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(ivl) -- Indorama Ventures (IVL), the world's leading integrated polyester-chain manufacturer, expects its recent acquisition of PT SK Keris and PT KS Fibre will double the Indonesian contribution to its revenue to 10 per cent.
IVL's revenue this year is projected to reach USD8 billion (Bt246.88 billion). "Indonesia is the next China and India. Besides Thailand, our focus in Southeast Asia is Indonesia, and we expect to invest more in the country," group chief executive officer Aloke Lohia said recently.
He said IVL expects to generate revenue of USD8 billion this year, of which 10 per cent will be contributed from Indonesia, up from 5 per cent last year. The doubled contribution is attributed to last year's acquisition of PT SK Keris and PT KS Fibre, which manufacture yarn, polyester and polyethylene terephthalate (PET).
IVL acquired both companies from SK Syntec, a subsidiary of South Korea-based SK Chemicals. PT SK Keris has been renamed PT Indorama Ventures Indonesia, while SK Syntec has become PT Indorama Polyester Industries. The former has production capacity of PET, polyester and yarn of 160,000 tonnes per annum, and the latter has fibre and polyester capacity of 36,000 tonnes per year.
Lohia said PT Indorama Ventures Indonesia is increasing its capacity to produce polyester by 300,000 tonnes per annum at an investment cost of USD200 million.
Indonesia is one of the biggest markets for textiles. In 2012, the country expects to export textiles worth USD13 billion. The Indonesia Textile Association forecasts that demand in the domestic market will grow rapidly to account for 50 per cent of output this year from 40 per cent in 2011.
MRC
Indorama Ventures to buy Indonesian PT SK Keris
UK's Regain Polymers to expand its operations by acquisition of Express Recycling & Plastics
(regainpolymers) -- REGAIN Polymers, one of the UK's leading plastics recycling companies based in Castleford West Yorkshire, recently announced ambitious growth plans backed by a GBR1mln investment in additional capacity and the acquisition of a competitor.
The additional capacity involves the purchase of a state-of-the-art twin screw extruder, to be installed at the Castleford plant in March 2012. The new line will increase extrusion capacity by 40% to over 45,000 tonnes per annum.
To further support its growth and future plans, the business has also acquired Express Recycling & Plastics Ltd of Rainham, Essex, a recycler specialising in the separation and reprocessing of rigid end of life plastics. The increased geographic market spread this acquisition brings to REGAIN will greatly improve its ability to attract raw materials for both recycling plants. Express Recycling & Plastics Ltd has been renamed Regain Recycling & Plastics Ltd.
Speaking of the new acquisition, Ian Porter Managing Director of Regain Polymers said: "We are actively seeking opportunities to expand our business and this new venture will increase both our capabilities and capacity to supply the market."
Mark Roberts, Technical Sales Director stated: "We believe this combination of investments to be one of the most significant developments in the UK recycling market for many years. Our strategy is one of growth, and these investments will give us both the technology and capacity needed to ensure that we are well placed to achieve this in 2012".
Imports of linear polyethylene to Russia in January fell to 8,000 tonnes
MOSCOW (MRC) -- After record figures seen last December, the imports of linear polyethylene to the Russian market in January fell to 8,000 tonnes. However, this year customs clearance for linear polyethylene became complicated, according to MRC Datascope.
December traditionally showed the record figures in imports of linear polyethylene. In December 2011, total import of LLDPE to Russia made about 17,700 tonnes. Last month, imports of linear polyethylene to the Russian market expectedly decreased to 8,000 tonnes.
However, from the beginning of this year the customs clearance of imported linear polyethylene became more complicated.
Before that custom clearance of imported linear polyethylene was made selectively, but this year all imports of linear polyethylene must be checked in the laboratory.
Under the Customs Tariff, if the content of comonomer chains in the polymer exceeds 5%, then this polyethylene is classified as a copolymer of ethylene and it is subject to import duty of 10%. In December 2011, the share of linear polyethylene classified as copolymers of ethylene, in total imports rose to 13%.
As per importing companies, the laboratory analysis has an effect on the cost of the material. One of the producers of stretch film said, that under such circumstances it was more profitable to deliver the finished product from South-East Asia rather than to produce it in Russia.
After Russia enters the WTO this summer, import duty of linear polyethylene will be raised from the current 0% to 5%.
MRC
S Korea's Honam plans to expand its Southeast Asian business
(polyestertime) -- South Korea's Honam Petrochemical is considering investing USD5 billion to build a steam cracker-based petrochemical complex in Indonesia to expand its Southeast Asian business.
But the company has not made a final investment decision on the complex and is hoping the Indonesian government will provide tax breaks and other benefits such as land for the project.
"If we are given tax benefits and land, we can start construction early next year," said the official, adding that the company was aiming to bring the complex online by 2016.
On the cards is a steam cracker with a capacity to produce 1 million mt/year of ethylene and 550,000 mt/year of propylene, said the official who declined to be named. The complex will also comprise a 600,000 mt/year polyethylene unit, a 700,000 mt/year monoethylene glycol unit, a 600,000 mt/year polypropylene unit and a 140,000 mt/year butadiene unit, he said.
Meanwhile, the official said the company has not signed a memorandum of understanding with Indonesia's state-owned Krakatau Steel for the provision of 40 hectares of land for the complex, refuting earlier media reports in Indonesia.
Honam is South Korea second-largest ethylene maker with a production capacity of 1.75 million mt/year. In a bid to tap the Southeast Asian market, the company in July 2010, acquired a 100% stake in Malaysia's biggest chemicals maker Titan Chemicals for USD950 million.
Lotte has said it plans to expand the production capacity of Titan Chemicals without elaborating. Titan Chemicals currently has a capacity to produce 720,000 mt/year of ethylene and 480,000 mt/year of propylene, among others.
Reichhold announces price increases for coating resins sold in North America
(reichhold) -- Reichhold, Inc. announces a general price increase of 5% on all solvent borne, water reducible and 100% solids alkyd, polyester and urethane resins. This increase is effective for all orders shipped on or after March 1, 2012 or as contracts allow.
Reichhold sales representatives will contact their accounts with specific details regarding individual product price increases.
Reichhold is one of the world's largest suppliers of unsaturated polyester resins for composites and a leading supplier of coating resins for a wide variety of markets and applications.
With its world headquarters in Research Triangle Park, North Carolina, USA, and 20 manufacturing sites and 5 technology centers located around the world, Reichhold has the widest global reach of any resin supplier today.