Hexion shareholders approve acquisition by private equity firm

Hexion shareholders approve acquisition by private equity firm

MOSCOW (MRC) -- Hexion Holdings Corporation has announced that stockholders holding approximately 64.32% of the outstanding shares of common stock of the Company delivered to the Company written consents approving the proposed acquisition of the Company by affiliates of American Securities LLC, according to MorningStar.

Under and subject to the terms of the definitive merger agreement with affiliates of American Securities LLC, Hexion stockholders will be entitled to receive USD30.00 in cash for each share of common stock they own.

Hexion last month entered into a definitive agreement to be acquired by American Securities for USD2.06bn, including the assumption of around USD1.24bn in net debt, for a total enterprise value of around USD3.3bn.

The sale to American Securities, along with the earlier deal to sell its epoxy business to Westlake Chemical, concludes Hexion’s evaluation of strategic actions aimed at maximising shareholder value.

As MRC reported before, in July 2021, Hexion Inc., a major American manufacturer of phenol and bisphenol A (BPA), has recently announced that in order to help address climate change, it has committed to reduce absolute carbon emissions by 20% by 2030.

Asd in November,2021, Hexion Holdings Corporation announced that as a result of its ongoing strategic review it had entered into a definitive agreement to sell its epoxy-based Coatings and Composite businesses, which includes the epoxy speciality resins and base epoxy resins and intermediates product lines (together, the “Epoxy Business”) for approximately US1.2bn to Westlake Chemical Corporation.

Based in Columbus, Ohio, Hexion Inc. is a global leader in thermoset resins. Hexion Inc. serves the global adhesive, coatings, and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries.

Saratov plant of polymeric materials began work in Engels

MOSCOW (MRC) -- NPP POLYPLASTIC has commissioned the Saratov Plant of Polymer Materials (SZPM) for compounding engineering plastics, the company said.

After reaching full production capacity, SZPM will produce about 20,000 tons of polymer composite materials per year based on polypropylene (PP) and polyamide (PA) to replace imports of engineering plastics in the domestic market.

Two energy-efficient high-tech compounding lines based on Blue Power extruders, which were supplied to SZPM by KraussMaffei (Germany). It is noted that these are the first extruders of this class in Russia. The lines are equipped with modern equipment from leading world and domestic manufacturers: Brabender Technologie, MAAG, Moretto. The installation was carried out by the Russian company Politekhnika.

The total volume of investments in fixed assets during the implementation of the Saratov Plant of Polymeric Materials project amounted to more than 420 million rubles. The enterprise has created 30 high-tech jobs.

The investment project for the creation of the SZPM was implemented with the support of the regional government. Construction work began in March 2021, and the first equipment arrived at the plant in May-June. The project entered the commissioning stage on December 10, 2021.

Research and Production Enterprise "POLYPLASTIC" specializes in the production of thermoplastic composite materials and polymer raw materials for processing by injection molding, blow molding and extrusion and occupies a leading position in the Russian market of compounds based on thermoplastics. The company is in the TOP-10 among European compounders. The total production capacity of the enterprise is more than 115 thousand tons per year.

Covestro inks green hydrogen supply deal with Australia’s Fortescue Future Industries

MOSCOW (MRC) -- Australian Fortescue Metals Group said on Monday it intends to sign a long-term deal to supply German chemicals maker Covestro AG with "green hydrogen" and its derivatives, reported Reuters.

Fortescue Future Industries (FFI) will supply the equivalent of up to 100,000 tonnes of green hydrogen per year once the deal is formalised, it said on its website.

"This collaboration reinforces that green hydrogen is a practical, implementable solution for a range of difficult-to-decarbonise industries," FFI Chief Executive Officer Julie Shuttleworth said.

Under the deal, green hydrogen - a clean-burning fuel made by using energy from renewable sources to electrolyse water - will potentially be supplied to Covestro in Asia, North America and Europe from 2024 onwards.

Fortescue, which aims to become carbon-neutral by 2030, has signed a string of projects through FFI over the past year to underline its push to transition from a pure-play iron ore producer to a green energy firm.

FFI expects to spend between USD400 million and USD600 million this financial year to develop green trains, trucks and shipping, as welll as decarbonisation technologies. It also expects to expand its green hydrogen production to 15 million tonnes per year by 2030.

As MRC informed before, in April 2021, DSM completed the sale of the resins & functional materials businesses to Covestro for EUR1.6 billion (USD1.9 billion), including EUR1.4 billion in cash.

We remind that Covestro closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's estimated consumption of PC granules (excluding imports and exports to/from Belarus) decreased in the first eleven months of 2021 by 11% year on year due to a major fall of imports and higher exports. Thus, overall estimated consumption in Russia totalled 74,300 tonnes in January-November 2021 versus 83,600 tonnes a year earlier.

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc. With 2020 sales of EUR 10.7 billion, Covestro has 33 production sites worldwide and employs approximately 16,500 people (calculated as full-time equivalents).

Pipe extruder Aliaxis acquires fittings maker Harco

Pipe extruder Aliaxis acquires fittings maker Harco

MOSCOW (MRC) -- In a move that has ramifications for the Canadian market, Brussels-based piping systems maker Aliaxis SA is acquiring Harco, a Lynchburg, Va.-based producer of gasketed fittings, said Canpastics.

The financial terms of the deal have not been announced. Harco will become part of Ipex Group, an Aliaxis brand and company that has corporate headquarters in Oakville, Ontario. Ipex also has manufacturing facilities and distribution centres across North America and a U.S. headquarters, Ipex USA LLC, in Pineville, N.C.

Ipex makes a range of thermoplastic piping systems for the North American market. Harco’s annual revenues were roughly USD75 million in 2021, Aliaxis officials said in a Jan. 19 news release.

“Harco is a well-established brand in municipal, irrigation and agriculture end-markets,” Aliaxis CEO Eric Olsen said. “With this acquisition, we will continue to strengthen our presence in the U.S."

As per MRC, Aliaxis (Brussels) acquired the remaining shares in its Chilean competitor Vinilit (Santiago de Chilel) in a deal the financial details of which were not disclosed. The Belgian group already owned a 40% stake in Vinilit and bought the outstanding shares from construction group Pizarreno (Santiago / Chilel), which in turn belongs to Etex (Brussels / Belgium).

We remind, Ipex has completed its stock purchase of Silver-Line Plastics. Silver-Line Plastics is a U.S. manufacturer of plastic pipe products with production facilities in North Carolina, Oklahoma, and Florida.

The Aliaxis Group is a leading global manufacturer and distributor of primarily plastic fluid handling systems used in residential and commercial construction, as well as in industrial and public infrastructure applications.

COVID-19 - News digest as of 25.01.2022

1. Sumitomo Chemical to expand LCP capacity in Japan

MOSCOW (MRC) -- Sumitomo Chemical is building additional production lines for its liquid crystal polymer (LCP) super engineering plastic at the company's site in Ehime, said the company. This expansion will increase the group’s production capacity of LCP by around 30%, it said in a statement. The new production lines are scheduled to be completed in the summer of 2023. LCP has been used for a broad range of applications, including electronic components for PCs and smartphones. Demand for LCP is continuing to grow strongly as the rollout of 5G data communications systems is progressing at scale, while electric vehicles are becoming more popular on the back of accelerated efforts to mitigate environmental impact. To immediately address a recent tightening of the global supply-demand conditions, Sumitomo Chemical has decided to construct new facilities to increase its production capacity for LCP.