Mixed plastic waste and pyrolysis oil

PARIS (ICIS)–Global specialty chemicals producer Arkema aims to supercharge growth in key targeted markets by leveraging proprietary chemistries to develop new products with clear sustainability and performance benefits. From France-based Arkema’s spinoff from energy giant Total (now TotalEnergies) in 2006, the company has undergone a major transformation from a diversified chemical company with a mixed bag of commodity, intermediates and specialty businesses, to nearly a pure play specialty and materials business today. “We had to revisit the strategy of the company in-depth, and we had a strong belief at that time that there was an exponential growth [opportunity] in innovative and high performance materials,” said Thierry Le Henaff, chairman and CEO of Arkema, in a video interview with ICIS. “So our strategy was to focus on specialty materials around three segments – adhesives, coatings solutions, and also high performance additives and polymers in order to make Arkema a pure specialty player,” he added. Le Henaff is the 2024 ICIS CEO of the Year, having been selected in a vote among his peers – the CEOs and senior executives in the ICIS Top 40 Power Players. M&A STRATEGY AND LATEST DEALSThe latest move in the company’s transformation is the acquisition of Dow’s flexible packaging laminating adhesives business for $150 million which just closed on 2 December. The deal adds about $250 million in sales to Arkema’s Bostik adhesives business, and Le Henaff calls it a “step change” for Bostik in the flexible packaging adhesives market, giving it a unique opportunity to be a key partner for customers across the packaging industry. Arkema will spend around $50 million in implementation costs or capex related to the acquisition and is targeting about $30 million in annual cost and development synergies after five years. “We are going to continue to invest in… cost optimization, but at the same time continue to change the portfolio, which means to invest in M&A,” said Le Henaff. The Dow deal comes on top of major acquisitions such as a 54% stake in South Korea-based PI Advanced Materials (polyimide films for mobile devices and electric vehicles) in December 2023 and US-based Ashland’s performance adhesives business (pressure-sensitive adhesives for auto and buildings) in February 2022. While the company will now focus more on organic growth, bolt-on acquisitions will be an important part of Arkema’s strategy in the coming years, he noted. One such smaller bolt-on deal was the April 2024 acquisition of a 78% stake in Austria-based Proionic, a start-up company for the development of ionic liquids, a key component for the next generation of EV batteries. HYPER GROWTH SUBMARKETSSpeaking of organic growth, the Arkema CEO has an ambitious goal of growing sales in certain parts of its specialty businesses at a rate triple that of its overall business through 2028. These high growth areas are green energy and electric mobility; advanced electronics; efficient buildings and homes; sustainable lifestyle; and water filtration, medical devices and crop nutrition. “It is really with this combination of our technologies [in] these submarkets… where we want to multiply by three, the average growth of Arkema. This means that in this market, we could deliver 12% organic growth while for the average of Arkema it would be 4%,” said Le Henaff. Arkema aims to grow these businesses from around 15% of sales in 2023, to 25% of total sales, which are projected to be around €12 billion, by 2028. These high growth areas with three times higher sales than the group average will account for 50% of the company’s R&D budget. “We have about 15 technologies, superior technologies, where we can really differentiate ourselves. Our strategy is really to take advantage of this sustainability trend,” said Le Henaff. “In fact, the answer to climate change is through the solutions we can develop for customers. This is really the core of our strategy,” he added. Within electric mobility, in addition to the acquisition of a majority stake in Proionic, Arkema in January 2024 took a stake in Tiamat, a pioneer in sodium-ion battery technology – a potential alternative to lithium-ion batteries. RENEWABLE RAW MATERIALS AND DECARBONIZATIONArkema is also undertaking organic growth projects in these hyper growth submarkets. One key project is in bio-based polyamide 11, used in bicycle helmets, consumer goods, wire and cable and medical equipment. “We are adding more and more renewable raw materials in the product range we are offering to our customers. One good example and very emblematic [of our strategy] is this polyamide 11 made from castor oil, which is a fully sustainable, renewable, bio-sourced, high performance polymer,” said Le Henaff. “We are very proud of it, and we have just invested in a plant in Singapore to accelerate the growth of this polymer,” he added. Its Rilsan bio-based PA 11 has an 80% lower carbon footprint versus traditional polyamide resins using fossil-based raw materials and conventional energy sources, according to the company. Arkema also recently launched more sustainable adhesive solutions, including its Kizen LIME range of packaging adhesives made with a minimum of 80% renewable ingredients, and Bostik Fast Glue Ultra+ for do-it-yourself (DIY) applications with 60% bio-based materials. Along with helping its customers decarbonize, the company is also decarbonizing its own operations, targeting a 48.5% reduction in Scope 1 and 2 emissions, and a 54% reduction in Scope 3 emissions by 2030 versus a 2019 base. One major project is to decarbonize its acrylics production in Carling, France by installing new purification technology. The €130 million project should result in a 20% reduction in CO2 emissions at the site by 2026. GLOBAL FOOTPRINTAlong with its transformation into pure play specialties, Arkema has also diversified its global footprint, with more exposure in North America than Europe. Today Arkema is a global player with close to 40% of sales in North America, 25% in Asia and around a third in Europe, versus Europe at about 60% of sales when it was spun off in 2006, the CEO pointed out. “I still believe in Europe, but it's clear that we have a gap in competitiveness and also in demand. The pace of demand is slower for Europe than it is for the rest of the world,” said Le Henaff. “It's very important that our governments and the European Commission understand that the cost of doing business in Europe is too high compared to what it is in the rest of the world because of legislation, because of the cost of energy, because of the cost of raw materials,” he added. There is much work to do on this front to get Europe back to competitiveness and growth, especially for chemicals, he said. DEMONSTRATING RESILIENCEArkema’s geographic diversification and specialties focus has made it more resilient to challenging macroeconomic markets. In Q3, sales rose 2.9% year on year to €2.39 billion and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased 5.4% to €407 million, the latter driven by 9.0% growth in specialty materials, offsetting a 7.3% decline in intermediates segment. Its overall EBITDA margin expanded to 17.0% versus 16.6% a year ago. A strong focus on efficiency and a healthy balance sheet has served it well. “Arkema over 20 years has doubled in size and we have a set number of headcount. This means that competitiveness and productivity is very important for Arkema, even if we are less vocal than other companies on this topic,” said Le Henaff. On the balance sheet side, net debt of around €3.11 billion is “tightly controlled” at a conservative two times last 12 months EBITDA. TRANSFORMATION NEVER OVERKey to success for Arkema is to continuously evolve, be nimble and be open to growth opportunities. “It’s never over. The status quo in this world is not possible, because the world is changing all the time, because of demography, because of geopolitics, for plenty of reasons, so we have to move forward,” said Le Henaff. “There are plenty of opportunities, but the opportunities of today won't be the opportunities of tomorrow. So we really need to have a company which is structured to be able to catch these new opportunities which arise all the time,” he added. Meanwhile, on the macro-outlook for 2025, he is cautiously optimistic. “We are all cautious because we thought 2023 would be the year of the rebound and also 2024, so we have to be cautious for 2025. But I'm cautiously optimistic,” said Le Henaff. “I still think that we should have some kind of rebound for 2025. We'll see if I'm right or not, but in the meantime, I would say the most important thing is we need to continue [evolving]. We are very glad to be in a unique position because at the end of 2024, we will have nearly fully financed billions of euros of projects, including external growth and organic growth,” he added. PEOPLE AND CULTUREKey to any ongoing transformation is of course the people involved. Arkema deems it critical to keep its people engaged with the mission. “I think, in a world which is quite volatile, quite changing, it's very important to have fixed points,” said Le Henaff. First, the long-term strategy and vision has to be attractive. But equally as important is having a corporate culture with clear and simple values. These five values for Arkema are: Solidarity, Performance, Simplicity, Empowerment and Inclusion. It is the culture that amplifies the inherent strengths in an organization, including technology, and smooths the path for continued successful transformation in an uncertain world, he said. Interview article by Joseph Chang Watch the exclusive Q&A video interview with Arkema CEO Thierry Le Henaff on the 2024 ICIS CEO of the Year landing page.

05-Dec-2024

HOUSTON (ICIS)–Announced this week, beverage giant The Coca-Cola Company has updated many of their 2030 sustainability goals, in some cases delaying and minimizing targets, in other cases removing tangible goals all together. All goals have now been extended to a 2035 timeline. In support of this move, the company notes that they have assessed progress and identified challenges to achieving their original 2030 goals. This comes as companies grapple with the premium often associated with sought after food-grade, clear recycled resins, especially amid a weaker global macroeconomic environment. "These challenges are complex and require us to drive more effective and efficient resource allocation and work collaboratively with partners to deliver lasting positive impact," noted Bea Perez, Executive Vice President and Global Chief Communications, Sustainability & Strategic Partnerships Officer at The Coca‑Cola Company. This comes as the company has faced rocky unit case sales volumes in the North American market over the last several quarters. Most recently, the company posted flat quarter on quarter results, an improvement over negative volumes the prior quarter. In relation to packaging, the original goal of 50% recycled content by 2030 has been downgraded to a target of 35-40% recycled content in primary packaging. Specifically, they aim to reach 30-35% recycled content in their plastic packaging, which makes up nearly 50% of their packaging mix by number of units. In 2023, the company noted 27% of their primary packaging material by weight came from recycled content, 17% of which was recycled plastic. This now leaves a 10-year runway to achieve an additional increase of just 8% to reach their new recycled content target and 13% to reach their recycled plastic target. Additionally, the company has reduced their beverage container collection target from 100% by 2030 to 70-75% by 2035. As of 2023, the company noted 62% of the equivalent bottles and cans introduced into the market were collected for recycling or reuse. When looking at packaging design, the company noted they had converted more than 95% of their packaging to recyclable formats, nearing the 100% by 2025 goal. As many other converters and brand companies have also reckoned with, it can be very difficult to convert the final items, ones which typically require a complete re-design or additional cost to comply with recycling requirements. The company has now removed a virgin resin reduction goal, amid a poor result in 2023, where virgin plastic use actually increased due to business related growth. The prior reuse and refill goal was also removed. Coca-Cola now joins several other brand companies, such as Unilever, PepsiCo who have delayed or reduced their original ambitious goals amid bottom line pressure. It is uncertain how brand companies will demonstrate their commitment to packaging circularity sustainability in the long term, especially as leaders around the globe continue negotiating towards a global treaty on plastic pollution. While voluntary goals have boosted demand for recycled plastics markets, many recyclers and suppliers note that actual procurement efforts have been inconsistent. Many believe regulatory requirements are the only solution to securing long term demand for these materials.

05-Dec-2024

HOUSTON (ICIS)–Crude and chemical markets have had little reaction so far to developments in France. The government of President Emmanuel Macron fell after members of Parliament (MPs) voted to oust Prime Minister Michel Barnier. Barnier was appointed by Macron in September and was voted out by a combination of left- and right-wing MPs after the opposition parties objected to the budget put forth by the prime minister, according to French media reports. Macron has vowed to remain in office until his term expires in 2027 and will need to appoint a new prime minister before work on putting together a new government. European stock markets closed higher ahead of the vote as investors prepared for the no-confidence vote. Brent and WTI crude prices fell by more than a dollar, because of expectations that OPEC will extend its output cuts when it meets this week and on US government data showing a build in gasoline and distillate inventories that countered a drawdown in crude oil supplies.

04-Dec-2024

HOUSTON (ICIS)–US November sales of new light vehicles ticked higher from the previous month and rose compared with the same month a year ago, but proposed tariffs on Mexican and Canadian imports by President-elect Donald Trump could create further headwinds for the industry. Data from the US Bureau of Economic Analysis (BEA) shows year-to-date sales up by 1.7%. The following chart shows US auto sales from 1989 to present. Note: Gray bars show when the US was in a recession Auto sales are important because the auto industry is a key end market for chemicals demand. Although automobile sales and foreign truck sales were weak, this was offset by a strong gain in domestic light truck sales, according to Kevin Swift, senior economist for global chemicals at ICIS. “Affordability has been an issue in this market and is showing signs of improvement, which, if continued, will provide further tailwinds,” Swift said. But shares of publicly traded US automakers fell last week after Trump announced that he plans on levying 25% tariffs on all products from Canada and Mexico as well as an additional 10% tariff on goods from China – all three of which are critical sources for the auto industry’s global supply chain. Swift said the latest report indicates that US consumers continue to be in the market for new vehicles and that continued improvement in sales will benefit industrial production. Swift said that inventories on dealer lots have improved by almost 46% compared with the same month a year ago, which should also help boost sales. CHEMS USED IN AUTOS Demand for chemicals in auto production comes from, for example, antifreeze and other fluids, catalysts, plastic dashboards and other components, rubber tires and hoses, upholstery fibers, coatings and adhesives, Swift said. Virtually every component of a light vehicle, from the front bumper to the rear taillights, features some chemistry. The latest data indicate that polymer use is about 423 pounds (192kg) per vehicle. Meanwhile, electric vehicles (EVs) and associated battery markets are an important growth opportunity for the chemical industry, with chemical producers separately developing battery materials, as well as specialty polymers and adhesives for EVs. Please also visit the ICIS topic page Automotive: Impact on Chemicals

04-Dec-2024

MUSCAT (ICIS)–Thailand’s PTT Global Chemical (PTTGC) is expected to begin producing sustainable aviation fuel (SAF) at its refinery in Map Ta Phut early next year, the company’s CEO Narongsak Jivakanun said. “We are commissioning, although it is on a small scale, but it is an important step – SAF [production] in Q1 next year using our existing oil refinery but blended with non-fossil fuel based raw material,” Jivakanun told ICIS on the sidelines of the 18th Annual Gulf Petrochemicals and Chemicals (GPCA) Forum in Muscat, Oman. The company plans to produce 500,000 liters of SAF per month, using up to 1,700 tonnes of used cooking oil per month as feedstock. SAF is used as a direct replacement for traditional fossil-based jet fuel to power aircraft. Moreover, by leveraging the mass balance approach, the change in how the refinery accommodates use of alternative feedstock in the production of SAF enables it to claim a portion of its downstream aromatics, polymers, and olefins output as non-fossil chemical products, he said. PTTGC is the first Thai company to upgrade its refinery with advanced technology to accommodate used cooking oil as feedstock. The company’s biorefinery project is a component of the company's three-pronged growth strategy – “Step Change, Step Out and Step Up” – which, in part, prioritizes business sustainability through decarbonization efforts, according to Jivakanun. PTTGC is also on track to fully start up a new fully integrated polylactic acid (PLA) unit at the Nakhon Sawan Biocomplex (NBC) by the end of next year, he said. The PLA project is being carried out by NatureWorks, the equal joint venture firm between the US’ Cargill and PTTGC and will use sugarcane sourced locally as feedstock. THAI SPECIALTIES HUB AMBITIONS  Allnex, a global specialty chemicals subsidiary of PTTGC, is currently planning to expand its specialty resins production in Map Ta Phut with an aim to develop the site to become a hub for selected coating resins serving the southeast Asia region, according to Jivakanun. “The plan is to develop a hub in Map Ta Phut so that they can share the infrastructure that [PTT]GC already has, utilities, the engineering and operational support," he said. "Expertise sharing between GC and allnex will enhance potential of value engineering resulted in cost savings into the project." The project is in the stage of finalizing the scope with an aim to produce specialty resins that most fit customer demands and requirements Allnex specializes in the production of industrial coating resins and additives. “We will go through the feasibility study as usual and we aim to confirm the investment for allnex Map Ta Phut hub within next year," Jivakanun added. Interview article by Nurluqman Suratman

04-Dec-2024

President Yoon Suk Yeol faces backlash over martial law Yoon a strong advocate for nuclear power at home, abroad Legislators are calling for resignation, impeachment SINGAPORE (ICIS)– South Korea President Yoon Suk Yeol’s short-lived martial law declaration on the midnight of 4 December shocked the country, raising concerns on whether he can finish the term set to end in 2027 without being impeached, and putting uncertainty on Korea’s energy policies, should the office change hands, including strong support for LNG as a transition fuel and phasing out coal. The opposition Korea Democratic Party already filed motions to impeach Yoon on the afternoon of 4 December. If the impeachment passes via the National Assembly, it would need to go through a judicial review and then a new election would be called in 60 days if upheld. Yoon and his People Power Party are a minority in the legislature and have faced opposition roadblocks to ambitious energy policies that were a sharp change from predecessor Moon Jae In. NUCLEAR Yoon, who was elected in 2022, is a supporter of a growing nuclear power footprint at home and exports of nuclear plants, including recent efforts with the Czech republic, and vowed to increase the share of nuclear in the energy mix to above 30% by 2030. Moon had declared that nuclear would be completely phased out since his term in 2017. On 12 September 2024, Korea’s Nuclear Safety and Security Commission (NSSC) granted the construction permit for Shin-Hanul 3 and 4 reactors. This means four nuclear plants are underway by 2038. Korea would further export 10 nuclear plants by 2030 under his envision, to potential buyers all over the world. “The Democratic Party is not pro-nuclear, if they are elected after Yoon’s impeachment they might not start new projects but also not likely to kill the ongoing projects and export efforts due to NDC (National Determined Contribution) concerns”, a Korean academic familiar with the matter told ICIS. “Nuclear is quite essential to achieve Korea’s carbon neutral goals”, he added. The country has a 2050 net-zero carbon target. LNG DEMAND South Korea relies heavily on fossil fuels for power generation. Imported LNG powers over a quarter of the Korean economy. This number is projected to decrease due to rising share of nuclear and renewables. South Korea’s Ministry of Trade, Industry and Energy MOTIE on 19 November said it has formed a “Coal-Fired Power Generation Transition Council” among five companies for an updated roadmap on phasing out coal plants due by the first quarter of 2025. But the country’s LNG import grew by 7.5% from 39.34mtpa in 2023 (January-November), to 42.31mtpa in the same period of 2024, ICIS data shows. “Short-term LNG demand will indeed be lower because of new coal power plants and renewables, but LNG need won’t be diminishing in the next ten years, because electricity consumption will grow due to data centers, semi-conductor industry and more abnormal temperatures,” the Korean scholar said. South Korea is the world’s third largest LNG importer and has extensive power infrastructure to feed high-end manufacturing. As well, South Korean shipyards have completed 500 LNG tankers for export since 1994, according to the Ministry of Trade, Industry, and Energy (MOTIE) in April 2024. Also in November, MOTIE announced pilot bidding for an LNG capacity market. The newly introduced liquefied natural gas (LNG) capacity market is a competitive bidding process for new and new collective energy sources using LNG as the main fuel. The country has also worked closely with Qatar on LNG supply agreements and on shipping – as well as on US projects via private companies. EAST SEA DRILLING In June, the president announced exploratory drilling for fossil fuels off its eastern shore, which could supply the country with oil and gas from four to 29 years, according to estimates. The first drilling will begin in the later half of this month, and the initial results will be released in H1 2025, according to Korean media. It remains unclear what results the exploitation will deliver by then, and whether a change of power will put an end to the project. At the same time, Yoon’s latest poll rating slid to 25%, Korean media reported. The Korean won weakened to just above 1,400 to the US dollar on 4 December from levels just above 1,300 won at the end of October, making imports more expensive at least in the short term, as the country’s main labor union called for a general strike and Yoon’s resignation. The Bank of Korea and South Korea’s Finance Ministry pledged steps for stability, including 10 trillion won ($7.07 billion) in stock market stabilisation funds if needed via the financial regulator. (Roman Kazmin contributed to this article)

04-Dec-2024

TORONTO (ICIS)–Canada’s investment tax credits and its price on carbon emissions have been key in attracting investments in low-carbon projects, led by Dow’s Path2Zero petrochemicals complex under construction in Alberta province. But will these incentives survive a likely change in government next year, with the Conservatives expected to oust Prime Minister Justin Trudeau's Liberals? Conservatives to scrap carbon tax Industrial carbon pricing critical for low-emission investments Carbon capture advantage might be lost The Chemistry Industry Association of Canada (CIAC) highlighted the election and uncertainties surrounding incentives and programs for low-carbon investments as a risk factor for the industry in its 2025 outlook webinar last week. As the country is moving into the election campaign season, “it is hard to say exactly where we are going politically,” said David Cherniak, CIAC policy manager, Business and Transportation. Companies were making investment decisions based on the incentive programs, and “we see the programs working, companies are getting ready to spend, and in the case of Dow, already spend real money to lower emissions and raise production here in Canada,” he said. In 2023 Dow made a final investment decision on Path2Zero and started construction in April 2024. Carbon pricing is seen as critical for the viability of such projects. CIAC supports industrial pricing and is advocating the importance of the government programs for winning chemistry investments, Cherniak said. The argument for low-carbon chemical production was clear, he said. Around the world the chemical industry’s customers were demanding low-carbon solutions and products, “irrespective of what Canada does,” he continued. As such, the real question is, “Do we want those chemistry products that meet that demand to come from somewhere else or do we want them to come from Canada?” Carbon pricing and programs offering incentives for low-carbon chemical production plants were “key building blocks” to get those facilities built in Canada, he said. If the low-carbon projects are not built in Canada they would be built elsewhere and Canada would end up ending importing their products, he said. “We think it’s way better to utilize Canada’s resources here, and see those investments won, and that is the message we are taking to all parties as we get ready for the election in 2025,” he said. However, “the political winds are blowing,” not just on the federal level but also with a likely election in Canada’s economically most powerful province, Ontario, he said. Canada has seen drastic policy reversals after changes in government before, with impacts on the chemical industry: In 2011 a Conservative government took Canada out of the Kyoto climate change accord, to which an earlier Liberal government had signed up, making Canada the world’s only country to exit Kyoto. On the provincial level, a new Conservative government in 2018 abolished a cap-and-trade carbon trading system a previous Liberal government had set up. AXE THE TAX On the federal level, the opposition Conservatives are far ahead of the Trudeau's Liberals in opinion polls on the election, which must be held by 20 October 2025 but will likely be called earlier. Under a relentless “Axe the Tax” campaign, the Conservatives have committed to abolishing the Liberals' consumer carbon tax, which took effect in 2019 and is currently at Canadian dollar (C$) 80/tonne (US$57/tonne), rising to C$170/tonne by 2030. However, the Conservatives have yet to state what they will do about industrial carbon pricing. Industrial carbon pricing is implemented by Canada’s provinces, with the federal government providing a “back-stop” with its “Output-Based Pricing System (OBPS)” that sets minimum requirements to ensure that heavy emitters pay for emissions. Industrial carbon pricing is making a bigger contribution to Canada’s emissions reductions than the consumer carbon tax, according to a study earlier this year. ANALYSTS Analysts at Capital Economics said in a recent report that with a likely change in government there is a high chance that Canada’s carbon tax will soon be scrapped. Positive impacts on inflation from the abolition of the tax would be temporary and any boost to the economy would be small, they said. However, “removing the carbon tax will remove an important investment incentive, both in reducing emissions in Canada’s high-emitting sectors and in emerging ‘green’ sectors,” the analysts said. If the future carbon price in Canada is expected to be zero, rather than rising to C$170/tonne by 2030, “that could weigh heavily on investment in Canada’s emergent ‘green’ industries that rely on a price on carbon to justify their development,” they said. They noted as a key example carbon capture, utilization and storage (CCUS), where Canada has an advantage over other nations, although CCUS is not without critics. Oil-rich Alberta province, which is home to a large proportion of Canada’s petrochemicals production, sees itself among the leaders in developing CCUS technology. Dow's project leverages on Alberta's carbon capture infrastructure. In June, Shell made a final investment decision (FID) to proceed with a carbon capture project at its refining and chemicals site in the province, where in 2015 it started up a first carbon capture facility. The Conservative Party of Canada and Dow did not respond to requests for additional comment. (US$1=C$1.40) Focus article by Stefan Baumgarten, with additional reporting by Jonathan Lopez Thumbnail photo of Dow's manufacturing site in Fort Saskatchewan; photo source: Dow

03-Dec-2024

BARCELONA (ICIS)–Plastics and chemical producers need to find more effective ways to tackle the problem of plastic waste after UN treaty negotiations ended without agreement at the weekend. Consumer demand will drive improvements in plastic waste management Chemical companies need to reconnect with brands/consumers We will move out of current ‘trough of despair’ about recycling End of globalization may mean national/regional treaties are more effective UN Intergovernmental Negotiating Committee concluded in Busan, South Korea, on 1 December, with no definitive agreement Around 100 countries backed proposals, with a small number of hold-outs In this Think Tank podcast, Will Beacham interviews ICIS market engagement executive Nigel Davis and Paul Hodges, chairman of New Normal Consulting. Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson's ICIS blogs.

03-Dec-2024

MUSCAT (ICIS)–Dow has attributed problems with plastics pollution to a lack of plastics recycling and not production, the US producer’s chair and CEO said at the 18th Annual Gulf Petrochemicals and Chemicals Association (GPCA) on Tuesday. Plastics are “essential” to the modern world, according to Jim Fitterling, and demand will only rise in the years ahead – but most countries have no roadmap to recycle plastics, let alone reduce production. Tensions between oil-producing nations, led by Saudi Arabia, and other nations advocating for a cut in plastics production, have stalled global treaty talks at the Intergovernmental Negotiating Committee (INC-5) in South Korea. The session concluded on 1 December with no definitive agreement. “When policymakers take it upon themselves to decide one type of energy is right and another type of energy is wrong, rather than asking what is right for each unique situation, that's when progress stops.” Dow is embracing innovation in its energy transition goals, with Fitterling asserting that its energy transition is “here to stay”. Through the company’s plan to “decarbonize and grow”, Dow aims to boost underlying earnings by over $3 billion while reducing greenhouse gas emissions by 5 million tonnes by 2030. Dow is working to transform plastics waste and other alternative feedstocks to commercialize 3 million metric tons of circular and renewable solutions annually,  and generate an anticipated $500 million of incremental run rate EBITDA by 2030, said Fitterling. However, Fitterling added that there is a need to “combat” the notion that recycling does not work, that “success will come from elimination rather than innovation”, as he asserted that recycling simply “isn’t available” to over three billion people globally. “Because for a vast majority of the world, it's not that recycling hasn't worked. It's that recycling isn't available.” Globally, less than 10% of plastic is recycled and approximately one-third of plastic packaging escapes collection systems, said Fitterling. The 18th edition of the GPCA is being held for the first time in Muscat, Oman this year and will conclude on 5 December. Thumbnail photo: Waste plastic bottles (Source: Shutterstock)

03-Dec-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 29 November 2024. ICIS Economic Summary: US election uncertainty over, policy impact to begin Much of the uncertainty surrounding the US election has been lifted, but there remain questions about the extent that stated policy goals will be achieved and their impact on the economy next year and beyond. INSIGHT: Deloitte expects more chem M&A as industry remains in flux The chemical industry is entering the new year amid an especially large amount of flux, with China receding as a demand driver, Europe contending with plant shutdowns and producers rearranging businesses through mergers and acquisitions (M&A). Canadian manufacturers fear ‘devastating’ impact from Trump's proposed 25% tariff New US tariffs on US-Canada trade would have a devastating impact on manufacturers, workers and consumers on both sides of the border, trade group Canadian Manufacturers and Exporters (CME) said on Tuesday. INSIGHT: LatAm chemicals face threats of US tariffs, global oversupply Chatter on challenges permeated the Latin American Chemical and Petrochemical Association (APLA) Annual Meeting as delegates faced down threats of global oversupply and the potential for new tariffs from the US. INSIGHT: US refiners to face higher oil, catalyst costs with Trump's tariffs The tariffs proposed by President-Elect Donald Trump on imports from Mexico, Canada and China would raise costs for the heavier grades of oil needed by US refineries as well as rare-earth elements used to make catalysts for downstream refining units. Argentina’s petchems prices to take time to fall despite import tax withdrawalArgentina’s decision to eliminate the so-called PAIS import tax earlier than planned is unlikely to have any impact on petrochemicals prices for now, sources said this week. LatAm PE domestic prices fall in Argentina, Brazil and MexicoDomestic polyethylene (PE) prices were assessed as lower in Argentina, Brazil and Mexico on the back of competitive offers from abroad and weak demand. In other Latin American (LatAm) countries, prices were unchanged.

02-Dec-2024