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.

Ecolomondo Corporation, a leading Canadian innovator in sustainable scrap tyre recycling technology, has announced that its new milling line at Hawkesbury facility has achieved a major milestone during recent testing by reaching a throughput of approximately 2,700 lbs per hour of recovered carbon black (rCB). This result surpasses the company’s projected target of 2,200 lbs per hour.

When the new milling line is completely operational, it should be able to process 2,200 pounds of rCB per hour and provide a particle size distribution of 96 percent between 10 and 15 microns. It is anticipated that the plant would process more than 1.5 million scrap tyres annually, recovering 1,350 MT of process gas while producing 4,500 MT of recovered carbon black, 5,400 MT of oil and 2,250 MT of steel.

The company expects the commercial production of rCB to start by the end of May 2025. After being contacted, offtake clients told the company that they were eagerly expecting a larger supply of steel, oil and rCB, said the company. Depending on end-product market pricing, the company's yearly income from the sale of these sustainable goods plus tipping fees of USD 145 per metric tonne is expected to reach USD 12.1 million, with an estimated EBITDA of 45 to 50 percent, added the company statement.

Jean-François Labbé, Interim CEO, Ecolomondo Corporation, said, “This is a major achievement that brings the Hawkesbury facility closer to full production and commercialisation.”

Global speciality chemicals company Orion S.A. has launched a new bio-circular carbon black called ECOLAR 50 POWDER to provide coatings manufacturers with a new solution for more sustainable coatings.

ECOLAR 50 POWDER, which is entirely based on bio-circular feedstock, has coloristic qualities that are on par with those of ordinary speciality carbon blacks and includes 100 percent biogenic raw material according to 14C analysis. The coloristic qualities of ECOLAR 50 POWDER, a low to medium colour furnace black, offer moderate tinting strength and medium jetness in mass tone applications. ECOLAR 50 POWDER offers equivalent coloristic performance for full-tone and tinting applications, as well as comparable wetting and dispersion characteristics to conventionally manufactured low-colour furnace blacks.

ECOLAR 50 POWDER outperformed other common specialist carbon blacks in achieving medium jetness in a solvent-borne alkyd/melamine stoving enamel system. It created a similar neutral undertone as well. When tested in a water-borne 1K PU coating system, ECOLAR 50 POWDER created a more neutral undertone and jetness that was on par with other regular speciality carbon blacks.

Tilo Lindner, Vice President Global Marketing – Speciality Carbon Black, Orion, said, “We’re leading the way in advancing carbon black to meet increasing industry demands for sustainable products. ECOLAR 50 POWDER enables coatings formulators to develop truly sustainable products in all kinds of coatings applications.”

LD Carbon has inaugurated Korea’s first and largest waste tyre pyrolysis plant in Dangjin, South Korea.

Located in the Dangjin Hapdeok General Industrial Complex, the plant is expected to begin full-scale operation next month. The plant is spread over 29,800 square metres and features two factory buildings and five silos. The plant has an annual capacity to process 50 kilotonnes per annum (ktpa) of tyre chips derived from end-of-life tyres (ELTs).

At the location, LD Carbon uses a two-step pyrolysis process, first turning ELTs into solid char and pyrolysis oil. After that, the business uses a secondary pyrolysis process to further compress the char and create recovered carbon black (rCB). It is anticipated that the Dangjin facility would generate 20 ktpa of rCB and 24 ktpa of pyrolysis oil, which is a substantial increase above the combined output of 7 ktpa at its current pilot plant in Gimcheon. When compared to traditional carbon black, the rCB generated by the technique is said to lower carbon emissions by up to 32 ktpa.

The company is planning to build plants overseas and intends to join the Asian market soon. It has also struck a 10-year offtake deal with SK Incheon Petrochem for its pyrolysis oil.

Speciality chemicals company LANXESS India organised its first exclusive Solutions Day event in Mumbai today to showcase its diversified and sustainable product portfolio to customers and other key stakeholders.

The event was organised to promote the idea of ‘One LANXESS’, where its business units – namely Advanced Industrial Intermediates, Flavors & Fragrances, Inorganic Pigments, Liquid Purification Technologies, Lubricant Additives Business, Material Protection Products, Polymer Additives, Rhein Chemie and Saltigo – displayed their distinctive products and solutions at the event. It provided an opportunity to highlight the cross-business synergies that characterise LANXESS' integrated approach and to present the company's cutting-edge solutions designed for a variety of industrial applications.

Three main business sectors, namely Advanced Industrial Intermediates, Speciality Additives and Consumer Protection Products, are currently the emphasis of LANXESS's strategy shift from a polymers to speciality chemicals company. In order to improve the value provided to clients, the event sought to promote cooperation and creativity across these various business divisions. In order to promote knowledge exchange, discover possible areas for collaboration and capitalise on the capabilities of each business unit to propel overall development and success, the day included interactive workshops, technical presentations and networking opportunities.

Namitesh Roy Choudhury, Vice Chairman & Managing Director, LANXESS India, said “Our goal with Solutions Day is to strengthen our existing partnerships and explore future collaborations that support sustainable industry growth. Through this event, we want to highlight LANXESS’ integrated offerings to all our stakeholders and address the global industrial challenges through the combined power of sustainable chemistry, innovation and responsible business.”