Bayer plans ┬1 billion investment in China

(Plastics Today) -- One of the leading suppliers of the materials, Bayer MaterialScience, is shifting the headquarters of its global polycarbonate activities from the company HQ in Germany to Shanghai. The company is investing more than ┬3 billion in its Shanghai facility on a number of projects, with at least a third of that in its plastics, coatings and adhesives business unit.

Bayer's polycarbonate (PC) is marketed under the Makrolon brand name. This new ┬1 billion in announced capital expenditures for Bayer's Shanghai plant will significantly expand the company's polyurethane (PUR) and PC capacities in China, as the supplier aims to increase its group sales in Greater China to around ┬5 billion by 2015.

About half of those sales are to be driven by its MaterialScience group, the name for its plastics, adhesives and coatings business. To put that in perspective, Bayer MaterialScience's total FY 2009 sales were ┬7.5 billion, of which Greater China sales were ┬2.1 billion. The MaterialScience unit accounted for ┬1.2 billion.

MRC

(Market Wire) -- Guanwei Recycling Corp., China's leading clean tech manufacturer of recycled low density polyethylene (LDPE), reported that based on strong October and November sales, and a continuing robust market for recycled LDPE, it is highly confident of achieving its previously announced sales goal for the full year.

As previously reported in its third quarter report for the period ended September 30, 2010, the Company sold nearly 31,000 tons of recycled LDPE through the first nine months of the year and forecasted that full year sales of recycled LDPE would reach or exceed 42,000 tons.

"Since then," stated Mr. Chen Min, Chairman and CEO of the Company, "through November, we have sold an additional 8400 tons of self-manufactured product and December sales are continuing on track. As we approach year end, we therefore remain very confident of another strong sales advance this year in line with our forecast."

Guanwei Recycling Corp. is China's largest manufacturer of recycled low density polyethylene (LDPE). Adhering to the highest "green" standards, it has generated rapid growth producing LDPE from plastic waste procured mostly in Europe for sales to more than 300 customers in ten different industries in China.

MRC

(BASF) -- BASF successfully completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.a r.l. controlled by Permira Funds, GS Capital Partners and SV Life Sciences yesterday (December 9, 2010). The equity purchase price was ┬700 million. Including net financial debt and pension obligations, the enterprise value of the transaction is ┬3.1 billion.

"Cognis' and BASF's know-how and range of products complement each other very well. The combination will broaden our portfolio of specialty chemicals and boost innovation for our customers , said Dr. Jurgen Hambrecht, Chairman of BASF's Board of Executive Directors.

BASF intends to fully integrate Cognis into the BASF Group. Detailed integration plans will be developed by the end of the first quarter of 2011. Completion of the structural integration is targeted for the end of 2011.

MRC

(Plastemart) -- The Shaw Group Inc. has been selected by GAIL (India) Ltd. to provide its proprietary technology and basic engineering for a new 450,000 tpa ethylene plant. Shaw also will provide support during detailed engineering, procurement and construction, and commissioning and startup of the plant, which will be part of GAIL's petrochemical complex in Pata, Uttar Pradesh.

Shaw has designed and/or built more than 120 grassroots ethylene plants worldwide. Five of those plants are in India, where Shaw also has participated in numerous projects to revamp or expand existing facilities. Shaw recently announced full commercial operation of a 1.3 million metric ton per year ethylene plant for Eastern Petrochemical Company (SHARQ) in Al-Jubail, Saudi Arabia.

MRC

(Plastics News) -- Indorama Ventures Public Co. Ltd. said its board of directors has approved the acquisition of PET resin and polyester filament yarn businesses in Poland and Indonesia from South Korea's SK Chemicals.

In November, Indorama had signed two definitive share purchase agreements, the first with Seoul, South Korea-based SK Chemicals to acquire the PET business of SK Eurochem Sp. z o.o. in Poland, and the second with SK Chemicals' subsidiary SK Syntec to acquire the PET and polyester business of PT SK Keris and PT SK Fiber in Indonesia.

Indorama said it expected the transaction to close simultaneously during the first quarter of 2011, subject to local regulatory approvals and condition precedents in the agreement.

The acquisitions would expand Indorama's global platform and reinforce its focus on the polyester value chain.

MRC