Symrise-led JV to manufacture personal care ingredients in India

Symrise-led JV to manufacture personal care ingredients in India

Symrise has entered into a joint venture dedicated to manufacturing personal care ingredients in India with Andhra Pradesh-based pharmaceutical actives maker Virchow Group, said Indianchemicalnews.

The new company, Vizag Care Ingredients, is based in Visakhapatnam, including one local chemical manufacturing site. Production is slated to begin by the end of June.

Symrise's global sales organization will carry out promotion and sales activities of the products manufactured by the joint venture, which is majority owned by the German firm.

The Visakhapatnam facility is Symrise’s first chemical manufacturing site outside Europe and the Americas.

Vizag Care Ingredients plans to expand the site in the coming years to facilitate the production of world-scale volume of beauty ingredients, serving the APAC region and beyond.

Symrise believes the move will strengthen its leading position as a supplier of high-quality personal care solutions, including multifunctional product protection ingredients, high-performance actives & botanicals, and next-generation UV filters.

“Our entire customer base will benefit from the proximity, efficiency, and sustainability advantages that come with a supply of our market-leading cosmetic ingredients portfolio out of India,” said Symrise Scent & Care president Dr. Joern Andreas.

"Virchow Group and Symrise share the same values, so this partnership perfectly fits,” he added.

“Together, we will manufacture modern ingredients in India that drive innovation, safety, and efficacy for our global customers. In addition, we seek to make an impact in the local community of Visakhapatnam by continuously investing and creating jobs.”

We remind, Saudi chemical manufacturer Sabic signed a memorandum of understanding with Pashupati Group, an India-based mechanical and chemical recycler of PET and polyolefins, said the company. The companies will explore, evaluate, and develop local business opportunities for recycling waste plastics in India, including the potential development of a pyrolysis plant to provide Sabic with feedstock for its circular polymers.

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Kazakhstan expects nearly USD2 bln from Russian oil transit to China

Kazakhstan expects nearly USD2 bln from Russian oil transit to China

The Majilis or lower house of Kazakhstan's parliament has ratified the protocol amending the agreement between Kazakhstan and Russia on transporting Russian oil through Kazakhstan to China dated December 24, 2013, as per Interfax.

The protocol, signed in St. Petersburg on June 16, 2023, extends Rosneft's agreement with CNPC for 100 million tonnes of oil over 10 years. The pumping tariff is set at USD15 per tonne, with a USD2.1 tariff on the Tuymazy-Omsk-Novosibirsk-2 (TON-2) pipeline section. This facilitates long-term oil transportation through main pipelines from Russia to China via Kazakhstan (Tuymazy-Omsk-Novosibirsk-2 (TON-2) and Priirtyshsk-Atasu- Alashankou) until January 1, 2034.

"The agreement's extension will guarantee the oil supply to the Pavlodar Petrochemical Plant via the Omsk-Pavlodar pipeline. From 2024 to 2033. The projected revenue from transporting Russian oil through Kazakhstan to China is estimated at USD1.71 billion for both sections, with no associated risks," Kazakh Energy Minister Almasadam Satkaliyev said.

Including replacement profits, revenue is estimated at USD1.851 billion.

The previous 10-year agreement, valid until January 1, 2024, saw 90.9 million tonnes of Russian oil transit through Kazakhstan to China, generating USD1.327 billion in revenue.

We remind, Russia announced additional voluntary cuts in oil supply mainly in the form of production cuts rather than exports, as it faced curtailed refining capacity as well as stricter sanctions. Russia has declared plans to cut its oil output and exports by an additional 471,000 bpd in April-June in coordination with some OPEC+ participating countries. While the world's second-largest oil exporter has been reducing 500,000 bpd in exports of crude oil and oil products in the first quarter, it has decided to scale down export limits in the second quarter and focus on production curbs instead.

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Sri Lanka minister says Sinopec to start work on refinery by June

Sri Lanka minister says Sinopec to start work on refinery by June

The world's largest refiner, China's Sinopec, plans to start work on a refinery in Sri Lanka by June, the power minister said, advancing a project earmarked as the biggest investment in the crisis-hit island nation, said Hydrocarbonprocessing.

Sri Lanka is looking to attract investment in the battle to stabilize its economy and return to growth following a financial crisis caused by a severe shortfall of dollars in 2022 that led the economy to contract 2.3% last year.

Officials of Sinopec Overseas Investment Holding are visiting Colombo for talks with Sri Lankan authorities. "The officials indicated that the management of Sinopec has decided to double the capacity of the refinery from the original proposal," the minister, Kanchana Wijesekera, wrote on social media platform X.

"They intend to sign the agreements for the project and commence work by June 2024." Sri Lanka's cabinet approved the project in November, an investment that Wijesekera has earlier tagged at USD4.5 billion.

China is Sri Lanka's biggest two-way lender, with its companies building highways, sea and air ports and other infrastructure on the island off India's southern coast. The investment by Sinopec, one of the largest producers of petrochemicals, is part of an effort to expand beyond China, in which it has acquired refinery assets in Saudi Arabia and petrochemicals production in Russia.

Iran built Sri Lanka's only refinery at Sapugaskanda in the western region in 1969. It can process 38,000 barrels of crude a day.

We remind, Sinopec Engineering (Group) Co. Ltd. has reported CNY/RMB 34.6 billion ($4.8 billion) in revenue from petrochemical contracts for 2023, up 9.5 percent against 2022. The company, majority-owned by the state’s China Petrochemical Corp. (Sinopec Group), attributed the growth to domestic projects including an ethylene production facility of Exxon Mobil Corp., an ethylene co-venture between Sinopec and Ineos, and the second phase of Sinopec’s Zhenhai Base refining and chemical complex.

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SABIC Fujian Petrochemicals advances major ethylene project with Lummus technologies and services

SABIC Fujian Petrochemicals advances major ethylene project with Lummus technologies and services

Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced that SABIC Fujian Petrochemical Co., Ltd.'s grassroots complex in Fujian Province, China, will leverage Lummus' ethylene and co-monomer technologies, said Hydrocarbonprocessing.

SABIC Fujian Petrochemicals Co., Ltd. is a joint venture between SABIC Industrial Investment Company (wholly owned by SABIC) and Fujian Fuhua Gulei Petrochemical Co., Ltd. (holding by Fujian Energy and Petrochemical Group). Formed in 2022, SABIC Fujian Petrochemicals Co., Ltd. is a 51:49 joint venture, with SABIC being the majority owner. On January 22, 2024, SABIC announced the final investment decision for the SABIC Fujian Petrochemical Complex (Sino-Saudi Gulei Ethylene Complex Project) and plans to begin construction this year and expects to complete construction in 2026. The complex is the largest single investment joint venture project with foreign investment in Fujian Province to date.

"We commend and congratulate SABIC Fujian Petrochemicals Co., Ltd. for making this critical investment decision and look forward to helping them reach many more milestones," said Leon de Bruyn, President and Chief Executive Officer of Lummus Technology. "This project highlights Lummus' unique capability to integrate our solutions during customers' investment and operating cycles, lowering costs, reducing energy consumption, enhancing reliability and yield, and optimizing operations."

Lummus' scope for the project includes technology license and basic design engineering for up to 1800 KTA ethylene/1020 KTA propylene MFSC unit, a 60 KTA butene-1 unit and BTX products. Lummus will also supply its proprietary heater equipment and CDModules.

Lummus is the world's leading licensor of ethylene technology, having licensed more than 200 ethylene plants around the world, accounting for approximately 45 percent of global ethylene capacity. Lummus has also completed over 250 ethylene grassroots, revamp and expansion design projects, more than any competing technology licensor.

We remind, Saudi chemical manufacturer Sabic signed a memorandum of understanding with Pashupati Group, an India-based mechanical and chemical recycler of PET and polyolefins. The companies will explore, evaluate, and develop local business opportunities for recycling waste plastics in India, including the potential development of a pyrolysis plant to provide Sabic with feedstock for its circular polymers.

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Chemours reveals certain financial revisions after internal review

Chemours reveals certain financial revisions after internal review

Chemours Co, opens new tab on Wednesday reported a smaller loss for the fourth quarter and announced revisions to certain past financial results following an internal review into accounting issues, said Reuters.

The internal review revealed earlier this month that its senior executives had manipulated some vendor payments and collections of receivables in the fourth quarter of 2023, in part to meet free cash flow targets tied to their incentives.

Chemours said on Wednesday the review identified "material weaknesses" in its internal control over financial reporting and resulted in revisions of its balance sheet as of Dec. 31, 2022, and its cash flow statements for 2021 and 2022.

It also led to "immaterial revisions" to financial statements for March, June and September, 2023. The review did not result in any misstatements of the company's financial statements or disclosures.

Shares of the chemical company fell 8% in trading after the bell. Chemours had earlier said its preliminary results would not be impacted by the internal review and later appointed chemical industry veteran Denise Dignam as CEO.
It reported a net loss of $18 million, or 12 cents per share, for the three months ended Dec. 31, compared with a loss of $97 million, or 65 cents per share, a year earlier, helped by lower costs.

The twice-delayed results came a month after the company placed its top three executives, including CEO Mark Newman, on administrative leave and said it was looking into potential "material weaknesses" in its financial reporting.
Chemical companies have been trying to reduce costs to combat low demand and destocking trends in the past year that were driven by weaker-than-expected growth in China and across major economies.

Separately, Chemours said it expected first-quarter net sales to be flat to down sequentially and capital expenditures of about USD100 million.

It also expects a 10% sequential decline in net sales for the Titanium Technologies segment owing to seasonally weak demand for titanium, and a sequential 10% decline in the Advanced Performance Materials unit's net sales due to softness in certain end markets.

We remind, Chemours, 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.

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