Solvay completes purchase of Eastman share in former US JV Primeste

MOSCOW (MRC) -- Eastman Chemical had agreed earlier this year, to divest its interest in the Primester cellulose acetate flake joint venture in Kingsport to its partner Solvay, said the producer on its site.

Solvay has completed the purchase of Eastman’s share in their former US joint venture Primester. Both companies were equal partners in the joint venture. As the sole owner of the cellulose acetate flake plant, Solvay has secured the most economical long term supply for its own tow businesses while adapting capacity to demand.

Eastman will provide the long-term supply of basic utilities and raw materials to the Kingsport, Tennessee-based plant. The sale of interest in Primester will enable Eastman Chemical to eliminate costs related to the excess cellulose acetate flake capacity of the joint venture.

Solvay will target business opportunities in advanced lightweighting materials for the aerospace and automotive industries and in speciality chemicals for mining, following its acquisition of Cytec in December 2015.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers - fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
MRC

MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, and Kilfrost today announced that the companies have terminated the acquisition agreement they entered into on November 19, 2015, relating to the sale and purchase of the European aircraft and rail de-/anti-icing businesses of Kilfrost, said the company on its site.

Both companies expected the proposed merger to result in benefits to shareholders, customers and other stakeholders but have agreed to withdraw from the proposed transaction due to commercial reasons and challenges in obtaining regulatory approval in the United Kingdom.

In 2015, Clariant acquired the Kilfrost de-icing business in North America and Asia. This transaction is already closed and remains uneffected by the present decision.

As MRC informed earlier, Gevo Inc. entered into an agreement with Clariant Corp., one of the world’s leading specialty chemical companies, to develop catalysts to enable Gevo’s ETO technology.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

МОSCOW (MRC) -- China National Chemical Corporation has successfully completed the acquisition of the KraussMaffei Group from Onex Corporation, said Omnexus.

All relevant regulatory approvals have been achieved. In the future, the KraussMaffei Group will be ChemChina’s principal business entity in the operating and managing of related machinery enterprises. ChemChina has among the leading rubber and chemical machinery manufacturing businesses in China. It has one of the leading chemical equipment R&D and production bases in China and its drying technology and equipment operate at the highest global standards. The acquisition of the KraussMaffei Group by ChemChina from Onex was announced in early January 2016. ChemChina effected this acquisition together with its partners CNIC Corporation Limited and AGIC Capital.

"KraussMaffei Group will instill the robust German Industry 4.0 gene and the manufacturing tradition of craftsmanship into ChemChina’s advanced manufacturing segment, so as to provide integrated solutions to more customers around the world, especially in the emerging markets, thus complementing our shortcoming, and I think that this embodies the true meaning of supply-side reform, because here lies huge market demand”, said Jianxin Ren, Chairman of ChemChina. "The transaction will enable us to gain stronger access to the market of the Greater China Region. We intend to accelerate our growth in Asia and particularly in China, which will also strengthen our company both in Germany and in the rest of Europe", said Frank Stieler, CEO of the KraussMaffei Group. Securing this growth opportunity will also lead to an increase in our workforce outside China, particularly in Germany. The employee representatives and IG Metall welcome the change in ownership.

ChemChina has among the leading rubber and chemical machinery manufacturing businesses in China that provides services to the world’s top ten tire manufacturers. It has one of the leading chemical equipment R&D and production bases in China and its drying technology and equipment operate at the highest global standards.

As MRC informed earlier, the acquisition of the KraussMaffei Group by ChemChina from Onex was announced in early January 2016. ChemChina effected this acquisition together with its partners CNIC Corporation Limited and AGIC Capital.

ChemChina is one of the China’s largest chemicals groups. It generated revenues of around EUR42.3 billion in 2015 with approximately 140,000 employees, of whom 48,000 are located outside China. The group operates internationally with a global strategy, having acquired companies in France, Australia, the UK, Israel, Norway and Italy in the last few years with the most recent acquisition being the high-end tire manufacturer Pirelli. In selecting investment opportunities, ChemChina focuses on exceptional management expertise as well as the quality and value of the acquired companies, and on gaining synergies in global markets.

The KraussMaffei Group is among the world’s leading suppliers of machinery and systems for producing and processing plastics and rubber. Its products and services cover the whole spectrum of injection and reaction molding and extrusion technology, giving the company a unique position in the industry. The KraussMaffei Group is innovation-powered, supplying its products, processes and services as standard or custom solutions which deliver sustained added value along the customer’s value-adding chain.
MRC

MOSCOW (MRC) -- Gokongwei-led JG Summit Holdings Inc. plans to invest USD500-600 mln to expand its petrochemical business in the next three years, aiming to serve domestic as well as overseas markets, as per Gmanetwork.

JG Summit president Lance Gokongwei said that after investing around USD1 bln to develop a petrochemical business in the country, the group was ready to expand capacity in its current site in Batangas. From a current capacity of 320,000 tpa of ethylene, JG Summit plans to expand capacity to about half a million tons by 2019. This will also include the building of downstream capacity – the production of butadiene and aromatics.

Currently, the Philippines imports both of these products. Hence the country will be able to reduce its import dependency.

The expansion project will be financed through a combination of internal cash and borrowings.

"We’re confident that through a combination on internally generated cash flow and borrowing, the petrochemical business will be able to fund this expansion," Gokongwei said.

Parent JG Summit Holdings has decided to cut down its 2016 capex by P8.2 billion this year, given the lower financing required at this point because of the slowdown in spending for the petrochemical business. It has earmarked P41.3 billion for the year, compared with P49.5 billion in 2015.
MRC

MOSCOW (MRC) -- Catalyst technology supports start of South Korea PDH unit. Located in Ulsan on the southeast coast of the country, the PDH plant is a joint project between SK Gas Corp. Ltd. and Advanced Petrochemical Co., reported Hydrocarbonprocessing.

The Catofin process is recognized as a reliable and efficient technology for producing propylene from propane. The process operates at optimum reactor pressure and temperature to maximize conversion of propane for a high yield of propylene and correspondingly low investment and operating costs.

These performance benefits were confirmed by the successful startup of the PDH plant in Ulsan, according to Clariant. The unit has achieved a fast startup time with on-spec propylene produced within one day of propane feed introduction. 100% of design capacity was available in less than 15 days, and the plant is currently operating slightly above 100% capacity. Design conversion rate has already been reached at lower than expected temperatures.

In addition to supplying leading catalyst products, Clariant’s Catalysts business unit offers customers comprehensive service. Dedicated support from Clariant and CB&I begins with providing process information during the initial stages of plant design and construction, includes startup assistance when the plant is placed online, and continues with follow-up maintenance to ensure optimum operating performance of the plant.

As MRC informed previously, SK Gas invested a total of 1 trillion won (USD828.84 million) to build the PDH plant in Ulsan. The plant has 600,000 tons of an annual production capacity of propylene. The construction started in May 2014.
MRC