ALTANA acquires polypropylene wax emulsion business from DSM

MOSCOW (MRC) -- The specialty chemicals group ALTANA has acquired technologies and customer-specific know-how in the field of polypropylene wax emulsions from Royal DSM, said ALTANA in its press-release.

The products can be used to coat glass fibers which are needed for the manufacturing of composites. They are typically used in the construction industry and the automotive sector. "This acquisition is another consistent step along our path of growth," said Dr. Matthias L. Wolfgruber, CEO of ALTANA AG. Within the ALTANA group, the polypropylene wax emulsion business will be integrated into BYK Additives & Instruments, the division with the highest sales volume.

"This acquisition expands our existing portfolio in the field of wax emulsions, and now enables us to offer customers an even broader range of additive solutions," explained Dr. Christoph Schlunken, President of the BYK Division. Just recently, in October 2013, BYK also acquired Rockwood’s rheology business.?

ALTANA develops and produces high-quality, innovative products in the specialty chemicals business. The ALTANA Group has four divisions: BYK Additives & Instruments, ECKART Effect Pigments, ELANTAS Electrical Insulation, and ACTEGA Coatings & Sealants. All of these divisions occupy a leading position in their target markets with respect to quality, product solution expertise, innovation and service.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) -- Two Russian producers of sheet plastics - "Kronos-Trade" and "Polyalt" - have teamed up to create a scientific and production association "Kronos", according to the "Kronos" statement.

The companies plan to jointly operate production of polymers and conduct research works.

Omsk company "Kronos" is a research and production company, specializing in the production of cellular polycarbonate and polypropylene under its own brand "Kronos". Since early 2013 "Kronos" has been the official distributor of Saudi SABIC, a global manufacturer of petrochemicals.

LLC "Polyalt" (Dubna, Moscow region) is a Russian company that launched its own production of sheet plastics in 2004 under the brand SELLEX. The company manufactures and sells cellular polycarbonate and its components.
MRC

MOSCOW (MRC) -- Kraton Performance Polymers, Inc. has announced that it has entered into a definitive agreement to combine with the styrenic block copolymer operations of Taiwan-based LCY Chemical Corp, according to Ein News.

The transaction will combine Kraton’s broad product portfolio and innovation platform with LCY’s cost-effective and innovative SBC operations and its proven record of driving growth in China and broader Asia.

The combination agreement calls for LCY to contribute its SBC business in exchange for newly issued shares in the combined company, such that Kraton’s shareholders and LCY will each own 50% of the outstanding shares of the combined enterprise. The combined company will be incorporated in the UK, will be listed on the NYSE, and will be led by Kevin M. Fogarty, Kraton’s president and chief executive officer, and a global management team with administrative headquarters located in Houston, TX.

"This combination addresses the strategic objectives of both Kraton and LCY. For Kraton, it represents a logical next step in our ongoing strategy to reposition our manufacturing assets, providing for significant improvements in overall cost structure, and furthering our investments in Asia, thereby increasing our participation in the fast-growing markets of China, and Asia Pacific more generally. Moreover, the combined company’s capital structure, financial flexibility and cash-flow profile will serve as a strong foundation for continued investment in growth," said Kevin M. Fogarty, Kraton’s president and chief executive officer.

"Kraton is an innovation company and our commitment to innovation, including our ongoing portfolio shift, will continue as the combined company focuses on accelerating growth in both its innovation portfolio and its core product offerings," added Fogarty.

“We expect the combination to result in synergies of USD65 million on a run-rate basis by 2017, which will be achieved through fixed-cost rationalization, optimization of variable-costs and through reductions in overhead costs. We estimate we will incur costs totaling approximately USD70 million in the next three years to achieve these synergies. We also expect the combination to be accretive on an operating basis by USD0.75 - USD0.80 in the first full year of combined operations."

The board of directors of LCY has also approved the definitive agreement to combine LCY’s SBC operations with Kraton. The combination is subject to the approval of Kraton’s and LCY’s shareholders; US, Taiwan, China and Turkey regulatory approvals; and other customary regulatory and other approvals and conditions.

The transaction is currently expected to close in the fourth quarter 2014, subject to the timing of necessary regulatory approvals. Kraton intends to file a proxy statement/prospectus with the US Securities and Exchange Commission relating to the transaction as promptly as practicable.

As MRC informed previously, in 2012, Kraton Performance Polymers Inc. exited its joint venture deal with Taipei, Taiwan-based Formosa Petrochemical Corp. (FPCC), seeking instead to expand hydrogenated styrenic block copolymer (HSBC) manufacturing capability in Asia on a stand-alone basis due to the project delay.

Kraton Performance Polymers, Inc. is a leading global producer of engineered polymers, including styrenic block copolymers (SBC).
MRC