PPG adds to specialty coatings portfolio with Cuming Microwave

MOSCOW (MRC) -- PPG Industries Inc. announced Wednesday it has reached a definitive agreement to acquire Avon, Mass.-based Cuming Microwave Corp. and its wholly-owned subsidiary Cuming-Lehman Chambers Inc., which is based in Chambersburg, said the company in its press release.

Financial terms of the transaction were not disclosed. It is expected to close in the third quarter, subject to customary closing conditions.

Cuming Microwave is a global supplier of specialty coatings and materials that absorb microwaves and radio waves, such as radar. The company's products are used in military aircraft and have in end-uses such as electronics, telecommunications, medical and automotive, according to PPG.

"Acquiring Cuming Microwave will enable us to serve customers around the world with an enhanced product portfolio," Barry Gillespie, PPG vice president for aerospace, said in a statement. "The company’s technologies complement and expand PPG’s portfolio of products for the military and aerospace segments. Cuming Microwave products also represent a new and unique offering for customers across PPG’s businesses."

The company employs about 160 people between three manufacturing facilities in Avon and a corporate office in Chambersburg.

As MRC informed earlier, PPG Industries has announced that it has acquired Consorcio Latinoamericano, which operates a network of 57 paint stores in Central America.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Reported net sales in 2014 were USD15.4 billion.

Global specialty polymers market to see good growth till 2020

MOSCOW (MRC) -- Specialty polymers market is expected to witness significant growth owing to increasing applications in electronics and construction industry mainly in Asia Pacific, as per Plastemart with reference to GrandViewResearch.

In addition, growing usage of specialty polymers in wide range of industries including pharmaceutical, automotives and cosmetics is expected to drive demand over the next six years. Increasing consumption in automotive applications primarily in engineering thermoplastics and specialty films is expected to augment market growth.

Asia Pacific is expected to show lucrative growth on account of economic development along with increasing disposable income, thereby contributing to the growth of numerous industries including automotive, construction and infrastructure in China and India.

Moreover, increasing high government spending on infrastructure and robust industrialization in the region is expected to stimulate market growth. However, volatility in raw material prices fluctuation in prices of raw materials is expected to restrain market growth over the next six years.

Rising demand for high performance polymers as a result of its superior properties including corrosion resistance, resistance to wear, endurance limit, electrical insulation and thermal stability is expected to propel market growth over the forecast period.

Key market players include Evonik Industries, Ashland, BASF, Croda, Specialty Polymers Inc., PolyOne, The Dow Chemical Company, Solvay Group, 3M, Alpek, AmeriLux International, A.Schulman, DSM and Arkema. Solvay Group offers a wide range of innovative specialty polymers for sustainable and green coatings.

We remind that, as MRC informed earlier, in April 2015, Solvay Specialty Polymers USA LLC launched an expansion project at its Augusta manufacturing site to install the first world-scale polyether-etherketone (PEEK) resin production unit in the United States and meet growing demand for Solvay’s KetaSpire and AvaSpire ultra-polymers.

DGCX launches four new products

MOSCOW (MRC) -- he Dubai Gold and Commodities Exchange (DGCX) today announced that it will launch three new unique contracts -India Gold Quanto Futures, Indian Rupee Quanto Futures and Mini Dubai Polypropylene Futures, said Cpifinancial.

The Exchange will also upsize its existing Plastics Futures. The new contracts will go live on Friday, June 5.

DGCX will expand its hydrocarbon portfolio with the introduction of a Mini Dubai Polypropylene Futures sized at five metric tonnes. The contract is cash settled to enable market participants to maximize its financial use. The Exchange will also amend its existing Plastics Futures contract by upsizing it from 5 metric tonnes to 25 metric tonnes to align it with the size of a container load, making physical delivery more convenient for market players.

"The two Dubai Polypropylene contracts have been structured differently to cater to participants across the plastics supply chain as well as to the financial participants, so that all parties are able to effectively hedge their polymer risks," Gaurang added.

The new contracts will be cleared by the Dubai Commodities Clearing Corporation (DCCC), a wholly owned subsidiary of DGCX.

A Schulman completes acquisition of Citadel Plastics for USD800m

MOSCOW (MRC) -- Global plastics supplier A. Schulman (Fairlawn, OH, US) has completed the previously announced acquisition of HGGC Citadel Plastics Holdings (West Chicago, IL, US), a portfolio company of private equity firms HGGC and Charlesbank Capital Partners, for USD800 million, said Compositesworld.

A. Schulman expects the transaction to be accretive in the first 12 months of ownership.

"We are thrilled to add Citadel to our portfolio of highly specialized businesses, and welcome the talented group of associates to the A. Schulman team," said Bernard Rzepka, president and chief executive officer of A. Schulman. "With significant revenue in the United States, Citadel greatly enhances our regional scale and efficiencies, as well as balances our current global geographic footprint. Citadel also provides a strong entry point to our 'Expanded Vision' initiative by adding a second strategic growth platform to our organization with its industry-leading, value-added specialty engineered composites business."

"The Citadel team is very excited to become an important part of A. Schulman," said Mike Huff, chief executive officer of Citadel. "We are confident that our history of growth and innovation will only be enhanced by our new partnership with A. Schulman and we thank HGGC and Charlesbank for their support in helping us reach this new phase of our business."

As MRC informed earlier, A. Schulman Inc. announced the acquisition of Citadel Plastics in the mid March 2015. for USD800 million, a move to expand its product portfolio into specialty plastics and gain access to new industries

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. A. Schulman's fiscal third-quarter earnings fell 69% amid continued sluggishness in European markets and higher-than-expected costs in Latin America, where the company has been consolidating its Brazilian operations.

Chevron Phillips Chemical eyes new mega-project in US petrochemicals

MOSCOW (MRC) -- Chevron Phillips Chemical Co., a joint venture of Chevron and refiner Phillips 66, is considering a second "megaproject" in the US that would take advantage of low natural gas prices for making plastics and other materials, as per Hydrocarbonprocessing.

"We are certainly looking seriously about the possibility of another project in the US," CEO Peter Cella said this week. "This is the right time to get serious about the next project."

The company is on schedule to begin producing ethylene in mid-2017 at its USD6 billion project outside Houston, Cella said in an interview at the American Chemistry Council annual meeting in Colorado Springs, Colorado. He’s looking globally for where to build the next ethylene and derivatives plants, given the multiyear timeline to complete major projects.

The Houston-based company has led a wave of new US facilities that make ethylene, used in plastics to polyester. Plants that use low cost gas from shale formations will help US production of basic chemicals increase for the next four years, starting with a 3.1% rise this year and peaking at 6% in 2018, according to the council.

A rapidly growing middle class in developing regions will boost long-term demand for plastics used in packaging, autos and other applications, Cella said.

About 65% of new capacity in the US will be exported, Kevin Swift, chief economist for the industry group, told reporters at the conference. Swift said the US will increase its global share of chemical production, grabbing sales from Europe and Japan, where oil is often used instead of gas.

As MRC wrote before, last year, 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. This investment will provide an additional 100,000 tpy of capacity. Construction completion is anticipated in July, 2015. Houston-based S&B Engineers and Constructors will execute the engineering, procurement and construction, and expects to support up to 600 jobs during the construction phase.

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.