Constantia Flexibles targets growth with acquisition of FFP Packaging Solutions

MOSCOW (MRC) -- Constantia Flexibles has acquired FFP Packaging Solutions in a bid to expand its market position and build stronger relationships in the UK food sector, said Packagingnews.

The deal for an undisclosed sum, is the first consumer plant for Constantia in the UK. FFP operates in flexible packaging and offers flow wraps, lidding films and pre-made pouches. The Northampton-based firm has a workforce of over 100.

Pim Vervaat, chief executive of Constantia Flexibles, said: “The acquisition aligns well with our Vision 2025 growth strategy of investing in competitive businesses with potential for future growth. FFP Packaging Solutions joining the Constantia Flexibles Group will expand our overall market position. Its significant experience and credibility allow for strong relationships across the UK food industry. We will be working with the existing management team to continue driving the revolution of sustainable flexible packaging in the UK and beyond. FFP chief executive and managing director David Cooper will remain with the company along with the management team.

Robin Chudley, chairman of FFP Packaging Solutions, added: “I am extremely proud of FFP’s position in the UK flexible packaging market and the respect that FFP has developed across the industry. This legacy is something that was started by my father back in 1962 and has been continuously built upon through my own leadership of the business and more recently since the appointment of the management team in place today.

"The sale of FFP to Constantia Flexibles is another important step on the firm’s journey and I am delighted that David and his team will remain with the business to ensure a successful integration and continue to build on FFP’s success long into the future."

We remind, Dow and Mura Technology have announced plans to build multiple advanced recycling facilities in the US and Europe, which the companies say could add as much as 600 kilotons (KT) of aggregate advanced recycling capacity by 2030 and will apparently enable the HydroPRS technology to be scaled globally. In 2021, Dow and Mura initially announced plans to collaborate. The companies say they are now aiming to scale the advanced recycling of plastics with multiple new facilities in both Europe and the US, which could each offer 120 KT in annual advanced recycling capacity. Overall, the project could reportedly offer up to 600 KT in annual advanced recycling capacity by 2030, which the companies claim is the largest commitment of its kind.

Dow declares quarterly dividend of 70 cents per share

Dow declares quarterly dividend of 70 cents per share

MOSCOW (MRC) -- Dow has declared a dividend of 70 cents per share, payable September 9, 2022, to shareholders of record on August 31, 2022, said the company.

This marks the 444th consecutive dividend paid by the Company or its affiliates since 1912.

As per MRC, Dow has signed a memorandum of understanding (MoU) with Chinese food and beverage firm Want-Want for zero-solvent emissions and to develop a circular economy for flexible packaging, said the company.

We remind, Dow, recycler KW Plastics of Troy, Alabama; molder Core Technology Molding Corp. of Greensboro, North Carolina; and sustainable golf company Evolve Golf of Wilmington, North Carolina, collaborated to reuse high-density polyethylene (HDPE) plastic mesh fencing from the previous year’s GLBI in the form of 20,000 ball markers and 5,500 divot tools for this year’s event.

Dow combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance (ESG) leadership to achieve profitable growth and deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world

Greiner Packaging joins RECOUP

Greiner Packaging joins RECOUP

MOSCOW (MRC) -- Greiner Packaging UK & Ireland (GPUK) has joined RECOUP, the UK charity and leading authority providing expertise and guidance across the plastics recycling value chain, said the company.

“Built on a network of valued members, collaboration is central to RECOUP’s activities, so we are very pleased that GPUK has become a member,” says RECOUP CEO Stuart Foster. “The organisation is committed to securing sustainable, circular, and practical solutions for plastic resources both in the UK and worldwide. Our membership includes over 170 businesses and organisations from brands and retailers, to recyclers, polymer producers and a range of other stakeholders.

“RECOUP’s aims remain the same as those that were agreed when we began 32 years ago: to help improve plastic recycling and recyclability; ensure plastic uses resources efficiently; and to protect the environment,” says Stuart Foster. “However, requirements and expectations have changed a great deal over three decades, from producer responsibility to the circular economy.

"Having the broadest possible spectrum of members from across the value chain enables us to have a good awareness and understanding of everyone’s opportunities and issues, which in turns allows us to deliver cross-sector balanced information and support, backed by science."

We remind, starting from January 1, 2023, Manfred Stanek, current CEO of Greiner Packaging, will become part of the Greiner AG Executive Board as Chief Operating Officer (COO). Following Manfred Stanek’s appointment to the Executive Board, Greiner will be managed by three Executive Board members for the first time in the company’s history. The newly created position focuses on the strategic further development of the Greiner Packaging, NEVEON, and Greiner Bio-One divisions.

Henkel increased sales by 8.9% in the first half of the year

Henkel increased sales by 8.9% in the first half of the year

MOSCOW (MRC) -- Germany-based Henkel recorded 8.9% organic sales growth in 1H 022 and raised its full-year guidance, said the company.

In nominal terms, the company's revenue in January-June increased by 9.9% to 10.9 billion euros, according to its report. Net profit fell by half, to 448 million euros from 947 million euros. Earnings before taxes and interest (EBIT) fell to 684 million euros from 1.3 billion euros a year earlier. Adjusted operating profit decreased by 18.5% to 1.17 billion euros.

Western Europe grew 1H organic sales by 2.2%, Eastern Europe by 23.2%, Africa and the Middle East by 3.2% and North America by 9.2% , in Latin America - by 16.9%, in the Asia-Pacific region - by 6.1%. Business unit Adhesive Technologies (adhesives and technologies) in January-June showed organic sales growth of 12.2%, Beauty Care (cosmetics) - 0.4% (8.2%), Laundry & Home Care (cleaners and detergents) funds) - by 7.4%.

According to the new Henkel forecast, organic sales growth in 2022 will be 4.5-6.5%, not 3.5-5.5% as previously expected. The fall in earnings per share is still expected in the range of 35% to 15% excluding changes in exchange rates, EBIT margin - at the level of 9-11%.

In April, the company decided to withdraw from the markets of Russia and Belarus. "Henkel is carefully considering all options and intends to complete the process by the end of the year," the company said in a statement.

Since the beginning of 2022, Henkel's capitalization has decreased by 8.6%, to 27.7 billion euros.

We remind, Henkel Adhesive Technologies strengthens its capabilities for predictive maintenance solutions by investing in Direct-C LTD (Direct-C), Edmonton, Canada. The company has developed a sophisticated sensor technology for the early detection of hydrocarbon leakages. With the investment Henkel aims to further expand its maintenance, repair and overhaul (MRO) business and to drive the implementation of innovative digital applications.

Huntsman announced agreement to sell Textile Effects Division

Huntsman announced agreement to sell Textile Effects Division

MOSCOW (MRC) -- Huntsman Corporation announced it has entered into a definitive agreement to sell its Textile Effects division to Archroma, a portfolio company of SK Capital Partners, said the company.

The total enterprise value of the transaction is approximately USD718 million, which includes the assumption of approximately USD125 million in net underfunded pension liabilities as of December 31, 2021. The acquisition is being partially funded with preferred equity, of which Huntsman is taking up to USD80 million, an amount SK Capital Partners will seek to syndicate prior to the transaction closing.

Over the last twelve months ending June 30, 2022, the Textile Effects division reported sales of USD772 million and adjusted EBITDA of USD94 million. Huntsman anticipates cash taxes on the transaction of approximately USD50 million. Huntsman intends to report Textile Effects as discontinued operations beginning in the third quarter of 2022. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the first half of 2023.

Peter Huntsman, Chairman, President, and CEO commented: "Over the past seven months, we have conducted a comprehensive strategic review of our Textile Effects division, including detailed discussions with a wide range of relevant parties. After evaluating several different options and thoroughly reviewing prospective offers for the business, our Board of Directors decided that SK Capital would be a better owner of the business over the long-term than Huntsman and that the value they offered was in the best interests of our shareholders. After closing, Textile Effects will combine with SK Capital's Archroma business to create a world leader in textile chemicals and dyes, with a leadership in sustainability and innovation.

"We expect the cash proceeds from this divestiture to be deployed in-line with our current balanced capital allocation program which includes strategic investments and acquisitions to further strengthen our core businesses as well as returning cash to shareholders through both our dividend and share repurchase program."

BofA Securities is serving as Huntsman's financial advisor and Kirkland & Ellis LLP is acting as its legal advisor.

We remind, Huntsman Corporation announced the start of commercial operation of a new methylene diphenyl diisocyanate (MDI) splitter at its Geismar site in Louisiana. The USD180 million splitter gives Huntsman the ability to produce more high value, differentiated grades from the crude MDI manufactured at the plant, thereby enabling growth in key customer applications.