Company News
March 22, 2023
Pearl Commissions New Facility in Jeddah
Pearl Polyurethane Systems announces major
new Saudi Arabian production facility in Jeddah
Pearl Polyurethane Systems, the award-winning PU system house, has announced the commissioning
of a major new production facility in Jeddah, Saudi Arabia, further reinforcing the company’s industry-
leading position as the largest supplier of polyurethane formulations in the Middle East and Africa
region. Creating new job opportunities in Jeddah, the dedicated plant and office will accommodate
the company’s growing team while further expanding its presence in the Kingdom. With this new
facility, Pearl is accelerating the implementation of its PearlX2 growth plan set to double the
company’s size over the coming five-year period.
Jeddah was chosen as the site for the new Pearl production plant due to its proximity to the city’s
major international port, access to top talent, and excellent transport connections across the
Kingdom.
The new facility will contribute to strengthening Saudi Arabia’s position as a growing manufacturing
hub, with Pearl’s new plant producing polyurethane formulations and high-performance
polyurethane foams widely used in building insulation products, manufacturing processes, and a
range of other everyday applications. Furthermore, the new production facility will leverage Jeddah’s
strong position as an export hub catering to further demand from across the wider region.
Investment into Pearl’s new Jeddah production plant also marks a significant step for the company in
reaffirming its commitment to its existing Saudi-based clients and their vision for the Kingdom to
become a world-class business and tourism destination. Through its clients, Pearl has been working
on multiple projects in Saudi Arabia over the recent years in various fields, including infrastructure,
retail, hospitality, architecture, and the built environment.
Pearl’s expansion in Saudi Arabia is also closely aligned with Vision 2030 national transformation
program objectives, which aim to diversify the Kingdom’s economy and promote private sector
growth. Considering the superior insulation capabilities of rigid polyurethane foams, Pearl’s local
production plant in Jeddah will strongly support the objectives of becoming CO2-neutral by 2060.
“Our roots in Saudi Arabia run deep. Pearl has been servicing clients in the Kingdom for decades and
we are excited about this new production facility commissioning dedicated to providing our Saudi-
based clients with the very best delivery options possible and industry-leading innovation, while
ensuring supply chain resilience. The new Jeddah facility, coupled with investment and growth in our
other offices and facilities across the MENA region, will enable Pearl to maintain world-class service
delivery standards and respond to evolving customer demands across several product areas,” said
Martin Kruczinna, CEO of Pearl Polyurethane Systems. “We are thrilled to offer our Saudi clients the
benefit of dedicated production and warehousing facilities in the Kingdom as well as the type of
personalised, customer-centric service that our international clients have become accustomed to over
the past 35 years.
“This investment represents another tremendous show of confidence in the growing strength and
significance of the Saudi Arabian economy and our company’s close alignment with Vision 2030 goals.
Focusing on building and infrastructure insulation solutions, as well as consumer goods such as
appliances and footwear together with a range of other products, our new production facility ensures
that we continue to offer best-in-class PU solutions to our current and new Saudi-based clients,
supporting further manufacturing sector growth in the Kingdom,” concluded Kruczinna.
Pearl’s R&D team won the Innovative Insulation Project of the Year 2021 award for the first R&D
initiative of its type launched in the Middle East, and again in 2022 for launching its new, more
sustainable low lambda insulation product as part of its EcoPearl range, achieving an overall
improvement of up to 20 per cent in insulation performance over comparable products.
Operating since 1989, the company has supplied polyurethane insulation foam systems for several
trailblazing projects in the Gulf region, including Palm Jumeirah, Downtown Dubai, Ski Dubai, and,
more recently, the Germany Pavilion at Dubai Expo 2020 Bustanica, the world’s largest vertical farm
for Emirates Airlines flight catering in Dubai, and Noon’s fulfilment center in Saudi Arabia.
Pearl Polyurethane offers a comprehensive range of polyurethane formulations and prepolymers for
the production of high-performance polyurethane foams and elastomers.
March 21, 2023
Olin Closing Epoxy Facilities
Olin Announces Epoxy Facility Closures as Part of On-Going Restructuring Program
Mar. 21, 2023 4:05 PM ETOlin Corporation (OLN)
CLAYTON, Mo., March 21, 2023 /PRNewswire/ — Olin Corporation (NYSE: OLN) announced today that it has made the decision to cease operations at its Cumene facility in Terneuzen, Netherlands and solid epoxy resin production at its facilities in Gumi, South Korea and Guaruja, Brazil. Olin’s first quarter 2023 results are forecast to include approximately $57 million of restructuring charges associated with these plans of which approximately $15 million of these restructuring charges represent non-cash asset impairment charges. The cash component of these charges is expected to be paid over the next three years.
“This is another step to right-size our global Epoxy asset footprint to the most cost-effective asset base to support our strategic operating model,” remarked Scott Sutton, Chairman, President, and Chief Executive Officer. “Our Epoxy business continues to experience weak global epoxy demand and excess supply availability. This action reinforces our commitment to lift our Epoxy business earnings to a more sustainable level. We will continue to evaluate and execute additional actions that right-size the business to achieve reinvestment economics across our Epoxy portfolio.”
March 21, 2023
Wanhua 2022 Results
Wanhua Chemical posts 34% profits drop in 2022
MOSCOW (MRC) — China’s Wanhua Chemical reported a 34.1% decrease in net profits in 2022, as steep increases in raw materials and energy prices significantly squeezed its margin, the company said.
The company has become the world’s biggest methylene diphenyl diisocyanate (MDI) supplier, with a combined capacity of 3.05m tonne/year as of late 2022.
It is also the world’s third largest toluene diisocyanate (TDI) supplier, with a total compacity of 650,000 tonne/year.
Cost for key raw materials rose heavily. For example, prices of benzene, coal and liquified petroleum gas surged by 14%-21% in 2022.
Its 1m tonne/year ethylene project in Yantai operated at 91% in 2022. Its polyurethane plants’ overall utilisation rate stood at 92% in 2022.
Outlooks: Progress on constructions of its Penglai complex, consisting of a 900,000 tonne/year propane dehydrogenation unit and downstream units. 2023 will be its “project year”. All project investments should follow three rules: in line with the company’s strategy and resources access capacity, having comparatively competitive advantages even in the most extreme competition scenario, with comprehensive considerations of global operating environment.
Wanhua Chemical also plans to increase the capacity of its polycarbonate (PC) plant in Yantai in Shandong province by 140,000 tons per year to 340,000 tons per year. The expansion will be carried out by reengineering the existing 200 ktpa PC production project at the site. The company is currently seeking environmental approval for the plan. The timing of the project is not disclosed.
Wanhua Chemical was founded on December 20, 1998, and is the first listed joint-stock enterprise after reorganization in Shandong Province, China. The company mainly produces diphenylmethane diisocyanate (MDI), including pure MDI and polymerized MDI used in the production of polyurethane (PU).
https://www.mrchub.com/news/406750-wanhua-chemical-posts-34-percent-profits-drop-in-2022
March 14, 2023
LyondellBasell’s World Largest PO/TBA Plant Starts
LyondellBasell Commissions World’s Largest PO/TBA Unit
HOUSTON, March 14, 2023 /PRNewswire/ — LyondellBasell (NYSE: LYB) today announces it has successfully started up the world’s largest propylene oxide (PO) and tertiary butyl alcohol (TBA) unit in Texas. These new assets on the U.S. Gulf Coast have an annual capacity of 470 thousand metric tons of PO and one million metric tons of TBA and its derivatives.
“The world-leading capacity of the new plant positions us to meet the growing demand for products essential for modern life,” said Chris Cain, LyondellBasell senior vice president for Global Manufacturing. “Our company strives to be trailblazers in our industry and make positive contributions through our environmental and sustainability initiatives. This project advances our company’s goals and creates value while meeting customer and society’s needs, and it involved a collaborative effort between multiple project teams at Bayport, Channelview and around the world to deliver a project of this magnitude.”
The PO/TBA project is a split facility design, intended to optimize production and leverage synergies shared by the LyondellBasell Channelview Complex located in Channelview, Texas and the LyondellBasell Bayport Complex located in Pasadena, Texas. The 140-acre PO/TBA plant was built at the Channelview Complex, while the associated 34-acre ethers unit, which will convert TBA to oxyfuels, was built at the Bayport Complex.
The project is part of the company’s multi-billion dollar series of investments along the U.S. Gulf Coast. Based on an analysis by the Greater Houston Partnership, the LyondellBasell PO/TBA project is estimated to generate more than $450 million in tax benefits for the county, school district, community college and other local taxing districts over a 10-year period.
The development of LyondellBasell PO/TBA operations began at the Bayport Complex, with the first PO/TBA unit starting up in 1969. Through 50-plus years of global experience with PO/TBA operations and applying new innovations in yield improvement and PO recovery, the PO/TBA plant at the Channelview Complex is the most energy efficient PO/TBA facility in company history.
Propylene Oxide (PO)
PO goes into making polyurethane foam typically used to create mattresses and car and furniture seat cushions. It is also used to make insulation, which can be used to increase the energy efficiency of homes and businesses.
Other common end uses for these products include liquid detergents, toothpaste, cosmetics, paints and spandex fabrics.
Tertiary Butyl Alcohol (TBA)
TBA is converted to produce two ether-based oxyfuels, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Both MTBE and ETBE are high-octane fuel additives that help gasoline burn more efficiently, reducing emissions from automobiles.
About LyondellBasell
As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company’s products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and climate change. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
https://lyondellbasell.mediaroom.com/index.php?s=43&item=1440
March 14, 2023
LyondellBasell to Explore Options for EO and Derivatives
LyondellBasell Launches New Company Strategy
HOUSTON, March 14, 2023 /PRNewswire/ — LyondellBasell hosts its Capital Markets Day today at the New York Stock Exchange and is introducing its new long-term strategy which is aligned with the company’s purpose of creating solutions for everyday sustainable living. The company expects to accelerate growth, expand margins and improve returns through its technology leadership, sustainable solutions, and sharp focus on favorable positions in attractive global markets. LyondellBasell is positioning itself to be the company of choice for financial, environmental, social and governance (ESG) minded investors, customers and brand owners. The company is doing this by shaping its businesses to use plastic waste as a valuable source of carbon and creating products and sustainable solutions using circular and renewable materials to address demand.
The new LyondellBasell strategy focuses on growing sustainable value and encompasses three key elements:
- Growing and upgrading the core: Growth will be focused on businesses where LyondellBasell has leading positions in expanding and well-positioned markets.
- Building a profitable Circular & Low Carbon Solutions (CLCS) business: LyondellBasell expects CLCS to grow to at least $1 billion in incremental EBITDA by 2030 with attractive returns by leveraging the company’s existing strengths of scale, market access and technology leadership.
- Stepping up performance and culture: The company will drive improved results by shifting from a singular focus on cost control to a more comprehensive view of value creation and customer centricity.
The company’s strategy is enabled by a value enhancement program (VEP) that is expected to deliver at least $750 million of recurring annual EBITDA improvement by year-end 2025. The VEP expands capacity through low-cost debottlenecks and improved reliability, reduces costs and emissions by saving energy, and increases margins through improvements in procurement, logistics and customer service.
“Our products are an essential part of a safe, healthy and more sustainable living, and I am confident our new strategy will unlock the true potential of our company,” said Peter Vanacker, LyondellBasell CEO. “Our strategy is differentiated by our ability to effectively execute these three impactful elements all at once, driven by our passionate people and enabled by our technology leadership, our exceptional cash generation and strong balance sheet. We believe our core businesses have lasting advantages, and we will grow our advantage through highly focused and disciplined reinvestment. This will deliver strong profitable growth and deliver compelling returns to our shareholders.”
While the new strategy was announced today, LyondellBasell began taking action on its new strategy in 2022 by:
- acting decisively to exit the refining business and divest its Australian polypropylene business;
- improving customer focus by forming its Customer and Commercial Excellence team;
- establishing the CLCS leadership role and business;
- implementing and expanding its VEP; and
- taking significant steps forward in its journey to reduce greenhouse gas emissions.
While LyondellBasell intends to cease refining operations at its Houston Refinery, the company is evaluating future investments at the site. LyondellBasell is analyzing the potential to retrofit the refinery to build up its CLCS business, which will also keep jobs in the region and align with the company’s strategy to leverage existing assets that are strategically located within the LyondellBasell portfolio.
Today, LyondellBasell also announces the decision to explore strategic options for its U.S. Gulf Coast-based ethylene oxide & derivatives (EO&D) business. While the EO&D business provides positive cash generation, it is not a business where the company seeks a leading long-term position. This decision is another example of how the company’s new strategy has a laser focus on its core businesses.
With this new long-term direction, LyondellBasell aims to unlock value, increase earnings and continue providing strong returns for investors. LyondellBasell seeks to build businesses with enduring competitive advantages, sharpen its focus on leading positions, cement its position as the preferred supplier for customers, and establish the company as a profitable leader in the growing circular and low carbon solutions market.
https://lyondellbasell.mediaroom.com/index.php?s=43&item=1439
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