Titanium dioxide supply squeeze 'threatens European plastics converters'

MOSCOW (MRC) -- The Polymers for Europe Alliance is warning of the impact on European plastics manufacturers of a supply shortage in the additive titanium dioxide (TiO2), which is used for white masterbatch and as a UV stabiliser in rigid PVC outdoor products, said Plasticsnews.

"We call upon all the TiO2 producers to help our plastics converting industry to create a global level playing field to secure the development of our business in Europe," said Ron Marsh, chairman of the Polymers for Europe Alliance.

In a statement, the alliance said: "The issue that is today threatening large parts of the plastics conversion industry in Europe is the supply of titanium dioxide where unplanned maintenance shutdowns are limiting production, thereby restricting output and driving up additives prices to uncompetitive levels. No extra volumes seem to be made available for Europe by the producers from outside the EU to support the growth in the plastics industry markets, especially for some PVC building applications and polymer masterbatches."

The Polymers for Europe Alliance was set up by the European Plastics Converters association (EuPC) in 2015 when there was a severe shortage of commodity polymers, including PE, PP and PVC, in Europe. It says its objective is "to build and maintain good communications between suppliers and customers of polymers and additives in Europe following the catastrophic situation during the first semester 2015".

In addition to the problems in the TiO2 market, the alliance said in the testament that supply of some polymers is also getting very tight and plastics converters face difficulties in passing on the consequent large price increases to their customers.

It said: "It seems that the margin of the converters sandwiched between polymer suppliers and users of plastics is being squeezed in growing markets, and this is damaging business prospects in the first quarter of 2017.

The alliance also drew attention to the Best Polymer Producers Awards for Europe 2017, which it is organising. "The Awards will give a clear indication which polymer suppliers will have won the trust of the European converters when it comes to material delivery reliability," it said.
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MOSCOW (MRC) -- The China National Chemical Corporation, known as ChemChina, and Syngenta announced that they have received approval from the Ministry of Commerce of the People’s Republic of China for the proposed acquisition of Syngenta by ChemChina - at USD43 billion, it's the largest foreign acquisition by a Chinese company, as per SeedWorld.

In a statement, the companies note that this approval represents another step toward closing the transaction, which is expected in the second quarter of 2017.

Last week the U.S. and European Union competition authorities gave conditional approval of the deal, which was followed by Mexico’s approval earlier this week. India has not yet signed off on the deal.

Under the conditions set by the U.S. Federal Trade Commission, Syngenta must divest three pesticides: paraquat, abamectin and chlorothalonil. Syngenta owns the branded version of each of the three products, giving it significant market shares in the United States. ChemChina’s subsidiary ADAMA focuses on generic pesticides and is either the first- or second-largest generic supplier in the United States for each of these products.

The FTC believes that "without the proposed divestiture, the merger would eliminate the direct competition that exists today between ChemChina generics subsidiary ADAMA and Syngenta’s branded products. The merger would also increase the likelihood that U.S. customers buying paraquat, abamectin, and chlorothalonil would be forced to pay higher prices or accept reduced service for these products."

The proposed settlement requires ChemChina to sell all rights and assets of ADAMA’s U.S. paraquat, abamectin and chlorothalonil crop protection businesses to California-based agrochemical company AMVAC.

For more information about the consent agreement, which includes an asset maintenance order and allows the commission to appoint a monitor, check out the analysis to aid public comment.

The two companies maintain that the completion of this transaction will ensure continued choice and ongoing innovation for growers around the world.

As MRC reported earlier, in late June 2016, ChemChina started the process of substituting equity for part of the loan financing of the offer made by CNAC Saturn, a subsidiary of ChemChina. A first equity commitment of USD5 billion was made by Feng Xin Jian Da, a fund managed by CITIC Trust, a subsidiary of CITIC Ltd., which is listed on the Hong Kong stock exchange. CITIC and HSBC are the banks handling ChemChina’s acquisition of Syngenta.

ChemChina produces special chemical materials, basic chemicals, oil refining, agricultural chemistry, rubber products, and chemical equipment.
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MOSCOW (MRC) -- Cosmo Films Ltd. has announced that its board of directors has considered and approved setting up a new biaxially oriented polyethylene terephthalate (BOPET) production line at Aurangabad, Maharashtra, India, as per Apic-online.

The new 36,000-t/y BOPET film line, requiring an investment of about Rs 250 crore, is scheduled to be commissioned by the third quarter of fiscal year 2018-2019.

Cosmo will fund the project through "internal accruals and debts."

As MRC informed before, this plant already houses BOPP lines, extrusion coating lines, chemical coating lines, metallizers and a CPP line. The new production line will complement the existing BOPP capacity of 200,000 mtpa and allow Cosmo Films to offer a more comprehensive speciality product basket to flexible packaging, labeling, lamination and industrial applications.

Cosmo Films Limited Established in 1981, Cosmo Films Limited is one of the global leaders and manufacturers of BOPP Films. It is the largest exporters of BOPP films from India and largest manufacturer of thermal lamination films in the world. The films make their way into flexible packaging, labels and lamination industry.
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MOSCOW (MRC) -- Austrian oil and gas group OMV will pay EUR110 million (USD116.7 million) for a planned turnaround at the petrochemical units of its Schwechat refinery which will start in the middle of this month, reported Reuters.

"The facilities will shut down as planned. There will be a comprehensive, routine safety inspection carried out," OMV said of its refinery next to Vienna Airport. "This is held once every six years."

The turnaround and investment will also be used to help the integration of OMV's operations and those of plastic maker Borealis at Schwechat, said OMV, which owns 36% of Borealis.

As MRC wrote before, in April 2016, Russian oil major Gazprom signed cooperation deals today with Austrian energy group OMV as it tries to secure more lobbying power for its project to expand the Europe-bound undersea gas pipeline, Nord Stream.
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MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, today announced that it has entered into a definitive agreement to acquire Glanzstoff Group. Glanzstoff is a major European manufacturer of tire cord fabrics and single-end-cords (SEC) for high performance tire applications, said the company on its site.

This transaction is expected to close during the second quarter of 2017, subject to regulatory approval. Glanzstoff offers a broad range of solutions in the tire cord fabrics and single-end-cords in high performance rayon, aramid, Nylon 6.6 and polyester in addition to hybrid filament yarns for the high growth and high performance automotive applications. Glanzstoff is Europe’s largest converter for tire cord fabrics and a global leader in SEC and is vertically integrated into high tenacity Rayon technology. It has manufacturing sites in Luxembourg, Italy and the Czech Republic.

Commenting on this acquisition, Aloke Lohia Group CEO of Indorama Ventures, said, "The acquisition of Glanzstoff provides a unique opportunity for Indorama Ventures to consolidate its leadership position in the tire cord business and strengthens our high value-added (HVA) portfolio. It enhances the company’s value proposition and provides collaborative opportunities with the global automotive tire industry, including those for autonomous and electric vehicles. IVL is a leading global specialty-fibers solution provider with strong presence in headliner yarns, acoustic fibers and tire-cord fabrics and the Glanzstoff acquisition is a strategic fit to help grow this portfolio".

IVL entered into the high-growth tire cord business following the acquisition of PHP Fibers in 2014. Thereafter, it acquired Performance Fibers in 2015 and created a global scale as a result of these acquisitions. The company continues to invest and announced a sizeable expansion of its tire-cord manufacturing line at Performance Fibers in Kaiping, China in January of 2017. On a pro forma basis, the combined revenue of PHP Fibers, Performance Fibers and Glanzstoff in 2016 was USD 602 million. On an all-inclusive basis, the HVA segment of IVL achieved sales revenue of over USD2 billion in 2016.

"We continue to pursue a transformational journey to consolidate our leadership position and pursue profitable growth opportunities in the high value-added segment. The Glanzstoff platform will expand our footprint beyond Polyester and Nylon 6.6 by entering into Rayon technology. Our focus remains on delivering best-in-class propositions, while driving our global innovation agenda to strengthen the company’s capabilities in the value chain in which we are present. We strive to be a world-class, high-growth company and will continue to explore opportunities to deliver earnings growth and enhanced value in a sustainable manner," Mr. Lohia concluded.

Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. IVL products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. IVL has approx. 15,000 employees worldwide and consolidated revenue of USD7.2 billion in 2016.

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