OQ Chemicals confirms plans to initiate potential sale process

OQ Chemicals GmbH (Monheim am Rhein, Germany) has been provided with short-term funding of €75 million by a number of its key lenders and has signed a framework agreement with its main lenders to extend current debt arrangements, according to a company spokesperson.

“This lays the basis for OQ Chemicals to initiate the process for a potential change of ownership,” said Ina Werxhausen, director/sustainability and corporate communications at OQ Chemicals, in an exclusive emailed statement to CW.

“A number of our key lenders have provided short-term funding for the next months (€75 million) and a framework with agreement has been signed with our main lenders to extend the maturity of debt due later this year,” Werxhausen said.

The emailed response to CW follows a Bloomberg report yesterday that the company’s Omani owners were set to start a sales process for the oxo alcohols producer after OQ Chemicals had reached the short-term financing deal with lenders and signed an agreement to extend the maturities of EUR1.1 billion equivalent of debt due later this year. OQ Chemicals is owned by Oman’s state-run OQ SAOC (Muscat).

In May 2023, OQ Chemicals announced it would implement cost-cutting measures and an organizational realignment at its oxo chemicals sites in Germany against a backdrop of persistent weak demand and oversupply in European oxygenated chemical markets. OQ’s cost-saving program would take two years and was prompted by the challenges of high energy and raw material costs, as well as inflation rates, “particularly in Europe,” and will include workforce reductions, it said at the time.

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DuPont announced it has signed an agreement to acquire Donatelle Plastics Incorporated, a leading medical device contract manufacturer specializing in the design, development and manufacture of medical components and devices, said the company.

The transaction is expected to close in the third quarter 2024, subject to satisfaction of customary closing conditions and receipt of regulatory approvals.

"Our healthcare strategy is focused on offering a comprehensive suite of solutions for customers in high-growth therapeutic areas," said Jon Kemp, President, DuPont Electronics & Industrial (E&I). "Donatelle Plastics Incorporated will be the second acquisition, following Spectrum last year, that will deepen our expertise in the medical device market segments and enhance our position as a partner of choice for our customers."

DuPont's healthcare exposure within the Industrial Solutions line of business of the E&I segment includes Spectrum, a leader in medical device components, and Liveo™, a leader in silicone solutions for healthcare applications. The acquisition of Donatelle Plastics Incorporated will bring complementary advanced technologies and capabilities including medical device injection molding, liquid silicone rubber processing, precision machining, device assembly, and tool building. Donatelle Plastics Incorporated has a strong financial growth profile aligned to attractive therapeutic areas including electrophysiology, drug delivery, diagnostics, cardiac rhythm management, neurostimulation, and orthopedic extremities.

Founded in 1967 and headquartered in New Brighton, Minnesota, Donatelle Plastics Incorporated has a workforce of more than 400 employees and operates a facility strategically located in a medical technologies hub near leading original equipment manufacturers. Donatelle Plastics Incorporated has established decades-long relationships by providing best-in-class customer service, top-notch quality and injection molding expertise. They are recognized for innovation in medical device and component manufacturing, particularly in complex applications where quality, reliability and technical expertise is required for critical end-use applications.

"We're excited for this next chapter in Donatelle's journey and for our team of highly talented and skilled employees to join DuPont," said Treasa Springett, President of Donatelle Plastics Incorporated. "As a part of a broader healthcare offering, we will have even greater impact on patient outcomes by enabling the innovation and development of next generation devices for patients worldwide."

We remind, DuPont will be split into three parts. Under the announced plan, the company will combine its electronics and water businesses with the new divisions, and the remaining DuPont will continue to be a leading diversified industrial company. Businesses related to polymers, including protective films, as well as Kevlar fibers, will remain under New DuPont. The company will target high-growth healthcare markets including consumables, medical devices and packaging.

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Formosa Plastics Corporation (FPC) is likely to take off stream its Polyvinyl chloride (PVC) plant in Mailiao, said Polymerupdate.

A Polymerupdate source in Taiwan informed a team member, “The turnaround is anticipated to be undertaken by mid-August 2024. Further details on the duration of the shutdown could not be ascertained."

We remind, Formosa Petrochemical Corp (FPCC), a major global petrochemicals producer, resumed operations at its No. 2 cracker in Mailiao (Taiwan) in mid-May. Maintenance at this cracking unit with a capacity of 1.035 million tons of ethylene per year began in January of this year.

Formosa Plastics Corporation (FCP) is a major global chemical manufacturer headquartered in Taiwan. The company mainly produces polyvinyl chloride (PVC), polyethylene, polypropylene (PP), and other petrochemical products.

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Styrene monomer (SM) prices march higher in Asia, said Polymerupdate.

On Tuesday, SM prices journeyed northward in the Asian region. An industry source in Asia informed a Polymerupdate team member, “Prices rose on account of higher upstream benzene prices coupled with bullish buying sentiments in the region.”

On Tuesday, FOB Korea SM prices were assessed at the USD1 130-1 140/mt levels, an increase of USD (+15/mt) from Monday’s assessed levels.

CFR China SM prices on Tuesday were assessed at the USD1 140-1 150/mt levels, a gain of USD (+15/mt) from Monday.

Meanwhile, upstream benzene prices on Tuesday were assessed at the USD1 020-1 030/mt FOB Korea levels, a day on day rise of USD (+20/mt).

We remind, China has extended anti-dumping duties (ADD) on styrene imports from South Korea, Taiwan and the US for another five years. The news comes two months after South Korea, until recently a net exporter of styrene, launched an anti-dumping investigation into styrene imports from mainland China.

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Qingdao Haiwan is likely to take off stream its Polyvinyl chloride (PVC) plant in Shandong, said Polymerupdate.

A Polymerupdate source in China informed a team member, “The plant is likely to be shut for a partial maintenance turnaround in July 2024. The exact date and duration of the shutdownof the plants with a total capacity of two lines of 800,000 tonnes per year (400,000 tonnes).could not be ascertained."

It was previously reported that the company launched a second PVC line at a plant in Shandong province at the end of September last year.

Qingdao Haiwan Group (formerly known as Qingdao Soda Industry) mainly produces chemical products including soda ash and fertiliser. Its parent company, Qingdao Hiwin Group, is an integrated chemical and building materials manufacturer.

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