CHEMICAL MANAGEMENT
Albemarle Corporation | January 07, 2022
Albemarle Corporation, a leader in the global specialty chemicals industry, announced a price increase for Catalysts global business unit customers. These price increases are effective immediately, or as contracts allow.
Albemarle and its suppliers are continuing to see unprecedented increases worldwide in energy costs and for key raw materials that are critical to manufacturing our performance products.
Several factors are impacting an increase in the cost of energy and key raw materials, some of which may be temporary. Examples include the increased energy costs in Europe due to a winter shortage, the up-to-40% increase in the costs of industrial metals, and the acute tightness in chlor alkali markets. Albemarle continues to monitor the energy and commodities markets accordingly.
"Albemarle remains committed to delivering value to our customers with no interruptions to supply. Our intent is to cover the increased costs we are experiencing through productivity gains and price adjustments for our products and services, and to flex with the market over the coming months."
Raphael Crawford, President, Catalysts global business unit
About Albemarle
Albemarle Corporation is a global specialty chemicals company who thinks beyond business as usual to power the potential of companies in many of the world's largest and most critical industries, such as energy, electronics, and transportation. We actively pursue a sustainable approach to managing our diverse global footprint of world-class resources. In conjunction with our highly experienced and talented global teams, our deep-seated values, and our collaborative customer relationships, we create value-added and performance-based solutions that enable a safer and more sustainable future.
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CHEMICAL TECHNOLOGY
TPC Group | February 04, 2022
TPC Group, a global leader in providing a diverse range of quality products and services to chemical and petroleum-based companies worldwide, disclosed today that its Senior Leadership Team, members of the Board of Directors, and professional advisors are in ongoing, constructive discussions with a group representing nearly 90% and approximately 80% of the Company’s two series of senior secured notes, as well as other economic stakeholders.
The Company did not make approximately $53 million in total interest payments due on the secured notes on February 1, 2022; the payments are subject to a 30-day grace period. Today, the Company signed a forbearance agreement with the Ad Hoc Group, under which the Ad Hoc Group has agreed to forbear from exercising remedies relating to the event of default that will occur if the Company does not make the February 1 coupon payments within the 30-day grace period. The forbearance agreement is effective until March 18, 2022 and may be extended by the Ad Hoc Group.
In connection with the forbearance agreement, the Ad Hoc Group has also agreed to provide the Company with approximately $52 million of additional liquidity in the form of a commitment to purchase additional senior secured priming notes due 2024. The Company expects to use proceeds from the new notes to support ongoing operations, and to pay fees and expenses associated with the transaction. The Company’s ability to draw on the commitment will be subject to the satisfaction of certain conditions precedent, including an amendment to the Company’s ABL facility. The Ad Hoc Group members have agreed to approve amendments to the existing indentures necessary to permit the issuance of the new notes.
“I’m pleased to report that our operations are running reliably with good EHSS performance and strong demand for all our products. We are working closely with key financial stakeholders to strengthen our financial structure and to position the Company for long-term success. The actions announced today are important steps toward those goals. We will continue delivering for our customers, suppliers and employees. As always, we will uphold our commitment to operate in a safe and environmentally responsible manner — protective of our people and our local communities.”
Ed Dineen, TPC Group President and CEO
TPC Group has a more than 75-year operating history as a leader in North America across all of its product lines and as the largest independent processor of crude C4. Furthermore, TPC Group is a recognized global leader in producing value-added products and raw materials such as C4 hydrocarbons, and a provider of critical infrastructure and logistics services to petrochemical operators along the Gulf Coast.
The Company is advised by Moelis & Company LLC, Baker Botts L.L.P., Simpson Thacher & Bartlett LLP, and FTI Consulting, Inc. The Ad Hoc Group is advised by Stroock & Stroock & Lavan LLP and Evercore.
About TPC Group
TPC Group, headquartered in Houston, is a leading producer of value-added products derived from petrochemical raw materials such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast. The Company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants. With an operating history of 75 years, TPC Group has a manufacturing facility in the industrial corridor adjacent to the Houston Ship Channel and operates product terminals in Port Neches, Texas and Lake Charles, Louisiana.
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Showa Denko | September 01, 2020
Showa Denko obtained a license to process industrial waste, and started to accept used plastics which were crushed and molded. Since 2003, SDK's Kawasaki Plant, which is located in Kawasaki City, Kanagawa Prefecture, has been operating "plastic chemical recycling business," a business to recycle used plastics as raw materials for chemicals under the provisions of Containers and Packaging Recycling Law. SDK calls this business "Kawasaki Plastic Recycling (KPR)." We gasify used plastics under high temperature, and decompose them to the level of molecules. Then gasified plastics are converted into hydrogen (low-carbon hydrogen) and carbon dioxide (CO2). We use low-carbon hydrogen as raw material to produce ammonia, and CO2 as raw material to produce dry ice and carbonated drinks.
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