Covestro rethinking options for flotation

MOSCOW (MRC) -- Germany's Bayer and its investment bank advisers are rethinking options for the initial public offering (IPO) of the plastics group scheduled for Friday, given books are still not covered, said Reuters, citing several sources familiar with the situation.

Uncertain investor demand is prompting a review of options including trimming the planned EUR2.5 billion (USD2.8 billion)volume, reducing the price or delaying the IPO altogether, the sources said.

"A decision has yet to be taken," one of the sources said.

As MRC imformed earlier, from September 1, 2015, Bayer MaterialScience became known as Covestro. Bayer aims to float this business on the stock market by mid-2016 at the latest. The plans for the carve-out of Bayer MaterialScience were announced in September 2014.

Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2014, the Group employed 118,900 people and had sales of EUR 42.2 billion.
MRC

MOSCOW (MRC) -- Mitsui Chemicals, Inc. announced that its wholly-owned subsidiary, Mitsui Chemicals (China), Co., Ltd. will open a new branch in Beijing and commence commercial operations on October 1st, the producer said in a statement.

Until now, sales activities of the Mitsui Chemicals Group in China have mainly been conducted through its Mitsui Chemicals (China) Shanghai head office. By establishing a new base in Beijing, the Group will not only be able to provide better service in not only automotive-use materials such as elastomers and polypropylene compounds, but also materials for use in electronic information products, packaging and films, and agrochemicals.

The new Beijing Branch will be located next to Mitsui Chemicals’ Beijing Office.

As MRC informed earlier, Mitsui Chemicals, Inc. (Tokyo, Japan) announced the successful March startup of Mitsui Chemicals Functional Composites (Shanghai) Co., Ltd.’s (MFS ) plants for Milastomer and Admer in China’s Shanghai Jinshan District.

Mitsui Chemicals,a Japanese chemical company, is a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

MOSCOW (MRC) -- Sika is opening its first concrete admixture and mortar production facilities in Nigeria and Ivory Coast and has established new subsidiaries in Ethiopia and Tanzania to participate in the growing markets in the Sub-Saharan region, said the company in itas press release.

Thus Sika continues its dedicated and successful expansion strategy and is enlarging its presence to sixteen countries on the African continent.

Paul Schuler, Regional Manager EMEA, emphasizes the importance of Sika’s expansion in Africa’s Sub-Saharan region: "Our new production facilities in Nigeria and Ivory Coast and our new subsidiaries in Tanzania and Ethiopia represent another milestone in the consequent execution of Sika’s Strategy 2018. With the latest investments we will further accelerate our growth in Sub-Saharan Africa and increase Sika’s market share. It demonstrates our strong belief in the potential and the prosperous future of the continent."

Sika established the subsidiary in Nigeria and Ivory Coast in 2014 and is now in Lagos and Abidjan investing in local production facilities for high-quality concrete admixtures and mortars to supply the booming construction, refurbishment and maintenance markets in both countries. Many international and medium-sized local contractors working on big oil & gas, infrastructure, commercial and residential projects represent a large customer potential.

Nigeria is the biggest economy in Africa in terms of population and GDP. With roughly 180 million inhabitants and an expected annual growth rate of approximately 5%, the country will have major requirements in the construction sector. With 23 million inhabitants Ivory Coast represents one of the smaller African countries, but offers also a promising growth potential for Sika. Cement consumption in both countries is expected to grow by 9% in 2015.

As MRC informed earlier, Saint-Gobain's attempted takeover of Switzerland's Sika took another twist as two investors said they will appeal a ruling stipulating that the French building materials company is not required to make an offer for all of Sika's shares.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its more than 16,000 employees generated annual sales of CHF 5.6 billion in 2014.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, today entered into an agreement with an intent to acquire a part of Vivimed Labs Limited's personal care portfolio, subject to necessary regulatory, statutory and other approvals, as may be required, said the company in its press-release.

The acquisition will enable Clariant India Ltd (a 100% subsidiary of Clariant Group) to strengthen its personal care portfolio within the Industrial & Consumer Specialties (ICS) business unit, by offering a wider product portfolio within the sun, skin, hair and oral care range as well as anti-microbial preservatives.

"The personal care industry in India offers us immense potential, supported by the growing middle-class consumer population and the rising disposable income. This strategic decision will be a significant step towards strengthening our product portfolio and thereby reinforcing Clariant's long term commitment in the segment," commented Dr. Deepak Parikh, Region President, India, Middle East and Africa, Clariant. "We believe in the growth potential that India offers and are focussed on expanding our footprint in the region."

Stephen Lynen, Head ICS, Asia Pacific, Clariant said "This marks an important step in our global strategy to enhance our offering in personal care and to boost our presence in Asia. The transaction will strengthen our portfolio with actives to formulate broader solutions such as sun protection in a strong growing market - India."

"This reinforces our commitment to grow in the personal care space in India. This acquisition will enable us to expand our footprint and provide our customers with end-to-end solutions in sync with the current industry trends. The strong growth perspective of the personal care industry results in a bright future for the ICS business in India," added R. Kumaresan, Head of BU ICS, India.

Santosh Varalwar, MD & CEO, Vivimed Labs Limited said "I am pleased to announce an important strategic development at Vivimed. This transaction will help us significantly improve our financial flexibility for future growth. We are confident that this transaction, once completed, will position Vivimed optimally to move to the next level of growth, across its speciality chemicals and pharmaceuticals businesses."

As MRC informed earlier, Clariant announced capacity expansions for its leading TONSIL bleaching earths for edible oil purification.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.

MRC

MOSCOW (MRC) -- Mitsubishi Polyester Film, Inc. announces an investment of USD100 million to increase its capacity for biaxially oriented polyester (BOPET) film at its plant in Greer, SC, said Convertingquarterly.

The investment will include a new film production line scheduled to start up mid-year 2017.

MPF’s investment announcement is a testament to its recognized position as a market leader in polyester film both globally and in the Americas. The company’s strategy is to deliver cost effective innovative solutions to our Valued Customers in the Industrial, Packaging and Electronics Markets. MPF has demonstrated a continued commitment to the Americas PET market by pursuing a strong investment strategy in its Greer facility. Polyester film’s growth in industrial and packaging markets continue to remain strong at 3-7% annually, and MPF is committed to enabling future growth of our Customers through expanded capacity and capability.

In addition to the production facility in South Carolina, Mitsubishi Polyester Film has manufacturing locations in Japan, China, Indonesia and Germany. Mitsubishi Plastics, Inc. is part of the Mitsubishi Chemical Holding Corporation, one of the largest chemical companies worldwide with annual revenues of approximately USD40 billion.

As MRC informed earlier, Mitsubishi Gas Chemical Co. decided to discontinue its purified terephthalic acid (PTA) business. Mitsubishi currently operates a 260,000-t/y PTA plant at Mizushima, Japan, through its Mizushima Aroma joint venture with Toyobo Co.

Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.
MRC