Schulman acquired Australia-based Compco

MOSCOW (MRC) -- A. Schulman, Inc. has acquired Compco Pty. Ltd. located near Melbourne, Australia, for USD6.7 million in cash, said the producer in its press-release.

Compco is a manufacturer of a variety of plastic compounds and products including masterbatches and custom performance colors. Key markets include packaging, wire & cable and pipe. Compco achieved revenues of nearly USD15 mln for its fiscal year ending June 30, 2014.

Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman, stated, "This is our 10th acquisition in the last four years and, although it is relatively small compared with our entire organization, the benefits of Compco's industry-leading technology will better position our business in the region and can be leveraged throughout our global footprint."

"Compco holds a strong position and significant growth potential in the Australian market and beyond, and its products are aligned with our strategic focus and objectives in the Asia Pacific (APAC) region," said Bernard Rzepka, Executive Vice President and Chief Operating Officer of A. Schulman.

"The acquisition expands the capabilities of our APAC operations and marks our first entry into the growing pipe and highly regulated wire & cable markets. This move is a positive next step as we remain committed to growing both organically and through acquisitions in the strategically important APAC region."

As MRC wrote before, A. Schulman agreed to purchase a majority of the assets of the specialty plastics business of Ferro Corp. for USD91 million in cash. The purchase agreement includes four facilities located in the US as well as operations in Spain. Subject to the satisfaction of customary closing conditions and regulatory approvals.

A. Schulman, Inc. is an international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio. The Company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics, electrical, agriculture, personal care and hygiene, sports, leisure & home, custom services and others. A. Schulman reported net sales of USD2.1 billion for the fiscal year ended August 31, 2013.

MRC

Albemarle and ICL to form new venture on polymeric flame retardants

MOSCOW (MRC) -- Albemarle and ICL have entered into an agreement to establish a manufacturing joint venture for the production of ICL's FR-122P polymeric flame retardant and Albemarle's GreenCrest polymeric flame retardant, reported Hydrocarbonprocessing with reference to the companies' announcement.

These flame retardants are designed to replace hexabromocyclododecane (HBCD). HBCD has been the leading flame retardant used in expanded (EPS) and extruded (XPS) polystyrene foam applications, but is being phased out in the European Union (EU), Japan and other countries. The joint venture and its partners will own and operate a 2,400-tpy Netherlands plant, which is currently operating, and a 10,000-tpy Israel plant, which is scheduled to start operations in the fourth quarter of 2014.

Both plants are located at ICL sites, as previously announced by ICL. The joint venture will enable additional capacity to be brought to the market to meet the growth needed for the EU and the rest of the world following the phase out of HBCD from these markets.

The transaction is subject to certain closing conditions, including regulatory approvals, and is expected to close in 2015.

Meanwhile, Albemarle began commercial qualifications of its GreenCrest sustainable polymeric product in 2013 and started commercial supply in April 2014 from the Netherlands plant. Positive customer feedback has confirmed that the GreenCrest product is suitable for commercial uses in EPS and XPS applications, according to company officials.

Albemarle and ICL say they will continue to provide independent marketing, sales and technical service to their customers in Europe and around the world to ensure a smooth transition as EPS and XPS producers shift from HBCD to the polymeric flame retardant before the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) sunset date for HBCD in August 2015.

As MRC informed previously, Albemarle Corp. agreed in July 2014 to pay USD6.2 billion in cash and stock for Princeton, New Jersey-based Rockwood Holdings, the largest lithium producer. Rockwood is one of four companies that control about 90% of the market for lithium. Demand for the metal will expand as much as three times faster than the overall economy, Baton Rogue, Louisiana-based Albemarle said in an investor presentation. Other lithium producers are just as bullish. The world market may double in a decade with demand growing at 7% to 10% annually, Chile’s Soc. Quimica & Minera de Chile said in April.
MRC

Lanxess appoints Krahn Chemie as its new distribution partner in East Europe

MOSCOW (MRC) -- The Lanxess AG, Cologne, Germany, High Performance Elastomers unit has transferred its distribution business in Poland, the Czech Republic and Slovakia to Krahn Chemie Polska Sp. z o.o., Poznan, a daughter of Krahn Chemie GmbH, Hamburg, Germany, said the producer in its press release.

The core products of this division are the technical rubber products CR, EVM, NBR and HNBR. Lanxess is manufacturer of synthetic rubber for the rubber processing industry. The portfolio of the High Performance Elastomers business unit includes Baypren polychloroprene rubber, Therban HNBR, the ethylene-vinyl acetate rubbers Levapren and Levamelt and the NBR types Perbunan, Krynac and Baymod N. The main fields of application for the products are in the areas of automobile manufacturing, mechanical engineering, the construction industry, gas/oil exploration and production, and the electrical and cable industries. The high-performance elastomers are also used as modifiers for raw materials for plastics and adhesives.

"It is important for us to be able to work with a partner who knows, understands and can explain the technical characteristics of our synthetic high-performance rubbers. Only in this way can the processors be sure that they are using a rubber which is ideally suited to their individual requirements," says Martin Kleimeier, Global Distribution Manager High Performance Elastomers at Lanxess. "With its technical distribution strategy, Krahn Chemie is able to fulfill these requirements, and its local sales team and efficient on-site logistics are also advantageous."

"Lanxess is not only one of the global market leaders, it also repeatedly sets new standards in material development and quality," says Jaroslaw Rogalinski, Managing Director of Krahn Chemie Polska. "With the technical rubbers range from Lanxess, we have been able to further expand our portfolio for the rubber processing industry. Hence, we are now in an even better position to be able to supply our customers with the ideal elastomer for every application of their technical rubber products."

In addition to the synthetic rubbers from Lanxess, the Krahn Chemie Polska portfolio for the rubber processing industry also includes epichlorohydrin rubber (ECO), CPE, EPDM, FKM as well as additives and plasticizers.

As MRC wrote before, Lanxess reported a sharp increase in Q2 2014 profit, reflecting lower costs, despite a decline in sales. For the second quarter, net income attributable to stockholders surged to EUR55 million from EUR9 million a year ago. Earnings before interest, taxes, depreciation and amortization or EBITDA totaled EUR221 million, compared to EUR166 million in the preceding year. Quarterly sales declined 5.7 percent to EUR2.02 billion from EUR2.14 billion in the prior year. The company attributed the decline in sales mainly to a 4.6 percent negative effect of lower selling prices.

Lanxess is a leading specialty chemicals company with sales of EUR 8.3 billion in 2013 and roughly 17,300 employees in 31 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

Prices of European PVC dropped for CIS markets by EUR25/tonne

MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for September shiments to the CIS markets began this week. European producers were forced to reduce prices, following lower ethylene prices, according to ICIS-MRC Price report.

September contract prices of ethyene in Europe were agreed by EUR55/tonne lower from August, which led to a reduction of PVC production costs by EUR27,5/tonne. Thus, European producers had to reduce their export prices, including prices for the CIS countries. Price cuts reached EUR25/tonne.

Negotiations over September shipments of suspension polyvinyl chloride (SPVC) to the CIS markets began this week. Deals were negotiated in the range of EUR770-810/tonne FCA, down by an average of EUR20-25/tonne from August.

At the same time, according to some market participants, not all European PVC producers had reduced their prices. Some producers, particularly from Germany, virtually maintained their August export prices for September. However, this was due to the fact that their August prices was much lower than other producers' prices.

The current weakening of the euro gives an even greater effect on the reduction of PVC prices in Europe. At the same time, this factor does not work for all countries, particularly, not for Russia (a major weakening of the rouble against the main world currencies has begun since early September).
MRC

Evonik invests in German operations

MOSCOW (MRC) -- Evonik is investing in its German operations with new large-scale industrial plants, capacity expansions, and new research centers, reported the company on its site.

Evonik plans to invest some EUR2 billion of the extensive investment program it has developed as part of its growth strategy from 2012 to 2016 in Germany.

"Germany has a strong and healthy industrial base. Our investments in Germany strengthen the international competitiveness of Evonik," said Klaus Engel, Chairman of the Executive Board.

In fiscal year 2013, some EUR3 billion, or 24% of corporate sales, were generated in Germany, where Evonik employs approximately 21,000 people. With its investments in Germany, Evonik benefits from highly qualified and motivated employees, proximity to key customers, excellent research facilities and the existing integrated production networks at its sites.

The group is about to start up a new facility for functionalized polybutadienes in Marl, Evonik's largest site worldwide with almost 7,000 employees. The material is mainly used for sealing compounds in double-glazed windows and for adhesives. The investment volume was in the mid double-digit million euro range.

A few weeks ago, a partial facility for crosslinking reagents, which have applications in solar panels and other industries, went into operation in Wesseling near Cologne. The investment volume was in the lower double-digit million euro range. The new production site was integrated into an existing facility, which produces one of the source materials.

Other Evonik investments include new capacities for C4-based products in Marl, the expanded specialty silicon production in Essen, and the construction of a new plant for polymeric dispersion agents at the same site. The company is also planning a number of smaller capacity expansions, including for PA12 in Marl. Furthermore, Evonik is investing in modernizing and maintaining the group's domestic sites.

Research & development in Germany is also receiving further boosts. A new research center for silanes is under construction in Rheinfelden and Evonik scientists working on active principle formulations for parenteral drugs recently moved into new laboratory spaces in Darmstadt. Meanwhile, a new application technology center for the tire industry was opened in Wesseling, the world's largest production site for precipitated silicas. Precipitated silicas are an important component of low rolling-resistance tires. A state-of-the-art research center with focus on cosmetics was opened in Essen in mid-2013.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
MRC