Sika acquires Addiment Italia from Buzzi Unicem

MOSCOW (MRC) -- Swiss specialty chemicals company Sika AG has acquired the remaining shares of the Italian based Addiment Italia from its joint venture partner Buzzi Unicem, said the producer on its site.

The company is active in the production and sale of concrete admixtures and cement grinding aids. The transaction will strengthen Sika’s production set up in Italy and increase its market presence. Addiment Italia generated sales of EUR 14 million in 2014.

Addiment Italia has a history of over 25 years of experience in the construction market offering a broad range of concrete admixtures and cement grinding aids. In 2003 Buzzi Unicem and Sika AG formed a joint venture in order to produce an innovative range of construction chemicals that enhance the quality and performance of concrete and cement.

Pietro Buzzi, co-CEO of Buzzi Unicem: "The cooperation between Buzzi Unicem and Sika as joint venture partners of Addiment Italia has continued effectively for more than twelve years, with good understanding of the common goals and management decisions that led to great results for both employees and shareholders. We hope that our future business relationship will continue with the same long lasting success."

Paul Schuler, Head of region EMEA: "The acquisition will allow us to further build upon the successful partnership between Buzzi Unicem and Sika in the admixture business worldwide and strengthen the operational footprint in Italy. We welcome the new employees on board and look forward to developing the business together."

As MRC wrote previously, Sika AG reported that its net sales for the first quarter of 2015 declined 0.9% to 1.195 billion Swiss francs from 1.206 billion francs in the same quarter last year.

Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its more than 16,000 employees generated annual sales of CHF 5.6 billion in 2014.
MRC

MOSCOW (MRC) -- Reliance Industries Ltd.(RIL), the second largest publicly traded company in India, plans to shut down one crude distillation unit (CDU) at its Jamnagar petrochemicals refinery special economic zone for routine maintenance and inspection for nearly 10 days in July, as per Plastemart.

This opportunity would also be utilised to carry out necessary modifications to improve the reliability and performance of the unit, RIL said in a statement.

The other three crude distillation units, including major secondary processing units, are expected to operate at normal throughput.

As MRC wrote previously, Reliance Industries restarted its domestic polypropylene (PP) plant following maintenance turnaround in late March 2015. It was shut on February 28, 2015. Located in Jamnagar in the Western Indian state of Gujarat, the plant has a production capacity of 1 million mt/year.

Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC

MOSCOW (MRC) -- Showa Denko has completed the expansion of used-plastic gasification facility at the Kawasaki Plant, and held a ceremony for the completion, said the company in its press release.

As part of its basic chemicals business, SDK is producing ammonia at Kawasaki. SDK processes used plastic to obtain part of hydrogen necessary for the synthesis of ammonia. As an industrial material, ammonia is used in the production of synthetic fibers and metal surface treatment for automotive and construction machinery parts. The demand for ammonia used for removing nitrogen oxides contained in exhaust gas from thermal electric power plants and other facilities has been increasing in recent years. Furthermore, SDK's liquefied ammonia (trade name: Ecoann(TM)) has been approved and rated high as "eco-friendly goods for procurement" by major electric power companies because the product is partly based on used plastic.

In January 2015, SDK's plan to raise the percentage of feedstock from used plastic was recognized by the Ministry of Economy, Trade and Industry as eligible for the ministry's interest subsidy program for the promotion of effective utilization of resources. Under the program, SDK received a loan from the Development Bank of Japan Inc., and invested in the expansion of used-plastic gasification facility at the Kawasaki Plant. After the expansion, the percentage of hydrogen from used plastic to produce Ecoann(TM) will increase to 65%.

The method to produce hydrogen from used plastic entails significantly lower environmental burden compared to the conventional methods to produce hydrogen from petroleum-derived raw materials. By providing products indispensable for protecting the environment and improving social infrastructure, SDK will continue meeting the expectations of society and local communities.

As MRC informed earlier, Showa Denko (SDK) has decided to establish a new production site for thermosetting bulk molding compound (BMC) in Zhuhai, Guangdong Province, China, jointly with Eternal Materials Co., Ltd., a synthetic resin manufacturer based in Taiwan.

Showa Denko K.K. is mainly engaged in the petrochemical business. The Petrochemical segment manufactures and sells olefin, organic chemicals and others. The Chemical Product segment supplies chemicals, industrial gases, special gas and functional drug for semiconductors, functional high molecular materials, among others.

MRC

MOSCOW (MRC) -- Chemical supplier Borealis has expanded its partnership with global plastics distributor Nexeo Solutions to target the rigid and flexible packaging and fibre market, as well as the automotive, healthcare and infrastructure industries, said Canplastics.

According to a joint statement, the new Borealis distribution strategy will see Nexeo become the pan-European distributor for Borealis, to help Borealis "increase growth in key European regions such as Germany, France, Benelux, UK, and enable continuous improvement in service."

While the new strategy targets the rigid and flexible packaging and fibre market, it also includes healthcare grades, infrastructure and automotive applications, the statement said. "The increasingly competitive landscape of the European polymers market requires a more consistent approach that comprehensively addresses all key applications and enables more sustainable growth in Europe," it said.

Borealis and Nexeo – which was a part of Ashland Chemical up until 2011 – entered into what they describe as Europe’s first pan-European polyolefin distribution partnership in 1996 with the distribution of Borealis PE and PP products to small and medium-sized customers. The partnership deepened in 2012, when Borealis and Nexeo joined forces to distribute products in North America.

"We are very pleased to take our partnership with Nexeo Solutions to the next level," said Rainer Hoefling, vice president, Borealis Sales Polyolefins. "Both companies have ambitious targets when it comes to profitable growth. Reinforcing an already robust partnership will make it easier for both parties to realise these targets. Through this partnership, both our companies and our customers will benefit and it will enhance our standing in the European market."

As MRC informed earlier, Borealis AG bought out DuPont Co.’s two-thirds share in their Specialty Polymers Antwerp NV joint venture. No purchase price was disclosedl. Wilmington, Del.-based DuPont will continue to sell ethylene vinyl acetate (EVA) and acrylate compolymers made at the JV’s plant, which is in Zwijndrecht, Belgium.

Borealis is headquartered in Vienna. Nexeo’s Canadian operation – Nexeo Solutions Canada Corp. – is located in Mississauga, Ont.

MRC

MOSCOW (MRC) - Ufaorgsintez owned by "United Petrochemical Company" (UPC) announced an increase in polypropylene (PP) and polyethylene (PE) prices of roubles (Rb) 1,500 - 3,000/tonne, according to ICIS-MRC Price Report.

According to the company's customers, prices for all grades of homopolymer PP increased by Rb1,500/tonne from 30, June, compared with the level on 23, June. Prices for propylene copolymers remained steady.

Prices for all grades of low density polyethylene (LDPE) also increased. LDPE prices for the production of general purpose films grew by Rb2,000-3,000/tonne; prices for LDPE for shrinkable films rose by Rb3,000/tonne.

Customers of the company explained the rise in LDPE prices by increasing deficit in the domestic market, besides Ufaorgsintez plans to shut its capacities for 8-days maintenance works from 13, July.

Ufaorgsintez was founded in 1956 and is based in Ufa, Russia. As of January 22, 2010, Ufaorgsintez operates as a subsidiary of Bashneft Joint Stock Oil Company. "United Petrochemical Company" (UPC) owns 87.76% of Ufaorgsintez"s registered capital. Bashneft sold Ufaorgsintez"s stake to UPC in May 2013.

Ufaorgsintez manufactures organic synthesis products in Russia and Europe. Its products include ethylene, propylene, ethanol, cumol, ethyl benzol, phenol, acetone, copolymer rubber, polyolefines, polyvinyl chloride and polyethylene items, thinners, and dilutants. The plant's annual polypropylene (PP) production capacity is 100,000 tonnes.

According MRC ScanPlast, total LDPE and PP production at Ufaorgsintez was 41,800 tonnes and 53,900 tonnes in the first five months of 2015, respectively.

MRC