Chemicals Industry

US Resins

US PE spot resin prices ended 2021 higher than the same period of 2020 by a margin of US$0.15-US$0.24/lb.

Meanwhile, contracts will be up $0.26-$0.28/lb if December confirms a decrease of $0.05-$0.07/lb.

PP spot activity improved near the end of 2021 as resellers offloaded end-of-year inventory, contributing to discounted prices and bearish sentiment. Regardless, PP pricing at the end of 2021 surpassed the same period of 2020 by $0.13-$0.15/lb.

December PP contracts could decline by $0.15/lb in December, including the SU$0.10/lb decrease in polymer-grade propylene contract. Still, PP contracts at the start of 2022 are about $0.15/lb higher than at the start of 2021.

The primary source of this information is Plastics Today.

US Chlor-Alkali

US caustic soda in Q1 2022 will see tight supply against strong demand, as the quarter sees numerous planned production turnarounds.

Meanwhile, chlor-alkali output in the US was interrupted twice in 2021 by February’s deep freeze and Hurricane Ida in August. As a result, sources say inventories are still depleted in the face of strong demand for chlorine and caustic soda.

As of Jan. 4, Olin’s force majeure was still in effect at its 550,000-tonne/year caustic soda plant in McIntosh, Alabama.

The primary source of this information is S&P Global Platts.

China Butadiene

Asian butadiene prices hit US$555/tonne CFR China on Dec. 30, down $35/tonne day-on-day. The prices are at their lowest since August 2020 as China boosts its production.

China’s butadiene production for December is estimated at about 340,000 tonnes and could rise further in January.

China’s domestic butadiene prices also decreased, landing at $558/tonne.

As a result of China’s bearish market, Asian suppliers are looking to export material outside Asia, including to the US.

The primary source of this information is S&P Global Platts.

Corbion will showcase its new antioxidant brand, and a range of freshness and safety solutions that give meat and poultry producers latitude to align business needs and consumer demands.

State-of-the-art meat and poultry preservation solutions, from Corbion, are keeping pace to meet the myriad challenges that producers face in today’s global meat and poultry industry. Corbion will share sample food applications showcasing these solutions with attendees at the upcoming International Production & Processing Expo, which runs Tuesday, Jan. 25 through Thursday, Jan. 27 in Atlanta. Preservation and application experts will be on hand in the redesigned Corbion booth (BC9833) located in the event’s new food safety plaza, where visitors can sample these solutions, with some featuring antioxidant ingredients under the company’s new Origin™ brand.

“For some time now, the industry has depended on ingredient solutions that deliver on many important product attributes, but compromised on others,” said Rob Ames, Director of Business Development—Meat at Corbion. “Today we’re reaching a new level of sophistication in terms of our understanding and the tools and options available to us. That means fewer compromises and better performance for our customers.”

Corbion antioxidants, including those under the new Origin brand, give producers consumer-friendly, plant extract solutions that effectively slow oxidation processes, which degrade important sensory indicators of freshness, including color, aroma and taste. These ingredients may be applied at higher usages without causing negative sensory impacts.

Business, sales and technical experts from the Corbion team will be available to discuss a wide range of solutions to processing, product development and microbial challenges. Guests will also be invited to:

Attend “Combining Food Safety and Shelf Life in Fresh Chicken Processing,” an IPPE Tech Talk presented by Rob Ames, along with Nick Sevart, Business Development Manager, on Tuesday, Jan. 25 from 1-1:20 p.m. at presentation booth #C10611.
Experience sample applications of Corbion solutions featured in Crossroads Chicken Street Tacos, KC-style BBQ Turkey Meatballs and more. These sample solutions deliver on a range of priorities for processors, including food safety, taste, texture, yield, sodium reduction, color protection and alternatives to HPP processing using new, established and emerging ingredients.
“The capabilities we have now allow us to simultaneously accomplish a greater number of goals that benefit processors, consumers or both,” Mr. Ames said. “We’re looking forward to exploring how we can keep our guests’ and customers’ products fresh longer, keep consumers safe and happy, and reduce waste, all of which help make meat and poultry a more profitable, sustainable business to be in.”

• Purchase of JSR Corporation’s remaining 30 percent share in the joint venture Japan Fine Coatings Co., Ltd.
• Business activities including production and R&D in Japan to be continued
• Fiber optical market with strong potential due to 5G roll-out

As of January 14, 2022, Covestro is now the sole owner of Japan Fine Coatings Co., Ltd. (JFC), previously managed as a joint venture (JV) with JSR Corporation (JSR). JFC is one of the leading suppliers of optical fiber coatings based in Tsukuba, Japan. Covestro previously held 70 percent and JSR 30 percent of the JV shares. With a purchase price in the mid-single-digit million euro range, Covestro has now purchased JSR's 30 percent stake to become the company’s sole owner.

With the transaction, Covestro further strengthens its position in the attractive field for fiber optical coatings. "The Covestro Coatings & Adhesives business already has an outstanding position in the field of fiber optical coatings. By fully purchasing JFC, we can now develop the business independently," explains Thorsten Dreier, Head of the business entity Coatings & Adhesives at Covestro. "The market segment has tremendous growth potential, especially due to the roll-out of future 5G technology."

JFC's UV-curable coatings for optical fiber materials are mainly used in the telecommunications industry. Today’s strong demand for connectivity is creating a surge in bandwith demand for fixed and mobile network opertations. High-performance fiber optical cables are needed here to enable the reliable transmission of high data rates. In addition, the increasing roll-out of 5G technology is driving demand. Cell towers are being connected to the network via fiber optic cables to fully exploit the capabilities of the new mobile communications standard.

"Japan plays an important role in the global fiberglass market. We appreciate JSR’s long-term support in establishing JFC’s presence. In combination with Covestro's global network, we are using this strong base for future growth potential," explains Kimiyasu Yonemaru, President of Covestro Japan. "This also underlines Covestro's clear commitment to the Japanese market."

In April 2021, Covestro had already taken over 70 percent of the shares in JFC as part of the acquisition of DSM's Resins & Functional Materials business. Overall the JV has already been prepared for operational independence for several years, as JSR had already shifted its focus on its other strategic business areas. At JFC’s business sites, both production in Tsukuba as well as research and development activities in Kanagawa will continue unchanged. In total, JFC employs around 65 people (calculated as full-time equivalents).

About Japan Fine Coatings Co., Ltd.:

In 1982, JFC was established as a 50/50 JV of Desoto (DSM's predecessor) and JSR. DSM acquired Desoto in 1990 and increased its shareholding to 70 percent in 2016.

About JSR Corporation:

JSR Corporation is a research-oriented, multinational company focused on the digital solutions, including semiconductor, and life sciences markets. Headquartered in Tokyo, Japan, JSR has facilities and offices throughout Asia, Europe and the US. JSR’s customer-centric approach pursues sustainability and resilience through close collaborations, all with a focus on driving innovation to provide value to the world’s leading-edge industries.

About Covestro:

With 2020 sales of EUR 10.7 billion, Covestro is among the world’s leading polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative, sustainable solutions for products used in many areas of daily life. In doing so, Covestro is fully committed to the circular economy. The main industries served are the automotive and transportation industries, construction, furniture and wood processing, as well as electrical, electronics, and household appliances industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. At the end of 2020, Covestro has 33 production sites worldwide and employs approximately 16,500 people (calculated as full-time equivalents).

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

ExxonMobil and SABIC today announced the successful startup of Gulf Coast Growth Ventures world-scale manufacturing facility in San Patricio County, Texas.

• Gulf Coast Growth Ventures facility will meet growing demand for performance products
• Site enters operations ahead of schedule

The new facility will produce materials used in packaging, agricultural film, construction materials, clothing, and automotive coolants. The operation includes a 1.8 million metric ton per year ethane steam cracker, two polyethylene units capable of producing up to 1.3 million metric tons per year, and a monoethylene glycol unit with a capacity of 1.1 million metric tons per year.

“We built this state-of-the-art chemical plant ahead of schedule and below budget, by leveraging our global projects expertise in execution planning and delivery, while keeping everyone safe and healthy,” said Karen McKee, president of ExxonMobil Chemical Company. “This is a remarkable achievement that positions us well to help meet growing global demand for performance products while providing meaningful investment in the U.S. Gulf Coast.”

“This is a very proud moment for the parent companies,” said Abdulrahman Al-Fageeh, SABIC’s executive vice president of Petrochemicals. “It was with a great deal of dedication that our teams were able to safely start up each element of the plant before the close of 2021. As we begin this next chapter for GCGV, we look forward to continuing our role as a good neighbor in the Coastal Bend.”

Construction began in the third quarter of 2019, creating an estimated 6,000 high-paying construction jobs, and the manufacturing plant now directly employs more than 600 people.

ExxonMobil and SABIC have partnered together for 40 years on petrochemical projects. Gulf Coast Growth Ventures represents their first joint venture in the Americas. SABIC is the operating partner for two long-standing joint ventures with ExxonMobil in the Kingdom of Saudi Arabia, Kemya in Jubail and Yanpet in Yanbu. Ownership interests in Gulf Coast Growth Ventures is evenly divided with 50 percent to ExxonMobil and 50 percent to SABIC. ExxonMobil is the site operator.

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About ExxonMobil

ExxonMobil, one of the largest publicly traded international energy companies, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world. To learn more, visit exxonmobil.com and the Energy Factor.

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About SABIC

SABIC is a global diversified chemicals company headquartered in Riyadh, Saudi Arabia. SABIC manufactures on a global scale in the Americas, Europe, Middle East and Asia Pacific, making distinctly different kinds of products: chemicals, commodity and high performance plastics, agri-nutrients and metals. SABIC supports customers by identifying and developing opportunities in key end-use applications such as construction, medical devices, packaging, agri-nutrients, electrical and electronics, transportation and clean energy. . To learn more, visit www.sabic.com. 

Cautionary Statement

Statements of future events or conditions in this release are forward-looking statements. Actual future results, including timing, plans, and capacities; actual production; and business, economic, and employment and community impacts could differ materially due to changes in market conditions affecting the oil, gas and petroleum product industries or long-term oil, gas and petroleum product price levels; political or regulatory developments including changes in environmental regulations or taxes; future technological developments including the development and costs of alternative or competing technologies; actions of competitors; technical or operating factors; the outcome of commercial negotiations; changes in consumer preferences; and other factors cited under the caption “Factors Affecting Future Results” on the Investors page of our website at exxonmobil.com.

Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Nothing contained herein is intended to override the corporate separateness of affiliated companies.

Since the product launch in 2011, Evonik has delivered gas separation membranes in more than 1,000 reference plants worldwide as of the end of 2021.

• From startup to global technology leader for gas separation membranes within a decade
• Strong demand for SEPURAN® membranes in biogas, nitrogen, hydrogen and natural gas applications
• Second manufacturing expansion underway 

Since the product launch in 2011, Evonik has delivered gas separation membranes in more than 1,000 reference plants worldwide as of the end of 2021. Within just one decade, the specialty chemicals company has become a globally recognized technology leader in polymer-based SEPURAN® membranes for efficient gas separation. The Group is experiencing continued strong demand in biogas, nitrogen, hydrogen and natural gas applications. The expansion of existing production capacities at the Austrian site in Schörfling am Attersee is progressing.

„Having developed and established the biogas industry in close cooperation with our partners, we are establishing now our SEPURAN® membranes in demanding nitrogen, hydrogen and natural gas applications,” says Dr. Iordanis Savvopoulos, Head of the Fibres, Foams and Membranes Product Line at Evonik. "We celebrated the 500th biogas reference plant just under a year ago, and now the next market success for the entire membrane portfolio is hitting us, giving us an important boost for further growth. The market is convinced of our innovative membrane technology."

INNOVATIVE EDGE THROUGH BACKWARD INTEGRATION
At the heart of Evonik's SEPURAN® membrane technology are polymer-based hollow-fibre membranes made of the high-performance polymer polyimide developed in-house. Evonik is the world's only backward-integrated manufacturer of highly selective gas separation membranes.

"Backward integration is the key driver of our innovative strength," emphasizes Dr. Goetz Baumgarten, head of the Membranes Innovation Growth Field at Evonik. "Thanks to our many years of expertise in polymer chemistry, we already adjust the membrane properties at the development stage of the base material—our high-performance polymer—in order to produce particularly selective, productive, and robust membranes that can be used even under extreme process conditions-such as those found in the oil and gas industry or in aviation."

POLYMER-BASED MEMBRANE TECHNOLOGY FOR GAS SEPARATION
SEPURAN® membranes make it possible to separate gases such as methane (CH4), nitrogen (N2), or hydrogen (H2) from gas mixtures. The advantages of Evonik's membrane technology are more precise separation of the gases and higher productivity.
SEPURAN® N2 membranes for efficient nitrogen generation are used, for example, to inert aircraft tanks. SEPURAN® Noble membranes extract hydrogen transported through natural gas pipelines selectively from the CH4/H2 gas mixture at the delivery points. SEPURAN® NG membranes enable efficient natural gas processing from gas sources with high CO2 concentration.

Evonik launched its first membrane product—SEPURAN® Green, for efficient upgrading of biogas—on the market in 2011, laying the foundations for future business in membranes. This was followed by further membrane products for nitrogen, helium, hydrogen, natural gas, and nanofiltration applications. The membranes, which are now being successfully used in more than 1,000 system installations worldwide, are produced at Evonik’s site in Schörfling, Austria. The high-performance polymer-based material is produced in neighboring Lenzing.

COMPANY INFORMATION
Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of €12.2 billion and an operating profit (adjusted EBITDA) of €1.91 billion in 2020. Evonik goes far beyond chemistry to create innovative, profitable and sustainable solutions for customers. About 33,000 employees work together for a common purpose: We want to improve life today and tomorrow.

ABOUT SMART MATERIALS
The Smart Materials division includes businesses with innovative materials that enable resource-saving solutions and replace conventional materials. They are the smart answer to the major challenges of our time: environment, energy efficiency, urbanization, mobility and health. The Smart Materials division generated sales of €3.24 billion in 2020 with about 7,900 employees.

DISCLAIMER
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.