Mitsui Chemicals reported financial results for 2Q FY 2023

MRC -- Mitsui Chemicals Inc's Basic & Green Materials sales revenue decreased Yen 126.2 bn compared with 1H 2022 to Yen 322.1 bn and accounted for 39% of total sales, said the company.

Operating income before special items decreased Yen 34.4 bn, resulting in a Yen 7.1 bn loss. This was attributable to a decrease in sales volume due to slowing demand, and decline in inventory valuation gain.

Sales of polyolefin and phenols decreased compared with the corresponding period of fiscal year 2022 due to slowing demand. Naphtha cracker operating rates remained at a low level due to slowing demand for downstream products.

We remind, Mitsui Chemicals recently held a groundbreaking ceremony for a new plant to produce the high-performance elastomer Tafmer at its Singapore-based wholly owned subsidiary Mitsui Elastomers Singapore. The ceremony was held on 28 July, 2023. As part of Mitsui Chemicals’ Vision 2030 Long-Term Business Plan, the Mobility Solutions business aims to help solve social challenges and achieve sustainable business growth by providing unique materials, features and services.

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Huhtamaki, a leading global provider of sustainable packaging solutions for consumers around the world, is making a significant investment in its Paris, Texas facility in the U.S, said the company.

The investment consists of an expansion of its manufacturing capacity as well as a consolidation of an external warehouse. The investment into production assets is approximately USD 30 million, and the warehouse and manufacturing facility will be leased. This will significantly increase the North America business segment’s capacity in folding cartons to support the growth of the Foodservice business. Production is expected to start ramping up in Q1 2025 and will be key to servicing the growth of existing customers and a growing list of up-and-coming customers throughout the Southern and Midwestern states.

The Paris facility is uniquely positioned to meet the increased demand in the U.S. for more innovative and sustainable folding cartons which provide convenient, safe and hygienic food for busy consumers. The site is expected to employ up to 80 employees within the first three years.

“This expansion scales up our core business to support the continued growth of our U.S. foodservice customers,” said Ann O’Hara, President, Huhtamaki North America. “The Paris plant will be key in helping the company achieve its 2030 strategy for Customer Excellence by meeting the demand for folding cartons across the region.”

Huhtamaki currently employs approximately 4,100 people across 18 manufacturing units in North America – 17 in the United States and 1 in Mexico – and is an industry-leading manufacturer of packaging for consumer-packaged goods, as well as tableware, cups, folding cartons, containers, carriers, trays and service ware for the foodservice industry and retail market.

The decision to further invest in North America is in line with Huhtamaki’s 2030 strategy to deliver profitable growth by scaling its core business through three technologies, paperboard, flexibles and fiber.

We remind, Huhtamaki, the maker of Chinet® tableware, is launching fiber-based egg cartons, made from 100% recycled material, for US egg producers. Huhtamaki is bringing its fiber expertise to the US as an alternative to foam egg packaging.

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Clariant formally launched its state-of-the-art manufacturing site for halogen-free flame retardants in Daya Bay, Huizhou, China, said the company.

The USD67 M investment into the site's first manufacturing line will offer domestic customers with access to new and sustainable Exolit OP flame retardants and associated technical knowhow to back the significant increase of engineering plastics uses in the electrical & electronics and e-mobility segments. A second line is being constructed and predicted to come online in 2024, representing another investment worth USD44 M.

The new facility will manufacture the company's international series of patent-protected organo-phosphorus flame retardants and supports the capacity of the firm's two Exolit OP sites in Knapsack, Germany. The team at the One Clariant Campus in Shanghai will back customers in co-development and in-application evaluation.

The site is run by 100 workers and is situated within the Huizhou Daya Bay Economic and Technological Development Zone (Daya Bay Chem Park) in Guangdong Province. The Daya Bay site of Clariant uses green electricity, allowing a significant decrease in Scope 2 (CO2) emissions.

We remind, Clariant posted a 28% decrease on earnings before interest, tax, depreciation and amortisation (EBITDA) in the third quarter amid lower prices and volumes. Clariant expects to see an easing inflationary environment, but no economic recovery in the final three months of 2023, with macroeconomic uncertainties and risks remaining. Despite that, Clariant confirms its sales guidance for the full year 2023 of Swfr4.55bn–4.65bn, it said.

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Brenntag, a chemical and ingredient distributor, announces a new supplier agreement with Elementis to distribute a variety of applications in Mexico and Ecuador for the coatings and construction markets, effective immediately, said the company.

Brenntag Specialties has expanded the distribution relationship with Elementis as a distributor for coatings and construction products in Ecuador and Mexico. The product lines are used in applications for industrial and architectural coatings, sealants, adhesives, inks and construction products.

The products include rheology modifiers, slip and levelling additives, defoamers and wetting and dispersing additives. Products falling under these trade names provide unique benefits to the industries that use them: Bentone, Bengel, Benathix, Benaqua, Baragel - bentonite and hectorite organoclays; Dapro - defoamers; Nuosperse - wetting and dispersing agents and humectants; M-P-A - anti-settling agents; Thixatrol, Thixcin - organic thixotropes; Rheolate - associative thickeners; SlipAyd - slip and levelling additives; Dumacil - hydrophobic silica; and Nalzin - anti-corrosive additive.

We remind, Brenntag, the global market leader in chemicals and ingredients distribution, today announced the acquisition of OWI Chlor Alkali (Old World Specialty Chemicals, LLC, and Old World Logistics, LLC) from Old World Industries, LLC in Northbrook, Illinois. The business units will be integrated into Brenntag Essentials’ existing network in North America, significantly expanding Brenntag Essentials’ local and regional footprint.

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Mitsui Chemicals, Inc. has this October acquired certification for one more product under the International Sustainability and Carbon Certification (ISCC) PLUS system for certifying sustainable products, said the company.

Aiming to expand the social implementation of biomass-based products under a mass balance system, Mitsui Chemicals plans to continue working toward the acquisition of ISCC PLUS certification across the Mitsui Chemicals Group to contribute to further advances in society’s use of biomass.

We remind, Mitsui Chemicals recently held a groundbreaking ceremony for a new plant to produce the high-performance elastomer Tafmer at its Singapore-based wholly owned subsidiary Mitsui Elastomers Singapore. The ceremony was held on 28 July, 2023. As part of Mitsui Chemicals’ Vision 2030 Long-Term Business Plan, the Mobility Solutions business aims to help solve social challenges and achieve sustainable business growth by providing unique materials, features and services.

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