NEWS
Polymer majors report challenging first half
First half results from BASF, Covestro, Radici Group and Mexichem highlight increas- ingly challenging trading conditions, particularly in the automotive market. BASF said “significantly
weaker than expected industrial production” impacted both its volumes and margin development. It said this was particularly pronounced in the automo- tive sector, where produc- tion fell by 6% globally and by 13% in China. As a consequence, the compa- ny’s preliminary Q2 sales figures were 4% down on Q2 2018 at €15.2bn; EBIT was 71% down at €500m due to much lower earnings in its Materials, Chemicals and Agricultural Solutions segments.
BASF said it now expects a slight decline in sales for the year as a whole and a 30% fall in EBIT before special items. At the start of the year, it had anticipated
slight growth in each. Covestro saw a 16.9% fall
in group sales to €3.2bn. It said lower selling prices cancelled out a 1.1% increase in volumes in a situation of “ongoing intense competitive pressure and uncertainties in major sales markets”. EBITDA was 53.4% down on an outstanding Q2 2018 at €459m, mainly from lower margins in the Polyurethanes and Polycar- bonates segments. Covestro also said the automotive market “devel- oped much weaker than expected” but that construc- tion was relatively strong. It confirmed its guidance for fiscal 2019 of core volume growth in the low- to mid-single digit percentage range and EBITDA of €1.5-2.0bn. Italy’s RadiciGroup
reported an excellent 2018, with consolidated sales revenue up by 6% to €1.2bn and EBITDA up 16% to
€185m. However, it said it is now feeling the effects of a slowdown that began late last year. RadiciGroup President Angelo Radici said he saw “stable margins despite the contraction in sales volumes” in the first half of this year but expect- ed conditions to be “a bit tougher” in the second half, due in large part to global market uncertainty. Mexichem reported a Q2
revenue decline of 7% to $1.8bn and an EBITDA fall of 12% to $372m. PVC and caustic soda market condi- tions “remained challenging”, according to CEO Daniel Martínez-Valle. Sales in the Vinyls division were 8% down on Q2 2018 at $588m, with EBITDA down 29% to $105m, due to weaker margins and falling prices at that end of the vinyl chain. �
www.basf.com �
www.covestro.com �
www.radicigroup.com �
www.mexichem.com
Sibur partners with BASF
Russian petrochemical giant Sibur signed a memorandum of coopera- tion with BASF at the former’s newly inaugu- rated PolyLab at the Skolkovo Innovation Centre, which is its main the main R&D hub and production centre. Under the agreement, the two firms will collabo- rate to use digital tech- nologies in production and R&D, and to develop an innovative range of polymers using BASF’s plastic additives. In addition, BASF will support the development of new technology tests at PolyLab and the companies will jointly develop new additives. PolyLab will foster the
use of recycled materials, and new PE and PP grades will be used on its pilot manufacturing lines. �
www.basf.com �
www.sibur.ru
Coperion bags biopolymer business
Coperion has developed a custom laboratory compounding line to allow Benin-based plastic film maker Asahel Benin to develop a line of biodegradable and bio-based products. The government of the west African country last year banned the use of PE bags, forcing Asahel Benin to look for an alternative to its virgin and recycled PE products. Coperion developed a laboratory-scale compounding line to allow the company to develop bio-based formula- tions suitable for processing on its existing blown film equipment. The line is based around a ZSK 26 Mc18
twin
Asahel Benin’s David Romaric Tikou (right) with Coperion staff at its Stuttgart technical centre
10 COMPOUNDING WORLD | August 2019
screw extruder and is equipped with four feeders capable of handling powder, pellet, and liquids, as well as a water bath, air wipe and Type SP50 strand pelletiser. �
www.coperion.com
www.compoundingworld.com
PHOTO: COPERION
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