in hydrogen fuel cells, the US-based fluoromaterials producer said.

The 50-50 joint venture is called THE Mobility FC Membranes Company GmbH – A BWT Chemours Company. The joint venture will speed up the capacity to make fuel-cell and humidifier membranes used in heavy-duty trucks and other mobility applications.

With the approvals in place, the joint venture can begin operations.

We remind, Chemours, a US-based company, has awarded KBR to enhance the technology and capacity of its Nafion-branded ion exchange materials platform. The contract is part of Chemours' USD200 M investment initiative that seeks to expand the Nafion membranes and dispersions technology platforms, which supports the increasing hydrogen economy.

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MOSCOW (MRC) -- South Korea's exports fell for an eighth straight month in May in annual terms, but the pace was slower than expected with signs that the worst had passed for chip and China-bound shipments, as per Reuters.

Overseas sales by Asia's fourth-largest economy fell 15.2% year-on-year to USD52.24 billion in May, trade ministry data showed on Thursday, compared with a drop of 14.3% in April and a 16.8% decline tipped in a Reuters survey.

The down streak is the longest run of year-on-year decline since January 2020 and has been mostly caused by weak demand for semiconductors, for which the main customer is China.

Despite one less working day in May, the total value of exported goods was higher than the previous month's USD49.58 billion. Compared with a year earlier, there were 1.5 less working days, setting unfavourable base effects.

"We believe South Korea's exports have already hit the bottom in the second quarter and will swing to growth from the third quarter, albeit not dramatically with the Chinese economy recovering more slowly than previously thought," said economist Chun Kyu-yeon at Hana Securities.

We remind, South Korea's petrochemical exports fell by 26.3% year on year in May on the back of weaker prices, weighing on overall shipments abroad. The country's overall exports fell by 15.2% year on year to $52.2bn in May, while imports were down by 14% to USD54.3bn, the Ministry of Trade, Industry and Energy (MOTIE) said in a statement. This resulted in a trade deficit of USD2.1bn for May, marking the 15th month in a row that the country has posted a trade deficit but the smallest amount since May 2022.


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MOSCOW (MRC) -- Nigeria's main labor union said on Friday it plans to go on strike from Wednesday to protest against a tripling of fuel prices in the country after new president Bola Tinubu scrapped a costly subsidy, said Reuters.

The government hopes the lifting of the fuel subsidies - which caused prices to rise to 557 naira per liter from 189 naira at the petrol pumps - will help alleviate a funding crisis in Africa's biggest economy.

Nigerian Labour Congress (NLC) Joe Ajaero made the announcement after an emergency meeting of the union's executive council in Abuja.

"The Nigeria Labour Congress decided that if by Wednesday next week that NNPC, a private limited liability company that illegally announced a price regime in the oil sector, refuses to revert itself for negotiations to continue, that the Nigeria Labour Congress and all its affiliates will withdraw their services and commence protests nationwide until this is complied with," Ajaero said.

A wave of strikes ensued the last time Nigeria tried to introduce a similar measure in 2012, with authorities eventually reinstating some subsidies.

We remind, Nigerian President Muhammadu Buhari will commission the multi-billion dollar Dangote oil refinery in two weeks, a presidency spokesperson said on Sunday, setting up the plant for its first production since construction started in 2016. Nigeria, Africa's biggest oil producer, sees the 650,000 barrels-per-day refinery - being built by billionaire industrialist Aliko Dangote's Dangote Group - as a solution to ending the country's reliance on imports for nearly all of its refined petroleum products.

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MOSCOW (MRC) -- Caixin’s China manufacturing purchasing managers’ index (PMI) picked up from 49.5 in April to 50.9 in May, marking the first expansion in three months, the Chinese media firm said on Thursday, as per Reuters.

A PMI reading below 50 indicates contraction in the manufacturing economy, while a higher number denotes expansion. The Caixin PMI figure stood in contrast with China's official manufacturing PMI for May which fell deeper into contraction mode at 48.8, marking a five-month low.

The Caixin PMI surveys small and medium-sized enterprises (SMEs) and export-oriented enterprises located in eastern coastal regions while the official PMI is tilted toward larger state-owned enterprises. Production expanded at the quickest rate in nearly a year, supported by a fresh rise in overall new business amid reports of firmer client demand, Caixin said in a statement.

The rate of output growth picked up from April's three-month low and was the best seen since June 2022. "The subindex for total new orders recorded its second-highest reading since May 2021 as surveyed businesses reported more clients and demand, even though demand remained a bit weaker than supply," said Wang Zhe, a senior economist at Caixin Insight Group.

External demand remained stable, with the gauge for new export orders rising marginally within expansionary territory, Wang said. Overseas shipments of intermediate goods significantly outperformed shipments of consumer and investment products, according to Wang.

Average delivery times for inputs at Chinese factories shortened again in May due to increased capacity at suppliers and improved material availability. However, business confidence around the 12-month outlook for output slipped to a seven-month low in May amid concerns over lingering global economic uncertainty, Caixin said.

We remind, Caixin’s China manufacturing purchasing managers’ index (PMI) for April slipped to 49.5 from the neutral 50.0 mark in March amid subdued domestic demand conditions. A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction. The weaker Caixin PMI mirrors China’s official manufacturing PMI released earlier this week which hit its lowest level since January 2023, contracting to 49.2 in April from 51.9 in March.
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