Petrochemical buyers, after a very difficult pandemic, can gain from China-driven deflation

JOHN RICHARDSON | May 6, 2021 | 253 views

BUYERS OF polypropylene (PP) and other polymers and petrochemicals have had an incredibly difficult pandemic.
Firstly, the converters and brand owners expected doom and gloom last March. At the time it seemed logical to expect a cratering of demand as the global economy pretty much imploded.

Just looking at forecasts for GDP, parallels were drawn with the Global Financial Crisis when collapses in growth led to a cratering of polymers demand. The US is a good example where PP demand declined by 12% in 2008 over 2007. Demand then fell by a further 5% in 2009 over 2008.But what we all missed was the complete dislocation of polymers and petrochemicals demand from GDP. As economies registered historic declines, consumption went up.

PP demand went through the roof, firstly for food packaging and hygiene applications.Then consumption for the durable goods made from PP also smashed through the rafters as we bought white goods (PP is used to make components of washing machines), consumer electronics (PP is used to make some electronic components) and carpets (PP fibres are used here).

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Eagle-Chemicals Group

EAGLE CHEMICALS is one of the pioneers in the Egyptian chemical industry that shaped the chemical industry in the latest years not only in Egypt but also in Africa, Middle East and Europe and rapidly becomes the leading producer of resin and polymer products in the region, and is supplying more than 50 countries as it possesses an extensive manufacturing capacity, technical and commercial infrastructure.

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Chemical Management

THE BENEFITS OF CHEMICAL FOAMERS, AND HOW BEST TO USE THEM TO MAXIMISE PRODUCTION

Article | June 29, 2021

Downhole fluid build-up coupled with a drop in reservoir pressure can lead to the rapid decline of gas production rates, and can ultimately result in a well ceasing production. While there are many ways to deliquify a well to maximise production, chemical foamers can be incredibly effective and well worth considering. In this blog post, Kevin Lonie shares some of the benefits of using chemical foamers, and provides insights and advice around how best to use them… “Foamers are a much cheaper option than alternative solutions, such as mechanical lifts, and there is very little risk associated with their usage. If a foamer doesn’t work, it won’t make the well worse - so often we see clients giving them a go before opting for more expensive methods, in the hope that they produce the desired results. And we have seen their success over and over again.”

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Chemical Management

The multi-million dollar polymers opportunity: continued big regional price differentials

Article | May 1, 2021

POLYMER BUYERS outside northeast (NEA) and southeast Asia (SEA) have a big opportunity to save millions of dollars on procurement costs during the rest of this year through purchasing more from the two regions.The opportunity has arisen because I believe that NEA and SEA polymer prices will remain very cheap relative to most of the world until at least the end of 2021. NEA comprises China, Japan, Taiwan and South Korea. Our definition of the SEA region is Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.NEA and SEA producers can also make a lot of money by constantly monitoring and acting on strong arbitrage opportunities in other regions. As supply disruptions in the US look likely to continue, Europe and South & Central America seem particularly good opportunities for both buyers and producers.Before we discuss why I see NEA and SEA remaining cheap relative to most of the rest of the world until at least the end of the year, let us consider in more detail the size of the prize, starting with the resin buyers.

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Chemical Management

Reimagining the Workforce with Anglo American

Article | July 8, 2022

“At Anglo-American, we’re really focused on finding the best ways to attract the most talented people in the industry and effectively equipping our existing workforce based on what they need today and what the future will mean for their careers. We’re also committed to providing learning opportunities that lead to growth and development in the communities in which we operate. Our people are a strategic advantage. We want to ensure that continues to be the case as the mining industry evolves and faces more disruption.

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Chemical Technology

Future-Proofing the Chemical Industry with Digitalization

Article | July 14, 2022

Over the next five to seven years, the chemical sector will place a greater emphasis on sustainability, and digitization will play a significant part in this. Reducing resource use, pollution, energy consumption, and waste are some of its main applications. Additionally, it will increase demand for a circular economy supported by IoT, AI, and other digital technologies. Some of the systems now in place or being used in the sector include autonomous solutions that enable lower energy usage, dispatching systems for effective logistics and strategies for sustainable power and fuel consumption. Chemical players making the switch to digital platforms have a chance to triumph if they move swiftly and update their operational models in accordance with a few common success characteristics. In fact, according to our study, making the correct decisions can increase total earnings before interest, taxes, depreciation, and amortization by 3 percent or more (EBITDA). The Next Step of Operational Excellence The same level of transformation is available with digital technology for optimal performance, together with success-enabling measures. The same level of corporate participation and realignment will also be necessary for the effective implementation of digital technology. Finance and telecoms were early leaders in adopting digital technology faster than the chemical sector, which has just recently started to move in more significant numbers toward digitalization. A circular economy in the sector is also being enabled by the use and evaluation of digital technology. The "Right to Fix" movement is being driven by governments and legislators in Europe and the US, and small and medium-sized businesses in the industry are expected to invest in technology that makes it easier to repair electronic items with the least amount of waste. On a side note, by enabling the re-use of resources and products throughout the supply chain, digitalization with lean manufacturing (LM) would enable businesses to improve operational excellence and create value, thereby supporting the circular economy goal. Conclusion Given its extensive safety and regulatory requirements, the chemical sector has evolved slowly. However, as the global economy changes, some skills will become obsolete and others essential. The interconnectedness of people, processes, and technology, as well as the requirement for real-time insight at the levels closest to the action, are among the basic principles of Industry 4.0. These values have existed for some time and are an extension of our teams' current operational excellence initiatives. Digital transformation is not a technology endpoint but rather the following stage in the process and business evolution as the chemicals industry advances continuously.

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Spotlight

Eagle-Chemicals Group

EAGLE CHEMICALS is one of the pioneers in the Egyptian chemical industry that shaped the chemical industry in the latest years not only in Egypt but also in Africa, Middle East and Europe and rapidly becomes the leading producer of resin and polymer products in the region, and is supplying more than 50 countries as it possesses an extensive manufacturing capacity, technical and commercial infrastructure.

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Chemical Management

Actylis Launches a New cGMP WFI Generation, Storage, and Distribution System with Additional ISO Class 7 Manufacturing Space

businesswire | September 26, 2023

Actylis, a leading global manufacturer of critical raw materials and performance ingredients for the life sciences and specialty chemicals markets, today announced the launch of Water for Injection (WFI) and additional ISO Class 7 manufacturing space at its Baie d’Urfé site in Montreal, Canada. Used for the preparation of media, buffers, and other aqueous solutions, Actylis’ WFI meets monographs for pharmacopoeias worldwide, and can be provided in both custom and standard packaging configurations. Gilles Cottier, CEO at Actylis, said: “Today we are delighted to announce the opening of this new WFI system at our Baie d’Urfé site. Investment in this new WFI generation, storage, and distribution system reflects our ongoing commitment to support our customers, and to continuously develop our range of products and services. The new system positions us to be a preferred outsource partner for our customers’ buffer solutions. We understand that capacity is often a pinch-point for our customers, and we are delighted to be able to propose this option to them.” Damien O’Rourke, SVP Manufacturing Operations at Actylis added: “Our new WFI system, redundant with our Limerick, Ireland WFI capabilities, incorporates the latest advancements in water purification technology, adhering to Good Manufacturing Practices (cGMP) that guarantees the production of WFI that meets or exceeds the most rigorous quality standards. In addition to the services this enables for our customers, the investment provides Actylis and our customers with a robust multi-site business continuity plan to ensure dependable supply.” Jean-Francois Raymond, Site Director, elaborated on some of the specifics of the system: “We are excited to have this new system here at Baie d’Urfé come on stream. The WFI system is fully qualified with all supporting validation documents, and is capable of generating and maintaining water as per required USP and PhEur/BP specifications of Water for Injection.” The new system’s strategic location in Montreal positions it as a pivotal hub for biopharmaceutical companies across North America and beyond. Its proximity to major transportation networks ensures timely distribution of WFI to manufacturers, enabling them to streamline their production processes and meet growing market demands. About Actylis Actylis is a leading global manufacturer and supplier of differentiated specialty ingredients to life sciences and specialty chemicals end markets. With business operations in ten countries, Actylis manufactures and supplies over 4,500 chemical compounds used principally by the pharmaceutical, biopharmaceutical, nutritional, agricultural and specialty chemical industries. Building on a series of strategic acquisitions, Actylis has integrated their manufacturing, R&D, quality, and sourcing capabilities to create a worldwide supplier of critical raw materials that includes a robust manufacturing footprint. Its global operations include a significant presence on the ground in North America, Europe, India, and China. Actylis is well positioned to innovate new solutions, ensure quality, and customize products to meet customers’ specific needs. Its expanded capabilities and decades of global sourcing expertise are especially valuable now that supply chain management is a critical strategic issue for companies worldwide.

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Chemical Management

Danimer Scientific and Chevron Phillips Chemical Expand Collaboration to Include Application Development for Rinnovo™ Polymers

businesswire | September 21, 2023

Danimer Scientific, Inc. a leading next-generation bioplastics company focused on the development and production of biodegradable materials, today announced it is expanding its collaboration with Chevron Phillips Chemical (“CPChem”) to explore development and commercialization of cast extrusion films, blown extrusion films, injection molded parts and rotational molded parts using Rinnovo™ polymers produced in a loop slurry reactor process. Rinnovo™ is a type of polyhydroxyalkanoate (“PHA”) synthesized from lactones produced using Danimer’s proprietary Novo22™ catalyst technology, which can be used in the production of biodegradable alternatives to traditional plastics. The collaboration expands on Danimer and CPChem’s previously announced agreement, in which Danimer is evaluating the use of CPChem’s loop slurry reactor design to develop a continuous reactor system in the manufacturing process for Rinnovo™. Stephen E. Croskrey, chief executive officer of Danimer, said, “Our business relationship with CPChem continues to yield results, and we’re excited for the further opportunities that lie ahead. CPChem’s Research and Technology lab in Bartlesville, Oklahoma, is a premier facility staffed with world-class talent that we believe will accelerate the path toward adoption of Rinnovo™ materials in high-volume applications that will assist in lowering the cost to serve key markets.” Opened in 1950 by Phillips 66, CPChem’s Bartlesville facility contains first-class research equipment allowing for rapid testing of products across various processing conditions. Additionally, the facility’s testing and analytical capabilities provide a more rapid feedback loop, accelerating the development and optimization of resin formulations. “We continue to be excited about the potential of our MarTECH® process technology and related collaborations to advance Danimer’s Rinnovo™, another CPChem initiative that can help accelerate change for a more sustainable future,” said Venki Chandrashekar, CPChem vice president of research and technology. About Danimer Scientific Danimer is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than a decade, its renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters. Danimer’s technology can be found in a vast array of plastic end products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films and injection-molded articles, among others. Danimer holds more than 430 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations.

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Chemical Management

Olin - Winchester Acquires White Flyer Targets Business

prnewswire | October 03, 2023

Olin Corporation announced that it has completed the previously announced acquisition of White Flyer Targets, North America's preeminent leader in recreational trap, skeet, and sporting clay targets. White Flyer will be combined with the Winchester Ammunition business. The acquisition includes White Flyer's five state of the art manufacturing facilities in Coal Township, Pennsylvania; Dalton, Georgia; Webb City, Missouri; Knox, Indiana; and, San Bernardino, California and includes White Flyer's recently announced ECO FLYER® target product line. "We welcome our new White Flyer teammates," noted Brett Flaugher, president of Winchester Ammunition. "Together, we can enhance the continued growth of trap, skeet, sporting clays, and other shotgun sports. These two leading brands are renowned for unmatched quality and now offer increased value to our customers through comprehensive ammunition and clay target solutions for the thousands of shooting ranges across America." Olin funded the transaction with cash on hand and anticipates that the transaction will be immediately accretive to Olin's shareholders. OLIN COMPANY DESCRIPTION Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, industrial cartridges, and clay targets.

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Chemical Management

Actylis Launches a New cGMP WFI Generation, Storage, and Distribution System with Additional ISO Class 7 Manufacturing Space

businesswire | September 26, 2023

Actylis, a leading global manufacturer of critical raw materials and performance ingredients for the life sciences and specialty chemicals markets, today announced the launch of Water for Injection (WFI) and additional ISO Class 7 manufacturing space at its Baie d’Urfé site in Montreal, Canada. Used for the preparation of media, buffers, and other aqueous solutions, Actylis’ WFI meets monographs for pharmacopoeias worldwide, and can be provided in both custom and standard packaging configurations. Gilles Cottier, CEO at Actylis, said: “Today we are delighted to announce the opening of this new WFI system at our Baie d’Urfé site. Investment in this new WFI generation, storage, and distribution system reflects our ongoing commitment to support our customers, and to continuously develop our range of products and services. The new system positions us to be a preferred outsource partner for our customers’ buffer solutions. We understand that capacity is often a pinch-point for our customers, and we are delighted to be able to propose this option to them.” Damien O’Rourke, SVP Manufacturing Operations at Actylis added: “Our new WFI system, redundant with our Limerick, Ireland WFI capabilities, incorporates the latest advancements in water purification technology, adhering to Good Manufacturing Practices (cGMP) that guarantees the production of WFI that meets or exceeds the most rigorous quality standards. In addition to the services this enables for our customers, the investment provides Actylis and our customers with a robust multi-site business continuity plan to ensure dependable supply.” Jean-Francois Raymond, Site Director, elaborated on some of the specifics of the system: “We are excited to have this new system here at Baie d’Urfé come on stream. The WFI system is fully qualified with all supporting validation documents, and is capable of generating and maintaining water as per required USP and PhEur/BP specifications of Water for Injection.” The new system’s strategic location in Montreal positions it as a pivotal hub for biopharmaceutical companies across North America and beyond. Its proximity to major transportation networks ensures timely distribution of WFI to manufacturers, enabling them to streamline their production processes and meet growing market demands. About Actylis Actylis is a leading global manufacturer and supplier of differentiated specialty ingredients to life sciences and specialty chemicals end markets. With business operations in ten countries, Actylis manufactures and supplies over 4,500 chemical compounds used principally by the pharmaceutical, biopharmaceutical, nutritional, agricultural and specialty chemical industries. Building on a series of strategic acquisitions, Actylis has integrated their manufacturing, R&D, quality, and sourcing capabilities to create a worldwide supplier of critical raw materials that includes a robust manufacturing footprint. Its global operations include a significant presence on the ground in North America, Europe, India, and China. Actylis is well positioned to innovate new solutions, ensure quality, and customize products to meet customers’ specific needs. Its expanded capabilities and decades of global sourcing expertise are especially valuable now that supply chain management is a critical strategic issue for companies worldwide.

Read More

Chemical Management

Danimer Scientific and Chevron Phillips Chemical Expand Collaboration to Include Application Development for Rinnovo™ Polymers

businesswire | September 21, 2023

Danimer Scientific, Inc. a leading next-generation bioplastics company focused on the development and production of biodegradable materials, today announced it is expanding its collaboration with Chevron Phillips Chemical (“CPChem”) to explore development and commercialization of cast extrusion films, blown extrusion films, injection molded parts and rotational molded parts using Rinnovo™ polymers produced in a loop slurry reactor process. Rinnovo™ is a type of polyhydroxyalkanoate (“PHA”) synthesized from lactones produced using Danimer’s proprietary Novo22™ catalyst technology, which can be used in the production of biodegradable alternatives to traditional plastics. The collaboration expands on Danimer and CPChem’s previously announced agreement, in which Danimer is evaluating the use of CPChem’s loop slurry reactor design to develop a continuous reactor system in the manufacturing process for Rinnovo™. Stephen E. Croskrey, chief executive officer of Danimer, said, “Our business relationship with CPChem continues to yield results, and we’re excited for the further opportunities that lie ahead. CPChem’s Research and Technology lab in Bartlesville, Oklahoma, is a premier facility staffed with world-class talent that we believe will accelerate the path toward adoption of Rinnovo™ materials in high-volume applications that will assist in lowering the cost to serve key markets.” Opened in 1950 by Phillips 66, CPChem’s Bartlesville facility contains first-class research equipment allowing for rapid testing of products across various processing conditions. Additionally, the facility’s testing and analytical capabilities provide a more rapid feedback loop, accelerating the development and optimization of resin formulations. “We continue to be excited about the potential of our MarTECH® process technology and related collaborations to advance Danimer’s Rinnovo™, another CPChem initiative that can help accelerate change for a more sustainable future,” said Venki Chandrashekar, CPChem vice president of research and technology. About Danimer Scientific Danimer is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than a decade, its renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters. Danimer’s technology can be found in a vast array of plastic end products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films and injection-molded articles, among others. Danimer holds more than 430 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations.

Read More

Chemical Management

Olin - Winchester Acquires White Flyer Targets Business

prnewswire | October 03, 2023

Olin Corporation announced that it has completed the previously announced acquisition of White Flyer Targets, North America's preeminent leader in recreational trap, skeet, and sporting clay targets. White Flyer will be combined with the Winchester Ammunition business. The acquisition includes White Flyer's five state of the art manufacturing facilities in Coal Township, Pennsylvania; Dalton, Georgia; Webb City, Missouri; Knox, Indiana; and, San Bernardino, California and includes White Flyer's recently announced ECO FLYER® target product line. "We welcome our new White Flyer teammates," noted Brett Flaugher, president of Winchester Ammunition. "Together, we can enhance the continued growth of trap, skeet, sporting clays, and other shotgun sports. These two leading brands are renowned for unmatched quality and now offer increased value to our customers through comprehensive ammunition and clay target solutions for the thousands of shooting ranges across America." Olin funded the transaction with cash on hand and anticipates that the transaction will be immediately accretive to Olin's shareholders. OLIN COMPANY DESCRIPTION Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, industrial cartridges, and clay targets.

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