Jacobs to acquire CH2M to create USD15 B global solutions provider

MOSCOW (MRC) -- Jacobs Engineering Group Inc. and CH2M HILL Companies Ltd. have announced that they have entered into a definitive agreement under which Jacobs will acquire all of the outstanding shares of CH2M in a cash and stock transaction with an enterprise value (EV) of approximately USD3.27 B, including approximately USD416 MM of CH2M net debt, as per Hydrocarbonprocessing.

The combination unites two industry-leading, innovative companies with complementary capabilities, cultures and relationships, resulting in a differentiated, end-to-end value proposition for clients and an enhanced platform for sustainable, profitable growth, the company stated in a press release.

With trailing twelve month (TTM) revenues of USD4.4 B and a team of 20,000 employees, CH2M is a design, engineering and program management firm, and is a leader in key infrastructure and government service sectors that Jacobs has previously targeted for growth, including water, transportation, environmental and nuclear. Applying CH2M’s advanced design, technical and program management expertise across Jacobs’ global footprint will enable the combined company to deliver more solutions to more clients in both the government and private sector.

According to the company, the transaction combines both companies’ superior engineering skills and proven construction management of high tech facilities to result in world-class, clean manufacturing expertise. This differentiated, end-to-end offering will better position Jacobs to respond to cyclical customer requirements in this sector.

The transaction also enhances Jacobs’ existing position in the petroleum and chemicals industry by providing additional operational and maintenance capabilities for upstream and midstream clients and enabling infrastructure for major petroleum and chemicals projects.

As MRC wrote before, in 2015, Jacobs Engineering Group was awarded an engineering, procurement and construction management (EPCM) contract from Celanese Corp. for the construction of a vinyl acetate ethylene (EVA) emulsions production plant at Jurong Island, Singapore.

Besides, in May 2016, Jacobs Engineering Group was awarded a contract to provide engineering services for the expansion of Mitsubishi’s polyester film plant in Greenville County, South Carolina. Mitsubishi Polyester Film is the American subsidiary of Japan-based Mitsubishi Plastics. and the largest polyester film plant in the US.
MRC

MOSCOW (MRC) -- AkzoNobel has announced that its Specialty Chemicals business is investing more than EUR 20 million to increase production capacity of its Stockvik facility near Sundsvall, Sweden, for its Expancel product line of expandable microspheres, as per GV.

Completion is expected by the end of 2018. According to AkzoNobel, the company is seeing a strong increase in demand for the product and the expansion will ensure its ability to serve customers globally. The expandable microspheres are used in a number of growth markets, such as food packaging, paints and the automotive industry.

As MRC informed previously, in December 2016, AkzoNobel finalized the acquisition of BASF’s global Industrial Coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings. The transaction includes relevant technologies, patents and trademarks, as well as two manufacturing plants in the United Kingdom and South Africa.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- State-run Bharat Petroleum Corp has bought 1 MMbbl of low-sulfur WTI Midland grade, the first purchase of the US grade by an Indian company, through a tender, an industry source with knowledge of the deal said, reported Reuters.

The refiner is seeking delivery of the oil in October, the source added, without elaborating.

The cargo was sold to BPCL by the Emirates National Oil Company (ENOC) at a price linked to Brent, a second person said, adding that its pricing was competitive against West African oil.

"If this crude suits BPCL's system then it could buy more US sweet oil," he said.

A spokesman for BPCL could not comment immediately, while ENOC didn't answer a call seeking comment.

Refiners in India, the world's third-biggest oil consumer, are diversifying crude imports as cheaper alternatives have emerged due to a global supply glut despite OPEC and some non-OPEC producers cutting output to try to jack up prices.

India is the latest Asian country to buy US crude, following South Korea, Japan, China, Thailand, Australia and Taiwan, after the OPEC cuts drove up prices of Middle East heavy-sour crude, or grades with a high sulfur content.

BPCL last month made its first purchase of US oil, buying high sulfur crudes Mars and Poseidon.

Indian refiners stepped up purchase of the US oil after Indian Prime Minister Narendra Modi's visit to the Washington in June when President Donald Trump said the United States looked forward to exporting more energy products to the world's third-biggest oil buyer.

As MRC informed before, Bharat Petroleum Corporation plans to invest Rs. 4,800 crore in the propylene derivative petrochemical project in Kochi. Propylene for the project will be sourced from the expanded refinery. The capacity of the refinery is being raised from 9.5 mln tpa to 15.5 mln tons.

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-controlled oil and gas company headquartered in Mumbai, India. Bharat Petroleum owns refineries at Mumbai, Maharashtra and Kochi, Kerala (Kochi Refineries) with a capacity of 12 and 9.5 million metric tonnes per year.
MRC

MOSCOW (MRC) -- Linde Malaysia (Linde), a member of The Linde Group, one of the world’s leading gases and engineering companies, will invest EUR 30 million to expand its gas and liquid production capacities to meet growing customer demands in central Malaysia, as per Linde's press-release.

Linde’s announcement today is the latest in a series of recent investments that Linde has made in Malaysia in the past 12 months.

Linde will construct and commission a new gas and liquid producing air separation unit (ASU) at its site in Hicom Industrial Estate (Hicom). The new ASU will be integrated into the pipeline supply network of existing plants which Linde operates in Bukit Raja and Hicom. The investment will enable Linde to meet forecast growth in the central Malaysian region through the next decade. The expansion project is expected to be completed by 2018.

The facility will also form the cornerstone of a renewed and expanding oxygen supply scheme to leading Japanese glass manufacturer, Nippon Electric Glass Malaysia (NEGM).

"Producing innovative and high quality glass solutions demands that we maintain the strictest quality standards in our manufacturing processes and materials. For 20 years, Linde has supplied Nippon Electric Glass Malaysia with consistent and reliable gas solutions to fuel our manufacturing processes, growing together with us. We are delighted to be able to continue this relationship into the next decade." said Mr Masaya Kubo, Managing Director, NEGM.

Mr Rob Hughes, Linde’s Regional Managing Director, South Asia and ASEAN said, "Asia continues to be a driver of realisable and profitable growth for Linde as industrial production in the region continues to grow. Malaysia is a key contributor to our growth strategy in Asia and our track record of steady investment of over EUR 230 million (MYR 1 billion) in the past two years underscores our commitment and optimism about Asia."

Mr Connell Zhang, Managing Director for Linde Malaysia, said the growing demand for liquid products reflects a positive outlook in the Malaysian market. "There continues to be a healthy growth momentum and expansion activities across a variety of industries in the central region. Our latest investment further strengthens Linde’s position as a reliable and efficient provider of top quality industrial gases to NEGM and other customers in Malaysia."

Available liquid product from this new investment will also serve the needs of customers from a variety of industries throughout central Malaysia, including electronics, healthcare, food and beverage, metallurgy and glass.

The new ASU will be built leveraging engineering, technical and design expertise of Linde’s Engineering Division. Linde’s world-leading technology in air separation design offers high energy efficiency and operational reliability.

The expansion of Linde’s production capacity in Hicom is the latest in a series of Linde investments in Malaysia. Early last year, Linde announced plans to build an ASU in East Malaysia, expected to come online this year. Linde and PETRONAS Gas Berhad have also announced a joint venture to invest EUR 150 million to build an ASU at the Pengerang Integrated Petroleum Complex. More recently, Linde launched Southeast Asia’s first automated cylinder filling plant in Banting, Malaysia which has a maximum annual filling capacity of over two million cylinders.

Linde Malaysia is a member of The Linde Group that has been present in Malaysia since 1960. A leading industrial and medical gas supplier in Malaysia with more than 50 years of experience in the industry, it combines local knowledge with global expertise and resources in the areas of technology, research and development, gas applications, engineering and best operating practices.

Linde Malaysia is the specialist in the provision of total gas solutions to a variety of industries. It manufactures and distribute industrial, specialty and medical gases and provide a range of related services, including installation of gas equipment, pipelines and associated engineering services. In addition, it supplies packaged chemicals, welding and consumables products.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has recently completed a significant expansion at its plant in Lewiston, ME, adding equipment that increases its capacity to compound high-temperature fluoropolymers, which include FEP, ETFE, and PVDF, as per the company's press release.

These materials are important for the production of medical catheters because of their flexibility, lubricity and chemical resistance. Demand for these polymers and for specialized masterbatches, which Clariant markets for medical applications under its MEVOPUR brand, continue to grow worldwide.

Another expansion at the Lewiston plant, planned for completion in 4Q 2017, will add another compounding line featuring a 70-mm extruder. This line will enable the plant to more rapidly produce larger batch sizes of MEVOPUR pre-colored medical plastic compounds.

Clariant already operates several smaller lines - in Lewiston and Clariant’s other MEVOPUR facilities - which produce masterbatches and pre-colored compounds in lot sizes ranging from 25 to 2500kg/50 to 5000 lbs. In addition, production capacity for compounds is also being added during the first half of 2017 in Singapore, to handle increasing demand of color compounds for local and international customers. These small- and medium-sized lots are in high demand, especially in the medical market, since many resin producers have discontinued or severely curtailed their custom-color offerings in anything smaller than full-truck or railcar quantities.

Clariant’s MEVOPUR materials are offered for applications in medical devices and pharmaceutical packaging, where strict regulations on materials and change control apply. The Lewiston plant is one of three global sites designed and operated to produce materials used in medical devices and pharmaceutical packaging. The other two facilities are located in Malmo, Sweden, and Singapore. All are certified to EN:ISO13485 (2012) and can use the same validated raw-material ingredients and processes so that the same products can be produced at any of the sites.

As MRC informed before, in March 2017, Clariant announced that it had been awarded a contract by Dongguan Grand Resource Science & Technology Co. Ltd. to develop a new propane dehydrogenation unit in cooperation with CB&I. The project includes the license and engineering design of the unit, which is to be built in Dongguan City, Guangdong Province, China. The Dongguan plant will be one of the largest single-train dehydrogenation units in the world. Clariant's technology partner CB&I will base the plant's design on its Catofin® catalytic dehydrogenation technology, which uses Clariant's tailor-made Catofin catalyst and Heat Generating Material (HGM).

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
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