Arkema announced successful completion of EUR350 mln share capital increase related to acquisition of Bostik

MOSCOW (MRC) -- French chemicals group Arkema has announced a successful completion of the EU350 million share capital increase related to the proposed acquisition of Bostik, reported the company in its press release.

Thus, the share capital increase with preferential subscription rights launched by Arkema on 19 November 2014 as part of the financing of the proposed acquisition of Bostik has been successfully completed.

The gross proceeds of the issue amounts to EUR350,451,024, corresponding to the issue of 9,102,624 new shares.

Therefore, the deal would be financed by a EUR350-million share capital increase; the issuance of hybrid securities of EUR600-700 million; and a senior bond issuance for the rest, EUR500–600 million, Arkema says.

As MRC wrote befire, in late September 2014, Arkema offered to buy oil major Total's adhesives business Bostik, which makes Blu-Tack, for EUR1.74 billion (USD2.24 billion).

Total, under pressure from shareholders to improve its cash flow and raise dividends, has embarked on a major divestment program. A sale of Bostik at that price would increase its announced disposals this year to near USD20 billion - at the top of its target range of USD15-USD20 billion.

Bostik is the third-largest adhesives company and generated sales of EUR1.53 billion in 2013. Total has granted Arkema an exclusivity period to pursue the offer. The proposed transaction is subject to approval by the relevant antitrust authorities.

The acquisition would strengthen Arkema’s position in specialty chemicals and continue the development of its high-performance materials segment, which would account for 42% of total sales following the Bostik deal, Arkema says.

Bostik develops high-performance and high-value-added bonding and sealing products for the nonwoven, industrial, construction, and consumer markets. Bostik employs about 4,900 people across 48 production facilities - 18 in Europe, 10 - in North America, 8 - in Asia, 6 - in Australia and New Zealand, 2 - in Africa, and 4 - in South America.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC

Lanxess introduces Tepex high-performance composites for rear muffler cover

MOSCOW (MRC) -- Engineers increasingly are using Tepex performance composites from Lanxess subsidiary Bond-Laminates to significantly improve the mechanical strength of components made of fiber-reinforced thermoplastic compression molding compounds, as per Lanxess' press release.

The latest example is a cover on the rear muffler of the BMW i8. It is fabricated in a direct long fiber thermoplastic (DLFT) process from a polypropylene compression molding compound reinforced with long glass fiber rovings. An insert made of Tepex dynalite 104-RG601 is used as the surface layer.

Tepex also is an attractive option for locally reinforcing components made of other thermoplastic compression molding compounds and forming materials. For example, the mechanical properties of Tepex-reinforced DLFT polypropylene materials are on par with glass-mat-reinforced and glass-fabric-reinforced thermoplastic systems (GMT and GMTex) based on polypropylene.

As MRC informed previously, in October 2014, at Composites Europe, Lanxess presented new multi-axial Tepex semi-finished products from its subsidiary Bond-Laminates. Bond-Laminates can produce them continuously in an industrial-scale process that enables the continuous fiber layers to be oriented at almost any angle in the thermoplastic matrix. It is even possible to achieve quasi-isotropic lay-ups. The hybrid technology using Tepex with polyamide 6 as an overmolding material has already conquered a large number of series applications in the lightweight design of automobiles. Durethan BKV 55 TPX, a new polyamide 6 reinforced with 55 percent short glass fibers and optimized for overmolding Tepex.

Lanxess is a leading specialty chemicals company with sales of EUR 8.3 billion in 2013 and roughly 17,000 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

BASF and Omya jointly develop coater-ready barrier solutions

MOSCOW (MRC) -- BASF, the world's petrochemical major, and Omya, a Switzerland-based global provider and distributor of specialty chemicals, are working jointly on coater-ready barrier solutions for paper and cardboard packaging, reported BASF on its site.

This cooperation is their response to the growing demand for these products. In future, this will provide a service for customers who for capacity and plant technology reasons cannot prepare formulations and mixtures independently. Coater-ready solutions consist mainly of pigments, additives and functional barrier dispersions.

BASF's and Omya's contributions to the partnership complement each other ideally. BASF supplies barrier dispersions, while Omya provides the pigments and experience to manufacture these products and produces them in its own facilities. Thanks to their technical know-how and knowledge of the market, the two partners can guarantee an optimal solution for the paper and cardboard packaging manufacturers. Marketing will be carried out through the sales channels of Omya in Europe. A first commercial product will be available in Q1.

The upcoming Mineral Oil Ordinance of the German Federal Ministry of Food, Agriculture and Consumer Protection (BMELV) is increasing interest in water-based barrier solutions for paper and cardboard packaging. BASF's comprehensive portfolio of barrier solutions includes polymers applied by extrusion, coextrusion or lamination at converters (e.g. ecovio PS 1606 or Ultramid) as well as water-based dispersions used in paper finishing on coating machines and in printing processes (Epotal). Through this cooperation, BASF's portfolio is supplemented by this new coater-ready barrier formulation.

Together with packaging manufacturers, BASF has developed various barrier solutions which are now already being successfully used in the market for various packaging applications.

As MRC wrote before, in May 2014, BASF offered high performance Ultramid (polyamide), which is derived from renewable raw materials with certified biomass. The resulting Ultramid, which is produced according to the so called mass balance approach, is identical in terms of formulation and quality but associated with lower green house gas emissions and saving of fossil resources.

Omya is a leading global producer of industrial minerals - mainly fillers and pigments derived from calcium carbonate and dolomite - and a worldwide distributor of specialty chemicals. The company’s major markets are forest products (fiber based products such as paper, board and tissue), polymers, building materials (paints, coatings, sealants, adhesives and construction) as well as life sciences (food, feed, pharmaceuticals, cosmetics, environment and agriculture). Founded in 1884 in Switzerland, Omya has a global presence extending to more than 180 locations in over 50 countries with 8,000 employees.

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of EUR72.1 billion in 2012.
MRC

Ufaorgsintez increases PE and PP prices from 15 December 2014

MOSCOW (MRC) -- Ufaorgsintez, owned by United Petrochemical Company has announced an increase of Rb1,400-2,000/tonne in contract prices of polypropylene (PP) and low density polyethylene (LDPE) for shipments starting from 15 December, according to ICIS-MRC Price report.

The company's customers said prices of all LDPE grades rose by Rb1,400/tonne from the level as of 1 December. Prices of propylene homopolymer (homopolymer PP) of raffia grade grew by Rb1,500/tonne, prices of injection moulding homopolymer PP increased by Rb2,000/tonne, whereas prices of block copolymers of propylene (PP-impact) rose by Rb1,500/tonne.

The price rise was mostly caused by the rapid devaluation of the rouble, which led to a proportional price increase of feedstocks used for polymers production. At the same time, a drop in oil prices in foreign markets was not as dynamic as the weakening of the rouble.

Ufaorgsintez OAO was founded in 1956 and is based in Ufa, Russia. Ufaorgsintez OAO manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, poly vinyl chloride and polyethylene items, thinners, and dilutants. The company was incorporated in 1984. United Petrochemical Company owns 87.76% of Ufaorgsintez's capital. Bashneft sold Ufaorgsintez to United Petrochemical Company in May 2013.

According to MRC ScanPlast report, the plant's overall PE and PP production totalled 75,300 tonnes and 111,600 tonnes, respectively, over the first eleven months of 2014.
MRC

Sunchem to start up new SM plant in China

MOSCOW (MRC) -- Chinese petrochemical producer Sunchem is in plans to start a new styrene monomer (SM) plant, reported Apic-online.

A Polymerupdate source in China informed that the plant is likely to be started in late 2016.

To be located in Dalian, China, the plant will have a production capacity of 400,000 mt/year.

As MRC informed previously, Grand Pacific Petrochemical Corp (GPPC) is likely to shut its SM plant in Taiwan for maintenance turnaround in November 2015. It is likely to remain off-stream for around one month. Located in Taiwan, the plant has a production capacity of 130,000 mt/year.

Earlier, in April 2014, GPPC shut down its SM plant in Taiwan for maintenance turnaround in late April. It remained off-stream for around one month. Located in Kaohsiung, Taiwan, the plant has a production capacity of 250,000 mt/year.

Besides, Styrindo Mono Indonesia (SMI) shut its No.1 SM plant in Indonesia for maintenance turnaround in H2 November 2014. The plant will be shut for around one month. Located in Merak, Indonesia, the plant has a production capacity of 100,000 mt/year.
MRC