PolyOne acquires Gordon Composites and Polystrand

MOSCOW (MRC) -- PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, today announced the acquisition of two specialty businesses from Gordon Holdings, as per the company's press release.

The acquired businesses design and produce innovative, lightweight, high-performance solutions, utilizing advanced composite technology and state-of-the-art manufacturing capabilities.

Bolstering PolyOne's existing portfolio of thermoset composite solutions is the acquisition of Gordon Composites, which develops high strength profiles and laminates for use in vertical and crossbow archery, sports and recreation equipment, prosthetics, and office furniture systems.

The second acquired business, Polystrand, operates on the leading edge of continuous reinforced thermoplastic composite technology, a next generation material science that delivers the high strength and lightweight characteristics of composites, further enhanced with the design flexibility to form more complex shapes. Current application usage includes materials for the aerospace, transportation, outdoor and security and protection markets. Both acquired businesses will join PolyOne's existing portfolio of complementary solutions in a new comprehensive platform to be called PolyOne Advanced Composites.

"With these acquisitions we've built upon our past success and portfolio of composite solutions to now serve our customers more comprehensively than ever before," said Craig Nikrant, president, Specialty Engineered Materials, PolyOne Corporation. "We also have now immediately established PolyOne as a leading innovator and producer of continuous reinforced thermoplastic composite technology. We expect this technology to become a platform of the future for companies whose products demand strength and design flexibility."

The purchase price for both businesses was USD85.5 million. The price includes all assets related to the businesses, including intellectual property, trademarks and production assets. PolyOne expects the acquisitions to add USD40 million to revenues and be accretive to earnings in 2017.

As MRC wrote previously, in January 2016, 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. 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.

PolyOne Corporation, with 2015 revenues of USD3.4 billion, is a premier 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

MOSCOW (MRC) -- Iran's Bu Ali Sina petrochemical refinery complex is in plans to restart its aromatics plant soon, reported Apic-online.

A Polymerupdate source in Iran said, the aromatics complex was taken off-stream on July 5, 2016 following a fire at its PX plant.

Located at Bandar Imam Khomeini, Iran, the complex comprises of OX plant with a production capacity of 30,000 mt/year and benzene production capacity of 180,000 mt/year.

The aromatics complex is slated to resume production during this week.

As MRC informed previously, as of 2015, number of active Iranian Petrochemical complexes were 53, with total production capacity of 59 million metric ton, producing range of polymers, chemicals, aromatics & liquid gas, located mainly at Iranian south region, next to Persian Gulf, called Assaluyeh and Mahshahr Special Economic Zones.

At the moment, there are 67 developments projects in the country which are under construction, adding 61 million metric ton on total production and estimated to fully run till 2018.
MRC

MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced its results for the second quarter 2016, as per the company's report.

The company’s core profit after tax and non-controlling interests (NCI) climbed to a record Baht 2.9 billion in 2Q16, reflecting very strong growth of 74% year-on-year (YoY) driven by margin recovery in the PET segment and contributions from additional feedstock volumes, primarily PTA from new acquisitions IVL Spain, formerly Cepsa Spain, and Aromatics Decatur, formerly BP Decatur in the US as well as High Value-added product volume thanks the contribution of IPA and NDC from those acquisitions.

The last twelve months (LTM) second quarter 2016 Core EBITDA saw PET sector growth of 19% underpinned by excellent growth in the Fibers segment of 46% year-on-year. Regional earnings in the HVA portfolio all grew both quarter-on-quarter and year-on-year with core LTM EBITDA topping Baht 12 billion from Baht 9 billion the previous year.

The second quarter saw a non-cash inventory gain of Baht 0.6 billion as a result of the increase in oil prices that was further supplemented by net extraordinary income of Baht 2.5 billion, primarily coming from a gain on bargain purchase on the IVL Spain acquisition and resulted in a reported net profit of Baht 5.9 billion. For the last twelve months we achieved net profit of Baht 10.8 billion or EPS of Baht 2.08.

Mr. Aloke Lohia, Group CEO of IVL commented, "Our second quarter results continue to show improvement across our segments. The recent acquisitions of IVL Spain and Aromatics Decatur reflect our unique business model and strategic choices that made IVL ever more resilient and efficient. Our blend of focused businesses will transform us as one of the most competitive producers in our space and provide us downside protection on volumes and integrated margins while preserving our upside potential as the industry recovers. IVL is now the most integrated global company in our industry."

Commenting on the global business outlook, Mr. Lohia said, "North America results are mixed as our ethylene oxide and glycol (EOEG) earnings were impacted by a catalyst turnaround while Fibers and PET, in both necessities and HVA, showed superior performance and achieved strong Core EBITDA growth YoY. The strong demand for necessities in Asia continues to overcome chronic overcapacity, especially in PTA, and we are cautiously optimistic amid signs of a slow recovery that is led by the restructuring of many non-core underperforming assets and a very cautious build-up of new capacity. The EMEA region has enjoyed absolute growth of core EBITDA on a QoQ and YoY basis and we expect to see continued growth of our products, led by the Rotterdam PTA expansion and improving IPA production, going forward."

"Looking ahead, our diversified portfolio of products, geography and markets are serving as a catalyst for future growth. IVL will continue to create synergies as well as accelerate the transformation of our operations, which will help us outperform the industry benchmarks and create lasting value of our stakeholders," Mr. Lohia concluded.

As MRC informed previously, in January 2016, BP PLC sold its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. for an undisclosed sum. Under the terms of the agreement, Indorama Ventures purchased the Decatur complex including working capital and related infrastructure and assume certain contracts with suppliers and customers. The deal was closed in early 2016. Located on 1,000 acres in Northern Alabama, the complex can produce one million tons per year of PTA, as well as paraxylene (PX), a raw material for PTA production. The site also is the world’s only commercial manufacturer of naphthalene dicarboxylate (NDC), a specialty chemical used in new-generation polyesters and resins used to make LCD flat-panel displays, ultra-thin data storage tape and other products.

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) -- The Board of Directors of PolyOne Corporation has declared a quarterly cash dividend of twelve cents (USD0.12) per share on the common stock outstanding, said the producer on its site.

The quartely cask dividend is to be paid on October 6, 2016, to stockholders of record on September 16, 2016.

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 2015 revenues of USD3.4 billion, is a premier 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

MOSCOW (MRC) -- Solvay has agreed to divest its chlorine and peroxide derivatives site in Italy to Italian chemical company Caffaro, but will continue to market its EURECO organic peroxides, produced on the site, through an exclusive distribution agreement, said the producer on its site.

The planned divestment of the site of Bussi sul Tirino follows Solvay’s exit from its Western European chloro-alkali activities. Caffaro as a producer of basic and fine chemicals aims to further develop the site, which is mainly dedicated to chlorine and its derivatives. Through its industrial project, Caffaro will ensure sustainability of the plant by proceeding on a series of investments at Bussi site, as well as creating synergies with its current portfolio of activities.

Under the agreement, Caffaro will take over Solvay’s production of EURECO and further develop the product’s technology supported by the teams on-site. Solvay’s Peroxides Global Business Unit will continue to market and develop EURECO as its exclusive distributor in all countries except Italy and thereby ensure the long term partnerships with key customers.

Solvay’s EURECO is widely used in consumer and professional laundry markets for its effectiveness in removing stubborn stains, bleaching in compact product formulations, getting rid of malodour and in killing germs, bacteria and fungi on textiles and hard surfaces.

As MRC reported earlier, in July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries. It generated pro forma net sales of EUR12.4 bn in 2015, with 90% made from activities where it ranks among the world’s top 3 players.
MRC