EU sets consumption goal of 40 plastic bags per person by 2025

MOSCOW (MRC) -- Representatives of European Union member states hammered out a deal Nov. 21 to reduce consumption of lightweight plastic bags to 40 bags per person per year by 2025, said Plasticsnews.

National governments will have to either reduce average lightweight plastic bags consumption to 90 bags per person per year by 2019 and 40 by 2025 or ensure that, by 2018, consumers pay for their bags. A second unanimous vote was needed because the original agreement had been opposed by the European Commission, the EU’s executive body.

In response, European trade body PlasticsEurope said that it was concerned about the deal because it could create a precedent for banning specific packaging products. The organization said, however, that it supported mandatory pricing for the bags and a ban on the use of oxo-biodegradable plastics in them.

PlasticsEurope Executive Director Karl-H. Foerster said: "The possibility to ban plastics bags goes against the general principle of the Packaging and Packaging Waste Directive. It is concerning as it opens the door for countries to ban not only plastics bags but other types of packaging as well. Such an inconsistent political framework that would allow member states to introduce different regulations on packaging would hinder investments and innovation and would create barriers to trade in packaged goods in Europe."

He added that that the possibility for EU member states to ban lightweight plastic bags could set a precedent which will lead to a patchwork of national regulations on other types of packaging as well, thereby creating trade barriers and hindering the EU internal market.

"The European plastics industry, however, supports the imposition of a fee or tax on all carrier bags irrespective of the material, as it helps to raise consumers’ awareness and effectively prevents littering. "A mandatory charge is the best option as it has been proved to be an effective tool to reduce the over-consumption of lightweight plastic bags," said Foerster.

"We should understand that plastics are too valuable to be thrown away. Charging for bags can have a positive effect on raising consumers’ awareness of the economic value of the resources that have been used to produce the bag."
MRC

Onex buying packaging group SIG Combibloc

MOSCOW (MRC) -- Onex Corp. will buy SIG Combibloc Group, the Switzerland-based manufacturer of aseptic carton packaging and plastics closures from New Zealand’s Rank Group in a deal announced Nov. 24, said Plasticsnews.

Private equity firm Onex, based in Toronto, has agreed to pay up to 3.75 billion euros (USD4.66 billion). When the deal closes, Rank will receive 3.575 billion euros (USD4.44 billion) with another 175 million euros (USD217 million) will be payable based on the financial performance of SIG in 2015 and 2016. Onex said it expects the transaction to close in the first quarter of 2015, subject to regulatory approvals.

SIG says it is the second largest provider of aseptic cartons globally. It operates seven facilities globally, based in Europe, South America and Asia Pacific, where the company makes packaging and closures, as well as filling machines. The group had sales of 1.68 billion euros (USD) in 2013, and has 5,200 employees.

"SIG’s management team has successfully proven its ability to enter and grow in new markets, while maintaining its standard of excellence in existing markets," said Nigel Wright, a managing director in Onex’ London office, in a news release. "We look forward to partnering with Rolf Stangl (CEO of SIG) and his team to further build upon SIG’s impressive track record and continue its growth."

Stangl said: "Our commitment to providing customers with a premier aseptic carton packaging system has made SIG a leader within our industry. We are excited about our next phase of growth in partnering with Onex."

The acquisition agreement also involves an equity investment of approximately USD1.25 billion by Onex Partners IV, and co-investors, including Onex, and SIG’s management team.

Onex funds own other companies in the plastics sector, including machinery firms Krauss-Maffei and Davis-Standard.
SIG is currently part of Rank’s Reynolds Group Holdings, which also owns other plastics packaging companies including Closure Systems International, which has been reported to be up for sale.

Onex Corporation is a Toronto based private equity investment firm and holding company. The Company has approximately USD14 billion of assets under management, including USD4.8 billion of proprietary capital, in private equity, credit securities and real estate. Onex invests its proprietary capital directly and as a substantial limited partner in its Funds.
MRC

LyondellBasell board authorizes interim dividend

MOSCOW (MRC) -- LyondellBasell, the world’s biggest maker of polypropylene plastic, has announced that its Supervisory Board has authorized the company's Management Board to declare an interim dividend of USD0.70 per share, reported the company on its site.

The interim dividend will be paid December 8, 2014 to shareholders of record November 24, 2014, with an ex-dividend date of November 20, 2014.

As MRC informed previously, LyondellBasell had delayed the start-up of expanded production at its ethylene plant in La Porte, Tex., until later this year. A mechanical issue with a compressor at the plant was partially to blame for the extended turnaround at La Porte

LyondellBasell Industries NV is a manufacturing company. The company produces chemicals, fuels, and polymers used for packaging, clean fuels, durable textiles, medical applications, construction materials, and automotive parts. LyondellBasell Industries operates globally and is headquartered in the Netherlands. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC

PP imports to Belarus increased by 1.2% in the first nine months of the year

MOSCOW (MRC) -- Imports of polypropylene (PP) in Belarus increased to 60,900 tonnes in the first nine months of this year, up 1.2% compared with the same period a year ago. Demand for propylene copolymers increased significantly, as per MRC analysts.

According to the National Statistical Committee of the Republic of Belarus, September PP imports in Belarus fell to 7,500 tonnes, compared to 6,600 tonnes in August. Total PP imports in the country were 60,900 tonnes in the first nine months of this year, compared with 60,200 tonnes year on year. A significant increase in demand occurred for propylene copolymers from the local converters, while the demand for a more mass product - homopolymer PP, on the contrary, decreased.

Structure of PP delivery over the reported period looked as follows. September imports of homopolymer PP seasonally increased to 5,100 tonnes, compared with 4,300 tonnes in August on the back of an increase in supply of European material. Total imports of homopolymer PP in Belarus decreased to 41,100 tonnes in January - September 2014, compared with 43,900 tonnes year on year.

Key suppliers of homopolymer PP in Belarus were Russian producers, with 67% from the total imports in the country over the reported period. September imports of propylene copolymers in the country increased to 2,400 tonnes, compared with 2,300 tonnes in August.

Imports of propylene copolymers in Belarus increased to 19,800 tonnes in the first nine months of the year, up 21.5% year on year. The main suppliers of propylene copolymers in the local market were producers from Germany with a share of about 58%, the share of Russian producers in this segment did not exceed 10%.
MRC

Production of products from polymers in Russia increased by 10.4% from January to October 2014

MOSCOW (MRC) -- The output of finished products made of polymers in Russia grew by 10.4% over the first ten months of 2014. The films sector accounted for the largest increase in production, whereas the construction sector has demonstrated negative results since early 2014, reported MRC analysts.

October production of the main products from polymers in Russia dropped by 0.9% from September under the pressure of seasonal factors.

According to the Federal State Statistics Service of the Russian Federation, the October output of non-reinforced and non-combined films fell to 83,200 tonnes from 108,000 tonnes a month earlier. Thus, Russia's production of these products totalled 911,900 tonnes from January to October 2014, up by 27.5% year on year.

Last month's production of plates and sheets dropped to 18,500 tonnes from 19,700 tonnes in September. The putput of these products by Russian companies reached 182,200 tonnes over the stated period, up by only 0.2% year on year.

October production of plastic pipes, hoses and fittings was 69,800 tonnes versus 70,600 tonnes in September. The overall production of these products reached 498,800 tonnes over the first ten months of the year, down by 1.2% year on year.

Last month's production of plastic windows and their frames and sills virtually remained at the level of September and totalled about 2.6 million square metres. The output of plastic windows and window sills was about 21.3 million sq. m. from January to October of 2014, down by 10.7% year on year.
MRC