Henkel acquires supplier of MRO composite solutions in US

MRC -- Henkel acquired the US-based Critica Infrastructure (“Critica”), a specialized supplier of maintenance, repair and overhaul (MRO) composite solutions for the world’s most critical infrastructure such as oil and gas transmission as well as municipal water supply systems, said the company.

Critica is active in many countries with a strong focus on North America and is expected to reach sales of around 100 million euros (around 110 million USD) in 2023.

With aging infrastructure and the increasing relevance of sustainability, demand for repair solutions that extend asset life is gaining importance. Therefore, maintenance and repair solutions for industrial and municipal applications are becoming increasingly significant. While Henkel has been expanding its portfolio for maintenance, repair and overhaul (MRO) solutions over the past years, the acquisition of this attractive adjacent business adds a large, innovative and certified portfolio of composite repair and reinforcement products for the industrial and municipal infrastructure market.

“As part of our strategic growth agenda, compelling acquisitions play a key role in actively shaping our portfolio. This transaction is an important step to significantly strengthen our maintenance, repair and overhaul portfolio in a dynamically growing market by expanding our offering through innovative solutions in adjacent application areas. Our aim is to create a new platform that will enable us to add further adjacent businesses, stimulate further growth and enhance our position as global leader in the adhesive technologies market,” said Henkel CEO Carsten Knobel.

In fiscal 2023, the acquired business is expected to report sales of around 100 million euros (around 110 million USD). The company employs around 250 people and has eight production sites, most of them in the US. The business supplies products to about 3,000 asset owners, contractors, and distributors. The portfolio comprises composite wrap and reinforcement solutions as well as insertion valves for oil and gas transmission, refining, chemical, and water supply systems. The solutions are marketed under the brands CSNRI®, Advanced Valve Technologies®, Fyfe FRP and GeoTree Solutions.

“We are excited about the opportunity to add this strong innovative portfolio of fast-growing and highly profitable MRO solutions to our Adhesive Technologies business. It is a strong strategic fit to our existing portfolio, adding highly complementary repair solutions, which clearly contribute to shaping the sustainability megatrend. The transaction will enable us to create a growth platform for our MRO business, giving us access to leading maintenance service providers and contractors as well as pioneering and certified technologies for critical infrastructure,” said Mark Dorn, Executive Vice President and responsible for Henkel’s Adhesive Technologies business.

We remind, Henkel introduces new medical grade wearables device light cure adhesives. As a leading manufacturer of advanced adhesive solutions for the medical industry, Henkel has launched a novel medical grade light cure adhesive designed for devices that are to be worn on the body. The new product is formulated without IBOA (Isobornyl Acrylate) or any other known skin sensitizing monomers. The adhesive is also formulated to conform to EU MDR 2017 regulations concerning use of CMR (carcinogenic, mutagenic, or toxic for reproduction) substances in medical devices making it a robust option for new designs.

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MRC -- Dow and Evonik are proud to announce the successful start-up and operation of a pioneering hydrogen peroxide to propylene glycol (HPPG) pilot plant at Evonik’s site in Hanau, Germany, said Chemeurope.

Collaboratively developed by Dow and Evonik, the plant uses the distinct HYPROSYN® method to enable the direct synthesis of propylene glycol (PG) from hydrogen peroxide and propylene.

“At Dow, we believe in collaborating with our customers and other stakeholders to create, innovate and find solutions to big challenges. So, I am delighted to see this plant become operational through this collaboration,” said Andrew Jones, global business director for Chlor-Alkali Vinyl & Propylene Oxide, Propylene Glycol, at Dow. “With this innovative technology and flexible asset and business model, we are well positioned to meet our customers’ needs and growing market demand.”

“At Evonik Active Oxygens, we put sustainability at the core of futurizing our business. This relies not only on innovative technologies, but also the ability to scale these up and bring them to market,” remarked Michael Traxler, head of Evonik’s Active Oxygens business line. “That’s where excellent strategic partnerships come into play. The startup of this pilot plant in Hanau thus not only represents a major technological milestone in our efforts to make industry more sustainable, it is also a prime example of how cross-company collaboration, like this partnership with Dow, is essential to driving sustainable solutions.”

The pilot plant will demonstrate the benefits of the novel technology. In contrast to the traditional process, where propylene is used to make propylene oxide (PO), which is converted to PG through hydrolysis, the HYPROSYN® process uses a novel catalytic system to generate PG directly from propylene and hydrogen peroxide. The integration of all key reaction stages in a single reactor eliminates the need for additional investments in PO capacity and lowers capital requirements. The process also enables a reduced environmental footprint, e.g., water consumption is reduced to less than 5% compared to conventional PG methods. In addition, existing PG plants can be retrofitted to benefit from this new technology.

Propylene glycol serves as an essential ingredient such as a high-performing additive, intermediate, or initiator in a wide range of applications — including industrial, food and animal feed, pharmaceuticals, and cosmetics. Over the next few years, the Dow and Evonik teams will continuously evaluate the plant’s operations and capabilities to scale up manufacturing, in support of growing market demand.

We remind, Evonik has signed an agreement to develop, scale up and produce proprietary fixed bed catalysts for mobile applications of Hydrogenious LOHC Technologies’ proprietary liquid organic hydrogen carrier technology based on benzyl toluene.

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MRC -- Celanese Corporation, a global chemical and specialty materials company, announced a series of new leadership appointments across its Executive Leadership Team (ELT), said the company.

• Scott Richardson has been named Executive Vice President and Chief Operating Officer (COO), effective November 8, 2023, with responsibility for Engineered Materials, the Acetyl Chain, manufacturing, supply chain, and procurement. Scott has served as the Chief Financial Officer of Celanese since February of 2018. Since joining Celanese in 2005, Scott has also served as Senior Vice President of Engineered Materials, Vice President and General Manager of the Acetyl Chain, Acetyls Global Commercial Director, and in a variety of business, finance, and investor relations roles.

• Chuck Kyrish will join the ELT and has been named Senior Vice President and Chief Financial Officer, effective November 8, 2023. Chuck is currently serving as Vice President of Corporate Finance with responsibility for accounting, treasury, internal audit, and tax. Since joining Celanese in 2006, Chuck has also served as Chief Financial Officer Acetyl Chain, Vice President Investor Relations, Vice President M&A and Integration Finance, Vice President and Treasurer, and in a variety of other finance roles.

• Anne (Lynne) Puckett will step down from her role Senior Vice President and General Counsel and will serve in a transition role through early 2024 after which she will depart after 5 years with Celanese. Ashley Duffie has been selected to succeed Lynne as Senior Vice President and General Counsel, effective November 8, 2023. Ashley is currently serving as Vice President and Chief Procurement Officer. Since joining Celanese in 2007, Ashley has served as President and General Counsel APAC Region, Vice President of the Integration Management Office, Chief Compliance Officer, and Associate General Counsel Global Litigation and EHS Law. Prior to joining Celanese, Ashley was an attorney with Haynes and Boone, LLP, specializing in environmental law, internal corporate investigations, and litigation.

All other members of the Celanese ELT will maintain their current roles. In addition to supporting Scott in enhancing the earnings growth of the businesses, Lori Ryerkerk, Chairman and Chief Executive Officer, will have direct leadership for strategy, M&A, finance, legal, HR, and IT.

We remind, Celanese will idle eight units in its Engineered Materials segment, while running many other plants at reduced rates, the US-based producer said on Monday. Celanese did not specify which units it will idle, what products they make or how long they will remain down. Out of the idled plants, six are in Mobility & Materials (M&M), a business that Celanese acquired from DuPont. The remaining two predated the M&M acquisition.

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MRC -- SK Innovation swung back into black in the third quarter on the back of rising crude prices and refining margins, while its battery-making subsidiary, SK On, again failed to turn a profit, said Koreajoongangdaily.

However, as SK On’s quarterly operating loss has narrowed to the smallest ever, SK Innovation expects its money-losing battery maker to turn to profit in the fourth quarter.

According to a regulatory filing Friday, SK Innovation posted 1.56 trillion won ($1.16 billion) in operating profit for the July to September period, up 122 percent from the same period last year and a turnaround from the previous quarter’s operating loss of 106.8 billion won.

The figure beat the market expectation of 1.05 trillion won compiled by FnGuide.

Net profit jumped 316.6 percent to 729.6 billion won, above the expectation of 613.4 billion won.

Revenue declined 12.59 percent on-year to 19.89 trillion won, falling short of the forecast of 20.04 trillion won.

SK On logged an operating loss of 86.1 billion won in the third quarter, the smallest quarterly loss for the battery maker and revenue of 3.17 trillion won, up 45 percent on year.

“In the third quarter, we realized a consolidated operating margin of 7.9 percent, up 8.4 percentage points from the previous quarter,” SK Innovation said in a release.

The company cited the profitability increase in the oil refining business driven by OPEC+’s crude production cuts and the enhanced productivity in the battery business, as well as added tax benefits from the U.S. Advanced Manufacturing Production Credit (AMPC).

“With the battery business, we are aiming to turn to profit in the fourth quarter through the continued productivity enhancement at new production operations overseas, the tax benefit increases from the AMPC and cost reduction,” the company added.

During the July to September period, SK On received AMPC benefits worth 209.9 billion won under the U.S. Inflation Reduction Act program. That surpasses the combined total of the preceding two quarters by far, which amounted to 47.2 billion won in the first quarter and 119.8 billion won in the second.

SK Innovation’s petroleum business logged an operating profit of 1.11 trillion won in the third quarter, a turnaround from the previous quarter’s loss of 411.2 billion won, as OPEC+ members have continued to limit the global crude oil production.

We remind, SK Innovation will invest about Korean won (W) 1.7tr ($1.2bn) to build a plastic chemical recycling complex in Ulsan, South Korea by the second half of 2025. The complex, which is expected to have a recycling capacity of about 250,000 tonnes/year, will be built at a 215,000sqm site and will have three chemical recycling processes, namely, high-purity polypropylene (PP) extraction, depolymerisation and pyrolysis.

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MRC -- Belgium-based Solvay’s earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 23.5% year on year in the third quarter, driven by lower volumes, the company said.

In € million Q3 2023 Q3 2022 % change 9-month 2023 9-month 2022 % change; Net sales 2,747 3,609 -23.9 9,001 10,141 -11.2; EBITDA 702 917 -23.5 2,331 2,493 -6.5; --Q3 chemicals sales dropped to €993m from €1,236m in the same quarter of last year.

--The fall on Q3 net sales was due to -15% lower volumes (€-512m) in a weaker macro environment and -5% lower prices (€-188m) in a context of lower raw material costs and energy prices. The volume reduction was broad based across regions and businesses.

--The underlying EBITDA margin stood at 25.6% in Q3 2023 compared to 25.4% in Q3 2022 despite lower volumes, while nine months EBITDA margin of 25.9% is +1.3 percentage points higher than the corresponding period in previous year, mainly as a result of positive net pricing and cost discipline.

--The company reconfirms its full year EBITDA guidance at the lower end of €2.9-3.1bn range.

--The company is on track to complete the planned separation into two companies – SOLVAY and SYENSQO - in December 2023.

We remind, Solvay announced its plans to lower the production capacity of its soda ash plant in Torrelavega, Spain by 300,000 tonnes/y to 600,000 tonnes/y, effective Jan 2024. The site will now concentrate on serving the needs of regional soda ash and premium grade sodium bicarbonate customers.

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