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Speciality Chemicals28-Jan-2025
LONDON (ICIS)–The credibility that central
banks have built up over the last few years has
helped to contain the surge in inflation, but
their capacity to calm markets could erode in
the event of unexpected fresh challenges.
Despite their importance, central banks
traditionally have very few options to
influence the economy, essentially boiling down
to a lever that monetary policy committees can
push up or down to move interest rates.
The development of unconventional monetary
policy, such as the European Central Bank’s
campaign of buying up risky sovereign debt and
company securities, expanded that toolkit to an
extent.
That asset-backed securities purchase scheme
has been discontinued since July 2023 and in
general the options available to central banks
are far more limited than their prominence in
global markets over the last few years would
indicate.
SURGE AND CONTAINMENT
Through the post-pandemic inflation surge,
central banks have had the task of bringing
down levels, first through hiking interest
rates, then attempting to bring those rates
down without sparking a fresh surge in
inflation.
This task, of shifting from almost non-existent
inflation for most of the post-financial crisis
period to levels of over 10% in just over a
year, was further complicated by the strange
dynamics of that surge.
Despite the ECB’s main refinancing rate rising
from zero to 4.5%, and the US Federal Reserve’s
key rate rising to over 5% in a highly
compressed time period, wage and job growth
continued to grow, in turn making inflation
more stubborn.
The disinflationary period that followed has
also proven volatile, as rates tick up and down
and raw material costs stay high despite weak
industrial growth
Despite this volatility, central banks have
been successful so far at slowly bringing down
rates.
This progress may be slower than market players
had hoped, with 2024 turning into 2025
potentially turning into 2026 without any
substantial uptick in global economic growth or
industrial demand. But the overall trajectory
of bringing down inflation and cutting rates
has been steady so far.
The success so far has helped to maintain
central bank credibility, as the sense that
monetary policy committees have some degree of
control over the situation helps to prevent
market panics and any wider sell-offs.
“One of the great achievements in that
inflation episode we’re just coming out of is
the fact that inflation expectations remained
very well anchored in most countries in the
world,” said IMF chief economist Pierre-Olivier
Gourinchas at a press conference this month.
“Central banks were able to rely on the
credibility that they had accumulated over the
years and convince households and businesses
that they would not let inflation run away,” he
added.
PRESSURES GROWING
AGAINDespite central bank
success at bringing down interest rates without
substantially reigniting inflation, rates have
been slowly creeping up in some markets.
Eurozone inflation firmed for the third
consecutive month in December to 2.4%,
driven in part by higher energy costs that have
only increased into 2025.
Input cost increases are also intensifying,
with inflation intensifying at the highest rate in 21
months for the eurozone, despite only
moderate service sector growth and continued
recessionary conditions for manufacturing.
The UK, similarly, is currently in danger of
entering a phase of “stagflation”, where
inflation remains high despite stagnating or
falling growth. China is a different picture,
with inflation low and input prices continuing
weak.
The US, which continues to outperform Europe
economically and saw manufacturing sector
output return to growth in January, has also
experienced another month of firmer input costs
and the highest rate of goods price inflation
in 10 months.
TARIFFSThere is also the
question of the impact tariffs will have on
global inflation trends. Governments are
increasingly adopting protectionist measures
such as anti-dumping duties to safeguard
domestic industries.
The new US administration has also promised
fresh tariffs. These have failed to materialise
at the rate initially expected, with levies on
Canada and Mexico absent from inauguration day
announcements, and little mention of Europe.
US President Donald Trump has signalled
willingness to deploy tariffs quickly as
situations evolve, imposing then revoking
emergency measures on Colombia late last
weekend, and calling on Monday for 25-100% on
Taiwan-made semiconductors.
Trump has also called for the Federal Reserve
to move faster in bringing down rates, although
there is no indication at present that the
bank’s monetary policy committee intends to
comply.
CREDIBILITY SHOCKS
Central bank credibility through the gauntlet
of market shocks seen in the last five years
has been maintained through providing the
impression of having a grasp of market
movements and how to control them.
There is a danger, Gourinchas noted, that the
effort expended to keep a grip on the market so
far, in the face of continuing volatility of
inflation and a weak economic recovery, may
have eroded central banks’ “credibility
capital”.
“If we were to have a new sequence of increase
in price pressures… under some of the risks
that would be associated with… expansionary
policies in some parts of the world or some
supply-constraining policies, then that capital
may be eroded,” he added.
If hotter pricing conditions and chilly growth
rates continue to flow through the west, then
there is a danger that inflation expectations
could become de-anchored, Gourinchas said. This
could result in businesses and households
becoming more cautious in general, and quicker
to take fright at negative market signals.
“Households, people, businesses may be very,
very cautious and very reactive in adjusting
their prices and their inflation expectations
going forward. That would make the task
of central banks much more difficult,”
Gourinchas said.
“In this environment, monetary policy may need
to be more agile and proactive to prevent
expectations from de-anchoring, while
macro-financial policies will need to remain
vigilant to avoid a build-up of financial
risks,” he added.
So far, central banks have more or less managed
to plot a steady course through a narrow strait
as they gradually unwind interest rate highs
and inflation holds close to target. But, with
growth continuing slow, inflation pressures
intensifying dramatically and the potential for
major policy shifts, the path to bringing down
interest rates while maintaining market
credibility only gets more treacherous.
Insight by Tom Brown
Speciality Chemicals28-Jan-2025
BARCELONA (ICIS)–Women are under-represented
in the chemical industry and companies are
missing the benefits diversity brings to
leadership teams.
It could take 50 years for women to achieve
gender equality
Women under 30 have closed the gender pay
gap
But inequality increases at more senior
levels
Burn out is a major problem for female
executives
Companies with diverse workforces
out-perform
Women deterred from choosing roles which
are male-dominated
Chemical industry only has 30% female
workforce globally
More flexible working arrangements very
important
Women in Chemicals aims to help females
achieve their ambitions
In this Think Tank podcast, Will
Beacham interviews Kylie
Wittl and Amelia
Greene, co-founders of Women in
Chemicals and ICIS chief strategy officer,
Alison Jones.
Editor’s note: This podcast is an opinion
piece. The views expressed are those of the
presenter and interviewees, and do not
necessarily represent those of ICIS.
ICIS is organising regular updates to help
the industry understand current market trends.
Register here .
Ethylene28-Jan-2025
SAO PAULO (ICIS)–Brazil’s chemicals
distribution sector posted healthy activity in
2024 as manufacturing finally gained traction,
but conditions are set to worsen in 2025 amid
high inflation, high borrowing costs, and a
government too prone to spend, according to the
CEO at Brazilian chemicals distributor Activas.
Laercio Goncalves added that he was not too
concerned about the prospect of US tariffs on
Brazilian goods – credit ratings agency Moody’s
forecasts by mid-2025 the US is will impose a
5% general tariff on them – although he
lamented “the world is becoming more closed”
and protectionist.
Activas employes 150 workers at eight Brazilian
sites. In 2024, it posted sales of Brazilian
reais (R) 700 million ($118 million).
Goncalves said the company is looking to expand
by starting up a ninth distribution facility in
Brazil’s south, where it already has a
considerable presence with six out of its eight
distribution facilities.
Headquartered in Sao Paulo, Activas operates in
that state its main facility in Maua and a
smaller one in Sao Bernardo do Campo. Four more
distribution facilities are in the country’s
southern industrious states: Duque de Caxias
(main petrochemicals hub in Rio de Janeiro
state), Joinville (Santa Catarina), Caxias do
Sul (Rio Grande do Sul), and Ibipora (Parana).
In the country’s north, Activas operates two
facilities in Cabo de Santo (Pernambuco) and
Maceio (Alagoas).
Activas sales
2024
2023
2022
2021
In million R
700
700
750
1,000
‘REALISTIC
TARGET’Goncalves remains
committed to bringing Activas back to the R1.0
billion sales mark it posted in 2021, when
chemicals prices shot up in the aftermath of
the pandemic-induced lockdowns.
He said he is confident the company can achieve
that within a few year, but the CEO recognized
that the 2021 sales figure was much about
inflated prices and not much about actual
larger volumes.
“We already reached that level of sales [R1.0
billion] during the pandemic, so this is a
realistic goal. For 2024, we had made a
conservative business plan and indeed Q1 2024
was a very complicated quarter. At the time, a
year ago or so, we were quite pessimistic:
economic policy changes at home, wars abroad…
everything was skewing the risks downside,”
said the CEO.
“So, after drawing up that rather conservative
forecast for 2024, we started working
internally on how to increase profitability.
Sometimes it was reducing volumes of certain
products while focusing on the most profitable
lines, and by working operationally like that
we managed to turn the year around – the second
and third quarters were very good.”
Activas, like other Brazilian distributors such
as Quimica Anastacio, were able to ride on the
manufacturing bonanza in Brazil in 2024, which
together with booming agriculture and healthy
services propelled GDP growth to around 3.5%.
In 2023, GDP had grown by 3.2%.
For 2025, Activas expects its sales could grow
above the average growth of 2% expected by the
Brazilian chemicals industry overall.
BRAZIL: WRONG WAYWhile
admitting that Activas and the industry’s
performance in general sharply improved in the
past two years, which coincided with the first
two years of President Luiz Inacio Lula da
Silva’s term, Goncalvez leaves no doubt he is
not keen on a government he perceives as high
spending and too interventionist.
“A left-wing government… overtaxes. It puts
the businessman against the wall all the time,”
he said, adding that the cabinet should be more
focused on propping up industrial investments,
rather than tax them.
However, Goncalves not only shows
disappointment at Lula economic policy, he
widens the criticism to the country’s
industrial investment strategies over the past
50 years – or, rather, the lack of them.
Activas’ CEO, despite all the criticism, also
gave overriding support to the key measure
affecting Brazilian chemicals in 2024, which
came from a protectionist measure: the increase in import
tariffs for dozens of chemicals, mostly of
them from 12.6% to 20%, in October, which are
expected to greatly prop
up domestic producers’ earnings.
“Import tariffs in Brazil were a highly
relevant topic in 2024 and are expected to
continue impacting the market in 2025,
especially with the application of ADDs
[anti-dumping duties] due to oversupply and
dumping practices by China. These measures have
a positive side, as they protect the national
industry, benefiting both producers and local
distributors,” said the CEO.
“In the case of Activas, higher import tariffs
strengthened our positioning in the domestic
market. On the other hand, as we also import
some product lines, such as ABS [acrylonitrile
butadiene styrene] and PET [polyethylene
terephthalate], some of these measures may
bring specific challenges to our operation.”
Goncalves said he had also good eyes to the
possibility of Braskem’s Novonor controlling
stake to be
acquired by a consortium of Brazilian
banks, with involvment of the country’s
state-owned investment bank Bndes, as it would
reinforce the Brazilian chemicals industry
overall as well as its global footprint.
“As direct partners [Activas is one of
Braskem’s official distributors in Brazil], we
view this change positively, as we believe that
the government’s presence can bring stability
and foster strategic investments in areas such
as technology and sustainability, benefiting
the entire production chain,” said Goncalves.
“In addition, this perspective strengthens the
competitiveness of the local industry, creating
opportunities for innovation and the
development of solutions aligned with the
demands of the domestic and foreign markets. We
are confident that, with solid governance and a
long-term vision, Braskem will continue to play
an essential role in the growth of the
industry.”
PROTECTIONISM ON THE
RISEWhile on the one hand
Goncalves admitted protectionism is back in the
agenda like never before in the past 70 years,
he was glad to see public opinion and policy
makers delve into “Important discussions” about
what industrial fabric countries are willing to
have and willing to support in times of global
oversupply for many industrial goods.
And, once again, the Activas CEO leaves no
doubt about his political preferences from the
perspective of businesses and who, in his view,
would contribute to a more thriving economy.
“Current global trade policies reflect a
changing scenario. The new wave of
protectionism, driven by leaders like Trump,
has brought to the fore important discussions
about the search for a balance between
protecting national interests and maintaining
global trade flows,” said Goncalves.
“We maintain a positive view of these changes.
We are seeing a weakening of the left in many
regions, which paves the way for economic
policies that are more aligned with growth and
competitiveness.”
MANAUS: UNRESOLVEDSince
ICIS last interviewed Goncalves in 2023, he
said nothing has improved regarding Brazilian
chemicals companies’ complaints about imports
entering the country via the Free Economic Zone
of Manaus, in the northern state of Amazonas.
The concerns are shared by production and
distribution sides alike.
Manaus, the state’s capital, created a Free
Zone in the 1960s to prop up development there,
and taking advantage of the region’s waterways.
However, many of the imports entering via
Manaus are not directed to manufacturing in
Amazonas itself but are just re-packaged and
sold on.
In theory, the tax incentives resulting from
the Free Zone would only apply to imports which
are later transformed in the region to produce
Brazilian goods, creating employment and income
for the state coffers.
In practice, many of the imports are sent south
to the industrial hubs of Sao Paulo, Rio Grande
do Sul, or Rio de Janeiro, without paying the
due taxes.
“The Manaus free trade zone represents an
entrenched economic anomaly in Brazil, where
decades of improper product imports have become
normalized despite repeated political attempts
at reform,” said Goncalves.
“Previous Federal governments’ attempts at
reform were decisively blocked [the state of
Amazonas has the exclusive right over the free
zone], underscoring the zone’s significant
political protection.
“With tax gains approaching 30%, the economic
incentives for maintaining the status quo
remain overwhelmingly strong, rendering
meaningful reform seemingly impossible despite
clear systemic irregularities.”
This interview took place at Activas’ offices
in Sao Paulo last week.
Interview article by Jonathan
Lopez
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Gas28-Jan-2025
Baltic states to conduct preliminary island
test before February synchronization
Kaliningrad can operate in isolation after
Baltic states unplug from Russian grid
Exclave has abundant sources of Russian gas
LONDON (ICIS)–EU electricity prices are
unlikely to increase after the synchronization
of the Baltic countries with the European
continental area, scheduled for February 9.
Estonia, Latvia and Lithuania are scheduled to
unplug for good from the Belarussian and
Russian integrated system, also known as BRELL,
and connect to the
ENTSO-e continental area after a short
preliminary test in the first half of February.
Speaking to ICIS, Susanne Nies, energy expert
at Helmholtz Zentrum Berlin, a Germany-based
think tank, said there will be very limited
commercial exchanges between the three
countries and Poland as the synchronization
will be primarily technical in a first stage.
Furthermore, the three countries are already
connected with each other as well as Sweden and
Finland via back-to-back lines.
On 9 February, the 1GW LitPol double
circuit lines connecting Lithuania to Poland
will switch from island direct current mode to
an alternating current regime and the Baltic
countries will synchronize with the rest of
Europe via Lithuania.
The LitPol high-voltage line will be backed up
by a new interconnector operating in
synchronous mode that is scheduled to be
completed by 2030.
For now, commercial exchanges will be very
limited, which means prices will not increase
on either side of the LitPol interconnector.
RISKS
Nies, however, warned of possible incidents in
the run-up to the synchronization and said that
recent attacks on subsea infrastructure
including on EstLink-2 a power cable connecting
Estonia to Finland by a vessel belonging to
Russia’s shadow fleet may be linked to the
upcoming European grid synchronization.
Just like Ukraine, which unplugged from the
Russian system hours before the start of
the all-out war in February 2024, the Baltic
countries fear disconnection from the former
Soviet grid will bring reprisals from the
Kremlin, she said.
KALININGRAD SUPPLIES
The countries will also disconnect from the
Russian Kaliningrad exclave, which will be
operating as an isolated system from now on,
Nies told ICIS.
She said the exclave relies on four thermal
power plants including three operating on
natural gas and one on coal. Nies also added
that the exclave is supplied with a transit
pipeline entering Kaliningrad via the Sakiai
border point with Lithuania.
According to ICIS compiled data, Russia
delivered 2.3bcm via this route and can also
deliver LNG to the Marshal Vasilevskiy FSRU
berthed in the Baltic Sea, which has a total
regasification capacity of 5bcm/year.
The FSRU can be supplied from the Portovaya
liquefaction plant, northwest of Saint
Petersburg. The plant was recently included in
a comprehensive sanctions package issued by the
US Treasury.
ICIS senior analyst Alex Froley said,
“theoretically, now that Portovaya has been
sanctioned, Russia could send the Portovaya
cargoes across the Baltic into the FSRU, or the
Vasilevskiy could make trips to Portovaya and
back again. If they were to lose the pipe
flows, they could use the FSRU”.
Nies said Russia had also built storage
capacity in Kaliningrad, which should give the
exclave an extra layer of protection.
“They had conducted yearly successful
island mode tests in recent years and have all
the necessary electricity and gas capacity to
operate in isolation once the Baltic
synchronization is complete,” she said.
Crude Oil28-Jan-2025
LONDON (ICIS)–New commercial vehicle
registrations in the EU increased by 5.5% in
2024, with trucks the only segment posting a
decline, according to the latest figures from
the European Automobile Manufacturers’
Association (ACEA).
New EU van sales increased 8.3%, at 1,586,688
units, led by positive growth in all four key
markets. Spain led with a 13.7% rise, followed
by Germany at 8.4%, France at 1.1% and Italy at
0.9%.
In contrast, new truck registrations fell 6.3%
in 2024, at 327,896 units. This included an
8.5% drop in heavy-truck sales which was
partially offset by a 5.6% increase in
medium-truck registrations.
Of the four major markets, Germany (-6.9%),
France (-2.9%), and Italy (-0.7%) saw declines,
but Spain recorded a 12% increase.
New bus sales rose by 9.2% in 2024 at 35,579
units. Italy recorded 26.7% growth, Spain saw a
10.3% increase and France grew by 2.2%.
However, Germany saw a 2% decline.
The latest data shows that sales of EU
commercial vehicles in 2024 was stronger than
that of passenger cars, which only increased by
0.8%
for the full year.
DIESEL STILL THE MAIN
OPTIONDiesel remain the
preferred choice for EU van buyers in 2024,
with registrations rising by 10.5% to 1,340,003
units. This saw the market share for diesel
vans increase by 1.7 percentage points to
84.5%.
Petrol vans saw an increase of 3% to stabilize
at a 6% market share. However, sales of
electrically chargeable vans declined 9.1%,
which saw the market share fall to 6.1% from
7.2% in 2023. Hybrid-electric van sales fell by
4.8%, accounting for just 2% of the market.
Diesel trucks continued to dominate in 2024,
making up 95.1% of new EU registrations,
despite a 6.2% decline in sales. Electrically
chargeable truck registrations fell by 4.6%,
with market share stable at 2.3% compared with
2023.
New electrically chargeable bus registrations
rose by 26.8% in 2024, and market share
increased from 15.9% to 18.5%. In contrast,
hybrid-electric bus sales fell by 16.1%, with a
9.8% share. Diesel bus registrations grew by
11.1%, increasing market share to 63.1%, up 1
percentage point on 2023.
thumbnail photp source: Shutterstock
Petrochemicals28-Jan-2025
MUMBAI (ICIS)–India has initiated an
antidumping investigation into imports of
polyvinyl chloride (PVC) paste resin from the
EU and Japan.
In a notification on 24 January, the country’s
Directorate General of Trade Remedies (DGTR)
said the probe was in response to a complaint
from domestic producer Chemplast Sanmar Ltd.
Chemplast and Finolex Industries are the only
domestic producers of PVC paste resins.
The ADD investigation will cover 18 months from
1 April 2023 to 30 September 2024, while the
injury investigation period will be three
fiscal years from April 2020 to March 2023.
India’s fiscal year ends in March.
It is expected to last one year, with
preliminary findings usually made within 60 to
70 days from the start of the probe.
In December 2024, the DGTR recommended
imposition of ADDs
of $89/tonne to $707/tonne on PVC
paste resin imports from China, South Korea,
Malaysia, Norway, Taiwan and Thailand for five
years.
PVC paste resin is usually mixed with
plasticizers and additives and used to create
various products including wallpapers,
automotive sealant, industrial coatings,
tarpaulins, adhesives, gloves and synthetic
leather.
Speciality Chemicals27-Jan-2025
SAO PAULO (ICIS)–Here are some of the stories
from ICIS Latin America for the week ended on
27 January.
NEWS
Colombia accepts
US terms for migrants’ deportations, fends off
25% tariff threat
Colombia became over the weekend the first
Latin American country to get a taste of
President Donald Trump’s immigration policy
mixed with unconventional diplomacy after the
country refused landing to two flights with
repatriated Colombian migrants.
INSIGHT: Trump executive
orders to revamp US energy and trade
policyBuckle your seatbelts.
US President Trump kicked off Day One with a
slew of executive orders that will completely
revamp energy and trade policy, with major
implications for chemicals and plastics.
INSIGHT: Argentina’s
chemicals, manufacturing could be collateral
victims of liberalization
pushArgentina’s cabinet
drive to shift the economy from staunch
protectionism into liberal bastion is
increasing fears among chemicals and wider
manufacturing players that the country’s
beleaguered industrial fabric is yet to suffer
further losses in output in coming years.
INSIGHT: Brazil’s
GDP to be hit by potential US tariffs; COP30
loses significant emitter
Brazil could be hit with US import tariffs of
5% by mid-2025, according to credit rating
agency Moody’s, while the Brazilian leading
role in climate negotiations in November will
be diminished as one of the largest carbon
emitters, the US, is absent from the talks.
Argentina’s manufacturing
output still falling but ‘expansionary phase’
starting overallArgentina’s
petrochemicals-intensive manufacturing output
continued falling in November, down 2.3% year
on year, but overall economic output rose while
consumer and business confidence is growing.
Brazil’s grain
harvest expected at record 322 million tonnes,
up 8%Brazil’s
fertilizers-intensive agricultural sector is
expected to produce 322.3 million of grains,
pulses, and oilseeds in the 2024-2025 harvest,
up 8.2% year on year, according to the National
Supply Company (Conab).
Mexico’s cabinet wants
Pemex to meet 80% of national fertilizers
demandThe Mexican government
continues putting high hopes on Pemex’s ability
to sharply increase its fertilizers output and
has suggested the state-owned energy major
produce as much as 80% of the country’s demand.
Brazil’s Petrobras to
start up ANSA fertilizer plant in H2
2025Petrobras will start up
its ANSA fertilizers plant in Araucaria, state
of Parana, in the second half (H2) 2025,
according to a spokesperson for the Brazilian
state-owned energy major.
German lubes maker Fuchs
forms JV with distributor Remsac in
PeruFuchs Group has
established a joint venture in Peru with local
distributor Remsac, the German lubricants
producer said on Friday.
Austria’s ALPLA to take
majority stake in Brazilian recycler Clean
BottleAustrian packaging
firm ALPLA aims to enter Brazil’s recycling
market by purchasing a majority stake
acquisition in high density polyethylene (HDPE)
recycler Clean Bottle, the company said on
Wednesday.
Brazil’s December lube
demand risesBrazil’s lube
demand rose in December for a ninth month on
the back of a jump in consumption of everything
from transformer oils to engine oils.
PRICING
Braskem-Idesa announces
February price increase in
MexicoBraskem Idesa is
seeking a price increase of $110/tonne on
high-density polyethylene (HDPE) and
low-density polyethylene (LDPE) as of 1
February, according to a customer letter seen
by ICIS.
LatAm
PP domestic, international prices increase in
Mexico on higher spot propylene
costsDomestic and
international polypropylene (PP) prices
increased in Mexico, tracking higher spot
propylene costs. In other Latin American
countries, domestic prices were unchanged.
LatAm
international LLDPE, HDPE prices steady to
higher on back of expensive US export
offersInternational linear
low density polyethylene (LLDPE) and high
density polyethylene (HDPE) prices were
assessed as steady to higher across Latin
American countries. Low density polyethylene
(LDPE) prices were assessed unchanged.
Speciality Chemicals27-Jan-2025
HOUSTON (ICIS)–Canadian National Railway (CN)
and a union representing signal and
communication workers are still in talks, and
they are getting closer to reaching a deal, the
International Brotherhood of Electrical Workers
(IBEW) said on Monday.
The union members total 750. The union has
issued a strike notice, allowing them to walk
out as early as Tuesday.
“The company and the union are getting closer
to reaching a deal, and we are optimistic that
a deal can be reached and strike action
avoided,” according to a statement by Jason
Sommer, senior general chair, IBEW System
Council No 11. “We are currently still at the
table with the company, and with the assistance
of federal mediators, we are striving to reach
a fair and equitable deal for our members.”
Outstanding issues are wages, reimbursement for
travel and striking a better work-life balance
for union members, Sommer said.
If the union does call a strike, CN expects no
disruptions.
“There will be no impact on our
operations as a result of a work
stoppage,” the railroad said in a statement.
“CN’s contingency plans are in place,
operations will continue, and our dedicated
teams are prepared to ensure the seamless
continuity of service.”
The two sides have been negotiating a labor
contract since September. That agreement ended
on 31 December 2024.
Canadian chemical producers rely on rail to
ship more than 70% of their products, with some
exclusively using rail.
Speciality Chemicals27-Jan-2025
HOUSTON (ICIS)–Canadian National Railway (CN)
expects no disruptions from a strike by signal
and communication workers that could start on
Tuesday, the Canadian railroad company said.
The union members total 750, and they belong to
the International Brotherhood of Electric
Workers (IBEW). The union has issued a strike
notice, allowing them to walk out as early as
Tuesday.
“There will be no impact on our
operations as a result of a work
stoppage,” the railroad said in a statement.
“CN’s contingency plans are in place,
operations will continue, and our dedicated
teams are prepared to ensure the seamless
continuity of service.”
The IBEW did not immediately respond to a
request for comment.
The two sides have been negotiating a labor
contract since September. That agreement ended
on 31 December 2024.
Canadian chemical producers rely on rail to
ship more than 70% of their products, with some
exclusively using rail.
Thumbnail shows a railroad. Image by
Shutterstock.
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