Hyundai Engineering & Construction awarded contract for petchem expansion at the SATORP Refinery in Saudi Arabia

MOSCOW (MRC) -- Hyundai Engineering & Construction Co., Ltd. has been awarded contracts for two EPC packages related to a petrochemical expansion at the SATORP refinery in Jubail, Saudi Arabia, said Hydrocarbonprocessing.

Package 1 (Mixed Feed Cracker and Refinery Off Gases) involves installing a Mixed Feed Cracker (MFC) to produce an additional 1,650 KTA (kilo tons per annum) of ethylene and related industrial gases. Package 4 (Utilities, Flares & Interconnecting) relates to installation of facilities that supply utilities such as electricity and water to plants, and functions as interconnecting systems that support main packages within the facilities.

The project is located at Jubail Industrial City, which is about 70 kilometers northeast of Dammam. Once completed, the new petrochemical complex will be one of the largest downstream facilities in Saudi Arabia.

HDEC will execute detailed design, procurement, construction, commissioning and start-up activities on a lump-sum turn-key basis with a contract value of around USD5 bn.

HDEC has proven its capabilities having previously successfully completed projects in Saudi Arabia, including facilities at Khursaniyah Gas Plant and Uthmaniyah Gas Plant.

Award of these new EPC contracts demonstrates the competitiveness of HDEC’s technology and client confidence, helping it maintain a leading position in the Middle East construction market.

HDEC first set foot in Saudi Arabia in 1975 and subsequently struck a historic deal for the industrial port in Jubail, on the coast of the Arabian Gulf. It has since built its presence in the kingdom, executing over 160 projects with a combined value of USD18.3 billion.

Currently, HDEC is executing 13 projects worth USD4.87 billion in Saudi Arabia, including Package 6 & 12 of the Marjan Oil Field Development Program, Jafurah Package 2, and a number of Transmission Lines and Substation Projects. HDEC is recognized for its outstanding construction and technological prowess by its clients.

We remind, Hyundai Living & Culture, Hyundai Department Store Co. Group's building materials unit, said on Wednesday that it has received Good Recycled Product (GR) certification from the Ministry of Trade, Industry and Energy of S.Korea for its recycled PET packaging sheets.

mrchub.com

MOSCOW (MRC) -- Celanese Corporation, a global chemical and specialty materials company, reported second quarter 2023 GAAP diluted earnings per share of USD2.00 and adjusted earnings per share of USD2.17, said the company.

The Company generated net sales of USD2.8 billion in the quarter, a decrease of 2 percent from the prior quarter, reflecting a sequential decrease in pricing of 4 percent partially offset by a sequential increase in volume of 2 percent. The Company reported second quarter consolidated operating profit of USD335 million, adjusted EBIT of USD444 million, and operating EBITDA of USD616 million, sequential increases of 33, 5, and 3 percent, respectively.

The Company initiated incremental actions to reduce cost, align production and inventory levels with demand, and maximize cash generation in response to continued demand softness, destocking across certain end-markets, and heightened competitive dynamics. As a result, the Company:

Reduced inventory balances by $235 million in the second quarter with inventory reductions across Engineered Materials and the Acetyl Chain of 10 percent and 5 percent, respectively;

Generated second quarter operating cash flow of $762 million and free cash flow of USD611 million, all-time records by USD132 million and USD91 million, respectively;

Reduced net debt by USD515 million in the second quarter, including a USD386 million sequential decrease in debt and a USD129 million sequential increase in cash.

"While we continue to navigate a persistently soft demand environment and volatile competitive backdrop, our team executed incremental actions that enabled us to deliver sequential earnings growth and record cash generation in the second quarter," said Lori Ryerkerk, chair and chief executive officer. "Our priority is to continue to maximize cash generation and I thank our team for exceeding our working capital reduction target in the second quarter to support free cash flow that was 18 percent higher than any quarter in our history. With strong free cash flow and anticipated net proceeds of approximately $450 million from the Food Ingredients joint venture, I am confident that we will meaningfully exceed the full year objective to reduce net debt by USD1 billion in 2023."

We remind, Celanese is delaying the start-up of its new acetic acid plant in Clear Lake, Texas. Celanese had mechanically completed the project and had begun commissioning when it discovered defects in some of the high-metallurgy components from the manufacturing process of its supplier, the company said. These parts must be replaced before start-up.

mrchub.com

MOSCOW (MRC) -- Toray Advanced Materials Korea Inc. (TAK) is reviewing its film line expansion in South Korea as part of its 300 billion won (USD229 million) capital expenditure plan for this year, unlike other chemical firms that have frozen their investments due to an industry slowdown amid the economic downturn, said Kedglobal.

According to sources in the chemical industry on Sunday, Japanese chemical giant Toray Group’s Korean subsidiary is in the final review stage for investment to add film lines at its plant in Gumi, North Gyeongsang Province.

The move goes against its peers’ decisions to either sell off their film businesses or lower their film line utilization rate due to dwindling global demand for TVs and other appliances amid lingering concerns over the economic downturn.

In general, petrochemical companies expand their facility investments during an industry upturn but tighten their belts and sit on their money for future investments during a downturn.

It is also a time when most Korean chemical companies remain especially cautious about capex expansion as their Chinese peers have been aggressively expanding their capacity to reduce reliance on imports.

In February, Toray Advanced Materials announced a plan to expand its annual production capacity of polyphenylene sulfide (PPS) resins by 5,000 tons at its Gunsan plant in North Jeollar Province. PPS is a super engineering plastic resin boasting excellent heat resistance, strength, chemical resistance and processability.

mrchub.com

MOSCOW (MRC) -- Sherwin-Williams has suspended production at its manufacturing facility in Garland, Texas, following an explosion and resulting fire, the paints and coatings maker said on Monday, as per Reuters.

One employee was taken to the hospital after sustaining a "minor injury" and was later discharged, company spokesperson Julie Young told Reuters.

There were no fatalities and all employees have been accounted for, she said.

We remind, AkzoNobel has completed the acquisition of the Chinese Decorative Paints business of Sherwin-Williams. The acquisition will further boost the company’s position in China and will allow us further market segmentation and reinforce our position outside of the premium segment.

mrchub.com

MOSCOW (MRC) -- Chemical giant DuPont de Nemours Inc. closed the sale of its USD1.75 billion acquisition of medical device manufacturer Spectrum Plastics Group, the company announced.

DuPont bought the manufacturer from private equity firm AEA Investors, which acquired Spectrum in 2018.

Spectrum Plastics Group is a long-time customer of DuPont, using the company’s popular Tyvek in its sterile medical packaging. DuPont will house Spectrum under its industrial solutions business within the electronics and industrial segment, which fits well with its Liveo and Tyvek brands, DuPont Executive Chairman and CEO Ed Breen told analysts on an earnings call Wednesday.

The medical device manufacturer will focus on fast-growing therapeutic areas such as structural heart, electrophysiology, surgical robotics and cardiovascular to complement DuPont’s existing biopharma brands, including Liveo silicone solutions and Tyvek medical packaging. The new partnership will help the chemical giant increase its total healthcare market revenue to about 10% of its portfolio.

The acquisition is slated to lead to USD20 million in cost synergies for DuPont, the company said.

We remind, 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.

mrchub.com