PPG
PPG'S McGarry makes 2nd run for Akzo

AMERICAS

Ascend to commission hexamine loading facility

Ascend Performance Materials said it plans to commission a bulk loading facility that will deliver the company’s liquid hexamine product, FlexaTram-HMT. Delivers will start in April, Ascend said. The company produces hexamine at its plant in Chocolate Bayou, Texas. The facility will allow Ascend to meet growing demand for hexamine from companies that make resin-coated proppants, it stated. Proppants are used in hydraulic fracturing (fracking) to prop up the cracks that are created by the drilling process.

Solvay to acquire RECs from solar farm

Solvay has agreed to buy all the renewable energy certificates from the largest solar farm in South Carolina in the US for the next 15 years, the Belgian company said. The deal with Moffet Solar 1, a subsidiary of Dominion Resources, underlines Solvay’s goal of reducing the carbon intensity of its operations by 40% by 2025. The 71.4 megawatt farm, which is seven times larger than the next-largest farm in North Carolina, is due for completion at the end of 2017.

Patrick Industries buys Medallion Plastics

Patrick Industries has completed its acquisition of Medallion Plastics. Patrick, which makes building products and materials for the recreational vehicle (RV) and manufactured housing industries, paid around $10m in cash for Medallion. Patrick will continue to operate the business under the Medallion brand name in its four existing facilities. Patrick operates over 60 manufacturing and distribution facilities in the US.

Jacob wins work for Oxea’s US expansion

Engineering company Jacobs has won a contract for work on Oxea’s recently announced propanol expansion project at Bay City, Texas. Jacobs will provide pre-construction planning and construction management services for the new “Propanol 2” unit that will add approximately 100,000 tonnes/year of propanol and approximately 40,000 tonnes/year of propionaldehyde. The unit is scheduled to come on line in 2018.

Nexeo to distribute Solvay surfactants

Nexeo Solutions has become an authorised distributor for Solvay’s AEROSOL-brand surfactants in the US and Canada, effective 20 April. The products were previously sold by Cytec Industries, a company Solvay acquired in 2015. The decision to appoint Nexeo as distributor is the result of “consolidation and rationalisation efforts” on the part of Solvay, Nexeo said. “We see a lot of development opportunities in this product line,” said Joey Gullion, vice president of specialty chemicals at Nexeo Solutions.

Zeochem to raise adsorbents capacity

Switzerland-based Zeochem is adding a new adsorbents line at its US plant in Louisville, Kentucky. The line will double the company’s adsorbents capacity. Work on the expansion is under way, with start-up expected in the autumn. The expansion represents a “multi-million dollar plant investment”, Zeochem added. Zeochem’s adsorbents are used in the production of oxygen for industrial and medical applications. The company is a subsidiary of CPH Chemie+Papier Holding.

Sherwin-Williams extends Valspar deadline

Sherwin-Williams has extended the termination date of its proposed takeover of Valspar by three months to 21 June, the two US-based coatings producers said. Sherwin-Williams said that it was taking longer than expected to complete a divestiture of one of its businesses. The divestiture is necessary to obtain regulatory approval from the US Federal Trade Commission (FTC). The two companies had denied in December “unfounded rumours” about a possible delay.

US chem barometer posts strongest gain in 7 years

The American Chemistry Council’s (ACC) chemical activity barometer (CAB) rose 5.5% year on year in March, posting its strongest year-on-year gain in nearly seven years. US consumer and business confidence has reached levels “not seen in decades”, and this optimism is reflected in increased chemical industry activity, the group said. The group also noted that the US Federal Reserve referenced “confidence in the robustness of the economy” as a reason for its recent decision to raise interest rates.

BASF opens herbicide expansion at US site

BASF has opened a $270m expansion at its herbicide plant in Beaumont, Texas. With the expansion BASF increases its output of dicamba, which is the active ingredient in the company’s new Engenia-brand herbicide product, by more than 50%. The US Environmental Protection Agency (EPA) approved the product last December. BASF added that the expansion was its largest investment ever in facilities for agricultural products.

Magellan US condensate splitter to begin ops in Q2

Magellan Midstream Partners has completed construction of a 50,000 bbl/day condensate splitter at Corpus Christi, Texas, and it expects to begin commercial operations at the plant late in Q2. At the same time, Magellan agreed a new fee-based, take-or-pay deal with commodities firm Trafigura Trading LLC for the exclusive use of the condensate splitter, it said. The new agreement was entered into as part of an “amicable resolution” of a dispute between the parties under the previous contract.

Petrobras swings to Q4 net income of $754m

Brazilian state energy producer Petrobras swung to a net income of $754m in Q4 2016 from a loss of $9.42bn in the same period a year earlier on the back of lower impairment charges. The company’s revenues fell by 3.36% year on year to $21.4bn in Q4 2016. Petrobras posted an operating profit of $3.58bn, reversing the $10.5bn loss in corresponding period a year earlier.

US gasoline demand to fall

US gasoline demand will decline by 1.5m-2m bbl/day by 2030, leaving the US with a surplus of gasoline, according to Andrew Shepard, refining and oil markets analyst for Wood Mackenzie. Shepard said the primary reason for this decline will be improved fuel efficiency for gasoline engines. Air quality standards will become more stringent in the coming years, and vehicle manufacturers are continually making improvements. As a result, the US will have a surplus of gasoline instead of the current deficit.

EUROPE

Timing of rejected PPG Akzo bid created uproar

AkzoNobel has rejected a second unsolicited takeover bid made by US-based PPG Industries and expressed its concerns about how PPG approached the offer. AkzoNobel CEO Ton Buchner cited a “significant culture gap” between the two companies. He was particularly critical of the timing of PPG’s bid, saying: “The proposal came in the midst of the Dutch election and caused a lot of disturbance on the ground. It created quite an uproar.” PPG CEO Michael McGarry said he is “hopeful that AkzoNobel engages with us promptly in order to further discuss and explore the benefits of a combination for its stakeholders, including substantial commitments regarding employees in The Netherlands, research and development and sustainability”.

European Council to hold Brexit summit on April 29

European Council (EC) president Donald Tusk has announced that the EC will hold a summit to discuss Brexit on 29 April. In televised remarks, which come just a day after the UK signalled its intention to trigger article 50 on 29 March, Tusk said that the summit will be held to “adopt the guidelines for the Brexit talks”. Tusk was speaking at a meeting in Brussels with Japanese Prime Minister Shinzo Abe to discuss trade policies between Japan and the EU ahead of the forthcoming G-7 meeting at the end of May.

Ciech doubles Q4 net profit to Zl 174m

Second-largest European soda ash producer Ciech cited its expanded capacity as it posted fourth-quarter 2016 net profit of zloty (Zl) 174m (€40.7m), almost exactly twice the Zl 88m recorded in the same period a year ago. The Poland-based group also saw sales revenues climb to Zl 908m from the Zl 815m attained in the same period of 2015.

SGL Group 2016 net profit rises by 14.7%

SGL Group’s net profit rose by 14.7% year on year to €331.8m in 2016 amid higher earnings margins, the German carbon-based products maker said. Sales revenue from continuing operations fell by 2.5% year on year to €769.8m last year while operating profit before non-recurring charges rose by 51.1% to €20.7m, the company said in a statement. The company’s operating profit margin rose to 2.7% in 2016 from 1.7% in the previous year.

UK inflation reaches 2.3% on transport

UK inflation in February rose to its highest point since September 2013 at 2.3% compared with 1.8% in January, the Office for National Statistics (ONS) said. With just one week to go until the government triggers article 50 to begin the process of leaving the EU, the UK’s inflation rate surpassed the Bank of England’s desired level of 2%. The main driver of the increase in the Consumer Prices Index were rising transport costs, especially for fuel.

Lenzing to expand fibres at Heiligenkreuz

Lenzing is to invest €70m to add 25,000 tonnes/year in capacity at its Heiligenkreuz, Austria, site, the chemicals producer said on Tuesday. The expansion will be started up at the end of the first quarter in 2018, the Austria-based company said, in a site which employs 230 workers. The company said it has so far invested €750m in building and expanding its specialty fibres at Heiligenkreuz as well as those at its sites in Lenzing, Austria, Mobile, Alabama and Grimsby, UK.

A Schulman plans masterbatch expansions

A Schulman plans to increase its production capacity for colour masterbatches in Europe, the compounder announced. The supplier of high-performance plastic compounds, powders, composites and resins announced that it will add three extruders to its facilities in Hungary, Italy and Poland due to increased market demand. A Schulman previously announced major investments in new masterbatch plants in Changshu, China, and Istanbul, Turkey.

ASIA

India’s ADDs could open doors for other LAB

The proposed anti-dumping duties on linear alkylbenzene (LAB) imports into India from China, Qatar and Iran may open the door for other Asian producers to fill the gap, market sources said 22 March. India is mulling recommendations from the country’s Directorate General of Anti-Dumping and Allied Duties (DGAD) at the Department of Commerce to impose anti-dumping duties in varying degrees from $23.78/tonne up to $300.22/tonne on imports of LAB from China, Iran and Qatar.

Hanwha to restart Yeosu TDI plant by mid-April

South Korea’s Hanwha Chemical will restart two of its three toluene di-isocyanate (TDI) plants in Yeosu on 3 April after shutting them for a turnaround, a company source said. The two 50,000 tonne/year units were taken off line on 19 March for regular maintenance, the source said, reverting to its original schedule after it had planned to delay the turnaround by two weeks.

Lotte Chemical to restart No 2 Daesan MEG

South Korea’s Lotte Chemical will restart its 400,000 tonne/year No 2 monoethylene glycol (MEG) units in Daesan around 25 March, a source familiar with the matter said. The plant was shut around early March for a planned maintenance, the source added. Lotte Chemical operates three MEG units in Yeosu and two MEG units in Daesan. The units in Yeosu have a combined MEG capacity of 400,000 tonnes/year and the units in Daesan have a combined MEG capacity of 700,000 tonnes/year.

Nanjing Chengzhi to switch swing to 2-EH

China’s Nanjing Chengzhi Clean Energy plans to switch the production at its n-butanol (NBA)/2-ethylhexanol (2-EH) swing plant at Nanjing in Jiangsu from NBA to 2-EH on 27 March, a company source said. The producer took the unit off line on 12 March and is now preparing the plant for such switch, the source added. The producer’s 2-EH production capacity will total 210,000 tonnes/year after the production switch. It has another 125,000 tonne/year 2-EH unit in Jiangsu.

New Energy Fenghuang to shut methanol

China’s Shandong New Energy Fenghuang plans to shut its 720,000 tonne/year methanol plant on 21 March for maintenance, a company source said. The turnaround will last for about 45 days, it added. Prior to the shutdown, the plant is running at 100% capacity. As the plant is the second largest methanol facility in Shandong province, the turnaround could affect market sentiment, a market participant said.

Lotte Chemical Titan eyes March cracker restart

Malaysia-based Lotte Chemical Titan plans to restart its naphtha cracker in Pasir Gudang at end-March as it completes regular maintenance, a source familiar with the matter said. The upcoming restart of the cracker with an ethylene capacity of 435,000 tonnes/year is in line with its turnaround schedule for about 45 days, following the cracker’s shutdown in early February. The firm’s other 285,000 tonnes/year ethylene cracker is running at full capacity, the source added.

MIDDLE EAST/AFRICA

Tasnee warns of cost squeeze on feedstock

The CEO of Saudi-Arabia based National Industrialisation Co (Tasnee) warned on 21 March about a cost squeeze caused by higher feedstock prices and other expenses. “We can barely compete with the current cost structure,” said Mutlaq Al-Morished, CEO. He made his comments at the World Petrochemical Conference (WPC) by IHS Markit. In Saudi Arabia, ethane prices have risen to $1.75/MMBtu from 75 cents/MMBtu. While these feedstock costs are still low, other expenses quickly add up, Al-Morished added.

NATPET to shut PP plant for maintenance

Saudi Arabia’s National Petrochemical Industrial Company (NATPET) is expected to shut its polypropylene (PP) plant in Yanbu for a planned maintenance in early April, industry sources said on 22 March. The plant has a production capacity of 400,000 tonne/year. The maintenance is expected to last for around four weeks, the source added.