The Chem Ledger #12: December 17, 2024
Several notable developments have occurred in the chemical industry in the past week.
I bring you the latest updates across key areas, including strides in climate action, setbacks in the pharmaceutical sector, funding milestones achieved by spin-off and spin-out companies, advancements in manufacturing, major mergers and acquisitions (M&A), regulatory updates, and noteworthy investment stories.
Climate Action
1/ Yara International has commenced the production of renewable-based ammonia in Brazil, making it the first company in the country to do so. The ammonia is produced from renewable biomethane, specifically derived from sugarcane waste. The process allows for a substantial reduction in greenhouse gas emissions, with potential decreases of up to 75% compared to traditional fossil natural gas.
2/ Clariant has implemented its EnviCat™ N2O-S catalyst at the Sichuan Lutianhua nitric acid plant, which began operations in August 2024. The plant, located in Sichuan Province, China, has been operational since 2009 without any N2O removal system prior to this installation. The catalyst is expected to cut annual emissions by approximately 275 kilotons (KT) of CO2eq. The catalyst can remove up to 99% of N2O emissions from the production process.
3/ Stellantis and CATL (Contemporary Amperex Technology Co. Limited) have announced an investment of up to €4.1 billion (approximately $4.3 billion) to establish a joint venture for constructing a large-scale lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. The production capacity is expected to reach up to 50 GWh by the end of 2026 and the plant aims for a carbon-neutral design.
Pharma
Acelyrin has decided to discontinue the development of its investigational eye disease treatment, izokibep, after failing to meet its efficacy endpoints during a Phase IIb/III clinical trial for uveitis. Despite the setback, Acelyrin will continue to focus on its late-stage development program for lonigutamab, which is being investigated for the treatment of thyroid eye disease (TED).
Spin-offs & Spin-outs
1/ One Bio, a biotechnology startup spun off from UC Davis, has successfully raised $27 million in a Series A funding round. The company focuses on food ingredients by converting agricultural waste into short-chain fibers designed to be "invisible" in food products while enhancing their nutritional value. The funding will help One Bio commercialize its technology and expand its offerings in the food tech space.
2/ Clyde Hydrogen, a spin-out from the University of Glasgow's School of Chemistry, has launched a €6 million (approximately $6.3 million) seed funding round. The raised funds will be used to accelerate the commercialization of their hydrogen production technology, particularly focusing on refining their decoupled electrolysis process. The funds will also support the development of a production-ready system by 2026.
Manufacturing
Emirates Biotech is set to construct the world's largest polylactic acid (PLA) production facility in the United Arab Emirates. Construction is set to begin in 2025, with the facility expected to be operational by early 2028. The estimated cost of this project is around $800 million with total capacity of 160,000 tonnes per annum. The plant will utilize Sulzer's licensed technology, which allows for a fully integrated production process covering all steps from lactide production to polymerization.
M&A
1/ Perstorp Holding AB has acquired 100% of the shares of OQ Chemicals Nederland B.V. from OQ Chemicals GmbH. The deal includes full ownership of OQ Chemicals' production assets and technology in the Netherlands. The acquisition aligns with Perstorp's growth strategy focused on the specialty chemicals sector.
2/ Hyosung TNC, a subsidiary of the Hyosung Group, has announced its acquisition of the specialty gas division of Hyosung Chemical for approximately $642 million. Hyosung TNC specializes in the production of textile and fiber products. The acquisition comes after Hyosung Chemical's previous plan to sell its specialty gas unit to a consortium of private equity firms fell through in November 2024.
3/ INEOS Energy has announced its acquisition of the Gulf of Mexico business CNOOC Energy Holdings U.S.A. Inc., a subsidiary of CNOOC International. The deal marks a significant expansion for INEOS in the U.S. deepwater oil and gas sector, representing their third major investment in the U.S. in the past three years. The acquisition will bring INEOS's total output to over 90,000 barrels of oil equivalent per day. The specific acquisition cost for this deal has not been disclosed in the available sources.
4/ Novolex has announced its acquisition of Pactiv Evergreen in a deal valued at $6.7 billion. Under the terms of the agreement, Pactiv Evergreen shareholders will receive $18.00 per share in cash, which represents a 49% premium over the stock's price prior to the announcement. The transaction is expected to close in mid-2025. This merger aims to create a leading manufacturer in the food and beverage packaging industry.
5/ Styrenix Performance Materials has announced its acquisition of INEOS Styrolution (Thailand) Co., Ltd. This transaction involves the purchase of 100% equity interest in the Thai subsidiary and is valued at approximately $20 million. The deal is expected to close in early 2025. This acquisition is part of Styrenix's strategy to enahnce its polymer business in Southeast Asia, and it follows the company's recent rebranding from INEOS Styrolution India.
Regulatory Updates
1/ The Biosecure Act has been excluded from the recent U.S. National Defense Authorization Act (NDAA), which was seen as a critical step for the bill's potential passage. This exclusion is viewed as a significant victory for Chinese biotechnology firms, as the act aimed to prohibit U.S. entities from using biotechnology services or equipment from companies associated with foreign adversaries, particularly targeting firms like WuXi AppTec and BGI.
2/ Checkpoint Therapeutics has secured its first FDA approval with the drug UNLOXCYT (cosibelimab-ipdl), which is specifically indicated for the treatment of adults with advanced cutaneous squamous cell carcinoma (cSCC). This approval marks a significant milestone for the company as UNLOXCYT is the first and only FDA-approved anti-PD-L1 therapy for this type of cancer.
Investments
1/ ANYbotics, a Swiss robotics company specializing in Artificial Intelligence (AI)-driven robotic inspection solutions, has raised an additional $60 million in funding. The investment brings the company's total funding to $130 million. The new round was led by Qualcomm Ventures and Supernova Invest, with participation from TDK Ventures and other investors. The funds will be used to enhance their operations and expand their presence in the U.S. market, focusing on scaling their autonomous industrial robots and improving inspection capabilities.
2/ Haber, an industrial AI startup based in Pune, India, has raised $44 million in its Series C funding round. This funding includes $38 million in equity and $6 million in debt. The round was led by investors such as Creaegis, BEENEXT, and Accel. The capital will facilitate Haber's expansion into North America, where demand for advanced manufacturing technology is rising. Haber plans to hire a team for its North American operations and establish an office in Chicago, along with an advanced R&D lab to develop AI models.
3/ MBA Polymers is investing €10 million (approximately $10.5 million) to expand its operations into India. This investment is part of the company's strategy to enhance its presence in the Indian market, where it has already established an administrative office, MBA Polymers India Pvt Ltd, in Pune in 2023. MBA polymers specializes in recycling plastics from end-of-life products. Founded in 1994, the company operates advanced recycling facilities in several countries and transforms waste plastics into high-quality recycled polymers.
4/ Albert Invent, a materials science R&D platform, has raised $22.5 million in a Series A funding round. This investment aims to enhance their platform, named Breakthrough™, which leverages AI to accelerate chemical innovation. The funds will be used to expand the engineering team, enhance the platform's capabilities, and scale operations to meet demand. The round was led by Coatue, with participation from TCV, Index Ventures, F-Prime, and Homebrew.
If you’d like to receive these weekly updates directly in your inbox, please enter your email below. Stay informed and ahead with the latest developments in the chemical and materials industries, delivered right to your inbox.
Discover more about me here.