LANXESS remains on track despite the impact of the coronavirus crisis: Following the third quarter, the specialty chemicals company is confirming and narrowing the corridor for the guidance for 2020 and now expects EBITDA pre exceptionals for the full year to come in between EUR 820 million and EUR 880 million. Earnings were previously expected in the range of EUR 800 million to EUR 900 million.

 “We are continuing on course in the troubled waters of the coronavirus crisis and have specified our 2020 guidance. We want to deliver what we announced in spring. Given these volatile times and the many uncertainties, this is a great achievement of the entire LANXESS team and I am very proud of this,” said Matthias Zachert, Chairman of the Board of Management at LANXESS AG.

 LANXESS will be paying a special bonus for the extraordinary commitment of its employees during the coronavirus pandemic. “In particular, our colleagues at the plants played a crucial role in keeping our business running during the crisis,” said Zachert. “With this bonus, we would like to thank them and all the others who have made special contributions over the past months.” In total, LANXESS will distribute a high single-digit million euro amount. The amount of the payment varies from employee to employee. In Germany, the special bonus will be paid out in December. Different rules apply in the other countries.

 Coronavirus crisis affected business figures

 The coronavirus crisis continued to affect business figures in the third quarter. At EUR 193 million, EBITDA pre exceptionals was 28.3 percent down on the prior year’s figure of EUR 269 million. The EBITDA margin pre exceptionals declined to 13.2 percent, against 15.8 percent in the prior quarter. In addition to the pandemic, a planned major maintenance shutdown in Belgium, effects from reduced selling prices and adverse exchange rate effects, particularly relating to the U.S. dollar, burdened the result. By contrast, business in the Consumer Protection segment continued to develop well. There were also positive signals from the markets compared with the previous quarter.

 “In many businesses, we are seeing indications that things are taking a turn for the better. Demand in key customer industries, including the automotive sector, picked up again in comparison to the second quarter. China and the U.S., in particular, are providing positive stimuli,” said Zachert.

 Group sales amounted to EUR 1.461 billion, down 14.3 percent on the previous year’s figure of EUR 1.704 billion. Net income from continuing operations fell by 68.4 percent from EUR 79 million to EUR 25 million.

 Segments: Consumer Protection remains strong pillar

 Demand in the Advanced Intermediates segment stabilized in both business units compared with the second quarter, so that sales volumes almost reached the previous year’s level. However, given lower selling prices and negative exchange rate effects, sales and earnings were down year on year. Sales decreased by 14.4 percent from EUR 549 million to EUR 470 million. At EUR 65 million, EBITDA pre exceptionals was 28.6 percent lower than the prior year’s figure of EUR 91 million. The EBITDA margin pre exceptionals was 13.8 percent, against 16.6 percent in the prior year.

 The coronavirus pandemic continued to impact the Specialty Additives segment also in the third quarter. Sales volumes declined significantly, particularly due to lower demand from the automotive and aviation industries. Lower selling prices and negative exchange rate effects also had a negative impact. Sales fell by 18.5 percent from EUR 503 million to EUR 410 million. At EUR 65 million, EBITDA pre exceptionals was 33.0 percent lower than the prior year’s figure of EUR 97 million. The EBITDA margin pre exceptionals decreased from 19.3 percent to 15.9 percent.

 The Consumer Protection segment remained a strong pillar of the Group thanks to a strong agrochemicals business and good demand for disinfectants. In addition, the positive portfolio effect from the acquisition of the Brazilian biocide manufacturer IPEL offset adverse exchange rate effects. With EUR 278 million, sales were stable year on year. At EUR 59 million, EBITDA pre exceptionals was 7.3 percent higher than the prior year’s figure of EUR 55 million. The EBITDA margin pre exceptionals picked up to 21.2 percent, against 19.9 percent in the prior year.

 The Engineering Materials segment was impacted by weak demand in the automotive industry, particularly in Europe, although this did improve compared with the previous quarter. At EUR 285 million, sales were down 19.3 percent on the prior year’s figure of EUR 353 million, also due to lower selling prices and negative exchange rate effects. A planned major maintenance shutdown in Belgium weighed on EBITDA pre exceptionals, as did weak demand, prompting a 44.1 percent downturn in earnings from EUR 59 million to EUR 33 million. The EBITDA margin pre exceptionals of 11.6 percent was below the figure of 16.7 percent posted in the prior year.

 LANXESS continues to improve sustainability credentials

 After LANXESS announced a year ago that it would become climate neutral by 2040, the specialty chemicals company has now set itself new goals for sustainable water management. As part of its “Water Stewardship Program”, LANXESS will initially strengthen sustainable water management with specific local projects at four sites in the areas with the greatest water stress. The aim is to reduce absolute water withdrawal at these sites by 15 percent by 2023. The experience gained from these projects should help to further improve water performance globally.

 LANXESS has also improved its MSCI ESG rating from BBB to A. The climate strategy, the well-formulated principles of corporate governance and the robust efforts in the area of chemical safety have led to the improvement.

Orion Engineered Carbons, a specialty chemical company, started commercial sales in Italy from the first new reactor for carbon black production to be commissioned in the European Union in over 40 years. 

The new 25-kiloton line at the facility in Ravenna, in the northern region of Emilia-Romagna, produces both specialty and technical rubber carbon blacks, primarily for the European market, the company said in a release. 

Corning Painter, CEO, Orion, said, “The new line offers customers seeking long-term solutions a unique strategic opportunity to align with a dependable plant that has been operating for more than 60 years in Europe.” 

Additional investments at the plant include a new co-generation facility to convert waste heat into electricity, generating up to 120 MWh of electricity per year. Seventy percent of the electricity is supplied to the national grid, serving about 30,000 households. Orion is a net exporter of electricity in Europe and worldwide. (TT)  

Shin-Etsu Chemical, a leading chemical company, plans to invest $702 million in its silicone portfolio, a key component of its functional materials business segment.

This latest investment follows a plan announced in February 2022, worth $562 million, to meet the surging demand for advanced functional silicone products. However, due to the continuous growth in need, especially for eco-friendly options that align with the global goal of carbon neutrality, the company has decided to expand the applications of its silicone products. The company will also focus on enhancing the advanced functionality of its product lineup and further developing environmentally friendly silicones.

In alignment with its newly announced silicones investment plan, Shin-Etsu Chemical will make investments not only in its central production hub in Japan, the Gunma Complex in Gunma Prefecture, but also in its Naoetsu Plant in Niigata Prefecture, Takefu Plant in Fukui Prefecture, and the Group company plant in Thailand, where silicone monomer and polymer production is conducted. The company will also invest further in existing silicone plants across other Asian countries, the United States, and Hungary. Simultaneously, Shin-Etsu Chemical will accelerate efforts to achieve carbon neutrality by embracing greener manufacturing processes.

Klean Industries Inc has announced that its partner Pyrolysis Hellas SA has completed Phase II of the Detailed Feasibility Study to design and build a tyre pyrolysis plant in Greece. Greek Authorities gave permits to its final Phase, the company said in a release. The company, while terming it as a significant milestone for the PHS project, claimed that it was the first tyre pyrolysis and carbon upgrading project in Greece to receive full authorizations.

Klean Industries Inc has announced that its partner Pyrolysis Hellas SA has completed Phase II of the Detailed Feasibility Study to design and build a tyre pyrolysis plant in Greece. Greek Authorities gave permits to its final Phase, the company said in a release. The company, while terming it as a significant milestone for the PHS project, claimed that it was the first tyre pyrolysis and carbon upgrading project in Greece to receive full authorizations.

Klean Industries Inc has announced that its partner Pyrolysis Hellas SA has completed Phase II of the Detailed Feasibility Study to design and build a tyre pyrolysis plant in Greece. Greek Authorities gave permits to its final Phase, the company said in a release. The company, while terming it as a significant milestone for the PHS project, claimed that it was the first tyre pyrolysis and carbon upgrading project in Greece to receive full authorizations.Klean Industries Inc has announced that its partner Pyrolysis Hellas SA has completed Phase II of the Detailed Feasibility Study to design and build a tyre pyrolysis plant in Greece. Greek Authorities gave permits to its final Phase, the company said in a release. The company, while terming it as a significant milestone for the PHS project, claimed that it was the first tyre pyrolysis and carbon upgrading project in Greece to receive full authorizations.

Each year, over 1.5 billion tyres are sold worldwide, representing more than 26 million metric tonnes, and just as many tyres each year also fall into the category of end-of-life tyres providing a large and partially untapped potential for resource and material recovery. Today, most traditional ELT treatment processes are not circular and do not result in any production of raw materials that are suitable to be reused in the tyre manufacturing industry. Without such ELT solutions in the EU, more than half of the EU end-of-life tyres and secondhand tyres are landfilled or are exported as tyre derived fuels for use into furnaces as an industrial fuel. The PHS project intends to reverse these trends and create a vibrant addition to advancements being made in the tyre recycling sector, the release said.

The PHS project is co-owned by Karabas European Hellenic Recycling. Currently, KEHR collects and recycles all types of scrap vehicle tyres and recycles them through traditional methods by shredding tyres into rubber granules, rubber powder & shock-absorbent surfacing slabs.

PHS has partnered with Klean Industries to build a modern tyre recycling facility that encompasses a state-of-the-art scrap tyre pyrolysis plant to recycle 20,000 TPA of waste tyres into valuable chemical products.

PHS proposes to construct and operate the Waste Tyre Pyrolysis Plant in Moulkia, a seaside town near Skala, Greece. It is located at an existing industrial site that is owned by KEHR, the release added. (TT)

ResiCare, an adhesive manufacturing subsidiary of Michelin, has found commercial use in Allin's plywood manufacturing unit, R'PLY. Allin and Michelin have been in collaboration since 2018.

The company claims that R'Ply is the first responsible plywood made using certified Poplar wood and integrating a ResiCare resin that is kinder to human health as well as the environment. The R’Ply is a high-performance plywood which can be used for multiple applications, according to the company. The plywood can be used for boat-building or in the building trade and will be available at certain DIY stores soon.

Michelin had set up a mobile ResiCare production unit at its Olsztyn site in May 2021. The company hopes to replace more than 80 percent of the usual adhesive used in its tyre textile reinforcement with the new ResiCare adhesive, which is free from any substances of very high concern for health (SVHC), by 2025. The company further plans to set up mobile production units similar to the one in Europe and Asia in the coming months. (TT)