Wacker expects decline in sales and earning for 2024

Wacker Chemie AG has confirmed that its 2023 sales and earnings fell markedly versus the previous year due to persistently weak market conditions, said the company.

The chemical Group’s sales totaled EUR6.40bn last year, 22% less than in 2022 (EUR8.21bn). This decline was prompted primarily by lower prices and volumes.

The Group’s EBITDA (earnings before interest, taxes, depreciation and amortisation) reached EUR824M in 2023 (2022: EUR2.08bn), down 60%. The decrease stemmed not only from lower prices, but also from Germany’s ongoing high energy costs and from globally high raw-material costs. Additionally, lower sales volumes dampened plant-utilisation rates. In contrast, savings from the Group’s ongoing efficiency programmes buoyed earnings.

Due to the factors described above, EBIT (earnings before interest and taxes) dropped 76% to EUR405M (2022: EUR1.68bn). Depreciation and amortisation amounted to EUR419M, up slightly on the previous year (EUR402M). Net income for 2023 came in at EUR327M (2022: EUR1.28bn).

We remind, Wacker Chemie started the construction of several new production lines to expand its specialty silicone manufacturing capacities at the Zhangjiagang site in Jiangsu Province, China. At the site, which is one of Wacker’s largest fully integrated production sites, the globally operating chemical group will produce functional silicone fluids, silicone emulsions and silicone elastomer gels. Investments of some €150?million are planned for the expansion project.

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Preliminary data from the Statistics Agency show that in January 2024, Uzbekistan exported 21,900 tons of polyethylene, valued at USD17.3 mln, as per Kun.uz.

The export of polyethylene has increased by 4,800 tons compared to the corresponding period in 2023.

In January, Uzbekistan sold polyethylene to nine countries.

The top countries to which Uzbekistan exported the most polyethylene in January were: Turkiye – 12,500 tons, China – 2,300 tons, Russia – 2,300 tons, Latvia – 2,200 tons, Kazakhstan – 1,800 tons.

We remind, China’ share of global polyethylene (PE) demand rose from 22% in 2009 to 34% in 2023, even though its population was ageing, and its share of the global population was in decline. Exports as percentages of GDP also fell as gross fixed capital formation (investment) grew more rapidly than domestic consumption.


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TUV SUD, a globally acclaimed safety and quality expert, has issued ISCC PLUS certification to Toray Industries, Inc. (Location: Chuo-ku, Tokyo, President: Mitsuo Ohya) with its production plants: Nagoya Plant, Tokai Plant, Okazaki Plant and Chiba Plant, said the company.

ts-pr-ISCC PLUS certification to TorayTUV SUD has issued ISCC PLUS certifications to Toray Industries, Inc. with its 4 production plants: Nagoya Plant (Nagoya, Aichi), Tokai Plant (Tokai, Aichi), Okazaki Plant (Okazaki, Aichi) and Chiba Plant (Ichihara, Chiba). With ISCC PLUS certification, these plants are now able to allocate and use biomass or recycled raw materials in a mass balance system to produce and supply renewable materials.

For companies, it is getting more and more important to incorporate sustainability initiatives into their management strategies and corporate activities and to proof their engagement. ISCC PLUS certification is a voluntary international mass balance certification system that covers all types of biomass, waste, residues, non-biomass renewable energy and renewable carbon feedstock. It includes regulations on traceability, greenhouse gas calculations and the core requirements for sustainable agricultural production.

TUV SUD Japan will continue to contribute to the creation of organisations and products for decarbonisation and the circular economy through our sustainability-related services.

We remind, Toray Industries, Inc., announced it signed an agreement with Honda Motor Co., Ltd., to jointly develop a chemical recycling technology for glass-fiber reinforced nylon 6 parts recovered from end-of-life vehicles, said the company. The two have begun verifying this technology, which entails depolymerizing with subcritical water and regenerating the materials as caprolactam, a raw monomer.

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OQ Chemicals has announced the declaration of force majeure for specific products manufactured at its Oberhausen, Germany facility, citing a significant disruption at a raw material supplier, said the company.

On February 27, a substantial operational disturbance occurred at the synthesis gas unit of a raw material supplier situated at OQ Chemicals' Oberhausen site. This particular partner produces technical gases, including synthesis gas, which serves as crucial raw material supplied to OQ Chemicals for further processing. Consequently, the affected unit of the raw material supplier underwent automatic shutdown procedures. Following the incident, four individuals underwent precautionary medical evaluations and were subsequently discharged from the hospital on the same day.

The halt in the production of synthesis gas has led to supply limitations for various products produced by OQ Chemicals in Oberhausen, pending further updates. These products include Isobutyraldehyde, n-Butyraldehyde, n-Butanol, i-Butanol, 2-Ethylhexanol, n-Butyl acetate, n-Butylamine (all grades), TCD Alcohol DM, Neopentyl Glycol, n-Propionaldehyde, Isovaleraldehyde, 2-Methylbutyric acid, 2-Ethylhexanoic acid, n-Butyric acid, Isobutyric acid, Isononanoic acid, Isopentanoic acid, Isovaleric acid, n-Valeric acid, OXSOFT 3G8, and OXFILM 351.

At present, OQ Chemicals is unable to furnish detailed information regarding the duration of this situation. Nevertheless, the company has promptly notified its customers and is actively engaged in efforts to mitigate the impact on supply chains while striving to expedite the resumption of production at the earliest feasible juncture.

OQ Chemicals, formerly known as Oxea, stands as a prominent global producer of Oxo Intermediates and Oxo Performance Chemicals. With a diverse product portfolio essential for the production of high-quality coatings, lubricants, and plastics, the company occupies a crucial position across multiple industries. Employing over 1,400 individuals worldwide and distributing its products in more than 60 countries, OQ Chemicals operates as a subsidiary of OQ, an integrated energy firm headquartered in Oman. This force majeure event not only underscores the intricate interconnections within global supply chains but also highlights the resilience and adaptability demonstrated by companies such as OQ Chemicals in the face of operational adversities.

As the situation unfolds, stakeholders across various industries will remain vigilant, recognizing that the repercussions of this disruption could reverberate throughout global markets. This incident serves as a poignant reminder of the vulnerabilities inherent in complex supply chains and underscores the critical importance of robust contingency planning. With a steadfast focus on recovery and resilience, OQ Chemicals is navigating through these turbulent times with the aim of emerging stronger and more adaptable to the ever-evolving global landscape.

We remind, OQ Chemicals, a prominent player in the realm of oxoalcohol production, headquartered in Oman, has made an announcement regarding a forthcoming price increase for 2-ethylhexanol across the global market. This adjustment is scheduled to be implemented on March 1, 2024. In specific terms, OQ Chemicals has communicated a price surge of EUR100 per tonne for the European market and EUR110 per tonne for both the North American and Asian markets, respectively.

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Celanese plans to close an Engineered Materials compounding site at Mechelen, Belgium that was part of its USD11 billion acquisition of DuPont’s Mobility & Materials business in 2022, said the company.

The closure would help optimize production costs across Celanese’s global network, it said in a financial filing.

Manufacturing operations at Mechelen are expected to permanently cease by the end of September 2024, subject to a consultation process with works council and union representatives that started this week.

The closure is expected to result in expenses of about USD60-75 million, consisting primarily of accelerated depreciation of fixed asset costs and facility-related shutdown cash costs.

Not included are employee termination costs, which will be subject to the works council consultation, Celanese said, adding that is currently unable to provide a reasonable estimate of these costs.

The business Celanese acquired from DuPont produces engineering thermoplastics and elastomers, for end-use in automotive, electrical and electronics, consumer goods and industrial applications.

We remind, Celanese will idle eight units in its Engineered Materials segment, while running many other plants at reduced rates. 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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