Gurit adjusts operating profit guidance for FY 2018 and announces divestment of Composite Components business in 2019

MOSCOW (MRC) -- Swoss Gurit, a worldwide leading developer and manufacturer of advanced composite materials, components and technologies, has announced a revaluation of its operating profit potential for fiscal year 2018 and both restructuring and divestment of Composite Components business in 2019, as per MarketScreener.

Operating profit margin for the full year 2018 is now expected to come in at 6.5-7.5 % of net sales.

Based on the recent business performance with continued losses in the Composite Components business, the Company revises its operating profit guidance down from the previously communicated mid-level of the 8-10% target range to an expected 6.5-7.5% operating profit margin range for the full year 2018. This is caused by higher losses and restructuring expenses in Composite Components compared to what was expected at half year 2018.

Without the losses in Composite Components, Gurit would have exceeded the margin guidance range of 8-10% in CY 2018 in its continued business.

Gurit has decided to restructure the Composite Components business and to concentrate the component manufacturing in Hungary in 2019. Moreover a divestment process for Composite Components has been initiated.

As MRC informed before, in June 2017, Gurit announced that it had renewed its distribution agreement with Maricell S.r.l., an Italian producer of closed-cell PVC structural foam. Under the terms of the agreement, Gurit will continue to distribute all Maricell PVC globally until December 31, 2020, with further extension options.

The companies of Gurit Holding AG, Wattwil/Switzerland, (SIX Swiss Exchange: GUR) are specialized on the development and manufacture of advanced composite materials, related technologies and select finished parts and components. The comprehensive product range comprises fibre reinforced prepregs, structural core products, gel coats, adhesives, resins and consumables. Gurit supplies global growth markets with composite materials on the one hand and composite tooling equipment, core material wind turbine blade kits, structural engineering and select finished parts on the other. The global Group has production sites and offices in Switzerland, Denmark, Germany, Hungary, Italy, Poland, Spain, the U.K., Turkey, Canada, the U.S.A., Ecuador, New Zealand, India and China.

DUNA-USA expands manufacturing facility

MOSCOW (MRC) -- DUNA-USA (Baytown, TX, US), which specializes in the research and development of customized polyurethane and epoxy systems, has completed a multi-year, multi-million dollar expansion of its headquarters and manufacturing facility, as per Compositesworld.

The expansion, which began in fall 2016, includes the addition of a new manufacturing building and new office building, as well as a proprietary automated fabrication department (including a 5-axis CNC machine and robotic warehouse), and an additional continuous polyurethane production line.

DUNA-USA manufactures polyurethane and polyisocyanurate foams, as well as custom systems for the aerospace, automotive, insulation, marine and construction industries. Standard applications for rigid materials include cold chain, LNG insulation, composite layup tooling, thermoforming, signmaking and CAD verification tooling. Pourable applications include pipe supports, core materials, and design elements for theming and scenic applications.

Sika acquires market leader in roofing and waterproofing systems in Romania

MOSCOW (MRC) -- Sika has agreed to acquire Arcon Membrane Srl, a leading manufacturer of roofing and waterproofing systems in Romania, as per the company's press-release.

By acquiring Arcon, Sika will significantly strengthen its position in the Romanian market and extend its product portfolio to meet the increasing demand for complete solutions in the roofing and waterproofing markets. The acquired business generates annual sales of CHF 23 million. The transaction is subject to approval by the Romanian anti-trust authority.

With the acquisition of Arcon Sika will become the clear market leader in the Romanian roofing and waterproofing markets. It is also a further step in Sika’s expansion in bituminous membranes, following several acquisitions in recent years such as Index in Italy, KVK in the Czech Republic, and Bitbau Dorr in Austria.

Arcon is based in Sfantu-Gheorghe, 200 km north of Bucharest. In its fully automated manufacturing facility it produces technologically advanced bituminous membranes, with the potential to also serve other South East European markets. Furthermore, Arcon’s product portfolio also includes thermal insulation systems for facades and roofs, combining EPS (expanded polystyrene) sheets and bituminous membranes. The acquired technologies will perfectly complement Sika’s roofing, waterproofing, and building envelope systems.

Ivo Schadler, Regional Manager EMEA: "Arcon’s market leading position, comprehensive product portfolio, and established distribution network will support our growth strategy by opening up new cross-selling opportunities, as well as increasing our market access and the penetration of key projects. We would like to welcome the Arcon employees to our Sika team and look forward to growing our business together."

ADNOC and Cepsa award engineering contract to Spainish Tecnicas Reunidas

MOSCOW (MRC) -- State energy giant Abu Dhabi National Oil Company (ADNOC) and oil firm Cepsa have awarded a contract to design a linear alkylbenzene plant in Abu Dhabi to Spanish engineering company Tecnicas Reunidas, reported Reuters with reference to ADNOC.

The plant, to be built in the Ruwais Derivatives Park, will be the first derivative unit developed under ADNOC’s 165 billion dirham (USD45 billion) Ruwais downstream investment programme.

ADNOC’s statement did not give the value of the front-end engineering design contract.

The plant making linear alkylbenzene - used to make detergents - will be jointly operated by ADNOC and Cepsa, a Spain-based energy company owned by Abu Dhabi state investor Mubadala.

When it comes on-stream, the plant will produce 225,000 tonnes of normal paraffins per year and 150,000 tonnes of linear alkylbenzene per year, the statement said.

As MRC informed before, in May 2017, Abu Dhabi National Oil Company (Adnoc) announced that it would work together with the Austrian producer OMV to help grow Adnoc’s downstream businesses.

Pertamina signs SK, Hyundai for USD4 billion refinery upgrade

MOSCOW (MRC) -- Indonesian energy giant Pertamina has appointed South Korea’s SK Engineering & Construction Co and Hyundai Engineering Co Ltd as engineering and construction contractors for its Balikpapan refinery upgrade, reported Reuters.

The USD4 billion upgrade project - at the Balikpapan refinery in East Kalimantan province on the island of Borneo - will now start at the beginning of 2019, state-owned Pertamina executive Ignatius Tallulembang said at a media briefing.

Spokesmen for both SK and Hyundai confirmed signing the project contracts, but gave no further details.

Development will be jointly undertaken with Indonesia’s PT Pembangunan Perumahan Tbk and PT Rekayasa Industri (Rekind), Tallulembang said. When the upgraded refinery goes into operation in August 2023, it will produce fuel to the ‘Euro V’ emissions standard, he said.

Southeast Asia’s largest economy hopes to reduce its dependence on costly oil product imports, which meet around a third of its fuel needs of around 1.4 million barrels per day.

A programme launched in late 2014 to double Indonesia’s refinery output has faced multiple setbacks, and the country has continued to struggle to attract investment in the sector.

Earlier plans to upgrade Balikpapan with Japan’s JX Nippon Oil & Energy Corp fell apart in early 2016, but as recently as August this year it was seeking to revive that partnership or form a new one with Azerbaijan’s Socar.

At the same event on Monday, Pertamina signed a framework agreement with Oman’s Overseas Oil and Gas LLC (OOG) to develop a new USD10 billion refinery and petrochemical complex at Bontang, also on Borneo.

State-owned OOG, which is taking a majority stake in the project, was chosen for its financial capability, Pertamina chief executive Nicke Widyawati said. Pertamina is in talks with OOG to increase its share of the project to 20-30 percent from 10 percent under the current plan, Tallulembang said.

It was not immediately clear how much of the project cost will be carried by OOG.

Widyawati declined to comment on why Japan’s Cosmo Energy Holdings, earmarked in January for partnership in the project, was not included in the latest agreement.

Over the next year, Pertamina and OOG plan to carry out a feasibility study for the project. Once completed, OOG is expected to supply 300,000 bpd of crude oil to the refinery, Tallulembang said.

Pertamina now expects all six of its refinery projects - including the Balikpapan, Cilacap, Balongan and Dumai refinery upgrades, and the Bontang and Tuban grassroots developments - to be completed by the end of 2026, Widyawati said.

"We recognize that the refineries have experienced delays (but) better late than never," Widyawati said.

As MRC informed before, in September 2018, Eni and PT Pertamina (Persero) signed in Porto Marghera, at Eni Green Refinery, a Memorandum of Understanding further expanding the relationship into green refinery.

Pertamina is an Indonesian state-owned oil and natural gas corporation based in Jakarta. It was created in August 1968 by the merger of Pertamin (established 1961) and Permina (established 1957). Pertamina is the world's largest producer and exporter of liquefied natural gas (LNG).