Chemours names Denise Dignam permanent CEO

Chemours names Denise Dignam permanent CEO

The Chemours Company, a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, announced the appointment of Denise Dignam, current Interim Chief Executive Officer, to the positions of President and Chief Executive Officer and a member of the Board of Directors, said the company.

Ms. Dignam joined Chemours in 2015. She brings over 35 years of experience in the chemical industry where she has held senior roles in business and operations, sales and marketing, commercialization, and supply chain. She had served as Interim Chief Executive Officer since February 2024, and prior to that held the positions of President, Titanium Technologies (TT) segment, and President, Advanced Performance Materials (APM) segment---two businesses that represent over 68% of Chemours’ net sales in 2023. As President of Titanium Technologies, Ms. Dignam stood up the TT Transformation Plan, delivered significant operational savings in 2023, refocused the portfolio to deliver more customer value, and developed process improvements for better resource utilization across the manufacturing circuit. During her tenure on Advanced Performance Materials, she reshaped the portfolio to focus resources on secular growth opportunities in Clean Energy and Advanced Electronics. To further accelerate growth, she drove strategic partnerships and initiatives across the globe, and improved the overall cost structure of the business, laying the foundation for further cost optimization.

Commenting on her appointment, Ms. Dignam said, “I am excited and honored to take on the role of President and CEO. Chemours is defined by its leading chemistries, the customer applications that our chemistries enable, our manufacturing capabilities, and as importantly, our people and core values. Looking ahead I will be focused on strengthening our portfolio with high-value and emerging growth opportunities, and ensuring we are operating as efficiently, effectively, and safely as possible. I am committed to continuing to lead with transparency as we do the hard work required to keep building our businesses for today and into the future. I want to thank our Chemours employees around the world, who are the cornerstone of our success, and our customers and partners for their continued support.”

Dawn Farrell, Chair of the Board of Chemours, added, “Denise has the full support of the Board, and we are pleased to have an experienced and capable executive who is so highly regarded inside and outside Chemours for her track record leading the APM and TT business segments. Denise is a high-caliber leader who has the experience and capability to build value for shareholders while upholding our core values and serving our valued customers.”

We remind, Chemours Company, a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, announced that the U.S. Department of Energy (DOE), under the Bipartisan Infrastructure Law, selected two of its applications for grants totaling USD60 million.

Solvay completes its inaugural EUR 1.5 bn dual tranche bond issuance

Solvay completes its inaugural EUR 1.5 bn dual tranche bond issuance

Solvay completed the placement of its inaugural bond transaction, which represents another important milestone after the partial demerger of its Specialty Businesses in December 2023, said the company.

“This key transaction strengthens the capital structure of Solvay and gives the company the financial stability to execute its strategy in this new phase of its journey,” said Alexandre Blum, Solvay CFO. “We are particularly pleased with the exceptional participation of more than 250 and 300 investors in the 4-year tranche and the 7.5-year tranche respectively. This contributed to a transaction nearly 6 times oversubscribed, a clear testimony of the continuous support and confidence from institutional investors in Solvay's vision and strategy".

The 4-year €750m bond maturing on April 3rd, 2028, and the 7.5-year €750m bond maturing on Oct 3rd, 2031, will have coupons of 3.875% and 4.250% respectively. Both bonds will be rated BBB- by S&P, matching Solvay's long-term credit rating. Bond settlement is scheduled for April 3, 2024, with trading expected to begin on the Euro MTF market of the Luxembourg Stock Exchange around the same time.

In alignment with its prudent financial policy, the proceeds will be used for general corporate purposes, including the refinancing of the EUR 1.5b bridge facility set up at the end of 2023 in relation to the partial demerger.

BNP Paribas, BofA Securities, J.P. Morgan and Morgan Stanley acted as Global Coordinators for the transaction and as Joint Bookrunners together with Commerzbank, Credit Agricole CIB, ING and KBC Bank.

We remind, Solvay and Carester announced the signing of a Memorandum of Understanding (MOU) to form a strategic partnership, aimed at leveraging the expertise of both companies to pursue manufacturing opportunities within the rare earth industry for the permanent magnets value chain in Europe.

Japan's Idemitsu, Mitsui Chemicals may consolidate ethylene plants in Chiba

Japan's Idemitsu, Mitsui Chemicals may consolidate ethylene plants in Chiba

Japanese oil refiner Idemitsu Kosan, opens new tab and Mitsui Chemicals, opens new tab plan to consolidate their ethylene complexes in Chiba near Tokyo, they said on Wednesday, as the industry is under pressure from competition with China, said Reuters.

The companies would consider closing Idemitsu's Chiba ethylene facility to consolidate production at Mitsui Chemical's site in the 2027 fiscal year. The new business would be operated by a limited liability partnership or a joint venture.

"Japanese ethylene complexes continue to be forced to operate at a low rate due to both the opening of large new additional petrochemical complexes, mainly in China, and the diminishing domestic ethylene demand," the statement said.

The final decision on the proposed consolidation, which should also accelerate the push towards carbon neutrality in the petrochemical sector, is yet to be made, the companies said.

On Monday, Shunichi Kito, president of the Petroleum Association of Japan and Idemitsu Kosan's president, said that the petrochemical sector will need to consolidate to withstand competition from emerging petrochemical complexes in China and the Middle East amid an already tough earnings environment.

Ethylene is a petrochemical that is used to produce plastics such as polyethylene for items such as plastic bags and containers.

Chemours reports fourth-quarter loss and details audit committee findings

Chemours reports fourth-quarter loss and details audit committee findings

The Chemours Company (Wilmington, Delaware) reported a fourth-quarter net loss of USD18 million, which included a litigation settlement charge of USD62 mln, said the company.

Adjusted net income was USD46 million. Sales were USD1.4 billion, up 2% year over year, as volumes were up 3%, offset by a 1% decrease in price.

Company earnings were delayed twice due to an internal investigation on the handling of internal ethics hotline complaints as well as practices for managing working capital and related metrics that were tied to executive compensation targets. Three top executives were placed on leave: president and CEO Mark Newman; senior vice president and CFO, Jonathan Lock; and vice president, controller and principal accounting officer, Camela Wisel. Chemours said in a regulatory filing on March 25 that Newman had resigned from the company and its board, effective March 22.

Adjusted earnings per share totaled 31 cents ahead of the analysts’ consensus estimate of 24 cents as compiled by S&P Capital IQ.

“Chemours navigated a challenging year in 2023 that included prolonged destocking in certain key end markets, and these headwinds impacted our overall financial performance,” said new Chemours CEO Denise Dignam. “Our fourth quarter performance reflected continued growth for our low global warming potential refrigerants in our thermal & specialized solutions segment, double-digit growth in the performance solutions portfolio of our advanced performance materials segment, and improved demand for titanium dioxide across most regions in the titanium technologies segment.”

Looking ahead, Chemours expects a 10% sequential decline in titanium technologies sales for the first quarter 2024 due to weaker demand for TiO2 driven by regional seasonality. The company expects the thermals and specialized solutions segment to grow by about 20% sequentially in sales and adjusted EBITDA driven by seasonality and demand for Opteon products. For its advanced performance materials segment, the company sees a sequential decline of 10% for net sales in the first quarter driven by softness in end markets and the tail impact of an extended outage at a manufacturing site; the segment is also nearing its typical cycle lows, and the company expects the business to lag overall market recovery by six to nine months.

Overall, the company expects first quarter 2024 sales to be flat to slightly down sequentially and adjusted EBITDA to be down approximately 10% year over year.

We remind, Chemours Company, a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, announces two upcoming changes to its Board of Directors. Director Sandra Phillips Rogers has announced her decision not to stand for reelection and will serve out the remainder of her current term. Pamela Fletcher will join the Chemours Board as a director, effective March 1, 2024.

Controversial EU packaging and packaging waste regulation approaches adoption

Controversial EU packaging and packaging waste regulation approaches adoption

Controversial EU Packaging and Packaging Waste Regulation approaches adoptionControversial EU Packaging and Packaging Waste Regulation approaches adoptionDetails of the provisional agreement on the Packaging and Packaging Waste Regulation (PPWR) have been published, containing a number of wide-ranging elements which will reshape the packaging sector across the next two decades.

The regulation is now reaching its final stages but has faced a fraught journey through the various legislative chambers of the EU and has remained divisive among both legislators and the markets.

Under the provisional agreement the regulation will introduce: mandated packaging recyclability, minimum recycled content and reuse targets across packaging – albeit with potential derogations based on availability of recycled materialm, mandatory deposit return schemes (DRS) and separate packaging collection targets, new reporting and labelling obligations, the extension of extended producer responsibility (EPR) schemes, a restriction on the placing on the market of food contact packaging containing per- and polyfluorinated alkyl substances (PFAS) above certain thresholds, a restriction on plastic collation films except for transportation purposes, the possibility of bio-based plastic contributing to recycling targets, the allowance of imports to count towards recycling targets provided they are of similar quality as domestic material and have been separately collected.

The Committee of the Permanent representatives of the Governments of the Member States to the European Union (Coreper) endorsed the Packaging and Packaging Waste Regulation on 15 March following amendments to the provisional agreement reached by the EU Parliament and EU Council (but not endorsed by the EU Commission) during the trilogue negotiations.

The European Parliament Committee on Environment, Public Health and Food Safety (ENVI) endorsed the provisional agreement on 19 March.

By 1 January 2030, 40% of most transport packaging used within the EU – including e-commerce – will need to be reusable and ‘within a system of reuse’. This includes pallets, foldable-plastic boxes, boxes, trays, plastic crates, intermediate bulk containers, pails, drums and canisters of all sizes and materials, including flexible formats or pallet wrappings or straps for stabilisation and protection of products put on pallets during transport.

From 2040 this will increase to 70%. Some players said that this amounted to a defacto ban on flexible plastic transport packaging because of the difficulty in reaching the reuse target.

By 2030, 10% of grouped packaging boxes for stock keeping or distribution will need to be re-usable.

We remind, Shantou Mingca Packaging Co Ltd and ExxonMobil Asia Pacific Research & Development Co., Ltd (ExxonMobil) announced an innovative double bubble Polyethylene-based Shrink Film solution, the next generation of Polyolefin Shrink Film, created using ultra-low density Exceed XP performance polyethylene. PEF can be used to package products in a variety of shapes, such as electronics, household and personal care products, medicines, food, books and magazines, plastic utensils, and toys.