It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Friday, July 21, 2023
Tornado damage to North Carolina Pfizer plant will create long-term shortages of certain drugs, experts fear
By
Bradford Betz, Fox Business
July 21, 2023
Experts fear that the tornado damage to Pfizer’s plant in Rocky Mount, North Carolina, will create long-term shortages of already-strained drug supplies.
The plant that sustained damage in Wednesday’s tornado produces nearly 25% of all sterile injectable medicines in US hospitals, including drugs in IV infusions or that are delivered under the skin or into patient muscles.
Erin Fox, senior pharmacy director at University of Utah Health said the damage will likely lead to some long-term shortages while Pfizer shifts production to other locations or rebuilds.
But the specifics of which drugs might be involved in a shortage and how long that shortage will go aren’t clear.
“Anyone who is aware of this event is basically holding their collective breath at this point, hoping for the best and waiting for news,” said Mike Ganio, who studies drug shortages at the American Society of Health-System Pharmacists.
He noted that drugmakers tend to ship finished products quickly from manufacturing sites, which may limit how much inventory was damaged by the twister.
They have several tools to soften the impact on patients.
Some hospitals have started increasing inventories of stored drugs instead of relying on regular deliveries from a wholesaler.
Experts fear that the tornado damage to Pfizer’s plant in Rocky Mount, North Carolina, will create long-term shortages of already-strained drug supplies. APSome hospitals have started increasing inventories of stored drugs instead of relying on regular deliveries from a wholesaler.AP
Hospitals may also switch to different forms of a drug by giving a patient an antibiotic pill instead of an IV if that person can handle it.
If a larger vial size of a drug is more readily available, they may order that and then fill several syringes with smaller doses ready for use.
The damage to the Pfizer plants comes as hospitals have already been dealing with drug shortages for years – specifically for things like chemotherapy drugs.
And the shortage isn’t limited to hospitals as drugstores and doctor’s offices have felt the impact.
The plant that sustained damage in Wednesday’s tornado produces nearly 25% of all sterile injectable medicines in US hospitals, including drugs in IV infusions or that are delivered under the skin or into patient muscles.via REUTERSThe damage to the Pfizer plants comes as hospitals have already been dealing with drug shortages for years – specifically for things like chemotherapy drugs.via REUTERS
Overall, there were more than 300 active drug shortages in the US at the end of June, according to the University of Utah Drug Information Service.
“We already have teams on the ground assessing damage and supporting our colleagues, and we are working urgently to determine the best way to get back online as quickly as possible,” Bourla wrote on Twitter.
Overall, there were more than 300 active drug shortages in the US at the end of June, according to the University of Utah Drug Information Service. via REUTERSPfizer also may have to figure out whether to cut production of another product to squeeze in more manufacturing at the new site.AP
Drugmakers can shift manufacturing to other locations. But that can be complicated because they must reroute raw materials — usually made elsewhere — to other locations and may have to train workers to make a product.
Pfizer also may have to figure out whether to cut production of another product to squeeze in more manufacturing at the new site.
MAN ES Runs its First Ammonia Test Engine, Sees Burgeoning Market
On Thursday, MAN Energy Solutions announced the first running of one of its two-stroke engines on ammonia at a test facility in Copenhagen. The results were positive, and particularly so when regarding pilot-oil consumption and combustion stability.
It follows hot on the heels of first successful ammonia combustion in the same engine, which MAN announced while delegates gathered in London for key IMO climate talks. Interest in the breakthrough has been "overwhelming," according to Bjarne Foldager, the company's Head of Two-stroke Business.
"This marks a major milestone on our road to developing a full-scale two-stroke ammonia marine engine. It’s been a historic week for our team at the RCC where a lot of groundwork and research has now paid off and we have gained a deep understanding of ammonia’s unique characteristics as a marine fuel," said Gunnar Stiesch, Chief Technical Officer at MAN Energy Solutions.
Safety has been key, the company said. The company's precautions include the construction of a custom-built "cold hall," which has a water screen to contain ammonia vapor in the (unlikely) event of a leak. Proven dual-fuel engine safety systems like double-walled piping and system ventilation have also been built into the engine design.
Ammonia has been in testing as a marine fuel for some time. Wärtsilä began running progressive amounts of ammonia fuel in a four-stroke in 2020, and Japan Engine followed suit in 2023. Japan Engine also reported in April 2023 that it has begun co-firing ammonia in a two-stroke engine (alongside fuel oil).
MAN is already making marketing plans for its first ammonia-fueled engine. According to Thomas S. Hansen, the firm's Head of Promotion and Customer Support, the first commercial example will be a 60-bore engine, which has a wide range of vessel applications. The first example should be delivered for vessel installation in 2026. "The interest in this engine is very high and we have received many queries across basically all large merchant-marine vessels. MAN Energy Solutions expects a quick uptake of ammonia-fueled engines towards the end of the current decade," he said.
In the interim, though, there is still R&D to be done. In the months to come, MAN's research team will examine heat-release, ignition, pilot-oil energy fraction, and (key for compliance) NOx and N20 emissions. They will also rebuild the test engine to use ammonia on all of its cylinders, as the first test series used just one. A full-scale test engine should be up and running on ammonia by early 2024, according to Brian Østergaard Sørensen, MAN VP and Head of Research & Development, Two-Stroke.
"Our expectations for ammonia are positive owing to its predicted lower production cost compared to other, relevant e-fuels; we foresee around 27 percent of fuel used onboard large merchant-marine vessels to be ammonia by 2050," Sørensen concluded.
MONOPOLY CAPITALI$M
Dutch Heavy Lift Companies Merge Continuing Sector Consolidation
Two Dutch companies will combine continuing the consolidation the the heavy lift sector (Bonn-Mees)
Maritime heavy lift specialists HEBO Maritiem Service and Bonn & Mees Floating Sheerlegs reported that they are joining forces in a merger. It is a further sign of the consolidation that has been going on in the sector over the past few years.
The two Dutch companies highlight that combined they have over experience of 170 years. Together, HEBO and Bonn & Mees said they will form the most versatile maritime service provider in Europe. Management reports that the companies will be better equipped to offer reliable and sustainable solutions that meet the ever-changing needs of their clients. The partnership ensures an efficient and specialized focus in areas such as heavy lifting, specialized transport, salvage operations, and emergency response.
The merger they said will lay the foundation for sustainable growth, expanded services, and strengthened market position. They look to use their combined strength to expand their market position in sectors ranging from heavy lift to jacking & skidding as well as specialized transports such as wind farm and offshore equipment.
Hebo had been moving to grow its operations before this merger, At the beginning of 2023, the company reported the purchase of 15 flat-top barges from Boskalis with a combined length of more than 3,200 feet. The barges vary in length from 165 to 275 feet. The company said they are suitable for both inland waterways and seagoing vessels and brought their fleet of barges to over 50. Other parts of the company’s fleet include the 2,200-tonne capacity heavy lift sheerlegs vessel HEBO Lift 10. That vessel was acquired from Boskalis in 2022 with management reporting the acquisition would permit growth in the infrastructure, salvage, breakbulk and wind sectors, and allow HEBO to enter new markets including decommissioning and transport & installation.
Bonn & Mees, which was founded in 1887 as a shipyard entered the floating crane business in the 1930s. Today they operate from Rotterdam with a fleet of three seagoing sheerlegs, with lifting capacities ranging from 400 to 1,800 tons.
Just over two years ago, Dutch heavy lift transport company Jumbo Shipping and German breakbulk and project cargo specialist SAL Heavy Lift formed a joint venture between their operations to respond to market trends. Around the same time, Germany’s Rhenus Maritime Services also announced that it is strengthening its project and heavy-lift cargo business by taking over 60 percent of the shares in the ship and project consignment manager Arkon Shipping & Projects.
The sector has seen new growth opportunities with the continuing build-out of the offshore wind energy industry. The companies have been working to strengthen their transport capabilities in response to the growing volumes of heavy and large equipment being transported for the construction of offshore wind farms in addition to their traditional transition of a range of large constructions and elements such as small boats.
Korean Banks Start Bidding Process to Privatize HMM
Korea's banks are proceeding with a plan to privatize the carrier (HMM file photo)
The bidding process for the privatization of HMM launched today in South Korea with the government-run banks saying that they hope the carrier will be sold to one of South Korea’s conglomerates which can continue the revitalization of the company. The Korea Development Bank and the Korean Ocean Business Corporation announced earlier this year that they had formed an advisory group to explore the sale of the government’s shares and management control of HMM.
“The advisors concluded that it was feasible to pursue the sale of HMM this year,” the banks told reporters during a briefing held today to review the offering process. KDB had previously said that it believed the timing was right to proceed with the privatization of the carrier which the Korean government bailed out in 2016 after a long downturn in the container market.
Formerly known as Hyundai Merchant Marine, the company was recapitalized and began fleet modernization efforts. The LNG shipping company, Hyundai LNG Shipping, was sold to a private investment group and the remaining operations were relaunched in 2021 as HMM. The primary business is a container carrier, currently ranked eighth in capacity by Alphaliner, with a fleet of over 70 ships and nearly 800,000 TEU in capacity. HMM also operates crude oil and chemical tankers and dry bulk carriers.
Collectively, the two banks currently hold approximately 40 percent of the outstanding shares of HMM. In the initial outline of the planned offering, they reported the shares would be sold in a single bid. In addition, the banks hold perpetual bonds and warrants to be converted into additional shares. They are proposing that they would convert at least a portion of the bonds and warrants to also be included in the sale. The remainder would be sold over time in consultation with the acquirer to “minimize the impact on the market.”
Potential bidders will need to qualify to enter the process and then will have till August 21 to submit their preliminary bidding proposal. The advisory group will help to select a preferred bidder and then the banks will commence final negotiations with that bidder.
KDB has previously said that several potential candidates had expressed interest in acquiring HMM. Speculation has centered on the large conglomerates including Hyundai Motor, steel company Posco, and investment companies. Yesterday in a news interview the CEO of SM Group said they would enter the bidding up to approximately $3.5 billion planning to merge HMM with their smaller SM Line in an effort to create Asia’s leading carrier.
Analysts have speculated that the sale will be complicated both by the structure of the bank’s holding and the recent downturn in the container shipping market. If the banks fully convert their bonds and warrants to shares it would represent as much as a 75 percent holding and increase dramatically the price, which SM Group emphasized would make the company less desirable and force it to drop out of the bidding.
HMM returned to profitability during the surge in shipping volumes in the past few years. For 2022, they reported an operating profit of approximately $7.8 billion. Management however cautioned that the decline in freight rates and volumes was expected to result in a drop of as much as 80 percent in profits projecting that operating profits in 2023 would be at around $1.3 billion.
Last year, HMM mapped out a detailed five-year strategy calling for $11.4 billion in investments. They said the plan was to grow container capacity to 1.2 million TEU and nearly double dry bulk capacity. Alphaliner reports that HMM currently has orders for 26 new containerships which would increase capacity by a third. HMM also recently expressed interest in reacquiring the LNG carrier, although the private investment firm decided to delay a proposed sale for at least a year.
Report: SM Line is Planning to Bid Up To $3 Billion to Acquire HMM
SM LIne is prepared to find for its much larger rival HMM (SM Line file photo)
Korea’s smaller shipping company SM Line ended months of speculation confirming that it plans to attempt a takeover of the much larger HMM when the shipping company officially goes up for sale. In an exclusive interview with The Korea Economic Daily on Wednesday, SM Group Chairman Woo Oh-hyun confirmed his intentions to bid for the container carrier.
Incorporated in 2016, SM Line acquired assets including the route to the United States from the failed Hanjin Shipping Co. The operation was rebranded SM Line in 2018 and today according to Alphaliner ranks as number 26 in the list of the top 100 carriers. SM Line owns 12 ships and has three more under charter with a total capacity of just over 68,000 TEU. The company lists its largest ships as 80,000 dwt vessels with a capacity of 6,655 TEU.
The much larger HMM is currently ranked as number nine by Alphaliner owns 37 ships and has another 35 on charter. Its total capacity is over 790,000 TEU. The company is also moving forward with fleet modernization efforts with another 26 containerships on order. The company, which also has tankers and bulkers as well as a small number of heavy lift vessels, mapped out in 2022 an aggressive growth plan.
Speculation has been centering around SM Group’s intentions for more than a year since it first became public that they were buying shares of HMM’s stock. The initial investment was just 60,000 shares in December 2021 but at the time the company said it was only an investment denying rumors that it was posturing for a takeover. By mid-2023, SM Group held over five percent of HMM’s shares and then made a further purchase reported in a filing at the beginning of July. SM Group is now the third largest investor in HMM holding over 6.5 percent of the stock.
HMM’s two largest shareholders are the state-run Korea Development Bank (KDB) and state-controlled finance group Korea Ocean Business Corp., each of which holds approximately 20 percent of the stock since the 2016 government-led bailout of the former Hyundai Merchant Marine. The prior company collapsed during the prolonged downturn in the container shipping markets.
SM Group told The Korea Economic Daily that it is prepared to bid up to approximately $3 billion for HMM when the sale is officially launched. Earlier this year, the government institutions formed an advisory committee to explore the best means of privatizing the shipping company. There has been speculation in South Korea for over two years that the government banks were looking for a route to return the shipping company to private control. This comes after they privatized their investments in the shipbuilding sector, including the sale and recapitalization of Daewoo Shipbuilding and Marine Engineering to Hanwha Group, completed earlier this year.
The smaller shipping company reports it has cash and investments as well as bank lending lined up for nearly $3.5 billion. Based on their assessment of HMM, that is the maximum fair price and they told the newspaper they would drop out if the price exceeds that threshold by even a single won.
Challenging the terms for the private investment in HMM are convertible bonds which continue to overhang the market. HMM issued the bonds to raise capital after the initial bailout and today they are mostly held by the two banks. If they were to convert the bonds, the bank’s ownership share would jump from the combined approximately 40 percent to nearly 75 percent, making the deal untenable according to the executives of SM Group. KDB has also acknowledged the challenge created by the convertible bonds suggesting the deal could be done in stages and charging the advisers to develop the best plan to attract private investments.
SM Group, which is Korea’s thirtieth largest conglomerate also has investments in construction and other businesses. They believe the opportunity exists to leverage HMM to become Asia’s largest shipping company. However, they raised the possibility of exiting the shipping business if they are not successful in their bid for HMM.
The Korean banks are yet to announce the planned structure of the offering or a timeline for the sale of the stakes in HMM. Further complicating the planning is the downturn in container shipping after the surge during the pandemic. The changes in the shipping and financial markets also prompted the private investors that own Hyundai LNG Shipping to delay a planned sale of that company. HMM had entered the bidding to acquire its former LNG shipping unit as part of the group’s growth plans.
RWE, Mitsui, and Port of Tilbury Plan Green Hydrogen Efforts for UK Port
Port of Tilbury looks to develop hydrogen for its decarbonization (file photo)
The Port of Tilbury in the UK, which is a leading industrial hub for London and southeast England, looks to start one of the first hydrogen operations for the country. The port recently signed an agreement with leading energy company RWE and Japanese trading and investment company Mitsui to launch hydrogen operations at the port.
According to the executives, the projects are both in support of the port’s goal to decarbonize and the broader UK efforts. They hope their project will help to accelerate efforts across the country. They highlight that hydrogen has a crucial role to play in helping the UK achieve its 2050 Net Zero ambitions and is an essential component for decarbonizing different industrial sectors, including a strong potential for the maritime industry.
“Hydrogen will play an essential role in the pathway to net zero, particularly in hard to decarbonise industry,” said Steve Boughton, RWE Director Hydrogen Development. “This collaboration with Mitsui and the Port of Tilbury is for an innovative project combing production and industrial customer use with potential fuel switching of port equipment.”
Through the agreement, the three organizations plan to conduct two parallel work streams. Both are focused on unlocking potential carbon savings for port infrastructure and to fuel the green future of the Thames Freeport at Tilbury.
One work stream focuses on developing a small-scale “proof of concept” demonstrator project. As part of this project, the plan calls for producing green hydrogen for decarbonizing items of port equipment. The fuel will be used to switch Tilbury’s equipment from fossil fuels to hydrogen.
At the same time, they are also starting an initial study into a 10-megawatt green hydrogen plant. The facility will be developed on Port of Tilbury land previously housing a coal-fired power station, transforming an area historically associated with fossil fuel power generation to green hydrogen production.
At the heart of the Thames Freeport, the project will also look at options to scale up development. They plan to explore over a ten-year period growing to upwards of 100 megawatts of annual production. The hydrogen would be used for port infrastructure and operations in addition to providing green hydrogen to the surrounding industry.
“This is an important opportunity to support the Port of Tilbury’s commitment to achieving Net Zero for our customers,” said Peter Ward, Commercial Director at the Port of Tilbury and Thames Freeport. “Our business has set out our ambition to be carbon neutral by 2032 and Net Zero by 2042 by investing in the infrastructure in the ports. As part of Thames Freeport, our MoU with RWE and Mitsui to develop a new hydrogen plant at the Port of Tilbury will help accelerate the UK’s path to a decarbonized economy and support our vision for low carbon logistics.”
