Lotte changes company name after takeover

MOSCOW (MRC) -- Lotte Group said that it changed the name of a chemical unit that it took over from Samsung Group, the latest in its steps to wrap up the 3-trillion won (USD 2.41 billion) merger, as per GV.

Retail and chemicals giant Lotte Group took over Samsung Fine Chemicals Co., Samsung BP Chemicals Co. and Samsung SDI Co.'s chemical unit, as part of an effort to further strengthen its chemicals business.

Samsung Fine Chemicals was renamed Lotte Fine Chemicals Co., according to the group. The deal came around a year after Samsung sold four of its defence and chemical units to Hanwha Group in 2014 through a deal estimated at 1.9 trillion won.

Samsung, the country's top conglomerate, has been making efforts to reorganize and streamline its business structure, especially after the family-controlled conglomerate's de facto head Lee Kun-hee has remained bedridden since May 2014. The group has been making various efforts to pave the way for the management inheritance to his only son Jae-yong.

As MRC informed previously, in October 2015, Samsung Group agreed to sell its chemical assets to Lotte Group for about 3 trillion won (USD2.5 billion). Following the spin-off, Samsung SDI, the battery and chemical arm of South Korea's top conglomerate Samsung Group, will focus on its electric vehicles and battery businesses.

Besides, in 2014, Samsung also sold four of its defense and chemical units to the Hanwha Group, a deal estimated at around 1.9 trillion won.In March 2015, South Korea's Fair Trade Commission (KFTC) gave conditional approval to Hanwha's proposed acquisition of Samsung General Chemicals.
MRC

MOSCOW (MRC) -- Oman Oil Refineries and Petroleum Industries (Orpic) is in plans to restart its polypropylene (PP) plant in Sohar, reported Apic-online.

A Polymerupdate source in Oman informed that the plant is expected to resume production on April 23, 2016. The plant was shut for a maintenance turnaround on February 23, 2016.

Located at Sohar in Oman, the plant has a production capacity of 340,000 mt/year.

As MRC informed previously, in May 2014, Orpic said it had awarded two contracts for construction of a USD3.6 billion plastics production complex, the Liwa Plastics Project. The plant will be built in Oman's northern industrial city of Sohar, next to Orpic's oil refinery and petrochemical plants. The Liwa Plastics Project is due to be completed in 2018, doubling Orpic's profitability by allowing it to extract more value from Omani crude oil and natural gas, the company said.

The project will boost Orpic's annual production of polypropylene and polyethylene to 1.4 million tonnes, increasing Oman's exports, while additional production of 1 million tonnes of plastics will help to develop downstream industries within the country, ORPIC added.

ORPIC (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. ORPIC is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector.
MRC

MOSCOW (MRC) -- Synthomer has acquired the Hexion Performance Adhesives & Coatings (Hexion PAC) business of US-based Hexion in a transaction valued at USD226m, said Chemicals-technology.

Following the acquisition, Synthomer will get access to new product technologies and markets. Hexion PAC is complementary to the company's existing business, both geographically as well as in the markets in which it operates.

The acquisition will enable Synthomer to venture into the speciality coatings market. Integration of the Hexion PAC business will offer around USD12m of annualised synergies to the company by the end of 2018.

Synthomer CEO Calum MacLean said: "The acquisition of Hexion PAC represents a further step forward in our strategy to continue to grow and develop the business. "This acquisition strengthens our platform for continued growth in the global dispersions and additives market, and in particular expands our presence in the US and Asia.

"Hexion PAC has a good performance track record and shares our commitment to innovation and emphasis on strong customer relationships."

The acquisition, which is planned to be funded by Synthomer from its existing cash resources and using additional credit facilities, is subject to the receipt of regulatory approvals and is slated for completion in the second quarter of 2016.

Hexion PAC develops, manufactures and markets a range of dispersions, additives, powder coatings and speciality monomers. Separately, Synthomer has agreed to sell its South African dispersions business to colours and coatings manufacturer Ferro for GBP13m.

The sale is expected to be completed in the second quarter of this year, after securing regulatory approvals.

As MRC informed earlier, AkzoNobel announced the EUR5 million divestment of its 50% share in non-consolidated joint venture Eka Synthomer Oy, to Synthomer.

Synthomer also offers various binders based around acrylics, styrene-butadiene and vinyl acetate chemistries, for use in various applications, including weather-resistant wood coatings, crack-bridging facade paints for cool roofing applications and plaster, as well as binders for PSA tapes, labels and technical textiles.
MRC

MOSCOW (MRC) -- Vietnamese plastic firms that import polypropylene (PP) as production material can reduce their production costs as the finance ministry has reduced the tax on PP by 2%, as per GV.

Under a new circular released in late January, which will come into effect on March 6, the new tax rate on PP is 1%, down 2% from 3 %, imposed by the finance ministry in the previous circular released in 2013.

Viet Capital Securities Corporation (VCSC) wrote in a report that the lower tax rate would help plastic firms to reduce their expenditure on importing polypropylene from overseas suppliers for production purposes.

These plastic companies include Sai Gon Plastic Packaging JSC (SPP), PP Pack Marking JSC (HPB), Tan Dai Hung Plastic JSC (TPC) and Binh Duong PP Pack Making JSC (HBD), besides Vinh Plastic and Bag JSC (VBC).

Meanwhile, the largest companies in the plastic sector such as Binh Minh Plastic JSC (BMP), Tien Phong Plastic JSC (NTP), Dong A Plastic JSC (DAG) and Vietnam Electric Cable Corporation (CAV), besides Vinh Khanh Cable Plastic Corporation (VKC) and An Phat Plastic and Green Environment JSC (AAA) will not benefit from the circular as they use polyvinyl chloride (PVC) as the input material for production.

The BIDV Securities Corporation (BSC) wrote in a forecast for this year that local plastic companies might face business problems as some European countries have abandoned the use of plastic bags and are encouraging their people to use degradable bags, while the United States has also extended the anti-dumping tax on Vietnamese plastic bags.

We remind that, as MRC wrote before, in September 2014, Top Thai energy firm PTT Pcl said it would make a proposal to the Vietnamese government to build a USD20 billion refinery and petrochemical complex, revised down from an earlier project discussed two years ago.
MRC

MOSCOW (MRC) -- Switzerland-based chemical company Sika has opened a new mortars and concrete admixtures plant in Vancouver, Canada, said Chemicals-technology.

With the new plant, which is the company's fourth facility in Canada, Sika expects to serve the Pacific Northwest, a region that includes the cities of Vancouver, Seattle and Portland.

The new plant fulfils the company's continued supply chain strategy in North America by expanding production capacities in conurbations and major cities in the area.

The facility features a modular mortar plant and liquid concrete admixture, blending equipment for producing a wide range of concrete admixtures, as well as a quality control laboratory, a warehouse and office space for administrative and sales personnel.

Following the opening of the plant, the company's production sites in North America have increased to 18, of which four are in Canada.

Last December, the company opened a mortar production facility in Philadelphia to serve the major cities on the East Coast of the US.

Sika North America regional manager Christoph Ganz said: "Local production will be very beneficial to customers in the region by providing improved product availability, reduced lead times and faster deliveries. "Moreover, eliminating the cost of shipping products from our Edmonton and Montreal plants and using locally sourced raw materials will enable us to optimise our cost structure."

The newly opened mortars and concrete admixtures plant, covering an area of 30,000ft?, will produce a broad range of cementitious mortars and grouts including SikaTop, Sikacrete, SikaQuick, SikaRepair, SikaSet, Sika MonoTop, Sika Level, and SikaGrout.

As MRC informed earlier, Sika announced opened two new concrete admixtures plants in Southeast Asia, one in Myanmar, the other in Cambodia.

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.
MRC