Page 158 - CW E-Magazine (24-10-2023)

News from Abroad

DOWNSTREAM EXPANSION

Aramco assesses possible investment in Shandong

Yulong Petrochemical

Aramco, the Saudi Arabian inte- complex designed to process around potential to enable all parties to con-
grated energy and chemical company, 400,000 barrels per day (bpd) of crude tribute to China’s energy security and
along with Chinese firms – Nanshan oil and produce a large volume of petro development, and aid in navigating the
Group, Shandong Energy Group and chemicals and derivatives. The facili- energy transition.”
Shandong Yulong Petrochemical – have ties are located at Longkou, Yantai City,
signed a Memorandum of Understand- in China’s Shandong Province. As per The MoU follows the recent
ing (MoU) to facilitate discussions the MoU, Aramco would potentially announcement that Aramco had signed a
relating to the possible acquisition by supply Shandong Yulong with crude oil cooperation framework agreement with
Aramco of a 10% strategic equity interest and other feedstock. Jiangsu Eastern Shenghong to also facili-
in Shandong Yulong Petrochemical tate discussions relating to the possible
subject to due diligence, negotiation Commenting on the move, Mr. acquisition by Aramco of a 10% stra-
of transaction documents and required Mohammed Y. Al Qahtani, Aramco tegic equity interest in Jiangsu Sheng-
regulatory clearance. Downstream President, said, “As one hong Petrochemical Industry Group, a
of China’s largest refining and chemi- wholly-owned subsidiary of Eastern
Shandong Yulong is currently in cal centres, Aramco values Shandong Shenghong, subject to due diligence,
the process of completing the construc- for its current strength and future pros- negotiation of transaction documents
tion of a refining and petrochemicals pects. We believe this collaboration has and required regulatory clearance.

FINANCIAL RECAPITALISATION
Venator emerges from Chapter 11 with improved

financials

Venator Materials, the titanium The company said it has now signifi- credit rating will improve in due course
dioxide business spun out of Huntsman, cantly reduced its debt from more than to reflect its improving credit profile. In
has said it has successfully completed $1-bn to approximately $200-mn upon connection with its emergence, Venator
its Chapter 11 recapitalisation process emergence. The majority of the company’s has formed a new Board of Directors
and emerged with an improved balance recapitalised equity is now owned for the reorganised company comprised
sheet and lower debt. Mr. Simon Turn- by its former lenders by virtue of the of senior executives who have extensive
er, President and CEO of Venator, equitisation of the company’s prepetition experience and sector expertise, to guide the
said,“The recapitalisation provides us debt. It is expected that the company’s future strategic direction of the company.
with an improved capital structure and
balance sheet. We are now better posi- Toray raising carbon fibre capacity
tioned to address what continues to be
a challenging market. Venator has great in France
potential for long-term future growth.”
Japan’s Toray Industries has According to Toray, demand for
In July this year, a US bankruptcy court decided to expand its French subsidiary, medium- and high-modulus carbon fibres
had confirmed its plan of recapitalisation. Toray Carbon Fibers Europe S.A.’s pro- is rising in Europe, driven by a push to
At the time of the bankruptcy 11 filing, duction facilities for regular tow medium- move towards a net-zero society. This
Mr. Turner, had said that Venator faced and high-modulus carbon fibres. This growth is mainly due to higher build
“unprecedented economic headwinds” since move will increase capacity at the Abi- rates for commercial aircrafts (second-
the second half of 2022,including signifi- dos plant (South-West France) from ary structures and engines), as well as
cantly lower product demand and higher 5,000-tpa, to 6,000-tpa. Production is centrifuge for energy production, satel-
raw material and energy costs. expected to start in 2025. lites, and high-end automobiles.

158 Chemical Weekly October 24, 2023

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