Latest news with #chemicalindustry
Zawya
4 days ago
- Business
- Zawya
Egypt: Red Sea Petrochemicals, CNCEC sign framework deal for SCZone Project
Arab Finance: Red Sea National Petrochemicals Company and China National Chemical Engineering Co., Ltd. (CNCEC) signed a non-binding framework agreement to implement a petrochemicals project in the Suez Canal Economic Zone (SCZone), according to a statement. The signing ceremony took place in Beijing, reflecting the strategic partnership between Egypt and China. The project is one of Egypt's most prominent future projects in the chemical industry. Ibrahim Abdelkader Mekky, Chairman of Egyptian Petrochemicals Holding Company (ECHEM), highlighted that the deal marks a milestone on the road to executing a promising project that will enhance Egypt's export capacity and create broad development opportunities. He noted that CNCEC is willing to contribute to the project's capital by arranging financing covering up to 85% of the value of the engineering, procurement, and construction (EPC) contract. The Red Sea project enjoys significant competitive advantages, most notably its strategic location near the Suez Canal and the availability of production unit licenses, according to Mekky. The chairman indicated that these advantages make it highly attractive for investment, especially in light of the increasing global demand for products such as polyethylene and polypropylene. He added that cooperation with CNCEC is witnessing rapid development, as three major contracts were signed this year with TCC, a subsidiary of the Chinese group, at a combined value of nearly $1 billion. These agreements include projects to produce soda ash, silicon, and bioethanol, as part of Egypt's efforts to reduce dependence on imports and localize strategic industries. © 2025 All Rights Reserved Arab Finance For Information Technology Provided by SyndiGate Media Inc. (
Yahoo
24-07-2025
- Business
- Yahoo
Dow falls as Q2 earnings miss estimates amid industry challenges
-- Dow Inc. reported a wider-than-expected loss for the second quarter of 2025, as the chemical giant continues to face margin pressure and industry oversupply. Shares tumbled 5.9% following the announcement. The company posted an adjusted loss of -$0.42 per share, significantly worse than analysts' expectations of -$0.16 per share. Revenue fell to $10.1 billion, down 7% YoY and below the consensus estimate of $10.24 billion. The revenue decline reflected lower prices and volumes across all operating segments, with local prices down 7% and volume decreasing 1% compared to the year-ago period. "This quarter the Dow team advanced several aggressive actions in response to the lower-for-longer earnings environment that our industry is facing, amplified by recent trade and tariff uncertainties," said Jim Fitterling, Dow chair and CEO. "We are delivering near-term cash support and earnings growth levers, which we anticipate will total more than $6 billion by 2026." Cash flow from operations turned negative at -$470 million, a sharp decline from $832 million in the same quarter last year. The company maintained its dividend payments, returning $496 million to shareholders during the quarter, but indicated it would adjust its dividend policy to maintain financial flexibility. The Packaging (NYSE:PKG) & Specialty Plastics segment, Dow's largest business unit, saw a 9% decline in sales to $5 billion and a steep drop in operating EBIT to $71 million from $703 million a year earlier. The Industrial Intermediates & Infrastructure segment reported an operating EBIT loss of $185 million compared to a $7 million profit in Q2 2024. Dow cited industry oversupply as a continuing challenge, with Fitterling noting that "signs of oversupply from newer market entrants who are exporting to various regions at anti-competitive economics require broader industry engagement and additional regulatory action to restore competitive dynamics." The company is focusing on structural cost improvements and optimizing its global asset footprint to strengthen its competitive position as it navigates the challenging industry environment Related articles Dow falls as Q2 earnings miss estimates amid industry challenges Victoria's Secret Exposed: The Warning Sign Behind the Stock's 52% Collapse After soaring 149%, this stock is back in our AI's favor - & already +25% in July
Telegraph
17-07-2025
- Business
- Telegraph
The 400,000 jobs Ed Miliband could destroy
The story of British manufacturing, particularly energy-intensive manufacturing, in recent times has been one of woe. The primary steel sector faces collapse. Jim Ratcliffe, the CEO of Ineos, has declared that the British chemical industry is coming to an end. The travails of industry have become a case study for different factions to blame their rivals. Left-wingers argue that deindustrialisation is the legacy of Margaret Thatcher's policies. Those on the Right, meanwhile, lay the blame at the reforms of Clement Attlee and his post-war successors, from nationalisation, the 1945 Distribution of Industry Act and the 1947 Town and Country Planning Act. While Britain's twentieth century was marked by policy mistakes, at the turn of the century, it had the fourth-largest manufacturing base in the world in terms of gross value added. We were a significant energy exporter and had stable and competitive electricity prices. Where did things go wrong? In 2000, we, alongside the rest of the Western world, made a faustian pact with the Chinese Communist Party, where we offloaded our low-value-added industrial production in exchange for cheap goods. It was not thought then that, by 2020, Chinese manufacturing would account for 35 per cent of global production, and dominate high-value added sectors like batteries, electric vehicles and drones. We also thought little about how Chinese overcapacity would put huge downward pressure on process industries like chemicals and steel. The other major factor has been the lack of a coherent energy policy. Over the past century, we have gradually increased our energy bills with various levies and carbon-related taxes, all to facilitate the rollout of intermittent renewables. While external shocks to gas prices in recent years brought the issue to the forefront, our industrial energy costs had become globally uncompetitive since 2008. The net zero strategy of decarbonising the power sector via levies has proved short-sighted. While electricity in 2023 accounted for 42 per cent of energy expenditure, it represented less than 20 per cent of calorific consumption, with the remainder primarily coming from methane (natural gas) and petroleum products. British electricity is over 400 per cent more expensive than gas. It is for this reason that wider efforts at electrification are failing. Installing heat pumps has been painfully slow, while the government's drive for electric vehicle adoption did not meet its targets in 2024. While gas and coal costs have been relatively stable, they have been hit by discretionary carbon costs. Prax Lindsey, the Hull-based refinery that recently entered receivership, had emission trading scheme (ETS) costs (accounting for free allowances) exceeding 100 per cent of its operating profit in 2023. The Prax Lindsey closure is just one example of the not-so-slow-motion collapse in Britain's energy-intensive industries. Since 2022, we have seen three ammonia plants shut down, two refineries close, and one of our remaining three olefin crackers abandoned. Wigan's Electric Fibre Glass, our largest fibre glass manufacturer, announced its closure. In metals, the blast furnace at Scunthorpe has effectively been nationalised, and Liberty Steel's plant in Rotherham has been idle for a year. The government is attempting to stave off the bleeding by increasing levy exemptions and making targeted bailouts. They are right to be worried. Home Secretary Yvette Cooper's constituency of Pontefract, Castleford, and Knottingley has three glass factories. The energy-intensive industries sector, outlined in my report for the Jobs Foundation, is a significant component of the economy outside of London. It has over 400,000 workers, a turnover of £170 billion, and a gross value added of nearly £40 billion. It provides relatively high-paid work in the areas it operates, and is critical to thousands of manufacturers further down the supply chain. If it falters further, there is no silver lining.
Reuters
17-07-2025
- Business
- Reuters
German chemical lobby VCI sees no sector recovery before 2026
July 17 (Reuters) - Germany's chemical industry lobby VCI does not expect a sector upswing before 2026, even though the rapid downtrend the chemical-pharmaceutical industry has seen in recent years seems to be over, it said on Thursday. The chemical industry including pharmaceuticals recorded sales of 107 billion euros ($124 billion) in the first half of 2025, down 0.5% from a year earlier, affected by lower industry output as companies announce plant closures and job cuts, VCI said. "The situation remains tense. In the first half-year, our industry produced around 15 percent less than in the pre-crisis year of 2018," Markus Steilemann, VCI president and CEO of Covestro , said in a press release. The industry recorded a 1% drop in industrial production, while producer prices remained stable, the chemical association said. The third-largest industry of Europe's powerhouse Germany can be seen as a bellwether for the broader region's economy as it produces material components used in various sectors ranging from automotive and construction to agriculture and textiles. Germany's BASF ( opens new tab, Covestro and Brenntag ( opens new tab recently lowered their annual forecasts, citing persistent global economic weakness, subdued demand and the impact of U.S. tariffs, with no signs of a near-term recovery. "The business location Germany is overly expensive in an international comparison," Steilemann said, blaming this on excessive bureaucracy, non-competitive energy prices, and high taxes, labour costs and raw material prices. To overcome these challenges, the German government has introduced a series of fiscal measures to stimulate the sluggish economy, including a 500 billion euro infrastructure fund launched in March and a 46 billion euro tax relief package approved in June to support businesses through 2029. According to Anna Wolf, industry expert at the Ifo Institute for Economic Research, the new infrastructure fund and electricity tax cuts for industry are the main driving factors for German business expectations. ($1 = 0.8626 euros)
Zawya
09-07-2025
- Business
- Zawya
Oman's Sur Industrial City attracts $25mln investment in chemical industry
Sur - Sur Industrial City, an affiliate of the Public Establishment for Industrial Estates 'Madayn', signed an investment contract with Al Ghaith Industries to establish a factory for the production of Trichlorosilane. The facility will be built on an area of 20,000 sqm, with an investment size exceeding RO 9.6 million (USD 25 million). This value-added project is set to boost the growth of the chemical and energy sectors in the Sultanate of Oman. Eng. Nasser Hamoud Al Mabsali, Director General of Sur Industrial City, stated that the project expands new horizons for the development of high-purity silicon manufacturing, which is the cornerstone of renewable energy and electronics industries. 'This investment represents a significant value addition to South A'Sharqiyah Governorate in general and Sur Industrial City in particular. The project will support the localisation of advanced technology-based industries and provide employment opportunities for Omani cadres,' Al Mabsali pointed out. On his part, Eng. Almamoon Al Baadani, CEO of Al Ghaith Industries, highlighted that the Trichlorosilane plant represents a major milestone in the Sultanate of Oman's chemical sector. 'This will be the first facility of its kind in the Middle East, and several projects are planned over the coming years, thanks to Oman's attractive investment environment,' Al Baadani said. He noted that the factory's commercial production is expected to commence by the end of the first quarter of 2027, expressing gratitude to the management of Madayn, represented by Sur Industrial City, for their efforts in facilitating the investment process and advancing the industrial sector. Copyright (C) 2022. Oman News Agency. All rights reserved. Provided by SyndiGate Media Inc. (
