Solvay continues its transformation with the sale of its cellulose acetate tow business

MOSCOW (MRC) -- Solvay has reached an agreement to sell its cellulose acetate tow business, Acetow, to private equity funds managed by Blackstone, as per the company's press release.

"The divestment of Acetow is another significant step in Solvay’s transformation towards a multi-specialty chemical group with a higher growth profile," said Jean-Pierre Clamadieu, CEO of Solvay.

The transaction is based on an enterprise value of about EUR1 billion, representing around 7xEBITDA multiple. The net proceeds will contribute to the continued deleveraging of Solvay. Solvay expects to generate a capital gain of around EUR150 million after tax.

Completion of the transaction is expected in the first half of 2017 and is subject to the customary social procedures and approval by the relevant antitrust authorities.

As MRC informed before, in early July 2016, Solvay completed the divestment of its shareholding in Inovyn (London), bringing to an end Solvay's chlorvinyls joint venture with Ineos. Solvay received exit cash proceeds amounting to EUR335 million (USD370.7 million). The dissolution of the jv follows regulatory clearances from the relevant authorities.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries. It generated pro forma net sales of EUR12.4 bn in 2015, with 90% made from activities where it ranks among the world’s top 3 players.
MRC

PTTGC plans maintenance at No. 1 cracker in 2017

MOSCOW (MRC) -- PTT Global Chemical (PTTGC), Thailand’s largest petrochemical producer, is likely to take its No.1 cracker off-stream for a maintenance turnaround, as per Apic-online.

A Polymerupdate source in Thailand informed that the cracker is expected to be taken off-line in end-August 2017. The planned maintenance is likely to remain in force for around 2 or 3 weeks.

Located at Map Ta Phut in Thailand, the cracker has an ethylene production capacity of 460,000 mt/year and a propylene production capacity of 125,000 mt/year.

As MRC reported earlier, PTTGC is in plan to shut its No. 3 cracker for a maintenance turnaround in March 2017. The planned maintenance is expected to remain in force for around 2 weeks. Located at Map Ta Phut in Thailand, the cracker has an ethylene production capacity of 1 million mt/year and a propylene production capacity of 250,000 mt/year.

PTT Global Chemical is a leading player in the petrochemical industry and owns several petrochemical facilities with a combined capacity of 8.45 million tonnes a year.
MRC

Chemours announces titanium dioxide price increase

MOSCOW (MRC) -- The Chemours Company (Chemours) announced a price increase on all Ti-Pure titanium dioxide grades sold in Latin America, Europe, the Middle East, and Africa regions, said the company om its site.

Effective February 1, 2017 or as contracts and law allow, a net price increase of USD150 per tonne will apply for all Ti-Pure titanium dioxide grades sold in Latin America.

Effective February 1, 2017 or as contracts and law allow, a net price increase of USD150 per tonne will apply for all Ti-Pure titanium dioxide grades sold in the Middle East, Eastern Europe, and Sub-Saharan Africa.

Effective February 1, 2017 or as contracts and law allow, a net price increase of Euro 175 per tonne will apply for all Ti-Pure titanium dioxide grades sold in Western and Central Europe, Turkey, and North Africa.

The Chemours Company helps create a colorful, capable and cleaner world through the power of chemistry. Chemours is a global leader in titanium technologies, fluoroproducts and chemical solutions, providing its customers with solutions in a wide range of industries with market-defining products, application expertise and chemistry-based innovations.
MRC

Solvay secures Brazilian antitrust clearance to sell its Solvay Indupa stake to Unipar Carbocloro

MOSCOW (MRC) -- Solvay has obtained clearance from the Brazilian antitrust authority, CADE, for the agreed sale of its 70.59% stake in Solvay Indupa to chemical group Unipar Carbocloro, said the company on its site.

Completion of the transaction, at a total enterprise value of USD 202.2 million as announced in May, is expected to take place in the next weeks. Solvay Indupa produces PVC and caustic soda in Brazil and Argentina.

As MRC informed earlier, in 2014, Argentina's stock regulator rejected as inadequate an offer from Brazil's Braskem, Latin America's largest petrochemical company, to buy the roughly 30% of the shares of plastic maker Solvay Indupa that are publicly traded. Solvay Indupa is the Argentine-Brazilian unit of Belgium's Solvay, which owns 70.59% of the company.

Created in 1948, PVC and caustic soda producer Solvay Indupa has 956 employees and two production sites in Brazil and Argentina. Indupa, with a manufacturing capacity of more than 500,000 tpa of PVC, runs facilities at Santo Andre, Brazil, and Bahia Blanca, Argentina.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market. Solvay is headquartered in Brussels with about 30,900 employees spread across 53 countries. It generated pro forma net sales of EUR12.4 bn in 2015, with 90% made from activities where it ranks among the world’s top 3 players.
MRC

PE production in Russia down 22% in the first eleven months of 2016

MOSCOW (MRC) - Total production of low density polyethylene (LDPE) in Belarus decreased to 87,200 tonnes in the eleven months of the year, down 22% year on year, according to MRC DataScope Report.

According to the National Statistics Committee of Belarus, November LDPE production by the local producer Polymir was about 5,700 tonnes against 5,900 tonnes a month earlier. Thus, Belarus' overall LDPE production totalled 87,200 tonnes in January-November 2016, compared to 111,500 tonnes a year earlier. The main reason for such a serious decline in production volumes was a fire at one of the ethylene lines, which led to a halving of the olefin production volumes.

As MRC informed earlier, an outbreak of gas-air mixture with flare combustion of exhaust products happened at the plant on 18 June 2016.
The fire damaged the technological equipment, resulting in a shutdown of PE production at the second line (annual capacity of 65,000 tonnes).
The exact dates of the outage have not been announced yet.

Plant Polymir ("Naftan") is the largest petrochemical company in Belarus, produces a wide range of chemical products, such as low density polyethylene (LDPE), acrylic fibers, products of organic synthesis, hydrocarbon fractions, etc. Polymir was founded in 1968. Technologies of the largest foreign companies from Great Britain, Japan, Germany, Italy (Courtaulds, Asahi Chemical Co. Ltd, Kanematsu Gosho, SNIA BPD, etc.), As well as the development of scientific research institutes and design institutes of the CIS countries. The LDPE production's annual capacity is 130,000 tonnes.

MRC