Mexichem acquired Sylvin Technologies

MOSCOW (MRC) -- Mexichem has announced that it has acquired Sylvin Technologies Inc., a niche PVC compounds manufacturer based in Denver, Pennsylvania for an Enterprise Value of USD39 million based on a debt free cash free valuation, according to MarketWatch.

Sylvin is expected to have total sales of $29 million for the full year of 2017. It has a 30-year history of serving a broad range of industries including: wire and cable, electrical, industrial, automotive, medical and food products. Mexichem will consolidate Sylvin under the Company’s Vinyl Business Group as part of its Compounds Business Unit, a leading supplier of PVC compound solutions serving the global market. Our Vinyl Business Group reported sales of USD2.2 billion for the trailing twelve months ended September 30, 2017.

Combining Sylvin’s customer-focused business model, strong team and application development capabilities with Mexichem’s global compounds business will allow Mexichem to deliver even greater value to its combined U.S. customers. Sylvin’s key raw materials are PVC resin, plasticizers and stabilizers, which should bring synergies to Mexichem’s Vinyl operations. "This transaction continues Mexichem’s strategy of completing bolt-on acquisitions that expand its portfolio of specialty products and applications and give access to new end markets and customers, driving future growth. These products and applications can be further leveraged globally as we expand in other parts of the world” said Sameer S. Bharadwaj, President of the Compounds Business Unit.

"The acquisition of Sylvin is a further step towards downstream integration in specialty products with higher margins that enables sustainable growth of our return on invested capital over our weighted average cost of capital in the long run," Antonio Carrillo, CEO of Mexichem remarked.

As MRC informed previously, on 1 December 2014, Mexichem, Mexican PVC and specialty chemicals maker, announced that it completed the acquisition of Vestolit GmbH. Based in Marl, Germany, Vestolit is EuropeпїЅs only manufacturer of High Impact Suspension PVC (HIS-PVC) for weather-resistant windows and is Europe"s second-largest producer of paste PVC for floors and wallpapers. Vestolit also produces alkyl-chlorides, a value-added intermediary used for a variety of chemical and industrial applications and is vertically integrated in a single site from Salt through Specialty PVC. Total installed PVC capacity is 415,000 tons per year.

Mexichem is a global leader in plastic piping and one of the world’s largest chemical and petrochemical companies. It has more than 50 years of experience. The company contributes to global development by delivering an extended portfolio of products to high growth sectors such as infrastructure, housing, datacom and water management, among others. With operations in 37 countries, 120 facilities worldwide and more than 18,000 employees.

KRAIBURG TPE to present new solutions at NPE 2018

MOSCOW (MRC) -- KRAIBURG TPE, the global competence leader in thermoplastic elastomer compounds will be participating at NPE 2018, the National Plastics Exposition and will present its new solutions, as per the company's press release.

This exhibition will be held on May 7-11, 2018 at the Orange County Convention center in Orlando, Florida.

KRAIBURG TPE is a respected specialist in custom-engineered TPE solutions and provides local support to its customers in the form of a distinctive service bundle. The spectrum includes project-tailored advice on which engineered plastic compounds to use, including the color and application-specific requirements, processing recommendations, expert advice and unrivalled customer service. Local and global contact persons ensure a smooth customer management process with short delivery times. All materials are manufactured at production sites in Europe, the Asia-Pacific region and North America, according to the same certified quality standards: ISO 9001 & 14001.

On the basis of specific innovative applications, trade fair visitors can witness the convincing results of KRAIBURG TPE’s customer-oriented strategy, which also includes target applications within the consumer, industry, automotive and medical markets.

Every three years, the NPE trade show provides the most visible and impactful event for the plastics industry throughout the Americas, according to Jeff Frankish, Managing Director for KRAIBURG TPE in the US. "NPE provides us with the best platform to showcase our expertise, technical capabilities and innovative solutions within the TPE sector. We welcome the opportunity to not only network with key OEMs and processors within the industry, but to also address the challenges presented by our customers and demonstrate the unique products, services and global supply options available through KRAIBURG TPE."

To guarantee reliable deliveries of its TPE compounds on a long-term basis, KRAIBURG TPE is excited to announce its production capacity expansions among its three manufacturing sites in Germany, the United States and Malaysia through the addition of new compounding lines.

In the United States, the newly-built Buford, GA plant went from 6,000 metrics tons to 10,000 metrics tons of capacity. The expansions of production capabilities follow KRAIBURG TPE’s strategic approach to focus on its core competencies: acquiring success by offering strong customer orientation, influential material innovations and structuring themselves for continuous growth.

KRAIBURG TPE will present its EPDM - Adhesion series. This series is targeted towards automotive exterior components as a material solution for applications requiring high UV and weather resistance and optimal adhesion to rubber. With the AD/EPDM/UV series, customers benefit from low processing temperatures that guarantee short cycle times and do not interfere with the flock coating process. Further advantages include long-term process stability and ideal initial adhesion, which is needed for the ejection of parts. When exposed to heat or UV radiation, the EPDM - Adhesion series compounds do not exhibit any oil bleed-out or stickiness, and provide impressive color stability. Typical applications include corner molding, doorsills, glass run channels and window encapsulations.

KRAIBURG TPE’s newly launched range the VS/AD/HM series offers silky, satin-smooth surfaces that feature high scratch and abrasion resistance, excellent durability and resistance against chemicals such as sebum oil, creams and common household detergents. The series is designed for consumer electronics applications.

The VS/AD/HM series has been specially developed for applications that require a silky and velvety surface, along with excellent adhesion to polar thermoplastic compounds such as PC, ABS, PC/ABS, PU, ASA, SAN, PA12 and PA6. Available in natural color and black, the compounds also have impressive processing properties. Example applications include controllers for games consoles, remote controls and headphones, toys, protective covers for mobile phones, tablets and cosmetics packaging.

Among other innovations, KRAIBURG TPE will also showcase its FC/ht series. This series is the highly transparent material solution for applications such as seals in food packaging, tooth-brush handles, detergent pods and toys. The compounds are characterized by its excellent adhesion to PP as well as its high-flow processing behavior. The series offers a smooth, non-sticky feel and because of its high transparency, it is also ideal for applications requiring custom pigmentation or vibrant colors, a forte of KRAIBURG TPE.

As MRC wrote before, in August 2017, a new material development was announced by Germain thermoplastics elastomer manufacturer Kraiburg TPE - a new TPE series with outstanding adhesion to EPDM. The new grades are part of the Thermolast K family and are said to combine excellent adhesion to EPDM with high UV resistance and very good weatherability, in addition to good flow properties. The new material series is ideal for automotive exterior applications. Kraiburg TPE mentioned pilot projects which include window seals consisting of EPDM profiles with moulded TPE corner joints.

Kraiburg Rubber (Suzhou) Co. Ltd. was established in 2005 and is part of the Waldkraiburg-based German company Kraiburg Holding GmbH & Co. KG. The company produces a wide range of standard rubber compounds (based on NR, EPDM, CR, AEM, SBR, FKM, etc.) for automotive, building and construction applications, and other industrial markets as well as highly customised products for all kinds of industries at its Suzhou site. The compounds are produced on highly automated and fully process-controlled mixing lines, based on state-of-the-art technology. The company has 130 employees.

Cruz urges biofuels policy revamp at rally for bankrupt U.S. refiner

MOSCOW (MRC) - Republican Senator Ted Cruz of Texas urged President Donald Trump’s administration to push for an overhaul of the nation’s biofuels policy, during a rally at a Pennsylvania oil refinery that blames its bankruptcy on the controversial regulation, as per Hydrocarbonprocessing.

"We need a federal government that stands up for workers, not against them," Cruz, whose state is home to numerous oil refining companies, told a cheering crowd of 1,200 people gathered in a tent on the grounds of the Philadelphia Energy Solutions plant.

The oil industry and the corn lobby have been at odds over the causes of the Philadelphia-area refiner’s insolvency, which has become a touchstone in the debate over whether the U.S. Renewable Fuel Standard (RFS) needs to be rewritten. The decade-old regulation requires U.S. refiners to blend biofuels like corn-based ethanol into their fuel, or buy credits from those who do. While it has created a lucrative market for corn states like Iowa and Nebraska, refiners like Philadelphia Energy Solutions (PES) that have no blending facilities say it is unfair and costly.

PES, which employs more than a thousand people, declared bankruptcy in January and placed the blame squarely at the feet of the RFS. The corn industry has pushed back, pointing out that other refining companies - like top U.S. refiner Valero Energy Corp - are raking in their biggest profits in years, and suggesting PES’ problems may have had more to do with regional refining economics and management choices. Reuters reported this week that PES’ investor backers - led by the Carlyle Group - withdrew at least $594 million in a series of dividend-style distributions from PES since 2012, most of them backed by loans the company ultimately could not repay. The distributions, combined with a shift in U.S. energy economics, made complying with the RFS a challenge.

PES is asking a bankruptcy judge to shed roughly USD350 million of its current RFS compliance costs as part of its restructuring package. Complying with the RFS was more expensive than the company’s payroll, and ranked only behind purchasing crude oil as its biggest cost, according to PES.

BASF profit rises in fourth Quarter

MOSCOW (MRC) -- German chemicals giant BASF SE reported that its net income for the fourth-quarter of 2017 rose to EUR1.54 billion from EUR689 million in the same period the previous year, while earnings per share increased to EUR1.68 from EUR0.75, as per company's press release.

Adjusted earnings per share amounted to EUR1.29, compared with EUR0.79 previously. Income from operations or EBIT before special items in the fourth quarter was EUR1.9 billion, up by 58% from the same period of the prior year. Significantly higher earnings in the Chemicals, Agricultural Solutions and Oil & Gas segments as well as in Other compensated for lower earnings in the Functional Materials & Solutions and Performance Products segments, BASF said.

BASF posted sales of EUR16.1 billion, which represents growth of 8% compared with the same quarter of 2016. Prices rose by 9%. BASF's sales volumes increased by 4%; this was driven by all segments with the exception of Oil & Gas. By contrast, negative currency effects were significantly higher and reduced sales by 5%.

BASF said it will propose a dividend of EUR3.10 per share, EUR0.10 higher than in the previous year. For 2018, BASF said it expects the global economy and chemical production to grow at roughly the same pace as in 2017. Further growth is expected in all regions and BASF anticipates a continuation of the recovery already underway in Brazil and Russia. In addition to these generally positive baseline conditions, however, BASF also sees increased market volatility. Furthermore, the US dollar is having a negative impact on sales and earnings.

The forecast for 2018 takes into account the agreed acquisition of significant parts of Bayer's seed and non-selective herbicide businesses, which is expected to close in the first half of 2018, BASF said. Based on the timing of the acquisition, the seasonality of the businesses to be taken over, and the anticipated integration costs, this is likely to have a positive impact on sales and a negative impact on earnings for the Agricultural Solutions segment and the group as a whole in 2018.

Honeywell and Equate sign agreement to enhance productivity of petrochemical plants in Kuwait

MOSCOW (MRC) -- Honeywell and Equate Petrochemical Company, a global producer of petrochemicals, have announced the signing of a memorandum of understanding to further the development of innovative technologies to support operations at Equate’s industrial complexes, as per Hydrocarbonprocessing.

Equate is currently the owner and single-operator of several fully integrated world-class petrochemical complexes in Kuwait, North America and Europe. The company is Kuwait’s first international petrochemical joint venture and the world’s second-largest producer of ethylene glycol (EG).

"As a global software-industrial company, Honeywell has supplied the petrochemical industry with leading technologies and services for decades," said George Bou Mitri, president of Honeywell Kuwait, Iraq, Jordan and Lebanon. "After half a century in Kuwait, Honeywell’s commitment to deliver solutions that enhance the productivity of our customers is as strong as ever. We are proud to work with Equate to build local petrochemical capability that supports the New Kuwait 2035 strategy to become a global hub for the oil, gas and petrochemicals industry."

As part of the MOU, Equate will test newly released Honeywell technologies, including the latest additions to the Honeywell Connected Plant portfolio, as well as assess Equate’s requirements and new ideas at Honeywell facilities. The companies will join efforts to analyze Equate’s needs and create added value through increased productivity and reduced downtime, setting a new standard for the petrochemical industry in the region.

"We are firm believers that success requires input from all our key stakeholders, including our technology suppliers, such as Honeywell," said Tareq Jafar Al-Kandari, vice president of Technical Services, Equate. "Being part of the global petrochemical industry with operations in three continents and contributing to various economies, Equate is strongly committed to absolute reliability and sustainability in all operations and activities. Our relationship with Honeywell is based on innovation and trust, which are key factors to ensure overall progress."

Honeywell has had a presence in Kuwait for more than 53 years and is the leading automation provider in the country that has about 9% of the world’s oil reserves and is among the world’s top ten oil exporters. Honeywell has successfully delivered more than 2,000 projects in Kuwait and services 50 sites daily.

As MRC informed before, Kuwait-based Equate Petrochemical Company continued its global growth through its wholly owned subsidiary MEGlobal with the launch of work on a new world-scale ethylene glycol (EG) manufacturing facility in Freeport, Texas, US, in August 2016. With this plant, Equate is the first Kuwaiti petrochemical company to invest in the US. The new facility, to be completed during 2019, will increase Equate’s monoethylene glycol (MEG) capacity by 750,000 metric tonnes annually and will enhance the company’s global presence to meet customer needs.

Equate is the world’s second largest EG producer with 12% of the global market share.

Equate Petrochemical Company K.S.C.C., together with its subsidiaries, manufactures, markets, and distributes petrochemical products. The company produces ethylene, polyethylene terephthalate, polypropylene, styrene monomer, paraxylene, heavy aromatics, and benzene; polyethylene for various applications, including flexible and food packaging, industrial packaging, agricultural films, HIC, and others; and monoethylene and diethylene glycol that are used in polyester fiber for fabrics, water-based adhesive materials, shoe polish, and printer inks, as well as automotive anti-freeze and coolants. The company sells its products in Kuwait and other Gulf Cooperation Council countries, North America, Asia, Europe, and internationally. Equate Petrochemical Company K.S.C.C. was founded in 1994 and is headquartered in Safat, Kuwait.