Merck KGaA joins forces with Siemens to advance digital transformation agenda

Merck KGaA said it has signed a memorandum of understanding (MOU) with Siemens AG to expand cooperation in smart manufacturing and outline the next steps for both companies, said Chemweek.

The MOU makes Siemens a preferred global supplier and strategic partner for smart manufacturing technologies, paving the way for transformative projects across Merck's three business sectors, the company said.

The digital transformation of manufacturing, smart manufacturing, is at the core of Merck’s digital transformation agenda, the company said. “The MoU introduces a centralized governance structure to streamline decision-making and a contractual framework to fast-track the partnership agreement, opening doors to new business opportunities and industry-leading advancements,” it said.

The Siemens Xcelerator platform is central to this partnership, Merck said. It will provide Merck with software and hardware solutions, enhancing the company’s digital transformation efforts, Merck added.

“One key element is modular production based on the plug & produce principle. This approach allows individual process modules to be added, removed, or reconfigured with ease, significantly reducing the time to market, lowering investment costs, and cutting CO2 emissions. The collaboration seeks to drive innovation, reduce complexity, and create growth for both companies,” according to Merck.

We remind, Merck announced the sale of its Surface Solutions business to Global New Material International Holdings (GNMI; Liuzhou, China) for EUR665 million. The transaction is expected to close in 2025, subject to regulatory approval.

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Dow Inc. said Sept. 12 that it expects third-quarter operating EBITDA to be approximately USD1.3 billion, about 15% below the consensus estimates reported by S&P Capital IQ, said the company.

It cited an unplanned event at one of its ethylene crackers in Texas, coupled with higher input costs and margin compression in Europe. Dow now expects its third-quarter revenue to be around USD10.6 billion, roughly 4% below the guidance issued in late July.

Despite these headwinds, Dow noted that improved North American pricing and feedstock costs in its packaging and specialty plastics segment have provided some relief.

“As we look to the fourth quarter, we expect typical seasonality in demand,” said Jim Fitterling, Dow chair and CEO. “However, we anticipate a positive impact from lower turnaround costs, higher operating rates as we ramp up our Texas cracker, and fewer weather-related events in the U.S. Gulf Coast. We remain focused on maintaining our operating and financial discipline while executing on our long-term growth levers.”

Fitterling is scheduled to participate in a fireside chat today at 11:45 a.m. ET during the 12th Annual Morgan Stanley Laguna Conference. Dow shares were trading at USD49.61 per share at 10:00 a.m. ET on Sept. 12, down 2.2%.

According to the results of the second quarter, net profit of the American chemical company Dow decreased by 8.6% and amounted to USD458 million, or 62 cents per share, compared with USD501 million, or 68 cents per share, for the same period of the previous year.

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Braskem SA (Sao Paulo) has launched bio-circular polypropylene (PP) derived from used cooking oil under the brand name Wenew, the company announced Sept. 16, said Chemweek.

Braskem said the material is produced by supply chain partners using ISCC Plus-certified bio-circular propylene.

In January 2023, the company announced that it was considering whether to build its own US facility for the production of bio-based PP. That project is still in the works. “Braskem is actively evaluating the project to produce the world’s first bio-based PP in the US on an industrial scale to support our ambitious sustainability objectives and deliver tangible solutions to our clients,” a company spokesperson told CW.

“Our bio-circular PP is currently being supplied to various converters which support the Quick Service Restaurant [QSR] industry,” said Bill Diebold, vice president/America polyolefins at Braskem. “Ideal users include QSR chains, retail food suppliers, traditional restaurants, and snack food companies especially those seeking to enhance circularity from their cooking oil usage.”

We remind, Braskem improved its financial performance in the second quarter, with growth in all operating segments, but its net loss increased more than fourfold due to the weak national currency. The recurring EBITDA indicator, which is earnings before interest, taxes, depreciation and amortization, jumped by 137% to R$1.667 billion (EUR277 million).

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HPCL-Mittal Energy Ltd. (HMEL; Noida, India) has restarted its polyethylene (PE) production facility in Bathinda, Punjab state, after reporting a shutdown due to technical issues on Aug. 16, said Chemweek.

”We have restarted operations at the Bathinda plant after the shutdown and gradually production of all PE grades will resume,” the company official said to Commodity Insights.

Responding to whether the plant stoppage for over 15 days affected PE supply in the Indian market, the source said to Commodity Insights that due to availability of sufficient inventory at the domestic producer, the supply of PE grades was not much impacted.

The market trend also did not reflect upward pressure on prices due to tighter supply during the shutdown period.

A trading source said tightness in PE supply was likely in the coming days as it could take a while before HMEL restarts production of all PE grades manufactured at the facility, including high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE).

The HMEL facility in Bathinda has PE capacity of 1.25 million metric tons per year, the company source said. HMEL remains a major supplier of HDPE and LLDPE grades in the Indian market.

HPCL-Mittal Energy is a joint venture between state-owned unit Hindustan Petroleum Corp Ltd and Mittal Energy Investments Pte Ltd (Singapore).

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South Korea’s butadiene imports stood at 33,595 metric tons in August, down 23% month on month but jumped 141% year on year, according to the latest data released by the Korea Customs Service.

South Korea’s butadiene imports dropped amid a limited influx of deep-sea cargoes, while imports from Southeast Asia also declined. South Korea’s butadiene imports from Saudi Arabia and the US were both zero compared to 5,229 metric tons and 7,664 metric tons, respectively, the data showed.

Meanwhile, South Korea’s butadiene imports from Southeast Asia fell 31% on the month to 15,158 metric tons, the customs data showed.

South Korea’s butadiene exports in August fell 15% on the month but rose 32% on the year to 24,776 metric tons, the customs data showed.

So far in 2024, South Korea remained a net butadiene importer. During January–August, South Korea imported a total 231,988 metric tons of butadiene, higher than 205,287 metric tons exported during the same period, the customs data showed.

South Korea used to be a butadiene exporter but turned into an importer in 2023, as the imports came more than 119,353 metric tons compared to exports, amid rise in supplies from China, the customs data showed.

It was previously reported that in 2023, the volume of the ABS plastics market in Russia amounted to 50.2 thousand tons, with about 65% of these materials imported. The share of Asian countries in imports reached 99%: South Korea accounted for 57%, China - 27%, Taiwan - 15%. Imports from China grew the most: about 9 times compared to 2021.

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