PPG Industries to buy Mexican coatings firm Comex for USD2.3bn

MOSCOW (MRC) -- PPG Industries has agreed to acquire Consorcio Comex, an architectural and industrial coatings firm in Mexico City, Mexico, for USD2.3bn, according to Chemicals Technology.

Comex produces coatings and related products for Mexican and Central American markets, and sells the products through regional retailers, wholesalers and direct sales to customers.

The company operates eight manufacturing facilities and six distribution centres, and employs approximately 3,900 people. It generated revenues of approximately USD1bn in 2013.

PPG Industries said the acquisition is in line with its strategy to expand its global coatings business portfolio.

PPG Industries chairman and CEO Charles Bunch said: "The acquisition is very complementary to PPG as it adds a leading architectural coatings business in Mexico and Central America, a region where we have negligible architectural coatings presence.

"Being part of PPG gives us new opportunities and synergies that will allow us to continue to significantly grow in our markets."

To finance the transaction, PPG Industries plans to use cash on hand, short-term investments and debt.
The acquisition will be immediately accretive to PPG earnings and the company acquisition-related synergies of up to 4% of acquired sales over a two-year period.

As of 31 March, PPG had USD3bn in cash and short-term investments.

The transaction, which is subject to regulatory approvals and customary closing conditions, would be the latest in a series of PPG investments in Latin America in recent months. Last month, the company unveiled plans to invest up to USD40m to expand its coatings manufacturing facility in Sumare, Sao Paulo, Brazil. In March, PPG Industries planned to invest more than USD27m for expansion at its coatings manufacturing facility in San Juan del Rio, Queretaro, Mexico.

As MRC informed earlier, in early 2013, PPG Industries announced the successful closing of the previously announced separation of its commodity chemicals business and merger of its wholly-owned subsidiary, Eagle Spinco Inc., with a subsidiary of Georgia Gulf Corporation. Pursuant to the merger, Eagle Spinco, the entity holding PPG’s former commodity chemicals business, is now a wholly-owned subsidiary of Georgia Gulf.
MRC

MOSCOW (MRC) -- Nexen Tire Corp., South Korea's smallest tiremaker, has announced that it aims to make inroads into the European market by spending 1.2 trillion won (USD 1.17 billion) to build a new production plant in the Czech Republic, reported GV.

The company said the eco-friendly plant, to start production in 2018, will have an annual capacity of 12 million tires and be in good position to become an original equipment supplier for various car makers.

The factory will be built on 65,000 square meters of land near the northwestern town of Zatec, the company said.

"The plant will help the company meet the steady rise in tire demand in Europe, and allow it to ship products to car makers such as Volkswagen, Skoda and SEAT," Nexen said in a press release. Skoda and SEAT are Czech and Spanish subsidiaries of Germany's auto giant, Volkswagen.

Nexen's official announcement comes a week after Czech officials said the South Korean company will build its second overseas factory in the Central European country. At the time, the tire maker confirmed the report was true but did not give out details.

As MRC informed earlier, thus far, excluding Hankook Tire which has its own factory in Hungary, other Korean tire producers have exported only domestically produced tires to Europe.

Nexen has two plants in its home country and another in Qingdao, China.
MRC

MOSCOW (MRC) -- Royal DSM, the global Life Sciences and Materials Sciences company, today reports a fire at a utilities building of one of its intermediates production plants in Sisseln, Switzerland, which occurred about a week ago, reported the company on its site.

There was only equipment damage; at no time has there been any impact on personal safety, the environment or public health. The production of a few intermediates, mainly for Animal Nutrition & Health, has been interrupted. Impact to customers is expected to be minimal.

The majority of the estimated impact of EUR20-25 million is covered by insurance. An amount of EUR15 million will be covered by DSM Insurances’ captive insurance and will be recognized as part of Corporate Activities in DSM’s Q2 results due to be published on 5 August 2014.

As MRC wrote previously, last October, Royal DSM signed a partnership agreement with long fibre thermoplastic (LFT) specialist Plasticomp (Winona, Minnesota, USA) to develop bio-based LFT composite materials based on DSM’s "EcoPaXX" polyamide 4.10. The lightweight materials, which include compounds reinforced with glass fiber as well as carbon fiber, will be targeted at automotive and other performance-driven markets.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) -- SIBUR and Ufaorgsintez have announced price increases of polypropylene (PP) from 1 July 2014, according ICIS-MRC Price report.

Russian producers have begun to announce this week their PP prices for July shipments. SIBUR announced its new higher prices on 1 July (the company manages Tobolsk-Polymer, Tomskneftekhim, Polyom and Neftekhimia), as well as Ufaorgsintez. PP prices rose by Rb400-2,000/tonne from mid-June, depending on the grade.

SIBUR announced a price increase of homopolymer of propylene (homopolymer PP). Prices of raffia grade of homopolymer PP increased by Rb2,000/tonne, prices of injection moulding homopolymer PP grew by Rb1,000/tonne. Ufaorgsinteh raised its prices of raffia grade of homopolymer PP and injection moulding homopolymer PP by Rb1,300/tonne and Rb1,700/tonne, respectively. Prices of Ufaorgsintez's statistical copolymer of propylene (PP-random) rose by Rb400/tonne.

Nizhnekamskneftekhim did not announced officially as of Tuesday morning (1 July 2014) its decision regarding its July PP prices.

Russian producers said higher PP prices were caused by rising feedstocks prices, strong seasonal demand and upcoming scheduled outages for maintenance works.
MRC

MOSCOW (MRC) - Total imports of polypropylene (PP) in Ukraine decreased by 27% in the first five months of this year on the back of economic recession and currency devaluation, according to MRC DataScope.

Ukraine's PP imports in May were about 8,700 tonnes, almost at the April level. In general, total PP imports in the Ukrainian market declined to 40,800 tonnes in January - May 2014, compared with 56,000 tonnes year on year. Economic recession, shutdowns of some major buyers and hryvnya devaluation continue to limit demand for PP in the local market.

Structure of PP imports over the reported period was as follows. May imports of homopolymer PP in the country were about 6,900 tonnes, compared with 6,400 tonnes in April. Ukraine's imports of homopolymer PP decreased to 31,400 tonnes in the first five months of this year, down 27% year on year. The biggest drop in the demand occurred for the sector of injection moulding - about 60% over the period. Key suppliers of homopolymer PP in the local market were producers from Saudi Arabia and Russia.

May imports of PP block copolymers in Ukraine dropped below 1000 tonnes, when in April it was 1,200 tonnes. Imports of PP block copolymers in Ukraine in the first five months of the year dropped to 4,700 tonnes, compared with 6,200 tonnes year on year. The main drop in demand occurred for extrusion grade copolymers for the production of pipes and sheets. The main suppliers remained producers from Europe.

May imports of PP random copolymers in Ukraine declined to 600 tonnes, compared to 774 tonnes in April. Total imports of PP random copolymers in Ukraine were about 3,500 tonnes in January - May 2014, compared with 4,600 tonnes year on year. The main reduction in supply occurred for the producers of pressure PP pipes.

Total imports of other propylene copolymers in the reporting period were about 1,200 tonnes, compared with 2,000 tonnes year on year.


MRC