Sun Chemical Applying Surcharges on Latin American Solvent-Based Inks, Varnishes

Ink World Magazine | April 15, 2020

Sun Chemical Applying Surcharges on Latin American Solvent-Based Inks, Varnishes
As a result of the recent COVID-19 pandemic, Sun Chemical Latin America will implement a surcharge on solvent-based inks and varnishes and will communicate the effective date directly to customers. Surcharges will vary depending on product types. The pandemic has caused a global shortage and supply volatility for raw materials throughout the world, most notably, solvents and alcohols. The supply, which had been previously limited due to an increased demand for ethanol fuel, continues to narrow as the coronavirus causes a further uptick in demand for pharmaceutical and sanitized products. Global availability is decreasing, resulting in increased prices. Due to these market conditions, Sun Chemical has accepted higher prices to secure its supply for the coming months. There is always a risk that governments may seize the materials to accommodate a health emergency, which would be out of Sun Chemical’s control.

Spotlight

For chemical companies who are dealing with complex, dangerous shipments, there can be real added value found throughout the supply chain when real-time visibility data complements a supplier’s existing information. The market has shifted as traffic conditions worsen, chemical storage capacities remain stagnant, and cus - tomer expectations increase, so we explore how real-time visibility can work for a chemical company to help solve these and many other chal - lenges when integrated properly.


Other News
MARKET OUTLOOK

Aemetis Signs Agreement to Purchase 125-Acre Former U.S. Army Facility to Produce Sustainable Aviation Fuel and Renewable Diesel

Aemetis, Inc. | December 23, 2021

Aemetis, Inc. a leading producer of dairy Renewable Natural Gas and developer of the "Carbon Zero" renewable jet/diesel biorefineries, announced today it signed a Master Developer Agreement with the City of Riverbank to lease/purchase the 125-acre former military base in Riverbank, California known as the Riverbank Industrial Complex. The Riverbank facility features 710,000 square feet of existing buildings, a four-mile railroad loop with 120 railcar storage capacity, and an onsite hydroelectric substation with 100% low carbon hydroelectric power. The site has received more than $72 million of federal funding for facility upgrades and remediation since being decommissioned as an army base. Aemetis plans to build the "Carbon Zero 1" sustainable aviation fuel and renewable diesel biorefinery at the site. The plant is designed to use hydroelectric and other renewable power available onsite to produce 90 million gallons per year of sustainable aviation fuel, renewable diesel, and other byproducts. The plant is expected to supply the aviation and truck markets with ultra-low carbon renewable fuels to reduce greenhouse gas emissions and other pollutants associated with conventional petroleum-based fuels. The Riverbank Industrial Complex was an ammunition production facility employing about 3,500 people and has been converted to civilian use, including approximately 35 companies employing around 650 people. Under the terms of the Master Developer Agreement and as the owner of the properties as parcels are transferred, Aemetis will manage current tenants, utilize existing production facilities for new tenants or as production facilities, and develop vacant portions of the site with planned renewable fuels and carbon sequestration facilities. A federal job study estimated 2,014 direct and indirect jobs will be created as a result of developing the Aemetis biofuels plant. "This project, from staff's perspective, has significant potential to create an industrial job center for not only Riverbank, but the whole region," said City Manager Sean Scully during the City Council meeting on December 14th in which the agreement was unanimously approved. In mid-2018 after a competitive review process, the City of Riverbank selected Aemetis as the master developer and acquirer of the Riverbank Industrial Complex property. The City of Riverbank has managed the complex since the military leased the site to the City for conversion from military to private use. "I've often stated that the City of Riverbank should not be in the business of running the Industrial Complex. Finding the right entity to take over that task and come up with a deal that was good for all was at times very painful – and highly rewarding. We are truly grateful to form this partnership. There's nothing like this effort locally and this project has regional significance." Riverbank Mayor Richard O'Brien The Aemetis agreement to acquire the Riverbank Industrial Complex paves the way for a clean energy economic and environmental renaissance in the California Central Valley. The Aemetis Carbon Zero facility is designed to support almond and other orchard farmers to dispose of wood waste by converting a portion of the 3 billion pounds of annual orchard wood waste into negative carbon intensity, renewable hydrogen used in sustainable jet and renewable diesel fuel production. Aemetis has received a grant for $5 million from the California Energy Commission for the engineering and construction of biofuels production facilities at the Riverbank site. Aemetis recently signed $2.1 billion of sustainable aviation fuel supply agreements with Delta Air Lines to supply 250 million gallons under a 10 year agreement and with American Airlines to supply 280 million gallons, for delivery to the San Francisco Airport. In addition to American, Aemetis has also signed memorandums of understanding for sustainable aviation fuel with seven other oneworld Alliance airlines. In mid-December, Aemetis announced a $3 billion, 450 million gallon, 10 year supply agreement with a large travel stop company to supply renewable diesel to California fueling locations. About Aemetis Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today's infrastructure. Aemetis Carbon Zero products include zero-carbon fuels that can "drop-in" to be used in airplanes, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle.

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CHEMICAL TECHNOLOGY

Collaboration is “the name of the game” to build resilience, say speakers at 12th GPCA Supply Chain Conference

Gulf Petrochemicals & Chemicals Association | June 04, 2021

The virtual conference was held on 26-27 May, attracting over 1300 attendees from 450 companies in 62 countries Dubai, United Arab Emirates, 31 May 2021 – The coronavirus (COVID-19) pandemic of the last 15 months has demonstrated the acute importance of collaboration to build more agile, resilient, and responsive supply chains, said industry leaders at the 12th Gulf Petrochemicals and Chemicals Association (GPCA) Supply Chain Conference held virtually on 26-27 May. Senior executives from across the chemical and petrochemical value chain, logistics service providers and shipping operators urged industry leaders to capitalize on the lessons learned during the pandemic and act upon them in the future – from collaborating more closely with the regulators, their customers, and strategic partners, to driving better supply chain visibility, investing in digitalization, building their workforce capabilities, and focusing on supply chain sustainability. In his keynote address, Hamad Alterkait, Chairman of the Kuwait based company, PIC, encouraged chemical leaders to engage in supply chain collaboration even with their competitors and keep their inventory in close customer proximity to improve their reliability and better serve their end markets. He told attendees at the virtual event: “Regional chemical producers must diversify their supply base even if it means incurring higher costs in order to cushion the impact from any future crisis. Companies must also explore out of the box supply chain solutions, using different scenarios, which may aid in addressing important challenges at a critical time.” Echoing Alterkait’s remarks on the importance of collaboration were Hosam Al-Zamil, VP, Global Supply Chain, SABIC; Ahmed Abdulla Al-Salahi, CCO, Q-Chem; and Ahmed Al-Katheeri, SVP - Supply Chain Management, Borouge, in the conference’s inaugural panel on the future of chemical supply chains. The COVID-19 pandemic was a test to chemical supply chains’ resilience, as it demonstrated that the world is one global community, panelists said. “The future will not be the moving of our products; it will be the moving of data which will help enable responsiveness and agility and drive customer centricity to stay competitive. However, we cannot achieve this by working in silos. The chemical industry is just one part of the supply chain and we must work together to build a more resilient future,” Al-Katheeri added. A recent GPCA survey confirms the insights shared by speakers. It found that chemical supply chain and operations have been the single most impacted business function within downstream organizations in the GCC in the past 15 months as a result of the COVID-19 pandemic. In the path to recovery, chemical companies must focus on supply chain digitalization, sustainability, trade facilitation and regulatory engagement. Within these trends, carbon neutrality, Artificial Intelligence (AI) and Machine Learning (ML) will be the key segments to focus on and drive the highest impact on businesses’ supply chains today, the survey found. Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA, commented, “I was pleased to welcome the regional and global chemical industry to the virtual edition of the 12th GPCA Supply Chain Conference last week and gain first-hand insight into the challenges associated with the pandemic on their chemical supply chain and operations. The audience was left with a message of positivity on what’s to come next and provided with a range of practical tips on how to address the uncertainty and any new crisis in the future. I hope delegates enjoyed attending the event and thank all our sponsors and partners for making this edition possible.” The 12th GPCA Supply Chain Conference was held under the theme ‘Powering a resilient, responsive and agile supply chain’, attracting over 1300 attendees from 450 companies in 62 countries. To learn more, visit www.gpcasupplychain.com About the Gulf Petrochemicals & Chemicals Association The Gulf Petrochemicals and Chemicals Association (GPCA) was established in 2006 to represent the downstream hydrocarbon industry in the Arabian Gulf. Today, the association voices the common interests of more than 250 member companies from the chemical and allied industries, accounting for over 95 percent of chemical output in the GCC. The industry makes up the second largest manufacturing sector in the region, producing over USD 108 billion worth of products every year. GPCA supports the petrochemical and chemical industry in the Arabian Gulf through advocacy, networking and thought leadership initiatives aimed at helping member companies to connect, share and advance knowledge, contribute to international dialogue, and become prime influencers in shaping the future of the global petrochemicals industry. Committed to providing a regional platform for stakeholders from around the world, GPCA manages six working committees – Plastics, Supply Chain, Fertilizers, International Trade, Research and Innovation, and Responsible Care – and organizes six world-class events each year. The association also publishes an annual report, regular newsletters and various other industry reports. For more information, visit www.gpca.org.ae. Contact: Slavka Atanasova Gulf Petrochemicals and Chemicals Association P. O. Box 123055, Dubai, United Arab Emirates T: + 44 7561 525126 E: slavka@gpca.org.ae or Hector Aquino hector@gpca.org.ae

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RAW MATERIALS

Clariant completes sale of its Pigments business

Clariant International Ltd | January 04, 2022

Clariant, a focused, sustainable and innovative specialty chemical company, completed the sale of its Pigments business to a consortium of Heubach Group and SK Capital Partners. As announced upon signing of the transaction, the base enterprise value of the sale amounts to CHF 805 million subject to closing accounts adjustments and before a potential earn-out payment of CHF 50 million which is subject to the business’ 2021 financial performance. Clariant rolled over approximately CHF 115 million to retain a 20 % stake in the new holding company, alongside Heubach and SK Capital. This combined business is a global pigments player with approximately 3 000 employees generating approximately EUR 1 billion in annual sales with strong service and production capabilities across the globe. This roll-over allows Clariant to further benefit from the improving profitability of the Pigments business, participate in future growth opportunities and realize synergies via the combination with Heubach’s Pigments business. Clariant’s net cash inflow after roll-over and initial debt adjustments, but before closing account adjustments, tax, transaction cost and a potential earn-out payment amounts to approximately CHF 615 million. Clariant intends to use the proceeds of the divestment to invest into growth projects within the core Business Areas, execute the strategy along sustainability and innovation, fund the performance improvement programs as well as strengthen Clariant’s balance sheet to reach and defend a solid investment rating. “The Pigments divestment concludes Clariant’s transformation into a high-value specialty chemical company, allows us to invest in profitable growth in our most attractive segments and to address the increasing demand for more sustainable products. We are convinced that the Heubach and SK Capital consortium is the best owner of the Pigment activities and I wish our former colleagues all the best in their new environment. Clariant looks forward to participating in the group’s further development as a shareholder.” Conrad Keijzer, Chief Executive Officer of Clariant

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CHEMICAL MANAGEMENT

Tilley-Phoenix Group Completes the Acquisition of Callahan Chemical

Tilley-Phoenix Group | January 07, 2022

Tilley-Phoenix Group a leading U.S. based specialty ingredients distributor and value-added service provider, and portfolio company of SK Capital Partners announced the acquisition of Callahan Chemical Company a regional distributor of high-quality ingredients and compounds serving a diverse set of end markets including, food and beverage, personal care and cosmetics, pharmaceuticals and nutraceuticals, HI&I and CASE. The acquisition of Callahan aligns with the Company’s vision in creating a specialized, world-class supplier of high-quality ingredients supported by a robust value-added service offering. “We are extremely pleased to complete the acquisition of Callahan Chemical, believing it represents a highly complementary business with shared values and vision as a specialty-focused distributor supported by a strong value-added service foundation. We look forward to partnering with the Callahan team as we enhance the value we bring to existing and new customers,” Jean-Paul Benveniste, President and CEO of Tilley-Phoenix Callahan is a leading regional distributor offering optimized chemical distribution solutions aligned to individual customer requirements. Callahan’s mission is supported by a comprehensive portfolio of value-added services, including regulatory and technical support, custom formulation, in-house laboratory quality assurance and quality control, blending, storage and packaging, and repackaging. Callahan distributes a broad portfolio of products sold into regulated markets, which complement the existing Tilley-Phoenix platform while also expanding the Company’s product offering and market focus with a full-line offering of CASE products. “Since its founding in 1958 by my father James B. Callahan, Callahan Chemical has consistently provided outstanding value to its customers, suppliers, and employees. We are confident that by joining the Tilley-Phoenix Group the opportunity to increase our value-added services will be greatly enhanced,” said John Callahan, CEO of Callahan Chemical. The addition of Callahan to Tilley-Phoenix provides customers with state-of-the-art regulatory and technical support, broader logistics expertise, and an enhanced product offering of value-added ingredients for applications in regulated markets. “Callahan, like Tilley-Phoenix, brings a strong value-added approach to serving its suppliers and customers. The acquisition enhances the platform’s geographic reach, which is particularly compelling for our shared supplier base,” said Sean Tilley, President and COO of Distribution. Looking forward, Tilley-Phoenix plans to continue its pursuit of selective M&A, focused largely on specialty products sold into regulated markets. The Company continues to focus on expanding the value-added platform, seeking targeted opportunities to enhance the value, quality, and breadth of solutions we bring to both customers and suppliers. Callahan represents the third acquisition of 2021 for Tilley-Phoenix. Klehr Harrison LLP acted as legal counsel to Tilley-Phoenix and committed debt financing was led by Madison Capital Funding LLC. About Tilley-Phoenix Group Formed through the merger of Tilley Co. and Phoenix Aromas and Essential Oils, Tilley-Phoenix is a value-added specialty ingredients distributor serving food and beverage, fragrance, personal care and cosmetics, HI&I and pharmaceutical markets. The Company seeks to act as a direct extension of their suppliers’ selling networks to effectively partner and service broader customer networks. Tilley-Phoenix operates modern, efficient global distribution facilities to serve its customers’ just-in-time production needs. The Company offers a comprehensive portfolio of value-added services, including regulatory & technical support, full-service QA/QC laboratory, custom formulation, custom blending & packaging, and specialty storage.

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Spotlight

For chemical companies who are dealing with complex, dangerous shipments, there can be real added value found throughout the supply chain when real-time visibility data complements a supplier’s existing information. The market has shifted as traffic conditions worsen, chemical storage capacities remain stagnant, and cus - tomer expectations increase, so we explore how real-time visibility can work for a chemical company to help solve these and many other chal - lenges when integrated properly.

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