Indorama Corporation acquires 99.02% state-owned shares of Ferganaazot

Singapore’s Indorama Corporation acquires 99.02% state-owned shares in equity capital of Ferganaazot JSC, the State Assets Management Agency said Uzdaily.

The deal cost is USD140 million. Singaporean company will also invest another USD100 million for the modernization of the plant. Term sheet of the transaction on sale of 99.02% state block of shares in equity capital of Ferganaazot was signed on 16 January 2023 at Uzbekistan-Singapore Business Forum, organized on the eve of the state visit of the President of the Republic of Uzbekistan to Singapore.

The agency said that Deloitte works as leading financial advisor of the transaction, the International Finance Corporation (IFC) supports as strategic advisor, while KPMG conducts inpedendent valuation of the Company. The privatization process of the enterprise started in December 2021.Ten Express of Interests were received. Based on qualification results 4 applicants were recognized as fully compliant with the qualification criteria and accepted for the next stage of the process.

The qualified applicants were given the opportunity to conduct their own due diligence of the Company, to review analytical reports on financial, tax, legal and environmental issues, prepared by the Advisor, to meet with the management of the Company and prepare their Binding Offers.

As a result of Binding Offer process, the best offer was submitted by Indorama Corporation Pte. Ltd (Singapore). The submitted purchase price amounts USD140 million (USD130 million plus 107 billion soums) besides investor’s investment obligations of USD100 million for modernization of the company.

Indorama Corporation Pte. Ltd. as one of the largest international producers of mineral fertilizers is capable to conduct deep modernization of the Company, which production assets depreciation level currently exceeds 80%.

Indorama Corporation is an international industrial conglomerate with more than 160 manufacturing facilities in 38 countries. Indorama is one of the world's leading manufacturers of fertilizers, polymers, industrial chemicals, fibres, textiles, agricultural and medical gloves with over 45,000 employees. The company has been actively investing in Uzbekistan since 2010, and is developing projects in textiles, agriculture and fertilizer production with more than 3,000 local employees.

We remind, in mid-October this year, Indorama opened its R-PET facility in Cavite, Philippines which is a joint venture with Coca-Cola Beverages Philippines (CCBPI). Construction at its Indonesian R-PET plant is also ongoing, with commencement date expected towards the close of 2023.

Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Europe, Africa, Americas, and Asia Pacific. The company’s portfolio comprises Combined PET, Integrated Oxides and Derivatives, and Fibers. Indorama Ventures products serve major FMCG and automotive sectors, i.e., beverages, hygiene, personal care, tire, and safety segments.
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Perstorp has appointed Ib Jensen as CEO, effective 1 March, said the Swedish chemicals producer.

Jensen will succeed Jan Secher, who is to step down after nine years as CEO, said the company. Prior to his upcoming new position, Jensen has been an executive at Arxada, Lonza, Syngenta, Danisco, and Lego.

In October, Perstorp was acquired by Malaysia’s Petronas Chemicals Group (PCG).

“This decision [by Secher to step down] is based on a personal direction set more than a year ago, prior to the acquisition by PCG, allowing for a full search process to be conducted for his replacement,” said Perstorp.

We remind, Perstorp moves to make more eco-friendly polyols at Swedish site. Perstorp, a Sweden-based speciality chemicals provider, is transforming a huge majority of the polyols generated at their largest production facility in Perstorp, Sweden, to 'Pro-Environment' products. It will convert all base polyols prepared at its Perstorp unit - neopentyl glycol (Neo), pentaerythritol (Penta), and trimethylolpropane (TMP) - to 'Pro-Environment'.

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The GCC chlorinated polyvinyl chloride (CPVC) pipes market size reached USD472.1 M in 2021, said Globenewswire.

Looking forward, the publisher expects the market to reach $628.2 M by 2027, exhibiting a CAGR of 4.88% during 2021-2027. CPVC is a thermoplastic produced by the chlorination of the PVC resin. As CPVC can withstand high temperatures and is more flexible than standard PVC, it is used for manufacturing pipes which are further utilized for dispensing hot and cold water, and industrial liquid handling.

In comparison with conventional galvanized pipes, CPVC pipes offer advantages such as long service life, ease of installation and maintenance, additional safety, and resistance to corrosion. In the GCC region, growing awareness about health, hygiene, sanitation and wastewater management is increasing the demand for lightweight, sustainable and acoustic drainage pipes. As a result, CPVC pipes are gaining traction in the commercial and residential sectors in the region. Traditionally, the GCC countries have relied on the oil and gas industry for economic growth. However, the governments of these countries have resolved to diversify their economies after the recent fall in oil prices.

In line with this, they have introduced different development projects, such as Saudi Vision 2030, NEOM City, Jeddah Waterfront and Entertainment City, for escalating the influx of tourists in their countries. Additionally, due to strong growth in the hospitality sector on account of the rising number of cafes, hotels and restaurants, and religious tourism, the GCC region holds lucrative opportunities for manufacturers in the CPVC pipes industry.

Moreover, governments are investing in the development of transportation, telecommunication, water distribution, agriculture and other infrastructures which, in turn, is proliferating the demand for CPVC pipes. Breakup by application: plumbing, water supply systems and chemical industry, sewerage, drainage and irrigation, and others. At present, plumbing represents the largest application area accounting for the majority of the total market share. Regional insights: Saudi Arabia, UAE, Kuwait, Bahrain, Oman, and Qatar. Region-wise, Saudi Arabia enjoys the leading position in the GCC CPVC pipes market. The competitive landscape of the market has been analyzed in the report. Some of the key players operating in the industry include: IKK Group, AGM, SAPPCO, and MMT Group. A table shows the report attribute.

We remind, on 16 Feb 2022, Shin-Etsu Chemical Co Ltd announced plans to invest over $695 M to expand its silicone manufacturing plants across Japan to meet a very strong demand for advanced functional products. According to the company, the new plant investments will expand the manufacturing capacity of "highly diversified" kinds of silicone resins, fluids, and rubber end products by 2025. The expansion project will start with Shin-Etsu's main facility, the Gunma Complex in Gunma Prefecture, and will be followed by two other facilities in Naoetsu, Niigata Prefecture, and Takefu, Fukui Prefecture.

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To determine the best way to recycle and reuse plastic, researchers at the U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL) examined the benefits and trade-offs of current and emerging technologies for recycling, said Recyclingtoday.

The paper is called “Technical, economic and environmental comparison of closed-loop recycling technologies for common plastics,” and provides a comparison of various technologies for closed-loop recycling. This allows for the reuse of plastic through mechanical or chemical processing, eliminating the need for fossil-fuel-derived virgin materials. They considered technical metrics like material quality and retention and environmental metrics, including energy use and greenhouse gas emissions.

“We know cost is one of the primary ... drivers for recycling for companies wanting to invest in it,” says Taylor Uekert, the lead author. “I think it’s just so important to remember that there are other things that are equally important for our life on this planet and we need to be considering those environmental impacts as well."

Her co-authors, all from NREL, are Avantika Singh, Jason DesVeaux, Tapajyoti Ghosh, Arpit Bhatt, Geetanjali Yadav, Shaik Afzal, Julien Walzberg, Katrina Knauer, Scott Nicholson, Gregg Beckham and Alberta Carpenter.

The article outlines how effectively closed-loop recycling technologies would work on polyethylene terephthalate (PET) and three types of polyolefins: high-density polyethylene (HDPE), low-density polyethylene (LDPE), and polypropylene (PP). The recycling rates of these polymers varied in the United States during 2019, from 2 percent for LDPE to 15 percent for PET bottles and containers.

Two closed-loop recycling methods are available for HDPE, LDPE, and PP plastics: mechanical, in which the plastic is grounded, melted and made into something new. There also is a solvent-based dissolution, which removes impurities so that the plastic is of suitable quality for reuse. Those same processes can be used on PET in addition to enzymatic hydrolysis, glycolysis and methanolysis.

More than 400 million metric tons of plastic waste are generated globally annually. Current recycling strategies can capture a fraction of these plastics, but there is a lack of consistent data on the capabilities and impacts of these processes. The NREL study quantitatively characterized the performance of plastic recycling technologies—including factors that are usually only discussed qualitatively, like contamination tolerance—and established a methodology for comparing new recycling processes as they emerge.

We remind, PureCycle Technologies Inc. and the Port of Antwerp-Bruges have announced that PureCycle will build its first polypropylene (PP) recycling facility in Europe at the port’s NextGen District in Belgium. The Orlando, Florida-based company says it expects the new plant to have an annual capacity of 59,000 metric tons, with opportunities to expand operations down the road since the 34-acre plot can support up to four processing lines, increasing total capacity to around 240,000 metric tons per year.

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Construction in Europe will see weaker growth in the period 2023–2025. Residential construction in particular – in Italy and many other European countries – is facing considerable headwinds, according to the EU’s statistical agency Eurostat.

This is evident from calculations by the EUROCONSTRUCT forecasting network, of which the ifo Institute is a member. “Resilience will be greatest in civil engineering,” says ifo expert Ludwig Dorffmeister.

After two superb years, the prospects for European housing construction have become much bleaker. Construction activity will fall by almost 3 percent overall in the period 2023–2024 before picking up again slightly in 2025. The current year will see a 2 percent reduction in new build volume as a result of the economic fallout from the war in Ukraine. In contrast, the downturn in work on existing buildings in 2023 and 2024 is driven largely by the reduction in the previously extremely generous state subsidies for renovation in Italy. “In most European countries, however, the recent energy price shock will likely lead to more investments in existing housing,” Dorffmeister says.

“Civil engineering volumes face a series of major challenges,” he adds. Necessary investment in energy supply, expansion of the transportation network, and public transit will trigger civil engineering growth of 2.9 percent in 2023, 1.8 percent in 2024, and 2.2 percent in 2025. Italy, Norway, Slovakia, and Poland are expected to see the largest increases. Only in Finland will the market shrink.

In Germany, pressure is mounting in new home construction. “The main reasons for this include significant increases in housing loan rates, sharp rises in construction costs, and the reduction in federal subsidies for new home construction,” Dorffmeister says. The results of the ifo survey in December showed that order backlogs, while still at a high level, fell for the fifth month in a row. The new orders the industry sorely needs failed to materialize. “There’s been a drastic deterioration in conditions for private developers and housing companies,” Dorffmeister says.

Nevertheless, the industry’s long lead times will likely temper the impact of this development on construction activity for now. In particular the finishing trade will remain busy in the months ahead due to capacity bottlenecks.

We remind, S-Oil plans to construct this for $7 bn between 2023 and mid-2026. The undertaking is regarded as the biggest outside investment in South Korea. S-Oil is owned 63.4% by Saudi Aramco. The new facility will house a steam cracker for 1.8 M tonnes/y of ethylene and be able to generate up to 3.2 M tonnes/y of petrochemical products after this project is finished. The plants will be built as part of an EPC contract by the South Korean construction firms Hyundai Engineering, Hyundai Engineering & Construction, and Lotte Engineering & Construction.

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