Sonoco completes sale of rigid plastics blow molding operations to Amcor

MOSCOW (MRC) -- Sonoco announced it has completed the sale of its rigid plastics blow molding operations to Amcor, a global leader of rigid and flexible packaging products, for USD280 million, said the producer on its site.

Sonoco’s rigid plastics blow molding operations include seven manufacturing facilities in the U.S. and Canada with 850 employees producing containers serving the personal care and food and beverage markets. The disposition of these operations is expected to impact annual sales by approximately USD205 million. The reduction in sales is expected to impact Sonoco’s fourth quarter 2016 and full year 2017 sales comparison by approximately USD30 million and USD175 million, respectively. The disposition is not expected to notably affect operating margin percentages for the Company’s Consumer Packaging segment.

According to Jack Sanders, Sonoco president and chief executive officer, the decision to sell the blow molding operations was made to focus the Company’s Consumer Packaging portfolio and provide resources to further expand its targeted growth businesses, including flexible packaging, thermoforming plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.

As MRC informed earlier, the deal was first announced on Sept. 2.

Amcor Limited is an Australian-based multinational packaging company. It operates manufacturing plants in 42 countries. It is the world's largest manufacturer of plastic bottles.
MRC

MOSCOW (MRC) -- Arkema finalizes the divestment of its Activated Carbon and Filter Aid business With around EUR93 million sales, said the producer in its press release.

Arkema’s Activated Carbon and Filter Aid business employs over 300 people, who will now be joining the American
group Calgon Carbon, a leader in activated carbon and in purification and filtration solutions.

With this divestment concluded for a EUR145 million enterprise value (9.5 x Ebitda), Arkema actively continues the
Group’s refocusing on its core businesses, after finalizing the divestment of Sunclear in November 2015, which
represented sales of some EUR180 million.

We remind that, as MRC wrote before, Bostik, the specialty adhesives business line of Arkema, has expanded its cementitious products manufacturing capacities, based on its world-class Polymer Modified Binder (PMB) technology, at its Seremban plant in Malaysia. As a leading global adhesive specialist for construction, consumer and industrial markets, Bostik will be able to serve growing construction market demand in Central Malaysia, North Malaysia and Sabah regions.

On 2 February 2015, Arkema finalized the acquisition of Bostik, the world's No. 3 in adhesives.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. The company's business portfolio spans high-performance materials, industrial specialties and coating solutions. Reporting annual sales of EUR7.7 billion in 2015, the company employ approximately 19,000 people worldwide and operate in close to 50 countries.
MRC

MOSCOW (MRC) -- On the heels of recent financial losses, material supplier A. Schulman Inc. will eliminate approximately 60 positions, mainly from its middle management ranks, said Canplastics.

According to a Nov. 14 filing with the U.S. Securities and Exchange Commission, the Fairlawn, Ohio-based company anticipates that a total annual pre-tax savings of approximately USD5 million to USD6 million will be realized from reorganization.

The company has not released any information about the timeline of the downsizing.

In the first week of November, Schulman reported net sales of USD604 million for its fourth quarter of 2016, down from USD674 in the same prior year quarter – a decline of 8.3%. The company’s net sales for the U.S. and Canada were USD158 million, down 18.6%; and in Europe, Middle East and Africa net sales were USD299 million, down 6.7%.

In total, Schulman expects to post a loss of more than USD350 million for its 2016 fiscal year, due to what the company described as problems relating to its purchase of Citadel Plastics in 2015.

As MRC informed earlier, A. Schulman Inc. announced that it has expanded its existing compounding capacity by adding two new production lines at the Kerpen plant in Germany. In addition to the two twin screw extruders, the company has invested in a fully automatic packaging line.

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.
MRC

MOSCOW (MRC) -- Iran overtook political rival Saudi Arabia as India's top oil supplier in October, shipping data showed, just ahead of a producers' meeting this month to hammer out the details on output cuts aimed at reining in a global glut, as per Hydrocarbonprocessing.

Iran used to be India's second-biggest oil supplier, a position it ceded to Iraq after tough Western sanctions over its nuclear development program limited Tehran's exports and access to finance.

But India's oil imports from Iran have shot up this year after those sanctions were lifted in January. In October they surged more than threefold compared with the same month last year, rising to 789,000 bpd, according to ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts.

Iran's surge to the No.1 spot is due partly to less available crude from Saudi Arabia, which has increased its capacity to refine oil instead of just exporting more crude.

"Saudi Arabia's refining capacity has increased over time so it is not in a position to increase its exports further, whereas Iran is better placed to raise its output and sales to India," said Ehsaan Ul Haq of U.K.-based consultancy KBC Energy.

Indian refiners including Reliance Industries Ltd, operator of the world's biggest refinery complex at Jamnagar, that had stopped imports from Iran during the sanctions period have also returned as buyers of Iranian oil.

Iran produces almost 4 million bpd of oil and exports 2.4 million bpd. Tehran's exports dropped to 1 million bpd during sanctions, down from a peak of almost 3 million bpd in 2011, before tougher Western sanctions were implemented.

Gaining the top position as oil supplier to the world's third-biggest importer, even if only for one month, comes at a sensitive time.

As MRC reported earlier, India's daily oil imports from Iran in August surged to their highest in at least 15 years as the OPEC producer boosted its shipments to recoup market share ceded to rivals Saudi Arabia and Iraq under pressure from economic sanctions. Private refiner, Essar Oil, was the top Indian client of Iran in August, followed by Indian Oil Corp. and Mangalore Refinery and Petrochemicals Ltd. India received about 576 Mbpd of Iranian oil in August, up about 10% from July, according to trade sources and ship arrival data compiled by Thomson Reuters Supply Chain & Commodities Research.
MRC

MOSCOW (MRC) -- In a deal that will expand its flexible packaging operations in China, global packaging supplier Amcor Ltd. has purchased Hebei Qite Packing Co. Ltd, said the producer on its site.

The terms of the deal have not been disclosed.

Qite has one plant located in Hebei, North China and the business generates sales of over USD28 million from the sale of flexible packaging products to large domestic customers within the dairy and food segments.

"Amcor continues to have substantial opportunities to grow our flexible packaging business in the Asian region. Globally and especially within Asia, China is a very attractive growth market for flexible packaging. This acquisition will enhance our already attractive platform for growth with new and existing customers in the important Northern region," Amcor CEO Ron Delia said in a statement.

Amcor currently has a total of eleven flexible packaging plants in China, including two plants in close proximity to Qite in Northern China.

As it was informed earlier, in the early November, Sonoco completed the sale of its rigid plastics blow molding operations to Amcor, a global leader of rigid and flexible packaging products, for USD280 million.

Amcor Limited is an Australian-based multinational packaging company. It operates manufacturing plants in 42 countries. It is the world's largest manufacturer of plastic bottles.
MRC