Inaplast eyes rising plastics demand in 2016

MOSCOW (MRC) -- Indonesia's plastic manufacturers expect their combined turnover next year (2016) to reach Rp 130 trillion (USD 9.4 billion), up 17 % from an estimated Rp 111.6 trillion this year (2015) on the back of rising demand, reported GV.

Budi Susanto Sadiman, deputy chairman of the Aromatic Olefin and Plastic Industry Association (Inaplast), said manufacturers eyed a 6% increase in terms of volume, from 4.65 million tons this year (2015). Members also expect a 10 % increase in prices next year (2016) to account for rising costs, he said.

Economic growth is set to rebound to 5.3% next year, from 4.8 % this year, on the back of the government's economic stimulus packages which are expected to boost investment and household spending, and in turn increase purchasing power.

"Demand will rise, because the industry is also experiencing an increase in sales of products, especially in the food and beverage sector, as well as agribusiness," Budi said in a recent interview. The plastics industry's turnover will also be driven by higher selling prices, as manufacturers anticipate higher prices of oil - the raw material for plastics," he said.

As MRC wrote before, Saudi Arabia and Indonesia are near an agreement to build their first jointly-owned refinery in the Southeast Asian country, according to Indonesia’s Energy Minister Sudirman Said. The refinery is tentatively planned to have capacity of 300,000 bpd.
MRC

LG Chem completes deal to acquire Dongbu Farm Hannong

MOSCOW (MRC) -- South Korea’s LG Chem has completed the acquisition of Dongbu Farm Hannong, the country’s largest agricultural products provider, according to TPS.

Following a series of negotiations since September 2015, LG Chem has finally acquired 100% equity stake in Dongbu Farm Hannong’s shares worth USD426.49 million (KRW 515.20 billion).

LG Chem, South Korea’s leading producer of basic materials and chemicals, has been keen on expanding into agrochemical business in order to diversify its business portfolio amid gloomy outlook for the country’s petrochemical industry.

Dongbu Farm Hannong is the country’s largest producer for crop protection products and the second largest manufacturer of fertilizers in South Korea.

"The world’s top chemical companies have been fostering agrochemical business as the key industry for future growth. Therefore, we expect that the acquisition of Dongbu Farm Hannong will boost our global competitiveness," said Park Jin Soo, Chief Executive Officer (CEO) of LG Chem.

As MRC wrote before, LG Chem shut down its polyvinyl chloride (PVC) plant for a maintenance turnaround in mid-October 2015. It remained shut till end-October 2015. Located in Daesan, South Korea, the PVC plant has a production capacity of 240,000 mt/year.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

PolyOne expands specialty offerings with acquisition of Magenta Master Fibers

MOSCOW (MRC) -- PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, has announced the acquisition of Magenta Master Fibers (Magenta), an innovative developer of specialty solid color concentrates for the global fiber industry, said the producer on its site.

PolyOne purchased Magenta from BASF for USD22 million, which represents a multiple of 6.8x EBITDA. The acquisition is expected to add USD16 million to revenues and be accretive to earnings in 2016.

Magenta's solutions span a wide range of uses, including clothing and apparel, outdoor equipment, high-performance products and multiple materials used in the transportation industry. And consistent with the megatrend of improving health and wellness, additional textile growth opportunities include applications within the hygiene, healthcare and medical markets.

With operations in Milan and Shanghai, 65% of Magenta revenues are outside of North America. Magenta will operate within PolyOne's Global Color, Additives and Inks segment, which last month unveiled its revolutionary new ColorMatrix Fiber Colorant Solutions that provide late-stage color injection in fiber applications utilizing liquid solutions.

"PolyOne's unique, customer-first approach to color and additive solutions begins with an unbiased perspective as to the technology. By offering both liquid and solid masterbatch solutions, we better ensure that the chosen technology is the best one for each customer's specific needs," explained John V. Van Hulle, president, Global Color, Additives and Inks, PolyOne Corporation. "With our acquisition of Magenta, we're very pleased to be building this same, deep breadth of specialty solid and liquid colorant solutions for fiber applications."

As MRC reported earlier, in February 2014, PolyOne Corporation announced the addition of new capabilities to its OnColor HC Plus portfolio. These expanded offerings add medical-grade LDPE, nylon, PEBA, PS and PVC to the globally available palette of specialty healthcare colorants, and are pre-certified to meet or exceed biocompatibility requirements for ISO 10993 and/or USP Class VI protocols.

PolyOne Corporation, with 2014 revenues of USD3.8 billion, is a global provider of specialized polymer materials, services, and solutions with operations in specialty polymer formulations, color and additive systems, polymer distribution and specialty vinyl resins.
MRC

Italmatch acquires Solvay water additives business


MOSCOW (MRC) -- Italmatch Chemicals Group, an Italian-based diversified speciality chemicals group owned by the private investment company Ardian, has agreed to acquire the desalination and phosphonates and phosphonic acid-based water additives business of Solvay, said Italmatch on its site.

No terms were disclosed. The deal should be completed within January.

The company said that this is consistent with its growth strategy in water treatment, where it supplies additives under the Dequest brand. It follows one year after the takeover of Naples-based GRS Chemical Technologies, which makes low and high molecular weight polymers and fuel additives. Italmatch is also active in performance additives for lubricants, oil treatment and plastics, notably flame retardants.

"Thanks to this agreement, we will be able to expand our water management additives product range and enter into new market segments, such as the Middle Eastern thermal desalination markets, exploiting Solvay’s long-standing experience and know-how in the field, combining and leveraging upon Italmatch expertise in reverse osmosis plants," said CEO Sergio Iorio.

Solvay has been through a major transformation in the past months, with the acquisition of Cytec Industries. It is also rumoured to be selling its polyamide business.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers - fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.

MRC

Huntsman completes repurchase of 8.6 mln shares through accelerated repurchase program

MOSCOW (MRC) -- Huntsman Corporation has announced that it has completed a previously announced USD100 million accelerated share repurchase program of 8.6 million shares through an accelerated repurchase program with Citibank, N.A., said the producer on its site.

In September 2015, the Huntsman Board of Directors authorized the repurchase of USD150 million of stock. The company intends to utilize the remaining USD50 million available under this authorization to purchase additional shares.

Peter R. Huntsman, President and CEO, commented: "We remain committed to improving our free cash flow generation in 2016 by USD350 million primarily through lower capital expenditures and restructuring expenses. We continue to pursue a separation of our TiO2 business through a spinoff transaction. During the period to complete the spinoff transaction we will continue to pursue other strategic options. In the meantime we are optimistic about the recent TiO2 price increase announcements. We also expect to deliver an additional USD100 million of restructuring savings in 2016. 2015 was a transition year for us and we are excited to deliver improved performance in 2016."

As MRC reported earlier, in October 2014, Huntsman Corporation completed the acquisition of the Performance Additives and TiO2 businesses of Rockwood Holdings, Inc. And, in February 2015, the company announced its plans to reduce its TiO2 capacity by approximately 100,000 tons, representing 13% of Huntsman's European TiO2 capacity. As part of the plan, Huntsman is proposing to close certain operations at its site in Calais, France.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately USD13 billion including the acquisition of Rockwood’s performance additives and titanium dioxide businesses. The company operates more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions.
MRC