Peak Energy to build new PET plant in Sri Lanka

MOSCOW (MRC) -- Sri Lankan Government has given its approval to allow the Singapore based Peak Energy to build a polyethylene terephthalate (PET) manufacturing plant in the port city of Hambantota, according to Plastemart.

The Singaporean firm has already registered a new firm in Sri Lanka under the name of Hambana Petrochemicals Private Limited, which will bring in an initial investment of USD135 mln.

SLPA is expected to sign the agreement with the Petrochemical firm very soon. Government will lease out 5 hectares in the Hambantota Port city to the Singaporean firm to build the proposed PET Plant.

We remind that, as MRC informed earlier, Sri Lanka is to become a major petrochemical marketing centre for the Asian region in line with a marketing expansion plan of Qatar Petrochemical Company (QAPCO). QAPCO plans to explore the full potential of the strategic location of the island country in marketing low-density polyethylene (LDPE) products to countries in the region.
MRC

MOSCOW (MRC) -- A. Schulman Inc. (SHLM) has made public its offer to buy Ferro Corp. for about USD563 million in cash and stock as the specialty chemicals company continues to pursue a deal with its smaller peer, which has rejected the deal, according to The Wall Street Journal.

Schulman is offering Ferro's shareholders a per-share price of USD6.50, which is a 25% premium over Ferro's Friday closing price. The per-share price includes an immediate cash payment of USD3.25 for each Ferro share outstanding and USD3.25 worth of A. Schulman common stock.

Shares of Ferro rose 28% to USD6.65 in recent premarket trading. Through Friday's close, the stock has risen 24% so far this year.

Including debt, the deal is valued at about USD855 million.

In a letter to Ferro on Feb. 13, Schulman expressed its "strong intent" in buying the company. However Ferro's board rejected its offer and expressed its belief that the company should remain independent. Schulman said it first contacted Ferro in November of last year.

"A. Schulman and Ferro are both recognized leaders in specialty chemicals with value-added product lines, similar business models, complementary competencies, markets and applications," A. Schulman Chief Executive Joseph M. Gingo said. "We believe our combination will deliver superior value to our respective shareholders and offer better value to customers, and we would welcome the opportunity to engage in a mutually beneficial dialogue with Ferro's board and management."

A representative of Ferro didn't immediately respond to a request for comment.

Schulman highlighted its free cash flow generation over the past five years, noting this has been USD400 million as compared with Ferro's USD60 million. Schulman added that were it able to perform due diligence on Ferro, it could adjust its offer, which is currently based on public information.

We remind that, as MRC wrote previously, in mid-2012 A. Schulman Inc. inked a definitive agreement to acquire ECM Plastics, a privately owned plastics compounder located in Worcester, Mass., for USD36.5 million. Besides, Jeddah-based National Petrochemical Industrial Company (Natpet), a subsidiary of Alujain Corporation, entered into a joint venture agreement with A. Schulman to produce polypropylene compounds.

A. Schulman is a global plastics supplier, headquartered in Akron, Ohio, and a leading international supplier of high-performance plastic compounds and resins, which are used as raw materials in a variety of markets. A. Schulman has 33 manufacturing facilities globally. It reported net sales of USD2.2 billion for the fiscal year ended August 31, 2011.
MRC

MOSCOW (MRC) -- Siluria Technologies announced it is developing an efficient and economic process to convert natural gas into value-added chemicals, used by industry and also manufactured into thousands of everyday products, said Prnewswire.

Backed by some of the world's leading venture capital firms, Siluria is a San Francisco Bay Area start-up. Siluria is working on a proprietary catalytic process for the direct conversion of natural gas, the world's most abundant petrochemical feedstock, into ethylene, the world's largest commodity chemical. Siluria's success will enable a novel, economically attractive pathway to produce existing chemicals and fuels.

"While the world's access to oil supplies is becoming more expensive, the natural gas resource base continues to grow," explains Dr. Alex Tkachenko , president of Siluria. "Our goal is to convert methane, the principal component of natural gas, directly into ethylene, the fundamental building block of the chemical industry. Ethylene and its derivatives, such as polyethylene, are in thousands of everyday products, including tires, medical devices, cosmetics, food packaging, anti-freeze, paints, appliances, and liquid crystal displays."

Ethylene is the largest global commodity chemical, with 140 million tons used annually in an industry worth USD160 billion per year. Today, ethylene is produced via steam cracking, a mature technology that consumes more energy than any other chemical process, uses valuable oil resources, and is the largest contributor to greenhouse emissions in the chemical industry.

Siluria's catalyst synthesis technology is based on the innovative discoveries of MIT Professor and Siluria founder, Dr. Angela Belcher . Dr. Belcher's synthetic technology produces inorganic materials in the same way nature makes them: with a bottom-up, versus a conventional, top-down synthetic approach.

Siluria's technology application is to grow nanowire catalysts with unique surfaces, structures and shapes. This synthetic approach offers improved ways to manipulate catalyst surfaces. Novel surfaces have the potential for improving catalyst performance in structure-sensitive reactions. Under license from MIT, Siluria is developing catalysts that are robust, stable at high temperature, and compatible with the existing petrochemical industry infrastructure.

As MRC wrote earlier, Siluria successfully raised USD 30 million in a round led by Russia-based Bright Capital and Microsoft co-founder Paul Allen"s Vulcan Capital. Besides, existing venture capital investors like Kleiner Perkins Caufield & Byers, also contributed. In all the company raised USD 63.3 million.
MRC

MOSCOW (MRC) -- Brazil's government is negotiating a partnership with China Petroleum & Chemical Corp (Sinopec) to finish work on two oil refineries, reported Reuters with reference to Brazil's energy minister.

The partnership with Brazil's state-led oil firm Petroleo Brasileiro SA (Petrobras) would help ensure the completion of the Premium 1 refinery in the northeastern state of Maranhao and the Premium 2 refinery in nearby Ceara state by 2018.

"The president of Petrobras is in China negotiating right now," Brazilian Mine and Energy Minister Edison Lobao told reporters in Brasilia.

Petrobras is trying to reduce its dependence on imported fuels by building more domestic refineries. China is Brazil's top trading partner.

As MRC reported previously, currently, Petrobras processes about 2 million bpd at 12 refineries. The company planned to invest USD71.6 billion in its downstream operations through 2016. The investments are part of the company's USD237 billion spending plan for 2012-2016.
MRC

MOSCOW (MRC) -- Engel Holding GmbH, the Austria-based injection molding machinery manufacturer, has announced a partnership with PME fluidtec GmbH of Germany in the field of water injection technology (WIT), said Plasticsnews.

The companies will work together on client-specific systems and worldwide sales. The technology, which is marketed as "Engel Watermelt," is used for the efficient and cost-effective production of long media lines and complex hollow parts, such as handles, beverage crates and engine components via injection molding. The injection of water into a cavity partially filled with plastic melt ensures even wall thickness distribution and smooth internal surfaces, even where geometries are complex.

Michael Fischer, sales manager for technologies at Engel said: "Water injection technology is a small but very interesting niche. Thanks to our partnership with the leading WIT specialist, we will also be able to offer customers around the world custom-made, state-of-the-art system solutions in the field of water injection technology."

Kappel-Grafenhausen-based PME fluidtec has developed and produced systems for fluid-based injection molding using internal pressure technology for 12 years. Under the terms of the partnership, PME fluidtec will be responsible for WIT systems and process and mold technology as well as service for WIT units. Engel will be responsible for adapting injection molding machines, automation and peripheral units. Both partners will advise customers on application-specific issues.

As MRC wrote earlier, Engel has invested 2.3 m euros in its facility in Dietach, Austria in order to introduce synchronised line assembly and modernise the machine farm in its robot plant.

Engel is, as a single brand, the largest producer of injection moulding machinery worldwide and a leader in the field of injection moulding technology. Engel"s integrated systems solutions include injection moulding machinery, automation, process technology, tool design, training and service. Engel supplies 50% of all large-scale machines and 35% of the small to medium-sized machines with automation included, and the figures are still rising.

MRC