Celanese raises March prices of EVA emulsions in the Americas

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, and a global leader in vinyl acetate ethylene (EVA) emulsions, has announced that it will increase the price of emulsions sold in the Americas, said the producer on its side.

Vinyl acetate homopolymer emulsions, vinyl acrylic emulsions, vinyl acetate ethylene emulsions, and acrylic emulsions will increase by up to USD0.03/wet pound effective March 1, 2017, or as contracts allow.

This price increase affects all applications including, but not limited to, adhesives, paints and coatings, building and construction, nonwovens, glass fiber, carpet, paper and textiles.

This announcement is in addition to the price increase for vinyl acetate based emulsions which was announced on October 14, 2016, and effective November 15, 2016.

As MRC wrote previously, Celanese Corporation raised February list and off-list selling prices for low density polyethylene (LDPE) polymers in the Americas. Thus, the price increase was effective February 1, 2017, or as contracts allow, and LDPE prices grew by USD0.05/lb (USD0.11/kg or USD110/tonne) for North and South America.

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,000 employees worldwide and had 2015 net sales of USD5.7 billion.
MRC

H.B. Fuller acquires Wisdom


MOSCOW (MRC) -- H.B. Fuller has acquired the industrial adhesives business of Wisdom Worldwide Adhesives, a provider of adhesives for the packaging, paper converting and assembly markets, said the company on its site.

Founded in 1875, Wisdom has been privately owned and operated by five consecutive generations of the Wisdom family and is headquartered in Elgin, Illinois. For 130 years, H.B. Fuller has been a global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products. It has customers in electronics, disposable hygiene, medical, transportation, clean energy, packaging, construction, woodworking, general industries and other consumer businesses.

The acquisition value of 122 million USD is expected to generate annual run rate synergies of approximately six million USD, starting in 2018, which would make the purchase price multiple equal to approximately seven times Wisdom's fiscal 2016 EBITDA on a post-synergy basis. H.B. Fuller expects the transaction to be modestly accretive to earnings in the first year. The business will be included in H.B. Fuller's Americas Adhesives operating segment.

Jim Owens, H.B. Fuller president and CEO, said the acquisition will strengthen the company’s position in this market segment within the Americas adhesive business, as well as the delivery of its 2020 strategic plan commitments.

"Wisdom's highly successful go-to-market strategy, based on a focused product line, ultra-fast delivery and virtual service, will complement H.B. Fuller's full value solutions," said Owens.

"The combination of H.B. Fuller and Wisdom provides significant cost synergy opportunities combined with some growth opportunities related to the complementary operating model and customer bases of the two companies. This acquisition will enhance and strengthen the delivery of our 2020 strategic plan commitments."

As MRC informed earlier, in June 2016, H.B. Fuller signed an agreement to purchase Cyberbond (Batavia, IL), a manufacturer of industrial adhesives for the electronics, medical, audio equipment, automotive, and structural markets.

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, and other specialty chemical products worldwide. The company operates through four segments: Americas Adhesives; Europe, India, Middle East and Africa (EIMEA); Asia Pacific; and Construction Products. It offers a range of specialty adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products; and caulks and sealants for the consumer market and professional trade.
MRC

Saudi Aramco oil reserves confirmed by external audit

MOSCOW (MRC) -- The first independent audit of Saudi Aramco's oil reserves has confirmed the state oil company's own figures, sources familiar with the situation said, ahead of its planned share market listing next year, reported Reuters.

The listing, expected to be the world's biggest initial public offering (IPO), is a centerpiece of a Saudi Arabian government plan to transform the country by enticing investment and diversifying the economy away from oil.

Based on a figure of 265 billion barrels, Aramco's fields contain about 15 percent of the world's proven reserves. Any finding that the reserves are significantly above or below that could affect the company's market value in the listing.

"The independent audit produced no surprises," a source familiar with the situation said on Friday. "Aramco's reserves have always been reported internally in line with international practice."

Aramco had asked two U.S. oil reserve auditing specialists to review its deposits.

These are Gaffney, Cline and Associates, part of Baker Hughes and Dallas-based DeGolyer and MacNaughton. DeGolyer and MacNaughton completed its audit last year, two of the sources said.

Saudi Arabia's proven oil reserves have been listed at about 265 billion barrels in oil industry reference publications such as the BP Statistical Review of World Energy for many years.

Aramco said its crude oil and condensate reserves were 261.1 billion barrels in its 2015 annual report.

The reserves audit produced figures "definitely not below" those published by Aramco, a second source familiar with the matter said, while a third source said the auditing firm's estimate was higher than Aramco's own.

The IPO plan is being championed by Deputy Crown Prince Mohammed bin Salman, who oversees energy and economic policy in the world's top oil-exporting country.

Prince Mohammed has said he expects the IPO, which will offer up to five percent of the company, to value Aramco at a minimum of USD2 trillion.

Senior oil industry figures have welcomed the Aramco IPO for casting more light on Saudi Arabia's oil reserves. Many of the world's biggest sovereign reserves holders have not changed their numbers for years.

The head of Russian oil company Rosneft Igor Sechin said last year the Aramco listing would give transparency over reserves data which had not been updated for 30 years.

As MRC wrote before, in June 2016, Saudi Arabian Oil Co. and Saudi Basic Industries Corp. became one step closer to building their first plant to process crude directly into chemicals, cutting out a link in the production chain from hydrocarbons to the finished products that go into plastics and other consumer goods. The state-owned companies signed an agreement to study such a project to be located in Saudi Arabia. A joint venture is possible if the companies decide to move ahead after the study is completed by early 2017, they said. Oil companies normally refine crude into transportation fuels including gasoline and diesel and leave byproducts such as naphtha to be processed separately into chemicals.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

Trinseo raises polycarbonate prices in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced price increases for all Polycarbonate (PC) grades, as per the company's press release.

Effective February 1, 2017, or as existing contract terms allow, the contract and spot prices for the product listed below will increase as follows:

- CALIBRE PC resins - by EUR150 per metric ton.

As MRC informed before, in early Juanuary 2017, Trinseo announced price increases for all polystyrene (PS), acrylonitrile-butadiene-styrene (ABS), acrylonitrile styrene copolymer (SAN) grades and PC grades. Thus, January contract and spot prices for the product listed below rose, as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR110 per metric ton;
- MAGNUM ABS resins - by EUR105 per metric ton;
- TYRIL SAN resins - by EUR90 per metric ton;
- CALIBRE PC resins - by EUR220 per metric ton.

Besides, in late December 2016, Trinseo announced price increases for all natural PC grades (CALIBRE) by EUR220 per metric ton.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.0 billion in revenue in 2015, with 18 manufacturing sites around the world, and more than 2,200 employees.
MRC

Celanese Appoints Peter Edwards as General Counsel

MOSCOW (MRC) -- Celanese Corporation, a global technology and specialty materials company, has announced the appointment of Peter Edwards as the company's General Counsel effective end of January 2017, as per the company's press release.

Edwards is a seasoned public company General Counsel with extensive experience working in highly regulated, global organizations. He most recently served as Executive Vice President and General Counsel of Baxalta Inc., a biopharmaceutical spin-off of Baxter International.

Edwards has worked for the multinational pharmaceutical company Eli Lilly and Company, as well as for mid-sized companies such as Solvay Pharmaceuticals and Mallinckrodt (formerly Covidien Pharmaceuticals). Additionally, Edwards has substantial international experience including his role as Executive Vice President and General Counsel for Solvay Pharmaceuticals, when he was based in Brussels, Belgium. During his various roles, Edwards has also acquired significant legal and business expertise in the area of merger and acquisition (M&A) law.

"Peter's breadth of technical legal skills, high business acumen and international experience will be a most valuable addition to Celanese," said Mark Rohr, Celanese Chairman and Chief Executive Officer. "We welcome Peter to his new General Counsel role leading the company's Law Department and I am confident his experience will be instrumental to Celanese as we continue seek opportunities to expand our M&A pipeline, market access and product portfolio."

As MRC wrote earlier, in November 2016, Celanese Corporation announced that it would increase the price of EVA emulsions sold in China. Prices of EVA emulsions, thus, rose by CNY200/MT for China effective November 20, 2016, or as contracts allowed. This price increase affects all applications including, but not limited to, adhesives, paints and coatings, waterproofing, building and construction, carpet and paper. That increase was attributed to the continued pressures on raw materials, notably ethylene and vinyl acetate monomer (VAM).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,000 employees worldwide and had 2015 net sales of USD5.7 billion.
MRC