Trinseo to acquire North American producer and global provider of PMMA continuous cast and solid surface sheets

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, has announced its entry into an agreement with SK AA Holdings, LLC, an affiliate of Falcon Private Holdings, LLC, to acquire Aristech Surfaces LLC, a leading North American manufacturer and global provider of polymethyl methacrylates (PMMA) continuous cast and solid surface sheets, serving the wellness, architectural, transportation and industrial markets, as per the company's press release.

“The acquisition of Aristech allows us to provide a full offering of PMMA technologies and innovative products that serve customers in new, high-growth markets,” said Frank Bozich, Trinseo President and Chief Executive Officer. “This is an important next step towards our goal of becoming a global specialty materials and sustainable solutions provider. We are eager to welcome the Aristech team and we believe the complementary technical capabilities and focus on customer relationships will drive superior results for the PMMA business globally.”

The transaction is expected to generate approximately USD10 million in annual pretax cost synergies by 2024 and additional revenue synergies by leveraging Trinseo’s footprint and customer relationships in North America, Europe and Asia. The collective technical and commercial teams will work together to accelerate growth and deliver meaningful value to shareholders.

Aristech is a global leading producer of continuous cast acrylic sheet for the wellness, architectural, transportation and industrial markets. Aristech’s products are used for a variety of applications, including the construction of hot tubs, swim spas, counter tops, signage, bath products and recreational vehicles. Aristech’s high margin profile and strong cash flow conversion is expected to drive long-term value for shareholders. The business will become part of Trinseo’s Engineered Materials segment.

The transaction is expected to be funded with cash on hand and existing credit facilities. Trinseo expects its net leverage ratio to be in the low-2x range at the end of the year, including proforma adjustments for the Synthetic Rubber divestiture and the Aristech and Arkema PMMA acquisitions. Trinseo anticipates the transaction will close by year-end 2021 subject to customary closing conditions and regulatory approvals.

As MRCreportedearlier, in May, 2021, Trinseo announced the closing of the previously announced transaction to acquire Arkema’s polymethyl methacrylates (PMMA) business. PMMA is a transparent and rigid resin with a wide range of end uses that augments Trinseo’s existing offerings across several end markets including automotive, building and construction, medical and consumer electronics.

The main application, consuming approximately 75% MMA, is in the production of polymethyl methacrylate acrylic plastics (PMMA). Methyl methacrylate is also used to produce methyl methacrylate-butadiene-styrene copolymer (MBS), used as a modifier for polyvinyl chloride (PVC).

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC totalled 515,900 tonnes in the first half of 2021, up by 1% year on year. At the same time, two producers reduced their output.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD3.0 billion in net sales in 2020, with 17 manufacturing sites around the world, and approximately 2,600 employees.
MRC

MOSCOW (MRC) -- Enterprise Products Partners reported a rise in second quarter profit 28 July as an ongoing recovery in demand spurred increases in natural gas pipeline and processing volumes, said the company.

Enterprise Products Partners’ Q2 sales and operating income improved year on year, reflecting the recovery in demand as the global economy continued to reopen from coronavirus pandemic-related lockdowns.

NGL, crude oil, refined products & petrochemical pipeline volumes — as a combined category — also advanced quarter on quarter. With the continued improvement in market conditions, the US operator of pipelines, processing plants, and export and storage facilities sees opportunities to potentially increase spending on growth projects over the next two years beyond current estimates, following the significant cuts that were first implemented in 2020 because of the coronavirus pandemic.

It also is considering emissions reduction initiatives, though pricier proposals such as carbon capture could take years and require policy changes in Washington, executives said during an investor conference call. In the near term, Enterprise continues to look for opportunities to repurpose pipelines to carry different resources, depending on demand.

The US-based midstream energy and petrochemicals company saw improved demand for crude oil, natural gas liquids (NGLs), petrochemicals and refined products.

Propylene plant production volumes rose to 113,000 bbl/day, from 72,000 bbl/day in the Q2 2020. Propylene production included a 16,000 bbl/day increase from Enterprise’s propane dehydrogenation (PDH) facility, which had 46 days of unplanned downtime in Q2 2020.

As per MRC, on June 26, a technological failure occurredat the No. 2 propylene splitter in Mount Belvieu, Texas, USA. In particular, according to the statement, an ethane compressor at this plant with a capacity of 450 thousand tons of propylene per year was closed due to a malfunction. For about 8 hours, chemical emissions into the atmosphere were observed. The breakdown was repaired on the same day.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlastreport, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Enterprise Products Partners L.P., headquartered in Houston, USA, is a US based gas and crude oil company that manufactures petrochemicals such as propylene.
MRC

MOSCOW (MRC) -- U.S. oil refiners are set to post their first quarterly profit since the COVID-19 pandemic, even though higher oil prices and weaker margins in June have tamed analysts' optimism fostered by the rebound in fuel demand, said Hydrocarbonprocessing.

U.S. gasoline and diesel fuel demand has nearly recovered to 2019 levels following the plunge in travel and business activity during the worst of the coronavirus pandemic in 2020. Refiners ramped up processing on the back of the resurgence in activity, but are also grappling with higher crude oil prices, which have surged 48% this year.

The top three U.S. independent refiners - Valero Energy Corp , Phillips 66 and Marathon Petroleum Corp - are projected to report combined net income of about USD675 million in the second quarter. That would be down from USD1.3 billion in profit forecast just 30 days ago, and analysts are concerned that the resurgence in coronavirus cases will undermine economic demand.

"There is a fear that second quarter could be peak earnings for the group this year," said Cowen and Co analyst Jason Gabelman. U.S. crude has rallied nearly 24% in the quarter, and while prices of transportation fuels tend to pick up in tandem, prices of other products like naphtha, asphalt and propane tend to lag the increase, squeezing margins.

The U.S. Energy Information Administration earlier this month forecast U.S. liquid fuels consumption in 2021 to rise by 1.5 million barrels per day from 2020. Gasoline product supplied rebounded in the second quarter to levels not seen since prior to the pandemic's beginning.

That has analysts optimistic about coming reports, after the top three refiners lost USD1.3 billion in the first quarter, according to Refinitiv IBES data. Valero reports its earnings on Thursday, followed by the other two next week. Going forward, the spread of the highly transmissible COVID-19 Delta variant is threatening the nascent recovery in travel, with the United States saying this week that it will not lift any existing travel restrictions "at this point."

Refining margins started to decline in June, falling to about USD19.11 per barrel at the end of the month, compared with USD20.42 at the end of the first quarter, Refinitiv Eikon data showed. In the second quarter, blending ethanol into gasoline also hurt margins as price for the corn-based fuel was at a rare premium to gasoline, analysts said.

Refiners also had to pay more for U.S. renewable fuel credits, which touched a record $2 in the quarter. The cost for Renewable Identification Numbers (RINs) - the credits used for compliance with U.S. biofuels blending laws - increased by 22 cents each to USD1.54 at the end of June from USD1.32 at the end of the first quarter.

Refiners are required, by law, to blend biofuels into their gasoline pool, or pay up so others can do the same. The pandemic has reduced blending activity generally, and as a result, fewer credits have been issued, increasing their costs.

Delta Airlines' refinery in Trainer, Pennsylvania, in early July posted a USD157 million operating loss in the second quarter, in part due to the higher costs associated with blending biofuels into its products. "The demand trends have been pretty encouraging and unless there is another set of lockdowns. That's not really the problem. The problem has been a bit more on the RIN cost side of things" said Matthew Blair, analyst at Tudor Pickering Holt and Co.

As MRC informedearlier, at least two people are dead and six others are injured after a chemical leak at LyondellBasell's Texas facility on Tuesday. Emergency officials responded to a "mass casualty" incident at the LyondellBasell complex in La Porte, just after 7:30 p.m., according to the Harris County Fire Marshal. LyondellBasell said in a statement that its complex experienced an acetic acid leak, which occurred within its acetyls unit area that had been shut down earlier in the day for planned maintenance.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlastreport, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC

MOSCOW (MRC) -- LyondellBasell announced that Jiangsu Sailboat Petrochemical Co. Ltd. will use again LyondellBasell Lupotech T high-pressure polyethylene technology at their facility located in Lianyungang City, Jiangsu Province, P.R. of China, said the company.

The process technology will be used for a 200 KTA ethylene vinyl acetate copolymer (EVA) and low-density polyethylene (LDPE) line to produce EVA products with vinyl acetate comonomer.

"Growth of EVA and LDPE applications remain strong in particular in higher value applications such as solar panel lamination and encapsulant which are growing contributors in the energy transition,” said Neil Nadalin, Director Global Licensing and Services at LyondellBasell. Nadalin added, “The technology of choice for producing both EVA and LDPE applications in high demand, remains our high-pressure tubular Lupotech T process offering lowest operating and balanced investments costs to our customers."

Mr. Bai Wei, General Manager of Jiangsu Sailboat Petrochemical Co., Ltd stated, “This is already the second Lupotech T line and our third polyethylene line based on LyondellBasell’s proprietary technology allowing us to produce EVA copolymers and high-quality LDPE products. We are very satisfied with the production capability and plant performance of the Lupotech T technology. Therefore, selecting LyondellBasell’s technology was again a natural choice for expanding our production capability with this additional project."

Decades of experience in high-pressure application design makes the Lupotech T process the preferred technology for EVA/LDPE plant operators. High reliability, unmatched conversion rates and effective process heat integration are key attributes of the Lupotech T process, designed to ensure this technology’s on-going energy efficiency.

More than 13,000 KTA of Lupotech T EVA/LDPE production capacity has been licensed by LyondellBasell in over 70 lines around the world. New licensees take advantage of LyondellBasell’s in-house expertise of continuous production improvement, product development according to the latest environmental regulations, and our knowhow in high pressure design, by optionally joining our Technical Service program.

In 2013, Jiangsu Sailboat Petrochemical Co. Ltd. (JSPCL) also selectedLyondellBasell’s Lupotech T and Lupotech A process technologies for a new plant scheduled to be built in Lianyungang, China.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlastreport, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

MOSCOW (MRC) -- Linde announced it has started up its new on-site facility in Qinzhou, China, supplying oxygen and other industrial gases to Shanghai Huayi's new chemical complex, said the company.

The new facility is comprised of three air separation units which will supply up to 7,500 tons per day of oxygen and 5,000 tons per day of nitrogen. Linde's advanced technology and operational expertise will ensure the safe and reliable supply to Shanghai Huayi through Linde's pipeline at the new chemical complex. By supplying the various Shanghai Huayi companies from one central facility, Linde will operate more efficiently, lowering its energy consumption and carbon emissions. The total investment for this new facility was approximately USD200 million.

"The start-up of our Qinzhou facility is a significant milestone in our long-standing relationship with Shanghai Huayi and we are proud to support its continued growth," said Will Li, Head of Greater China, Linde. "With the new project on stream, we look forward to opening new avenues of cooperation between Linde and Shanghai Huayi as we continue to increase our network density in China."

The new facility has three air separation units (ASUs) which will supply up to 7,500 tonnes/day of oxygen and 5,000 tonnes/day of nitrogen to supply the new Shanghai Huayi chemical complex via pipeline. The pipeline supplying various Shangai Huayi companies from one central facility will enable Linde to operate more efficiently with lower energy costs, and fewer carbon emissions.

As per MRC, Nizhnekamskneftekhim and Linde signeda contract for the construction of EP-600 olefin complex. The planned completion date for the construction and installation works of the olefin complex is July 2023.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlastreport, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
MRC