Company News
April 1, 2021
Hanwha TDI Investments
Chairman Kim Seung-yeon returns to Hanwha Group to drive new businesses
As Chairman of Hanwha Group Kim Seung-yeon returns to management after seven years, Hanwha’s core affiliates are taking a drive in new businesses.
ANI | Seoul | Updated: 01-04-2021 08:56 IST | Created: 01-04-2021 08:56 IST
Seoul [Sout Korea], April 1 (ANI/Global Economic): As Chairman of Hanwha Group Kim Seung-yeon returns to management after seven years, Hanwha’s core affiliates are taking a drive in new businesses. Following trillions of investments in space and aviation, it will also promote its own production of Dinitrotoluene (DNT).
It was announced on Wednesday that Hanwha Solutions [009830] and Hanwha Co., Ltd. are planning to jointly invest a total of 350 billion won to build a nitric acid and nitric acid derivatives (DNT) production facility in Yeosu Industrial Complex. DNT, which is produced from nitric acid and toluene, is a key raw material for toluene diisocyanate (TDI), that is used to produce artificial leather etc.
Hanwha Solutions plans to invest 160 billion won and Hanwha Co., Ltd. 190 billion won to build nitric acid and nitrate derivatives (DNT) facilities. Hanwha Solutions has been purchasing TDI from Hu-Chems [069260] until now, and when this plant is completed, 100% of TDI can be produced in-house.
The two companies plan to build a TDI production facility with an annual capacity of 180,000 tons using the area of 66,000m^2, half of the 132,000m^2polysilicon site in the Yeosu Industrial Complex of Hanwha Solutions. It aims for commercial production in January 2024. An official at Hanwha Solutions explained, “With this in-house DNT production, we will build a vertical integration line for the production of caustic soda, chlorine, synthetic gas, DNT, and TDI.”
Hanwha Solutions predicts that if TDI is produced in-house, the operating margin will increase by about 10 % due to cost improvement. Through this project, Hanwha Corporation is expanding its nitric acid business by producing 400,000 tons of nitric acid.
Hanwha Corporation plans to advance into the inorganic chemistry and derivatives business by enhancing its nitric acid business competitiveness. Prior to this investment, Hanwha Group decided to make a paid-in capital increase worth 1.2 trillion won to Hanwha Systems [272210], a defense, space, and aviation company.
Hanwha System’s largest shareholders, Hanwha Aerospace [012450] and H Solutions, are participating in a total capital increase of 730 billion won. H Solution is a company that is 100% owned by three sons of Chairman Kim Seung-yeon, Kim Dong-gwan, Kim Dongwon, and Kim Dongseon.
Hanwha Systems is planning to invest 500 billion won in LEO (Low Earth Orbit) satellite communications, 450 billion won in air mobility business, and 250 billion won in blockchain-based digital platform business throughout 3 years starting this year. It is planning to expand the air mobility (air taxi) business in earnest. The business community believes that the power of Chairman Kim Seung-yeon, who returned to management after seven years, is attributable to Hanwha Group’s recent active business expansion. (ANI/Global Economic)
April 1, 2021
Hanwha TDI Investments
Chairman Kim Seung-yeon returns to Hanwha Group to drive new businesses
As Chairman of Hanwha Group Kim Seung-yeon returns to management after seven years, Hanwha’s core affiliates are taking a drive in new businesses.
ANI | Seoul | Updated: 01-04-2021 08:56 IST | Created: 01-04-2021 08:56 IST
Seoul [Sout Korea], April 1 (ANI/Global Economic): As Chairman of Hanwha Group Kim Seung-yeon returns to management after seven years, Hanwha’s core affiliates are taking a drive in new businesses. Following trillions of investments in space and aviation, it will also promote its own production of Dinitrotoluene (DNT).
It was announced on Wednesday that Hanwha Solutions [009830] and Hanwha Co., Ltd. are planning to jointly invest a total of 350 billion won to build a nitric acid and nitric acid derivatives (DNT) production facility in Yeosu Industrial Complex. DNT, which is produced from nitric acid and toluene, is a key raw material for toluene diisocyanate (TDI), that is used to produce artificial leather etc.
Hanwha Solutions plans to invest 160 billion won and Hanwha Co., Ltd. 190 billion won to build nitric acid and nitrate derivatives (DNT) facilities. Hanwha Solutions has been purchasing TDI from Hu-Chems [069260] until now, and when this plant is completed, 100% of TDI can be produced in-house.
The two companies plan to build a TDI production facility with an annual capacity of 180,000 tons using the area of 66,000m^2, half of the 132,000m^2polysilicon site in the Yeosu Industrial Complex of Hanwha Solutions. It aims for commercial production in January 2024. An official at Hanwha Solutions explained, “With this in-house DNT production, we will build a vertical integration line for the production of caustic soda, chlorine, synthetic gas, DNT, and TDI.”
Hanwha Solutions predicts that if TDI is produced in-house, the operating margin will increase by about 10 % due to cost improvement. Through this project, Hanwha Corporation is expanding its nitric acid business by producing 400,000 tons of nitric acid.
Hanwha Corporation plans to advance into the inorganic chemistry and derivatives business by enhancing its nitric acid business competitiveness. Prior to this investment, Hanwha Group decided to make a paid-in capital increase worth 1.2 trillion won to Hanwha Systems [272210], a defense, space, and aviation company.
Hanwha System’s largest shareholders, Hanwha Aerospace [012450] and H Solutions, are participating in a total capital increase of 730 billion won. H Solution is a company that is 100% owned by three sons of Chairman Kim Seung-yeon, Kim Dong-gwan, Kim Dongwon, and Kim Dongseon.
Hanwha Systems is planning to invest 500 billion won in LEO (Low Earth Orbit) satellite communications, 450 billion won in air mobility business, and 250 billion won in blockchain-based digital platform business throughout 3 years starting this year. It is planning to expand the air mobility (air taxi) business in earnest. The business community believes that the power of Chairman Kim Seung-yeon, who returned to management after seven years, is attributable to Hanwha Group’s recent active business expansion. (ANI/Global Economic)
March 30, 2021
Lyondell Operations Improving
March 30, 2021
Subject: Propylene Oxide & Derivatives – Force Majeure Event
Dear Valued Customer,
Per the previous letter dated February 16, 2021, Lyondell Chemical Company declared a force majeure
event for all products within our Americas Propylene Oxide & Derivatives Portfolio – Propylene Oxide,
Propylene-Glycols, Allyl Alcohol, Butanediol & Derivatives, Propylene-Series Glycol Ethers and
Propylene-Specialties Glycol Ethers, effective February 16, 2021.
In a letter dated February 25, 2021, Lyondell Chemical Company announced a sales allocation for
Propylene Glycol, effective March 1, 2021. For the foreseeable future, Lyondell Chemical Company is
updating the previously announced sales allocation for Propylene Glycol, as outlined below. Allocation
volumes have been determined based on customer’s average monthly purchases for the previous 6 months
(August 2020 – January 2021). This allocation will be effective April 1, 2021.
Product Allocation
Mono-Propylene Glycol Industrial Grade (PGI) 90%
Mono-Propylene Glycol USP/EP Grade (PG USP/EP) 90%
Di-Propylene Glycol Industrial Grade (DPGI) 100%
Di-Propylene Glycol Fragrance Grade (DPGF) 100%
Tri-Propylene Glycol (TPG) 80%
Tri-Propylene Glycol Acrylate Grade (TPGA) 80%
Please note that during the period of allocation, customers will not be permitted to borrow ahead of their
monthly amounts and unused portions of monthly amounts cannot be added to any subsequent month’s
amounts. Additionally, allocations are subject to third party carrier availability and other logistical
infrastructure limitations, including, but not limited to, railcar, tank truck, barge/vessel, terminal and port
availability, and production status of our manufacturing facilities, any of which may impact Product
availability, delivery dates, and order fulfillment. The duration of the force majeure event cannot be
determined at this time and the percentage of allocation may change as new information becomes
available.
As always, your account manager is available to address any questions or concerns you may have
regarding this force majeure event. We value the trust you place in Lyondell Chemical Company as a
supplier and we apologize for the inconvenience this may cause you.
Thank you for your understanding and patience.
March 30, 2021
Lyondell Operations Improving
March 30, 2021
Subject: Propylene Oxide & Derivatives – Force Majeure Event
Dear Valued Customer,
Per the previous letter dated February 16, 2021, Lyondell Chemical Company declared a force majeure
event for all products within our Americas Propylene Oxide & Derivatives Portfolio – Propylene Oxide,
Propylene-Glycols, Allyl Alcohol, Butanediol & Derivatives, Propylene-Series Glycol Ethers and
Propylene-Specialties Glycol Ethers, effective February 16, 2021.
In a letter dated February 25, 2021, Lyondell Chemical Company announced a sales allocation for
Propylene Glycol, effective March 1, 2021. For the foreseeable future, Lyondell Chemical Company is
updating the previously announced sales allocation for Propylene Glycol, as outlined below. Allocation
volumes have been determined based on customer’s average monthly purchases for the previous 6 months
(August 2020 – January 2021). This allocation will be effective April 1, 2021.
Product Allocation
Mono-Propylene Glycol Industrial Grade (PGI) 90%
Mono-Propylene Glycol USP/EP Grade (PG USP/EP) 90%
Di-Propylene Glycol Industrial Grade (DPGI) 100%
Di-Propylene Glycol Fragrance Grade (DPGF) 100%
Tri-Propylene Glycol (TPG) 80%
Tri-Propylene Glycol Acrylate Grade (TPGA) 80%
Please note that during the period of allocation, customers will not be permitted to borrow ahead of their
monthly amounts and unused portions of monthly amounts cannot be added to any subsequent month’s
amounts. Additionally, allocations are subject to third party carrier availability and other logistical
infrastructure limitations, including, but not limited to, railcar, tank truck, barge/vessel, terminal and port
availability, and production status of our manufacturing facilities, any of which may impact Product
availability, delivery dates, and order fulfillment. The duration of the force majeure event cannot be
determined at this time and the percentage of allocation may change as new information becomes
available.
As always, your account manager is available to address any questions or concerns you may have
regarding this force majeure event. We value the trust you place in Lyondell Chemical Company as a
supplier and we apologize for the inconvenience this may cause you.
Thank you for your understanding and patience.
March 29, 2021
Sadara Marketing Changes
Sadara agrees with lenders to reprofile its debt
Ajel News 3 hrs ago 
Sadara Chemical Company (Sadara) has signed an agreement with agency creditors and commercial lenders to restructure Sadara’s debt. The restructured debt repayment has been better aligned to match Sadara’s expected future cash flow generation. This agreement became effective March 25, 2021.
Key provisions of the agreement include a debt maturity extension from 2029 to 2038; a principal grace period through 2026, and new guarantees issued by the Sadara’s sponsors; Saudi Arabian Oil Company’s (Saudi Aramco); and The Dow Chemical Company’s (Dow).
Global manufacturing cost curve
Following the successful reprofiling, Sadara will also benefit from longer-term structural operating and feedstock improvements; further enhancing its cracker’s flexibility and improving Sadara’s position on the global manufacturing cost curve.
Sadara has also received the agreement of its shareholders — Saudi Aramco and Dow — to start the transition of the marketing rights of Sadara’s finished products to levels more consistent with each partner’s equity ownership.
This transition is part of the partnership’s original plan and will gradually increase over the next five years.
The acceleration of the marketing rights of Saudi Aramco will be taken over by the Saudi Basic Industries Corporation (SABIC). All parties agreed on this and these rights will relate to several specific products; which include a range of polyethylene, chemicals and polyurethane.
“Sadara’s debt reprofiling is an essential move that positions us well for the long term in both local and global markets.
“The company marked many milestones and achievements in various areas as a world-class organization since it reached full operations, reflecting our continuous commitment to our shareholders and stakeholders,” said Dr. Faisal Al-Faqeer, Sadara’s chief executive officer.
He added: “The transition of our marketing rights to these global industry leaders is part of the shareholders’ actions to improve Sadara’s operating results, as the marketers will leverage their marketing and sales expertise to ensure that Sadara’s world-class assets, technologies and products reach their full potential.
“This will further benefit our shareholders and lenders as well as current customers.”
Sadara’s Chief Financial Officer Alejandro Farre noted, “This transaction is yet another critical milestone for Sadara and a demonstration of the strong support from shareholders and lenders to provide the company with the long-term sustainable capital structure to enable its continued success.”
https://www.msn.com/en-ae/money/news/sadara-agrees-with-lenders-to-reprofile-its-debt/ar-BB1f56Ee
Sadara markets in the Middle East today, and Dow in the rest of the world. Sadara will no longer market products, but they will be sold by Sabic. Aramco (Sabic parent) owns 65% of the JV and Dow owns 35% of the JV. This is the amount of volume that will be marketed by each of the two companies in the future, starting this summer.
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