Synthomer to buy Omnova for USD824m

MOSCOW (MRC) -- Polymer maker Synthomer Plc said it has agreed to buy Omnova Solutions Inc (OMN.N) for an enterprise value of USD824 million in a bid to strengthen its global position, said Reuters.

Synthomer is offering Omnova USD10.15 for each share, a premium of 58% to Omnova’s closing price on Tuesday. Shares of Synthomer fell 5% to 352.4 pence, making them the top loser on the FTSE 250 index.

Acquiring Omnova will help Synthomer bolster its footprint in Europe and Asia and help penetrate into China, Synthomer said in a statement.

The deal will be financed through a rights issue of up to USD257 million and is likely to be completed by late 2019 or early 2020.

Upon completion, Synthomer expects the deal to add to its earnings in the first financial year and expects an annual pre-tax cost savings of USD29.6 million by the end of the third year.

Separately, Omnova said its second-quarter profit fell over 33% to USD5.6 million, hurt by volatile markets and challenging economic conditions, it said in a statement.

MRC

LANXESS intensifies its blow-molding activities

MOSCOW (MRC) -- The specialty chemicals company LANXESS envisages an extensive range of potential applications for blow-molded components made from technical plastics in automobiles, said the company.

On the one hand, the global trend toward more turbocharged combustion engines that are both efficient and climate-friendly is continuing. This is leading to increased demand for air management components, especially blow-molded charge air pipes, with Asia in particular being a major growth market because the market share of turbocharged engines here is still comparatively low. On the other hand, the number of natural-gas-powered vehicles is increasing all the time, and fuel cell technology is being heralded as a new growth technology. Blow-molded polyamide liners are already used in compressed natural gas and are also best choice for hydrogen tanks.

These trends motivated the High Performance Materials (HPM) business unit at LANXESS not only to set up a global team tasked with developing blow-molding materials and their applications in modern powertrains, but also commissioning a state-of-the-art blow-molding system at the technical center in Dormagen. “Having our own processing equipment ensures that our blow-molding product types possess excellent processing properties,” said Dr. Klaus Kusters, who is responsible for developing the blow-molding business field at HPM. “Our customers benefit directly from in-depth processing expertise. The new system will also allow us to offer targeted assistance, for example during troubleshooting or at the start of series production."

LANXESS is a leading specialty chemicals company with sales of EUR 7.2 billion in 2018. The company currently has about 15,500 employees in 33 countries and is represented at 60 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives, specialty chemicals and plastics. LANXESS is listed in the leading sustainability indices Dow Jones Sustainability Index (DJSI World and Europe) and FTSE4Good.
MRC

Shandong Dongming to halt production at No. 2 propylene unit

MOSCOW (MRC) -- Shandongis in plans to shut its No. 2 propylene unit for maintenance, according to Apic-online.

A Polymerupdate source in China, informed that, the company is likely to halt operations at the unit on July 13, 2019. The unit is expected to remain under maintenance for about four weeks.

Located at Dongying, in Shandong province of China, the No. 2 propylene unit has a production capacity of 100,000 mt/year.

As MRC informed before, in March 2018, Dongming Hengchang Petrochemical selected Spheripol polypropylene (PP) technology from LyondellBasell for implementation at a plant in Heze City, Shandong Province, China. The plant will be capable of producing 200,000mt of PP per year. Grades of PP produced using the Spheripol process are often used to make film for the safe storage of food and plastic pipes for the delivery of drinking water, as well as wastewater removal and sterile syringes in the healthcare sector.
MRC

LyondellBasell names Ken Lane executive vice president, Global Olefins & Polyolefins

MOSCOW (MRC) -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, has announced Kenneth (Ken) Lane will assume the role of executive vice president, Global Olefins & Polyolefins (O&P) effective July 15, as per the company's press release.

Lane will have responsibility for the O&P Americas and O&P Europe Asia International (EAI) segments, reporting to Chief Executive Officer Bob Patel.

"Ken brings a unique perspective and set of skills to the table. He has worked around the globe and gained valuable experience in all facets of our business including manufacturing, marketing, mergers and acquisitions, profit and loss management and strategy," said Patel. "His proven track record in value creation will enable LyondellBasell to further build upon the very solid foundation that is today's O&P business."

Prior to joining LyondellBasell, Lane held a variety of positions with BASF, including president of the Monomers Division and president of BASF Catalysts. Before BASF, Lane also held a number of positions with BP Chemicals. Lane earned a Bachelor of Science in civil engineering from Clemson University and a Master of Science in management from the University of Alabama.

Lane will be based in Houston, Texas.

As MRC wrote previously, in August 2016, LyondellBasell made the final investment decision to build a high density polyethylene (HDPE) plant on the US Gulf Coast. The plant will have an annual capacity of 1.1 billion pounds (500,000 metric tons) and will be the first commercial plant to employ LyondellBasell's new proprietary Hyperzone PE technology. The start-up of the new plant is scheduled for 2019.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

Russia says organic chloride level in Ust-Luga oil at normal level

MOSCOW (MRC) -- Organic chloride levels in oil loaded at Russia’s Baltic Sea port of Ust-Luga stood at 3.7 parts per million (ppm) on Monday, a level well within the normal range, reported Reuters with reference to Russia’s energy ministry.

Organic chloride levels have been closely scrutinized following a major oil contamination earlier this year. The ministry said it expected levels this week to range from 3.5 to 4.7 ppm. The maximum permitted level is 10 ppm, it said.

We remind that Russia's Druzhba pipelinewas halted in April after excessive levels of organic chloride used in oil extraction were found on the million-barrel-per-day pipeline that crosses Belarus and serves customers as far west as Germany.

As MRC wrote before, in early June 2019, the Czech oil refinery at Litvinov, owned by PKN Orlen unit Unipetrol, started receiving oil from state emergency reserves due to halt in Russian supplies via the Druzhba pipeline.
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