Samyang buys specialty chemical maker Verdant at $257 mn

Samyang buys specialty chemical maker Verdant at $257 mn

Samyang Specialty Solutions LLC, a leading chemical and food products maker in South Korea, has entered into an agreement to wholly acquire Texas-based Verdant Specialty Solutions Global Holding Corp. at 334 billion won ($257.4 million), said Kedglobal.

The Korean company’s holding firm Samyang Holdings Corp. signed a contract to buy a 100% stake in Verdant on Dec. 15, according to Samyang’s regulatory filings on Monday.

Samyang said the purpose of the acquisition is to strengthen its global surfactants business.

Verdant, formerly known as Solvay SA’s North American and European amphoteric surfactant unit, manufactures chemicals for personal care products, industrial applications and energy like oil and gas.

The US company supplies specialty chemicals to around 1,000 global clients including consumer goods giant Unilever plc and personal care behemoth L'Oreal S.A. It operates manufacturing facilities in the US, the UK and Germany.

The Korean firm began a specialty chemical business for personal care goods in 2017 with an acquisition of a 44.25% stake in local chemical material maker KCI Ltd. for 70.9 billion won.

Samyang expects Verdant’s product portfolio, which focuses on low foam and nonionic wetting agents, to create synergy effects with the existing business of KCI that specializes in cationic surfactants, industry insiders say.

Founded in 1924, Samyang Group operates four major businesses – food materials, specialty chemicals, bio and polyethylene terephthalate (PET) packaging.

The mid-sized conglomerate is planning to boost manufacturing materials for healthcare goods, chip and batteries and eco-friendly products like biodegradable plastics.

The purchase of Verdant will be the company's first action point to change and enrich consumers’ lives with specialty materials and solutions, Samyang Holdings Chairman Kim Yoon said.

We remind, South Korean chemical and food company Samyang Corp. announced on Monday that it released new industrial water treatment materials Triraite Reverse Osmosis Membrane, and an electrodeionizer device Triraite EDI.

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Aekyung Chemical acquires LG Chem Vietnam's plasticizer subsidiary

Aekyung Chemical acquires LG Chem Vietnam's plasticizer subsidiary

South Korean consumer goods company Aekyung Chemical announced on Friday that it has acquired VPCHEM, the Vietnam subsidiary of LG Chem Ltd., a company engaged in the production and sale of plasticizers. Aekyung Chemical has acquired a 50% stake in VPCHEM held by LG Chem, said Kedglobal.

Plasticizers are additives that facilitate the molding and processing of plastics, including polyvinyl chloride (PVC), commonly used in applications such as wallpaper, flooring and wires.

The Vietnamese domestic market is expected to grow by 3.7% annually, driven by the expansion of specialized applications for plasticizers due to industrial development and improved income levels.

Through the acquisition of VPCHEM, the sole plasticizer manufacturing facility in Vietnam, Aekyung Chemical has increased its annual plasticizer production capacity from the existing 550,000 tons (400,000 tons in Korea and 150,000 tons in China) to 660,000 tons.

Aekyung Chemical explained that the latest acquisition enables it to strategically produce and supply environmentally friendly plasticizers for North American and European customers, while manufacturing general-purpose and functional plasticizers for China and Vietnam, allowing for strategic choices and concentration.

"The acquisition of VPCHEM equities is meaningful in further solidifying the foundation for the enhancement strategy of the company's core plasticizer business," said Pyo Kyoung-won, CEO of Aekyung Chemical.

"We will efficiently operate VPCHEM, maximizing synergy among global production bases to allow the plasticizer business to take a new leap forward," he added.

We remind, Aekyung Chemical, an affiliate of South Korea's Aekyung Group, has begun mass-producing eco-friendly plasticizers derived from recycled waste plastics, marking a first in South Korea. The company succeeded in developing the plasticizers and built specialized production facilities.

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China's Nov diesel exports down 44.9% on last year despite weak domestic demand

China's Nov diesel exports down 44.9% on last year despite weak domestic demand

China's diesel exports in November were down 44.9% on last year at 1.16 MMt, data showed on Monday, as domestic demand remains above pandemic levels but faces continued headwinds from the country's property slowdown, said Hydrocarbonprocessing.

Exports of diesel, which accounts for the biggest share of refinery output, however rose month-on-month from October's 1.11 MMt, data from the General Administration of Customs showed on Monday. Diesel exports for the year to date are up 61% on the previous year. A weak macroeconomic backdrop and stagnant property sector, visible in contracting manufacturing PMI and Moody's recent cut to its sovereign credit rating outlook, continues to suppress domestic demand for the key fuel.

Gasoline shipments of 890,000 tons were down from October's 1.09MMt, even as domestic travel levels normalized after early October's Golden Week holiday. Gasoline exports were down 40.0% on last year's 1.49 million tons, when widespread pandemic restrictions significantly curtailed domestic travel.

Jet fuel exports stood at 1.59 MMt, up 3.9% from October and 26.9% higher than last year's 1.26 MMt. Domestic kerosene demand continues to benefit from a fully recovered domestic travel market, with domestic flight levels already above pre-COVID levels and expected to step up further. However, international airline capacity in and out of China in November this year was around 57% of the figure in the same months of 2019, before the pandemic halted international travel, according to data from aviation analytics firm OAG. Fuel provided to international flights is counted as an export in customs statistics.

Regional refining margins rose through November, standing at $6.74/bbl on Dec. 1, nearly double $3.60/bbl a month earlier. Despite this, total refined fuel exports, which includes marine bunker fuel, have fallen consistently month-on-month since August. November's figure was down 17.3% on the same period last year, customs data previously showed. China's refinery runs in November slowed on the previous month to 14.48 MMbpd, the lowest daily level since the January-February period, during which run rates averaged 14.36 MMbpd.

The data released on Monday also showed China imported 6.8 MMt of LNG in November, up 6.6% from a relative low of 6.42 MMt last year. LNG shipments rose 32% from the previous month as the country enters the winter heating season.

We remind, Sulzer continues its commitment to biopolymers and circularity with its new process solution, SULAC. The licensed technology completes Sulzer’s portfolio of licensed technologies for the manufacture of polylactic acid (PLA), an eco-friendly bioplastic. SULAC supports the conversion of lactic acid into lactide, which is both needed to produce PLA and limited by current availability.

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CPC Pumps International extends its global manufacturing footprint with first pump assembly in India

CPC Pumps International extends its global manufacturing footprint with first pump assembly in India

Canadian-headquartered CPC Pumps International reached a significant milestone this week, as it celebrated the completion of its first pump assembly in Pune, India, said Hydrocarbonprocessing.

The historic event was inaugurated with speeches from Vagner Rego, President of Atlas Copco’s Compressor Technique Business Area. Frans Van Niekerk, Vice President Holding for Atlas Copco India was also in attendance to celebrate this occasion alongside Tushar Patel, General Manager of CPC Pumps International.

A provider of API 610 compliant, custom-engineered centrifugal pumps, CPC Pumps International, was acquired by the Atlas Copco Group in August 2021. The Atlas Copco Group’s Gas & Process Division has an existing manufacturing footprint in India that dates back to the early 1990’s. Today’s facility in Pune manufactures highly specialized turbocompressors and turboexpanders for customers around the world while also supporting its customer base’s aftermarket requirements in the Indian subcontinent.

Tushar Patel, General Manager of CPC Pumps International, explained that “one of the main goals we set
when acquiring CPC Pumps was to implement a sustainable global growth strategy with an ambitious
timeline.”

“Completing production of our first pump, 100% built in India, is a symbol of our progress and is a
testament to the hard work and dedication of our talented global team,” he added.

CPC Pumps International plans to expand its manufacturing capabilities in India to support the growing demand for its custom-tailored centrifugal process pumps.

We remind, Sulzer continues its commitment to biopolymers and circularity with its new process solution, SULAC. The licensed technology completes Sulzer’s portfolio of licensed technologies for the manufacture of polylactic acid (PLA), an eco-friendly bioplastic. SULAC supports the conversion of lactic acid into lactide, which is both needed to produce PLA and limited by current availability.

mrchub.com

U.S. refiners cut gasoline export prices on Panama Canal drought

U.S. refiners cut gasoline export prices on Panama Canal drought

U.S. Gulf Coast refiners have reduced gasoline export prices to their lowest since 2021 because restrictions on shipping through the Panama Canal have left exporters unable to send as much of the motor fuel to international markets, said Hydrocarbonprocessing.

Severe drought in Panama has left water levels too low for the transoceanic canal to function normally, forcing transit reductions through one of the world's shipping choke-points and impacting supplies of a wide range of goods.

The U.S. produces more gasoline than it consumes, most of which is refined along the Gulf Coast. A steady stream of exports is crucial to refinery profits.

The number of U.S. gasoline cargoes crossing the waterway nearly halved last month from year-ago levels. The canal is the shortest route for fuel tankers from the U.S. Gulf Coast to South America's Pacific Coast and eastern Asia.

Some less cost-efficient U.S. refiners may need to reduce production to prevent fuel inventories building, analysts said, as the canal maintains transit restrictions in place at least through year end. That could hit supplies of products like heating fuel, which see higher demand in the winter.

"The most dramatic pricing in the global gasoline market continues to be found in the U.S., where a seasonably long balance into the end of year and high inventories are seeing sellers pricing aggressively to place these barrels elsewhere," Philip Jones-Lux, gasoline analyst at data provider Sparta Commodities wrote on Tuesday.

The Gulf Coast is currently the cheapest source of gasoline to almost everyone in the Atlantic basin, Jones-Lux told Reuters.

Some Gulf Coast refiners have offered gasoline for export at as low as $75 a barrel this month for the first time since Feb. 2021, traders said. They have been forced to cut prices to make it economically viable for shippers without reservations who face higher costs to either secure passage slots through the Panama Canal's daily auctions or to take much longer routes sailing around it.

In normal conditions, Panama offers up to 36 slots a day for ships to pass the canal. That number fell to 22 at the start of December, according to statements from the Panama Canal Authority.

Shippers got some relief on Friday after the canal increased daily slots available from mid-January to 24, a number that will only remain in effect if weather conditions are favorable.

We remind, Venezuela's state-run Petroleos de Venezuela, S.A. will supply fuel to Curacao's refinery to settle debts left by the oil company after ceasing operations at the Caribbean island's facility in 2019, local media reported on Tuesday. Following the expiration of a contract that had allowed PDVSA for years to operate the 335,000-barrel-per-day refinery and neighboring oil facilities, millions of dollars in debts were identified in Curacao and Bonaire, where the company had managed the BOPEC oil terminal.

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