Starlinger wins patent infringement lawsuit in China

Starlinger & Co Gesellschaft m.b.H., machine manufacturer based in Vienna, Austria, with production plants in Austria, Germany and China, sued Chinese machine manufacturers and their customers (packaging producers) based on infringement of several of Starlinger’s patents, said the company.

The legal proceedings have been settled with strict obligations for the machine manufacturers. “Only the best are copied, as the saying goes. However, this is little consolation if it has economic consequences for innovative machine manufacturers like us”, said Harald Neumuller, CSO of Starlinger. “Starlinger is strong in research and development. This ensures our technological leadership. Due to plagiarism, novel technologies have to be brought to market faster and faster in order to maintain a technological lead. Patents protect our developments and enable us to sell innovative machines over a period of time. It is therefore a great and important success that we were able to enforce our claims and the machine manufacturers had to stop producing and selling the copied machines. Intellectual property rights are to be respected.”

The out-of-court settlement was reached in the course of lengthy proceedings before both a civil court and a court specialized in intellectual property in China. The machine manufacturers in question confirmed the patent infringements and immediately ceased production and sales of the copied machines. Customers of such machine manufacturers can be sued, too-after all, as purchasers and users of copied machines they are considered as patent infringers as well. In the present case, the machine is a replica of the 'ad*starKon" sack conversion line for producing woven plastic sacks marketed under the brand name 'AD*Star'; Starlinger holds several patents on this line. Many packaging producers, especially in Asia, use Starlinger’s "ad*starKon" conversion lines to manufacture "AD*Star" block bottom valve sacks made of polypropylene tape fabric for the cement and construction industries, but also for other dry bulk goods such as rice, flour or chemical granulates.

“We see that our legal action against copyists and users of copied technologies in China, but also in other countries, is showing effect, and we expect people will refrain from misappropriating intellectual property in future. By this, we are not only protecting ourselves from plagiarism, but consequently also our customers and their markets where they sell high-quality products manufactured on our machines”, Neumuller added.

We remind, The Belarusian company "Multipak" (Gomel) has launched the production of rigid films based on polyethylene terephthalate (PET). The maximum capacity of the line is 1.9 tons per hour. The new line is equipped with a "hot lamination" station, which allows the production of both medium-barrier films and films with high barrier properties. The equipment was supplied by the Austrian company Starlinger.

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Versalis SpA will close two steam crackers and a polyethylene (PE) plant in Italy under a €2 billion transformation and decarbonization program announced by the company’s parent Eni SpA on Oct. 24.

The crackers are at Brindisi and Priolo, and the PE unit is at Ragusa. The closures will facilitate the construction of new plants “consistent with the energy transition and decarbonization of industrial sites across sustainable chemistry, as well as biorefining and energy storage,” Eni said.

The timing of the cracker and PE closures has not been provided, but Eni said it aims to implement the Versalis transformation plan fully by 2029. “To enable the construction of the new plants, activity at the cracking plants in Brindisi and Priolo, and the polyethylene plant in Ragusa, will be phased out,” Eni said.

The planned €2 billion investment in Versalis forms part of Eni’s strategic plan for 2024-27, which the company unveiled in September. The investment aims to reduce emissions by approximately 1 million metric tons of CO2, about 40% of Versalis' total emissions in Italy.

The new Versalis facilities will make “renewable, circular and specialized products, growing markets in which Versalis has acquired a leading position,” Eni said. They will “significantly reduce Versalis' exposure to basic chemicals, a sector that is facing structural and irreversible decline in Europe,” Eni said. The decline has led to losses of about €7 billion at Versalis in cash terms over the last 15 years, of which €3 billion were in the last five years, Eni said.

“By the end of the process, the transformation will support a positive impact on employment, counteracting the impacts of inevitable negative consequences that the structural and consolidated crisis of the [petrochemical] sector in Europe would have on employment,” Eni said.

The planned relaunch of Versalis follows a shift of Eni’s oil refining business into biorefining, the company said. Following its transformation, Eni said it would aim to focus Versalis on “a high-value downstream portfolio comprising compounding and specialized polymers, biochemistry and products from the circular economy, which will be consistent with Eni's technology-driven strategy focused on energy transition businesses with competitive advantages.”

Versalis will have a new corporate structure that will be developed in alignment with a satellite model. It will consist of biochemicals, including the Novamont subsidiary; downstream, with the acquisitions of Finproject and Tecnofilm; circularity, through the development of chemical and mechanical recycling; and basic chemicals, resulting from rationalization and repositioning in polymers.

Eni will provide further details of the plans with its third-quarter results presentation on Oct. 25.

The Brindisi cracker has an ethylene capacity of 490,000 metric tons per year and propylene capacity of 255,000 metric tons per year, and the Priolo cracker has an ethylene capacity of 490,000 metric tons per year and a propylene capacity of 275,000 metric tons per year, according to S&P Global Commodity Insights. The Ragusa unit can produce 160,000 metric tons per year of low-density PE (LDPE), according to Commodity Insights. Versalis also closed a cracker at Porto Marghera, Italy, in 2022 as part of Eni’s biorefining shift.

Meanwhile, at the end of 2023, LyondellBasell Industries NV closed a polypropylene plant at Brindisi that received propylene from the Versalis cracker.

Versalis produces high-density and linear low-density PE at Brindisi, and it makes LDPE at Ferrara, Italy, according to Commodity Insights.

Two cracker closures have been announced already in Europe this year, to address the structural decline in petrochemicals. ExxonMobil announced that it would end olefins production at Notre-Dame-de-Gravenchon, France, and Sabic announced the closure of an olefins plant at Geleen, Netherlands. The moves will result in the shutdown of 995,000 metric tons per year of ethylene capacity in total.

Commodity Insights estimates that an additional 1-2 million metric tons per year of ethylene capacity needs to be closed in Europe to lift regional cracker operating rates from 75% currently to about 90%, boosting profitability.

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Dow Inc. posted slight growth in sales and operating income in the third quarter, noting modest volume growth overall, said the company.

Higher margins in packaging and specialty plastics more than offset declines in industrial intermediates and infrastructure as well as the performance materials and coatings segment.

The company also announced today it is conducting a strategic review of some assets in Europe, particularly the polyurethanes business.

Reported net income for the quarter was $240 million, down 27% from the prior year due mainly to restructuring charges. Operating EBIT was $641 million, up 2% year on year. Dow reported third-quarter net sales of $10.9 billion, a 1% increase from the same period last year. This growth was primarily driven by higher sales in the U.S. and Canada.

"Dow delivered our fourth consecutive quarter of year-over-year volume growth, while managing ongoing macroeconomic softness and an unplanned cracker outage in Texas," said Dow chairman and CEO Jim Fitterling. "Our cost-advantaged footprint in the Americas continues to provide a strong competitive edge, enabling Dow to capture demand growth in attractive markets. However, a meaningful recovery has yet to materialize in Europe and China."

Reported adjusted earnings were 47 per share, down 1 cent from year-ago period and in line with consensus estimates.

Volume increased 1% compared to the year-ago period, driven by gains in performance materials and coatings. Local price was flat year-over-year, as gains in the packaging & specialty plastics segment were offset by decreases in performance materials & coatings.

The packaging & specialty plastics segment posted third quarter net sales of $5.5 billion, up 1% year-over-year. Operating EBIT was $618 million, up 30% year on year driven by higher integrated margins despite an unplanned cracker outage in Texas. Segment volume was flat year-over-year, as higher demand for functional polymers was offset by lower polyethylene volumes

Industrial intermediates & infrastructure segment sales were $3.0 billion in the quarter, a 2% decline from the same period last year. The segment reported an operating EBIT loss of $53 million, compared to a year-ago gain of $21 million, impacted by higher planned maintenance and lower integrated margins. Segment volume was down 2% year-over-year, driven by lower volumes in polyurethanes & construction Chemicals, primarily from a force majeure in MDI following a third-party supplier outage

Performance materials & coatings segment posted net sales of $2.2 billion, up 4% from the prior-year quarter. Operating EBIT decreased 22% year-on-year to $140 million, due to higher raw material costs. Volume was up 5% year-over-year, driven by gains in both businesses and all geographic regions

Dow continues to see “muted demand across some end markets and regions, with the greatest pressure in Europe and China," said Dow CFO Jeff Tate. "Global manufacturing PMI has been decelerating over the past 3 months, and consumer spending remains pressured by persistent inflation. That said, we're monitoring the impact of rate cuts in the U.S. and Europe as well as recent stimulus plans in China to boost economic activity, which could provide some positive momentum for 2025."

The outlook by sector continues to vary, he added. "We would expect packaging and specialty plastics overall to probably be a little faster to return to mid-cycle [conditions]," Tate said. "We continue to see pretty resilient and robust activity in packaging, whether it be domestic demand here in in North America and pretty robust exports." Industrial, energy, and consumer electronics segments are also more resilient, he added. "Those are the areas that we would expect to see mid-cycle turns occur somewhat sooner than we would expect to see it in some of the more interest rate-sensitive sectors and applications such as housing, building and construction, and consumer durables."

We remind, in the second quarter of 2024, Dow's net profit decreased by 8.6% compared to the same period last year, to $458 million. The concern explained this by a decrease in the profitability of the packaging and specialty plastics business. The second reason is the increase in maintenance costs. The concern's revenue for the quarter exceeded $10.9 billion, which is 4% less compared to the second quarter of 2023.

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The chemical company BASF is strengthening its styrene value chain at the Ludwigshafen site and expanding the production capacity for Neopor by 50,000 tons per year, said the company.

The additional quantities are intended to meet the growing demand for the gray insulation material on the market. The new production facilities are scheduled to go into operation in early 2027.

Neopor is the graphite-containing, expandable polystyrene (EPS) developed by BASF, which is used as a raw material granulate primarily for the production of energy-efficient insulation materials for building envelopes. "Neopor is classified as a pioneer in the highest category within the Triple S (Sustainable Solution Steering) sustainability assessment method, which BASF uses to assess all of its products, and is part of BASF's 'Sustainable Future Solutions'," says Dr. Stephan Kothrade, member of the Board of Executive Directors and Chief Technology Officer of BASF.

The Group expects a sharp increase in demand for materials for the energy renovation of buildings in the coming years. The European Union wants to make the European building sector climate-neutral by 2050. In order to achieve this goal, the implementation of the European Energy Performance of Buildings Directive (EPBD) in all EU member states places high demands on improving the energy efficiency of buildings.

Earlier, it was reported that BASF completed a global upgrade of production capacities at its superabsorbent polymer (SAP) plant in Freeport, Texas, worth USD 19.2 million. The project allowed to increase production volumes and improved rail logistics.

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India is expected to receive investments worth USD87 billion in the next decade to meet the nation's rising demand for petrochemicals, the country's oil minister Hardeep Singh Puri said, as per Reuters.

"As more citizens enter the middle class, the demand for a diverse range of products, many of which are derived from petrochemicals, is set to rise significantly," Puri said at the India Chem 2024 event in Mumbai.

He said India's per capita petrochemical consumption is far below developed nations, which offers opportunities of higher investment in the sector.

India consumes 25 to 30 million metric tons of petrochemical products annually, and the chemical and petrochemicals sector, currently valued at USD220 billion, is expected to grow to USD300 billion by 2025, Puri said.

India, China and the Middle East have been developing domestic petrochemical production to provide tailwinds to decades of oil refining, even as the world looks to switch to cleaner energy sources.

India's petrochemicals production is projected to increase from 29.62 million tons to 46 million tons by 2030, he said.

In February 2024, it was reported that Indian Nayara Energy intended to double the capacity of its oil refinery in Vadinar, Gujarat, northwest India. Rosneft owns 49.13% of the company.

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