Plastics packaging match-up as RPC acquires Superfos

(Plastics Today) -- Announced today, the merger of the two will create one of Europe's top 2-3 processors of rigid plastics packaging, and its largest injection molder of packaging. The acquisition, which is subject to shareholder and regulatory approval, is priced at $319.7 million, making it one of the largest plastics packaging deals of 2010.

The acquisition is expected to be completed at or around the end of January 2011. According to this report from Dow Jones, Swedish private equity firms Ratos AB, which owns 33% of Superfos, will take a loss of 70 million Swedish kronor ($10.3 million) on the sale. The remaining share of Superfos are owned by another Swedish equity firm, IK Investment Partners AB; the two acquired the processor in 1999 and since then have invested almost $70 million in it.

Superfos (Taastrup, Denmark) injection molds packaging for food products, as well as pails and buckets for non-food packaging. It has nine processing facilities across Europe and employs more than 1300.

The buyer, RPC Group Plc, is a publicly listed company, and in fact its shares jumped more than 11% in the hours following the announcement. RPC employs almost 6000 at 40 facilities across Europe and at one in the U.S. It runs injection molding, thermoforming and blow molding operations. Almost 60% of its sales are into the food packaging sector.

MRC

(Plastemart) -- Saudi International Petrochemical Company (Sipchem)'s affiliate the International Polymers Company has awarded the Engineering Design, Procurement and Construction (EPC) contract for an Ethylene Vinyl Acetate (EVA) plant to G.S. Engineering & Construction Corporation- Korea.

The new plant to be located in Jubail Industrial City is planned with an annual production capacity of 200,000 tons of Ethylene Vinyl Acetate (EVA) and Low Density Polyethylene (LDPE). Operations are expected to commence in Q2-2013, at the plant that is part of Sipchem's third expansion phase.

The International Polymers Company founded in the year 2009, is owned 75% by SipchemSipchem and 25% by Hanwha Chemicals. This will be the regions first to produce EVA. Sipchem has a technology licensing agreement with ExxonMobil for the project.

MRC

(Plastics News) -- Cryovac Inc. plans to add an extrusion line to its polyethylene film plant in St. Joseph, Mo. On Dec.13 the St. Joseph City Council approved $16.3 million in bond money to support the project; Cryovac would receive a 75 percent abatement on all personal property taxes for five years, and an additional 50 percent abatement for five more years.

The expansion project is expected to add 12 new jobs to the approximately 80 current positions, Ken Aurichio, a spokesman for Cryovac parent company Sealed Air Corp. The plant produces primarily barrier bags for food packaging, Aurichio said.

MRC

(Ameinfo) -- Oman's chemicals and plastics capacity will increase by 60% to reach 8.5 million tons in 2012 according to the organisers of ArabPlast 2011, the Middle East's No 1 trade show for rubber, plastics and petrochemicals, which will be held from January 8 to 11, 2011, at the Dubai International Exhibition Centre.

The sultanate is one of the biggest players in the petrochemical industry in the region, with a global reach spanning 150 countries, according to Mr. Satish Khanna, General Manager of Al Fajer Information & Services, Dubai, co-organiser of ArabPlast 2010.

One of the largest participants at ArabPlast is Oman Polypropylene LLC (OPP). The OPP plant is also meant to serve as a platform for further downstream polypropylene converting industries to create jobs and business opportunities in Oman.

A record number of companies are participating in ArabPlast 2011, a reflection on the growing importance attached by GCC countries to strengthening their manufacturing industries, including plastics and rubber sectors.

MRC

(SIBUR) -- Fluor Corporation and the petrochemical holding company SIBUR have signed a memorandum of understanding for the establishment of a joint venture based on NIPIgazpererabotka, the Russian company's Research and Design Institute for Gas Processing. Initially, Fluor will acquire a 10% stake in NIPIgazopererabotka. Three members of Fluor's management will become members of the Board of Directors of NIPIgazopererabotka.

In the first stage, a working group consisting of representatives from Fluor and NIPIgazopererabotka will launch a pilot project for the design and construction of the Yuzhny Balyk -Tobolsk pipeline connecting the Yuzhny Balyk gas processing plant to the Tobolsk petrochemical complex.

In future the founders of the joint venture plan to build on the basis of the institute's leading design and engineering center in the oil and gas construction market in Russia and the Commonwealth of Independent States (CIS).

MRC