A new protective packaging giant to appera in North America

(PlastEurope) -- An agreement reached between global packaging giant Sonoco (Hartsville, South Carolina / USA) and private equity firm Metalmark Capital (New York, New York / USA), under the terms of which the former will acquire specialty packaging solutions manufacturer Tegrant Corporation (Arlington Heights, Illinois / USA), will result in the creation of a new protective packaging giant in North America.


According to Sonoco CEO Harris DeLoach, the USD 550m cash and debt deal, expected to close in November this year, is the largest in the company's history and expected to be accretive to Sonoco's 2012 pro forma earnings. Tegrant is expected to generate sales of USD 440m in 2011. Based on this projection, Sonoco could post revenues of about USD 5 bn in 2012. The new businesses will be overseen by existing Tegrant CEO Ron Leach, who has agreed to stay with Sonoco.


Illinois-based Tegrant operates three key business units: Protexic, which it claimed to be North America's leading moulded expanded foam manufacturer; ThermoSafe, which Tegrant says is the world's leading provider of temperature-assured solutions for temperature-sensitive packaging solutions; and Alloyd, which produces and designs packaging, printed products and blister packaging machines. All in all, the group operates more than 30 plants in the US, Mexico and Ireland, with more than 2,000 employees.


MRC

Carclo (UK) reported a solid performance in its first half-year

(PlastEurope) -- Technology-led plastics group Carclo (Ossett, West Yorkshire / UK) reported a solid performance in its first half-year - despite the uncertain economic environment. Results were in line with expectations, although the group said it expects profits to rise even more in the second six months of its financial year, which runs to 31 March 2012. The financial position remains strong and a bank re-financing exercise is well under way, with terms agreed, and the group remains confident in its outlook for the full year.


The Technical Plastics precision injection moulding business, which accounts for two-thirds of group sales, benefited from further growth in its US medical activities and, what is termed, significant expansion of its Indian business. Profits for the division will be slightly behind last year's first half, which was unusually strong, but a stronger second half-year is expected to provide continuing growth in profitability.


In the Precision Products division, growth in the Wipac specialist LED supercar lighting business has been positive. Profits are ahead of last year and new programmes continue to be won. Carclo will cease supplying antennas and cables to Ford Motor Company by the end of the financial year, allowing Wipac to focus its resources on growth in LED lighting. The aerospace activities have traded well and returned to profit growth.


MRC

Lower PE production in Asia failed to support the market

(Platts) -- Lower polyethylene production in Asia has failed to support the market due to weak demand, market sources said this week. "There's no impact at all," a Chinese trader said. "The market is just too weak."


Indonesia's Chandra Asri on October 5 shut its petrochemical complex for a turnaround that is expected to last for 30-35 days. It has a 536,000 mt/year PE plant.


South Korea's Honam Petrochemical will also shut its 370,000 mt/year HDPE/LLDPE swing plant in Daesan for a 15-day turnaround starting October 15.


MRC

Advanced Petrochemical Company shut down its operation at its polypropylene

(Arabian oil and gas) -- Polypropylene producers in the GCC face anti dumping duties in the Indian market. The Advanced Petrochemical Company has shut down its operation at its polypropylene to conduct necessary fixes at the propylene plant. ⌠We expect to complete the necessary fixes within ten days, the company said in a statement.


The company closed its facility, located in Jubail industrial city Saudi Arabia, on 6th October, and expects the shutdown to have an impact on financial results during the fourth quarter this year. ⌠We will re-schedule our sales and will use our inventories to meet our sales commitments, the company added.


Advanced Petrochemical (previously Advanced Polypropylene) produces 450,000 tonnes per year of polypropylene.


MRC

BASF to introduce an additional member of the new Ultramid Endure line of plastics

(BASF) -- At the Fakuma 2011 in Friedrichshafen, BASF is introducing an additional member of the new Ultramid Endure line of plastics. With a glass fiber content of 50 percent, Ultramid Endure D3G10 offers considerably improved stiffness at elevated temperatures. The first member of the new highly heat aging-resistant polyamide family, Ultramid Endure D3G7 with a glass fiber content of 35 percent, which was introduced in the year 2010 at the K 2010 plastics trade fair, has already found a great deal of interest and will be found in serial application at several processors soon. Now, the company is offering, for the requirements of intercooler end caps in particular, the grade with 50 % glass fibers. With a tensile modulus of more than 17,000 MPa after aging (measured in accordance with ISO 527-2/1993), the new material is almost 50 percent stiffer than the D3G7 version.


As the first Ultramid Endure grade, Ultramid Endure D3G10 is resistant to heat aging up to 220 ╟C and suitable for parts in the charge air system. This will allow even more metal than previously to be replaced in the engine compartment. Compared to high-priced specialty polyamides, use of Ultramid Endure results in a significant system cost reduction.


MRC