S. Korea removes tariffs on naphtha imports

South Korea has removed tariffs on imports of naphtha and crude oil used to produce the material, the finance ministry said Thursday, in line with efforts to support the local petrochemical industry, said Koreaherald.

Under the measure, the tariffs on all naphtha imports will be lowered to zero through the end of 2023 immediately, compared with the current 0.5 percent, according to the Ministry of Economy and Finance.

Those on crude oil used to produce naphtha will also be lowered to zero for the amount not exceeding 100 million barrels over the period. Naphtha is a key material used in the production of rubber, plastic, and synthetic fiber.

"South Korea has been importing naphtha, or purchased crude oil to produce it. But the prolonged war between Russia and Ukraine has disrupted imports from Russia, leading to price burdens for companies," the ministry said.

The ministry said the removal of tariffs is crucial, considering that other rivals of local petrochemical companies in China and India have recently expanded investment in their production facilities, which may deal a harsh blow to South Korea's related exports down the road.

We remind, South Korean petrochemical operator LG Chem said on Monday it is considering various ways of improving the company's competitiveness. The comment came following a media report it was seeking to sell its naphtha cracker in Yeosu, though the company said nothing has been decided yet.

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JGC Holdings Corporation is pleased to announce that JGC Catalysts and Chemicals Ltd. (hereinafter JGC C&C), a JGC Group company involved in functional materials manufacturing, has concluded two purchasing agreements to expand Niigata and Kitakyushu operations, said the company.

The former was concluded in June for a site at the Eastern Industrial Park in Agano, Niigata, and the latter in July for a site in Wakamatsu in the city of Kitakyushu, Fukuoka.

Toward the long-term management vision (2040 Vision) shared with the JGC Group, JGC C&C has planned a total of about 20 billion yen in facility investment between 2025 and 2030, which includes the current purchase of land for business operations. The sites will support JGC C&C in meeting client carbon-neutrality initiatives and growing needs for new products spurred by accelerating digital transformation. This is part of investment in anticipation of greater demand for new fine chemical products such as catalysts for carbon-neutral fuels (synthetic fuels), chemical recycling catalysts and adsorbents, high-speed communications materials, and polishing particles for semiconductor applications.

Under the 2040 Vision formulated in 2021, the JGC Group is taking on business domain transformation?-?expanding the five domains of energy transition, healthcare and life sciences, high-performance functional materials, circular economy, and industrial and urban infrastructure. In the segment of high-performance functional materials, we will be actively working to expand catalyst, fine chemical, and fine ceramics business.

We remind, JGC Holdings Corporation announced the launch of a joint research and development (R&D) program with Bridgestone Corporation, the National Institute of Advanced Industrial Science and Technology (AIST), Tohoku University, and ENEOS Corporation.

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North American chemical rail traffic finished the second quarter down from one year ago, but strengthening somewhat sequentially, according to new data from the Association of American Railroads (AAR).

During the week ended July 1, chemical railcar volume in North America totaled 47,233 carloads, up 7.5% sequentially and down 0.6% year over year. The four-week moving average (4wma) came to 44,694 carloads, up 1.7% sequentially and down 4.2% year over year. The increment over the seasonal trendline came to 1.4%, reversing a downward trend that saw the increment drop to 0.7% the previous week (chart).

For the year to date, chemical railcar volume is down 2.9%, while total railcar volume is up 2.1%. In the US, 4wma chemical railcar volume came to 30,883 carloads, up 2.2% sequentially and down 4.2% year over year. For the year to date, US chemical railcar volume is down 4.5%.

In Canada, 4wma chemical railcar volume came to 12,924 carloads, up 1.0% sequentially and down 4.2% year over year. For the year to date, Canadian chemical railcar volume is down 0.5%. In Mexico, 4wma chemical railcar volume came to 888 carloads, down 2.7% sequentially and down 4.2% year over year. For the year to date, Mexican chemical railcar volume is up 27.7%.

We remind, North American chemical railcar traffic fell for a sixth straight week, with loadings for the week ended 24 June down 2.8% year on year to 43,927, according to the latest freight rail data from Association of American Railroads. Chemical loadings fell in the US and Canada but rose in Mexico. For the first 25 weeks of 2023 ended 24 June, North American chemical rail traffic was down 3.0% year on year to 1,130,426, with the US down 4.7%, to 777,339 loadings.

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Honeywell announced that it has exited the Savannah River Nuclear Solutions joint venture through the sale of its membership interests to partners Fluor and Huntington Ingalls, said the company.

"We are confident that Fluor and Huntington Ingalls will continue to deliver long term value to the Savannah River Site as a significant portion of its scope shifts to major capital construction and start-up of plutonium production activities," said David Johnson, Vice President of Honeywell Federal Solutions. "Honeywell remains deeply committed to the success of the Department of Energy and will continue to partner with them on opportunities that align with Honeywell's core capabilities and strategic objectives."

Honeywell delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell.

We remind, Honeywell announced that the world’s largest High Performance Oleflex unit at Jiangsu Sailboat Petrochemical Co., LTD continues to produce 700,000 metric tons per year of polymer-grade propylene at its Lianyungang City plant in China’s Jiangsu Province. Propylene is the primary component in a variety of products including plastics, carpets, and moisture wicking fabric that are rapidly growing in demand.

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Sika has acquired Thiessen Team USA, a US manufacturer of shotcrete and grouting products for the mining industry in the USA, said the company.

The company serves the Western US mining industry which produces essential minerals for the growing electric vehicle industry among many other critical minerals. The acquisition will open up significant cross-selling potential and will support Sika’s expansion in the US mining market.

Thiessen is a family owned business serving the mining industry in the Western region of the USA with shotcrete and grouting solutions that enable increased efficiency in mining operations. Thiessen has long-established, strong relationships with large mining customers and has built a reputation for excellent quality, hands-on technical support, and fast reaction times. The company operates two production facilities which are strategically located close to large mines in the western US, which among other excavate materials essential for the production of batteries. With the expanded investments in manufacturing of electric vehicles in the USA, demand for these critical minerals is expected to significantly increase going forward.

Increasing sustainability requirements in mining operations represents a significant potential for Sika’s robust range of solutions. A groundbreaking development is Sika’s unique technology for cement-free concrete which is already used for backfilling of shafts in the world’s largest iron ore mine in Sweden and will now be rolled out in the entire Americas region. Sika already has a strong presence in the mining industry in Latin America and Canada, which was significantly expanded through the acquisition of King Packaged Materials Company in 2019. The acquisition of Thiessen will in a similar way improve access to US mining projects. Sika products such as structural fibers, shotcrete accelerators, and backfilling solutions will complement Thiessen’s offering and further support market penetration.

"The acquisition of Thiessen supports our expansion in the exciting mining business in the USA and provides Sika with a wider presence in mining across the Americas region. The offerings of Sika and Thiessen are highly complementary and open up significant cross-selling potential with new and existing mining customers. We look forward to a successful joint future and would like to extend a very warm welcome to the Thiessen employees as they join the Sika team."

We remind, Sika has completed the acquisition of MBCC Group after having received all necessary regulatory approvals, said the company. MBCC Group, headquartered in Mannheim, Germany, and formerly owned by an affiliate of Lone Star Funds, is active in the field of construction systems and admixture systems. To close the transaction and to comply with regulatory requirements, Sika sold MBCC Group’s chemical admixtures assets in the UK, the USA, Canada, Europe, Australia, and New Zealand to the international private equity firm Cinven. The business now acquired by Sika employs 6,200 people and operates in over 60 countries and 95 production facilities.

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