Europe top stories: weekly summary

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 1 March.

Covestro forecasts EBITDA drop this year as Q4 profits slump
Covestro expects earnings before interest, tax, depreciation and amortisation (EBITDA) to fall by up to 53% in 2019 amid intensifying competition, the Germany-headquartered firm said, as fourth-quarter 2018 profits slumped.

BASF’s Q4 earnings fall sharply on lower chemicals, agro contributions
BASF’s earnings fell sharply in the fourth quarter, year on year, as a result of negative performances at its Chemicals and Agricultural Solutions divisions as well as a €200m negative impact from River Rhine-related logistics, the German chemical major said.

BASF upbeat on 2019 guidance despite weak start to the year – CEO
Despite a weak start to the year, BASF remains confident that global economic headwinds will ease in the second half of the year, the CEO at the German chemicals major said.

Trade war continues to dim growth, but China environmental policy a positive – Arkema
The trade war between the US and China continues to be one of the key brakes on global economic growth this year, but the Asia superpower’s stricter environmental regulations is a positive for Arkema despite the impact felt by some in the chemicals sector, CEO Theirry Le Henaff said.

INEOS chooses Hull for £150m VAM plant as part of £1bn overall UK investment
INEOS has announced Hull in the northeast of the UK as the location for its new 300,000 tonnes/year vinyl acetate monomer (VAM) plant, as the privately-owned chemicals major on Wednesday committed to investing £1bn in its UK facilities.

Borealis seeks partner for struggling ferts division after €92m write-down
Borealis is looking for a partner for its struggling fertilizers division after writing down assets acquired years ago which turned out to be worth less than expected, according to the CEO at the Austrian polymers and fertilizers major.

EU Court decision to uphold ADDs for US fuel ethanol an ‘important milestone’ – trade group
The decision by the European Court of Justice (ECJ) to uphold US fuel ethanol anti-dumping duties (ADDs) in the EU is an “important milestone” for the EU ethanol industry, the European renewable ethanol association ePure said.

Right assets worth the price for Arkema as adhesives valuations rise – CEO
Acquiring the right assets for Arkema’s portfolio to grow its adhesives business is still the right choice despite growing interest in the sector starting to push up valuations, according to the CEO of the France-based chemicals producer.

Eurozone manufacturing sector contracts in February
Eurozone manufacturing output contracted month on month in February for the first time in more than five-and-a-half years as a sharp fall in new work orders and an uncertain economic climate weighed on growth, analyst IHS Markit said.

Downstream expectations of production cost increases may affect Europe PTA, DMT
Production costs for purified terephthalic acid (PTA) and dimethyl terephthalate (DMT) are under pressure to increase if the dominant Asian market is to be adhered to, but not as much as the markets were originally anticipating.