Azoty, Orlen extend talks over polyolefins acquisition in Poland

Grupa Azoty SA (Tarnow, Poland) said it has extended the deadline to May 12 for ongoing talks with Orlen Group SA (Plock, Poland) over the potential acquisition by Orlen of its polymers subsidiary Grupa Azoty Polyolefins SA, as per Chemweek.

The polyolefins subsidiary is a special-purpose company that was established primarily to develop the $1.8 billion Polimery Police propane dehydrogenation (PDH) and polypropylene (PP) complex at Police, Poland. Talks have been underway since January with the original deadline for negotiations expiring on March 31.

Azoty and Orlen “are continuing their cooperation to determine the terms and conditions for the potential transaction involving Orlen Group’s acquisition of all or part of Grupa Azoty Polyolefins shares held by Grupa Azoty, or exploring other forms of investment,” Azoty said on March 31.

A ‘cooperation and stabilization agreement’ between the companies, also including Hyundai Engineering Co. and the Korean Overseas Infrastructure & Urban Development Corp., was signed in December related to the PDH/PP project. That agreement has also been extended to May 12, Azoty said.

In March, Azoty and Orlen concluded a working capital financing agreement for an amount not exceeding $28 million to finance the purchase of propane by Grupa Azoty Polyolefins. The PDH plant at Police consumes feedstock propane to produce propylene, for onwards production of PP. The PDH plant has a nameplate capacity to produce 429,000 metric tons per year of propylene, with the downstream PP plant having capacity to produce 437,000 metric tons per year. Azoty formally announced the start of production at the complex in January 2024.

The polyolefins project at Police has been plagued by schedule delays and cost increases since it was first announced in 2016, with completion originally targeted in 2022.

Azoty and Orlen also signed a letter of intent in September last year to study options for future collaboration and transactions between the companies related to polymers and production and sales activities for caprolactam and nylon 6.

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Husky Technologies has grown its footprint in India by expanding its facilities in that country, as per company.

Bolton, Ont.-based Husky sold its first system into India in 1999. The company opened a flagship sales and service office in 2001, followed in 2009 with the groundbreaking of their Chennai manufacturing facility. In May 2023, Husky kicked off the next phase of expansion that culminated with the opening of a New Delhi office in November 2024.

And now, in a March 24 news release, Husky officials say the company has established additional capabilities in India, including a regional proactive monitoring centre, enhanced service centre, packaging development centre, parts distribution centre, and learning academy.

India’s ambitious sustainability mandates, which require 30 per cent recycled plastic content in packaging by 2026 and 60 per cent by 2029, create both challenges and opportunities for regional producers, Husky said in a statement. “Our expanded presence supports customers in navigating these requirements through circular economy solutions,” they said.

The announcement of the new openings was made during a two-day customer event in Chennai, India that took place March 20-21, hosted by Husky’s regional leaders and senior executives.

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Mitsubishi Chemical Corp. has decided to withdraw from the polyethylene terephthalate (PET) bottle business, as per Chemweek.

It will stop the production of PET bottles by December 2025 and will terminate the sales in March 2026. It produces PET bottles at Hiratsuka and Nagahama, Japan.

The company’s PET bottles cater to several needs, mainly for seasonings and alcohol. Mitsubishi Chemical said the recent rise in raw material prices and logistics costs has made the business extremely unprofitable.

The company has “attempted to restructure the business, including by reducing fixed costs, but after carefully examining the surrounding business environment, it concluded that improving profitability and achieving future growth will be difficult, and have decided to withdraw from this business,” it said.

We remind, Mitsubishi Chemical Group (MCG) has decided to cease production of chemical products at its Mitsubishi Chemical Corp (MCC) and Shinryo Corp plants. Both plants, owned by MCG subsidiaries, are located in Iwaki City, Fukushima Prefecture, Japan. The process of shutting down production will be carried out in stages from March 2026 to March 2027. The MCC plant produces ammonia, methanol, formalin, wood glues, fatty acid amides, and high-purity industrial chemicals including hydrochloric acid, nitric acid, and triallyl isocyanurate derivatives.

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Kuraray has acquired ISCC Plus certification for its thermoplastic elastomers (TPEs) Septon and Hybrar as well as liquid rubber produced at its Kashima plant in Japan, as per Polymerupdate.

ISCC Plus ensures that certified items, such as bio-mass and recycled raw materials, are properly managed via the use of the mass-balance approach throughout their supply chains, including manufacturing process.

Kuraray plans to continue to expand its lineup of products that contribute to the natural and living envi-ronments.
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Kemira Oyj said it has completed the acquisition of the iron sulfate coagulant business of Thatcher Group (Salt Lake City, Utah) in the East Coast region of the US. Financial details have not been disclosed, as per Chemweek.

Annual revenue of the acquired business is less than USD10 million, Kemira said.

The transaction includes certain customers and assets of the business, but no employees will move to Kemira in the transaction as Kemira will serve the new customers from its existing manufacturing facilities, the company said.

“The acquisition is highly synergistic with our existing operations. It is also one step towards our aim to double the revenue in water,” said Tuija Pohjolainen-Hiltunen, executive vice president/water solutions at Kemira.

Thatcher Group is a diversified chemicals manufacturer and distributor.

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