MOSCOW (MRC) -- Chevron Corp.announced that its subsidiary Chevron Global Energy Inc. has entered into an underwriting agreement for the sale of its 50 percent shareholding in Caltex Australia Limited, said Reuters.
The company said these shares are expected to be sold to a broad range of Australian and global equity market institutional investors. The company noted that the sale does not alter Chevron's focus on moving the Gorgon and Wheatstone liquefied natural gas projects towards start-up.
"This transaction reflects Chevron's commitment to regularly review our portfolio and generate cash to support our long-term priorities. It is aligned with our previously announced asset sales commitment," said Michael Wirth, executive vice president, Downstream and Chemicals.
As MRC informed earlier, Chevron Phillips Chemical (CPChem) received approval from its board of directors and obtained an environmental permit from the Texas Commission on Environmental Quality (TCEQ) to expand normal alpha olefins (NAO) production capacity at its Cedar Bayou plant in Baytown, Texas.
Chevron Phillips Chemica, headquartered in The Woodlands, Texas (north of Houston), US,l is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping, and proprietary plastics. Chevron and Phillips 66 each own 50% of Chevron Phillips Chemical.
MRC
MOSCOW (MRC) -- Asahi Kasei Chemicals has finalized a decision to establish a subsidiary for plastic compounds1 in Mexico, through its US subsidiary Asahi Kasei Plastics North America, Inc., said the producer in its press release.
Having identified an expansion of compounding operations as a critical element in the strategic growth of its engineering plastics business, Asahi Kasei Chemicals has expanded its compounding facilities in both Asia and the US. Continued demand growth for plastic compounds is forecasted in Mexico, where various manufacturing facilities are increasingly located, especially by US, European, and Japanese manufacturers in the automotive industry. The new subsidiary will perform sales and technical support focused on the needs of customers in Mexico, enabling further expansion of business for plastic compounds in the growing Mexican market.
Asahi Kasei Chemicals has operating bases for plastic compounds in Japan, the US, China, Thailand, Singapore, and Belgium. While the new subsidiary will perform sales and technical support in the Mexican market, Asahi Kasei Chemicals will also study the possibility of local manufacturing of plastic compounds in Mexico.
As MRC wrote previously, Asahi Kasei’s (Tokyo, Japan) Fibers division will expand production capacity for polypropylene spunbond nonwovens in Thailand at its subsidiary Asahi Kasei Spunbond (Thailand) Co. AKST will add a new production line of 20,000 metric tons per year capacity which, combined with its existing production line, will double its capacity for spunbond nonwovens to 40,000 m.t/yr. The investment for the capacity expansion is approximately USD5 billion, with a scheduled startup of November 2015.
Asahi Kasei Corporation is a global Japanese chemical company. Its main products are chemicals and materials science.
MRC
MOSCOW (MRC) -- Thai petrochemical company Indorama Ventures is in advanced negotiations to buy an additional polyster materials facility from Cia Espanola de Petroleos SAU to expand in Europe and North America, said Hydrocarbonprocessing.
Indorama is in exclusive talks about the San Roque, Spain-based plant with Abu Dhabi’s International Petroleum Investment Co., the owner of Cepsa, said the people, who asked not to be identified because the information isn’t public.
No final agreement has been reached and the talks about the site with annual sales of about USD500 million could still fall apart, they said.
The Thai company is acquiring purified terephthalic acid (PTA) assets -- the raw material for polyesters and plastics used in bottles and packaging -- to boost its operations in western markets in a challenge to local manufacturers including Eastman Chemical and Dow Chemical.
Indorama shares climbed 2.8% on March 23 after it announced an agreement to acquire a Canadian purified terephthalic acid site from Cepsa. The facility in San Roque has a similar turnover, yet would be a larger investment, said the people. Indorama didn’t disclose financial terms of the Montreal deal.
Richard Jones, head of investor relations at Indorama, declined to comment. Representatives for Cepsa and International Petroleum Investment couldn’t be reached for comment and didn’t return calls and emails seeking comment.
While the Asian market for purified terephthalic acid is fragmented, North America is largely supplied by Cepsa and BP, with Alpek of Mexico and Eastman manufacturing for their own needs.
Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC
MOSCOW (MRC) -- Eastman Chemical Company has announced it has decided to close its Workington, UK, acetate tow manufacturing site, as per the company's press release.
Production at the site will cease in April, and site closure is expected to be completed in the third quarter of 2015. As previously announced, Eastman entered the consultation process with employee and union representatives in response to changes in global market demand for acetate tow.
The Workington site has 24,000 metric tons of acetate tow manufacturing capacity. Projected savings from the closure are annual operating costs of approximately USD20 million and a total of approximately USD20 million of infrastructure capital expenditures planned for the next five years.
"With changes in global market demand and recent and announced global acetate tow manufacturing capacity additions, we need less capacity to supply our customers," said Linda Hensley, vice president and general manager of the Fibers segment. "We have been working with our customers throughout this process and remain committed to reliably supplying them with top quality products."
This action will result in shut down costs and restructuring charges totaling approximately USD100 million primarily in the first half of 2015, approximately USD80 million of which are non-cash.
As MRC reported earlier, in December 2014, Eastman Chemical Company announced the completion of its acquisition of Taminco Corporation, a global specialty chemical company, for a total of USD2.8 billion in cash and assumed debt.
Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2014 revenues of approximately USD9.5 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 15,000 people around the world.
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