Recycling and sustainability trends in the chemical industry
ADI Chemical Market Resources conducted a series of digital conversations last year to kick off the re-launch of FlexPO+, our firm's flagship conference on polymers and plastics.
As we expect global chemicals demand to grow in the long-term coupled with innovation and emphasis on a circular economy, we discuss recycling and sustainability trends in the chemical industry with Moji Karimi, CEO and Co-Founder, Cemvita Factory and Nancy Herrington, Managing Director, Nitco Inc. Learn more here >>
Key Chemical Industry Drivers
GDP grew across most major economies except India where it contracted
Global GDP is expected to grow by 5.4% in 2021
Auto sales fell in U.S. and China but are picking up in others and Purchasing Manager’s Index fell in major economies except in Brazil
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Large chemical companies are pursuing portfolio shifts to focus on high-growth segments and regions.
LyondellBasell grows compounding capacity in Malaysia but exits in Australia
LyondellBasell acquires PolyPacific Polymers, based in Port Klang, Malaysia, that owns a 25,000 tons per year (tpy) manufacturing facility for reinforced and modified polyolefin compounds. LyondellBasell plans to rebrand the facility while absorbing all the existing PolyPacific employees. The facility will continue to produce and supply ongoing products to its customers. On the other hand, LyondellBasell plans to exit its 50% joint venture (JV) with Mirlex Pty Ltd. making the latter an independent wholly owned Australian compounder.
ExxonMobil to sell its Santoprene TPV elastomers business to Celanese
Celanese has agreed to acquire the Santoprene thermoplastic vulcanizate (TPV) elastomers brand from ExxonMobil serving a variety of end-use applications such as automotive, construction, medical, and industrial. The deal valued at $1.5 billion will include SantopreneTM, DytronTM, and GeolastTM and product portfolios, existing customer and supplier contracts and agreements, two production facilities in Pensacola, Florida and Newport, Wales, U.K. totaling 190,000 tpy, and approximately 350 employees.
BASF sells its global pigments business to the Japanese fine chemicals company, DIC
BASF had agreed to sell its global pigments business, BASF Colors & Effects (BCE), to DIC in 2019. The deal valued at around $1.4 billion was finalized earlier this year. Established in 1908, DIC is a Tokyo-based company active in more than 60 countries in packaging and graphic, color and display, and functional products. They have 20,000 employees globally and will absorb BASF pigments’ 2,600 employees.
Companies continue to accelerate their efforts towards sustainability and the circular economy by acquiring or investing in recycling companies and providing the innovators with scale and access to the market.
Borealis acquires minority stake in Belgian recycler, Renasci
Renasci has created the novel Smart Chain Processing (SCP) concept that enables processing multiple wastes in the same facility. Their facility in Belgium can automatically select and sort mixed waste stream including plastics, metals, and biomass multiple times. After sorting, plastic waste is first mechanically recycled and then any remaining materials are chemically recycled into pyrolysis oils that may be used as a fuel. Other types of sorted waste such as metals and organic refuse are also processed and only 5% of the original waste remains which may be used as a filler in construction materials. The partnership is expected to help Borealis meet their goal to bring 350,000 tpy recycled polyolefins into circulation by 2025.
Indorama Ventures announces acquisition of CarbonLite’s PET recycling facility in Texas
Indorama has acquired CarbonLite Holding’s PET recycling facility that has a capacity to recycle more than 3 billion PET bottles and the acquisition will increase their combined U.S. recycling capacity to 10 billion PET bottles annually. Their goal is to recycle 50 billion bottles globally by 2025. Indorama’s Dallas site produces about 92,000 tpy food-grade recycled PET and they will likely expand in the medium term.
SK Global Chemical invests in Loop Industries for PET waste recycling
SK Global Chemical has acquired 10% stake in Loop Industries buying 4.71 million shares for $56.6 million. Loop Industries is Canada-based and owns a patent for depolymerization technology to recycle polyethylene terephthalate (PET) waste and polyester fibers. They are also planning manufacturing facilities in Canada and Europe in the near term. The companies also plan to form a joint venture next year to commercialize Loop Industries’ technology throughout Asia including an 84,000 tpy waste PET recycling facility and expanding the capacity in the region to 400,000 tpy by 2030.
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Companies are also investing in finding alternatives such as renewable feedstocks and fuels to reduce their carbon footprint and control greenhouse gas emissions to accelerate progress towards their sustainability goals.
Clariant forms a joint venture with India Glycols for renewable ethylene oxide (EO) derivatives
Clariant has formed a 51-49% joint venture with a leading manufacturer of green technology-based chemicals, India Glycols called Clariant IGL Specialty Chemicals for renewable EO derivatives. The joint venture will make Clariant one of the leading surfactant suppliers in India considering the joint venture includes IGL’s multipurpose production facility including an alkoxylation plant in Kashipur, Uttarakhand in India and along with its existing business in India, Sri Lanka, Bangladesh, and Nepal. Clariant notes increasing demand for renewables from consumers in home and personal care applications as one of the drivers for forming the joint venture.
Orion Engineered Carbons commercially launches renewable-based Carbon Black
Orion Engineered Carbons have announced commercial launch of ECORAX® Nature that are derived from industrial grade, plant-based oils for rubber applications. The highly reinforcing carbon black grade is the first of its kind made from a renewable, non-fossil derived feedstock and can be used in critical tire tread construction. The product is currently being tested and is expected to go into high volume manufacturing in the second half of 2022.
Neste launches renewable diesel in Belgium
Neste launched “Neste MY Renewable Diesel” in the Belgian market in collaboration with EG Group. The fuel is produced from 100% renewable raw materials and enables customers to reduce greenhouse gas emissions by up to 90% driving efforts to reach carbon neutrality in the European Union by 2050. The Neste renewable diesel is currently available in the Netherlands, Finland, Sweden, Estonia, Latvia, and Lithuania in Europe and in California and Oregon in the United States. Neste’s renewable diesel factories in Rotterdam and Singapore are the largest and most advanced renewable diesel refineries in the world with total capacity of 3.2 million tpy and is planned to increase to ~4.5 million tpy by 2023.
Norway-based Horisont Energi selects Technip Energies for carbon-neutral ammonia project
Horisont Energi is planning Europe’s first large-scale blue ammonia plant using Haldor Topsoe’s SynCOR ammonia technology. Technip Energies has been selected to perform a concept study for the design of the Barents Blue carbon-neutral ammonia plant in Hammerfest, Norway. More than 99% of the CO2 released during production will be captured, transported offshore, and injected into a large geological reservoir where it will be stored.
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