SABIC acquires strategic stake in Clariant from 40 North and Corvex

MOSCOW (MRC) -- SABIC, a world leader in chemicals, has agreed to acquire approximately 83 million shares in Clariant, a global specialty chemicals company, from 40 North and Corvex Management, as per Hydrocarbonprocessing.

The acquisition of this approximately 24.9% stake in Clariant will make SABIC the largest Clariant shareholder, and represents another key milestone in SABIC's growth and diversification strategy to become the preferred world leader in chemicals.

This acquisition is part of SABIC's long-term growth strategy to remain committed to product differentiation and creating value for its customers. Clariant is complementary to SABIC's existing specialties business and is well in line with SABIC's strategy of opening up new growth opportunities in specialty chemicals.

SABIC currently has no plans to launch or otherwise effect a full takeover of Clariant.

SABIC and Clariant have already had a successful relationship in their joint venture, Scientific Design, a process technology and catalyst development company. SABIC is looking forward to engaging in discussions with the company.

David Winter, Co-CEO of Standard Industries and Co-CIO of 40 North, said, "SABIC is an established global leader in the chemicals industry with a world-class management team and a long-term, sophisticated vision for the future. We are confident that this transaction allows Clariant to continue on its path to becoming a global specialty chemicals leader."

David Millstone, Co-CEO of Standard Industries and Co-CIO of 40 North commented, "We have been significant shareholders of Clariant since 2016. SABIC's strategic investment in Clariant is a successful outcome and we are pleased to have played a role in making it possible."

The closing of the transaction is subject to completing regulatory approvals.

As MRC informed before, in September 2017, SABIC continued its global expansion with the inauguration of a new polypropylene (PP) pilot plant in Geleen, the Netherlands, and the announcement of a new investment in a state-of-the-art PP extrusion facility to be built at the same location.

Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Thai PTT Global Chemical Pcl (PTTGC) plans to invest USD985 million in a new olefins plant, reported Hydrocarbonprocessing with reference to the company's statement.

PTTGC, the petrochemicals arm of state-owned energy giant, PTT Pcl, n a Jan. 23 filing to the Stock Exchange of Thailand, said that the investment would increase its nameplate capacity to 3.74 million metric tons of olefins a year, up from 2.99 million metric tonnes a year.

The new plant would use naphtha and liquefied petroleum gas as its main feedstock and be located in the Map Ta Phut industrial estate on Thailand's eastern seaboard, the company said in a statement. The new plant is expected to begin commercial operation in 2020, PTTGC said.

PTTGC awarded Samsung Engineering Co., Ltd. the USD790 million engineering, procurement, construction and commissioning (EPCC) contract for its Olefins Reconfiguration Project (ORP), Samsung Engineering reported Wednesday.

As MRC wrote before, PTT is on track to start commercial operations at its new 400,000 mt/year metallocene C6 linear low density polyethylene plant at Map Ta Phut, Thailand, in the first quarter of 2018.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

MOSCOW (MRC) -- SK Global Chemical (SKGC) has taken its No. 2 naphtha cracker off-stream for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in South Korea informed that the company has undertaken an emergency shutdown at the cracker on January 24, 2018. The details on duration of the shutdown could not be ascertained.

Located in Ulsan, South Korea, the No. 2 cracker has a production capacity of 690,000 mt/year.

As MRC informed before, in October 2017, SK Global Chemical, a subsidiary of SK Innovation, entered into an agreement with Dow Chemical to purchase Dow's polyvinylidene chloride (PVDC) business for an undisclosed amount. Through the agreement, SK Global will acquire all of Dow's PVDC business, including its production facility in Michigan, related manufacturing technology and intellectual property, as well as the Saran trademark. According to local sources, the PVDC acquisition is expected to cost under USD86-million.
MRC

MOSCOW (MRC) -- Oman LNG and BP Singapore have signed a major sales and purchase agreement (SPA) for supplying liquefied natural gas (LNG) to the latter, said Hydrocarbonprocessing.

The agreement, a free-on-board (FOB) contract starting from January 2018, will span over a period of seven years for lifting 1.1 million tonnes per year, which is equivalent to approximately 18 LNG cargoes a year. It will be an important boost to the global LNG market where Oman LNG currently contributes a significant amount.

“The new agreement will not only unlock additional reserves but will also sustain our LNG business and expand our LNG business. Oman will continue to be a global preferred destination for sourcing clean energy,” said Mohammed Dr. Al Rumhy, Minister of Oil and Gas and the chairman of Oman LNG. “The revenues from this transaction will benefit Oman’s national economy and boost our gross domestic product and will also boost efforts towards In-Country Value (ICV) and Corporate Social Responsibility (CSR), all of which are significant drivers to the socio-economic fabric of the Sultanate."

The announcement was made by Harib Al Kitani, chief executive officer (CEO) of Oman LNG, and Jonathan Shepard, chief operating officer (COO) of BP LNG. The event was also attended by Al Rumhy as well as several top-level officials from the oil and gas industry in Oman. The LNG plant at Qalhat, in Sur, has the capacity to receive and process additional volumes as it has recently been operating with some spare capacity.
MRC

MOSCOW (MRC) -- The Korea Trade Commission in Sejong said Monday it reached an initial decision on January 18 to impose anti-dumping duties in the range of 3.67%-60.95% on polyethylene terephthalate (PET) film producers from Taiwan, Thailand, and the United Arab Emirates for five years, as per Apic-online.

The anti-dumping duty on Taiwanese companies has been tentatively set to 8.68% for each producers, including Shinkon Material Technology Co., Ltd.

Thailand is expected to receive dumping rates of 3.71%, 3.67% and 3.68%, respectively, for A.J. Plast, Polyplex (Thailand) and other companies.

Lastly, UAE PET film producers are due to receive among the highest dumping rates: 7.98%, 60.95% and 51.48%, respectively, for Flex Middle East FZE, JBF RAK and other producers.

The Korean Ministry of Finance is now tasked with reaching a final decision on the duties, which is expected within three months, according to the Korea Trade Commission, the country's trade watchdog.

The tariffs come after charges that these producers curtailed profits of local producing PET film companies.

PET film is widely used in packaging wrappers, bottle caps and other industrial applications.
MRC