Rani Plast forms new spin-off for its East Europe packaging plants

MOSCOW (MRC) -- Nordic plastics film specialist Rani Plast Group has formed a new independent company, Tatrafan, including the group’s jointly owned flexible packaging operations in Eastern Europe, said Hydrocarbonprocessing.

This new spin-off business comprises the joint venture bioriented polypropylene (BOPP) packaging film and conversion operations in Slovakia and the Ukraine. Together with specialised dielectric insulation film production, the packaging units were formerly run by Terichem, owned 50:50 by Rani Plast of Finland and the Slovak firm Chemosvit.

But, to differentiate between the group’s technical insulation films and flexible packaging operations, the specialist technical business will continue to be run by Terichem, renamed in January as Terichem Tervakoski, to reflect the product brand name.

"We wanted to separate the companies because they produce different types of products and live their own lives. This way things become clearer," explained Mikael Ahlback, CEO of Rani Plast Group. Most of Tatrafan’s packaging films are manufactured at a plant in Svit, Slovakia with packaging product conversion to bags carried out at Lutsk in western Ukraine. There, the company has invested several million euros in new machinery recently.

Further investment is promised for the Slovak site where output is set to grow. “We will also invest in the factory in Slovakia and expand the capacity there, as we want to be involved in building the packaging industry in the region,” announced Ahlback. Meanwhile, Teerijarvi, Finland-based Rani Plast, a leading extruder of agricultural film, has begun commercial operation of what is the world’s biggest agro-films extruder turning out film up to seven layers as wide as 22m.

The new line, custom-built by US blown film extruder supplier Davis-Standard, required a roof extension in the machine hall to fit the line’s 50m high production tower. Part of a €16m project by family-owned Rani Plast at its Teerijarvi unit, the line started up in January 2017.

From the summer, the line has been running full out to meet increased demand for wider agro film in Europe, in part required for ever bigger farm silos. The widest film is also used by biogas plants and in the turf industry, said Rani Plast.

"The machine is operating at full capacity, which means that we will be able to deliver films to the very end of this season," predicted sales manager Christer Vidjeskog back in May. The project is the group’s single largest investment in its history.

The agro film capacity at its Teerijarvi plant has doubled with the arrival of the new line and production overall there has grown by 10%, according to the group.
MRC

Alpha Packaging acquires Dutch plant to expand in Europe

MOSCOW (MRC) -- US-based Alpha Packaging has acquired a plant in Etten-Leur, the Netherlands, from Graham Packaging Co. as part of its bid to support growth in Europe, as per Hydrocarbonprocessing.

The St. Louis, Missouri-based company said the acquired plant is its second production unit in Europe, “just a few miles” from its existing facility in Roosendaal. The company did not disclose the terms of transaction, which was completed 2 Nov.

The PET and HDPE bottle maker said the new blow-moulding facility would boost its stake in rigid food packaging. Alpha is a blow moulder of bottles and jars for rapidly growing consumer markets, including the nutrition, pharmaceutical, personal care and niche food and beverage categories.

It currently operates ten manufacturing facilities, including eight in North America and is owned by Irving Place Capital, a middle-market private equity firm.

The acquisition, said Jeffrey Kellar, Alpha’s president and chief executive officer, “more than doubles” Alpha’s production capacity in Europe, making it one of the largest single stage blow moulding operations in the region.

Already a packaging supplier to the vitamins, minerals & supplements and personal care markets in Europe, Alpha expects to gain a “strong foothold” in the European food packaging sector with the Etten-Leur facility, which has a grade “AA” certification for the BRC-IoP global standard for packaging and packaging materials.
MRC

BASF TOTAL Petrochemicals LLC strengthens integration with Total Port Arthur Refinery

MOSCOW (MRC) -- BASF TOTAL Petrochemicals LLC has enhanced the production capabilities of its petrochemical complex, located in Port Arthur, Texas, by installing processing and treatment facilities for the import of butylenes and butanes from the Total Port Arthur Refinery, as per the company's press release.

This installation enables BASF TOTAL Petrochemicals to make use of these refinery byproducts to produce higher value propylene. This is another major step in the development of BASF TOTAL Petrochemicals petrochemical complex to optimize operations. The company previously implemented measures enabling the facility to take advantage of lighter, lower cost feed stocks, such as ethane.

"This investment further strengthens the partnership between BASF and Total Petrochemicals, allowing us to continue building supply to meet growing customer demand, while helping the company maintain its competitive position within the petrochemicals industry," said Heather Remley, BASF Senior Vice President, Petrochemicals North America.

"The Port Arthur site is one of the key industrial platforms for Total in the world," remarked Christophe Gerondeau, President and Chief Executive Officer of Total Petrochemicals & Refining USA, Inc. "This investment creates value for both BASF TOTAL Petrochemicals and the Total Port Arthur refinery through industrial synergies."

As MRC informed earlier, within the next five years, BASF SE (Ludwigshafen, Germany) plans to invest globally more than EUR200 million in its plastic additives business, approximately half of which in Asia, focusing on capacity expansions and operational excellence. Plastic additives improve product properties such as scratch resistance or light stability, and optimize plastics manufacturing processes. As the leading global supplier of plastic additives with manufacturing assets in all regions, BASF is a major partner to the plastics industry.

BASF TOTAL Petrochemicals LLC is located in Port Arthur, Texas and manufactures a range of chemicals used in hundreds of consumer products. BASF TOTAL is a joint venture partnership between BASF Corporation, 60 percent ownership, and Total Petrochemicals & Refining USA, 40 percent ownership.

BASF Corporation, headquartered in Florham Park, New Jersey, is the North American affiliate of BASF SE, Ludwigshafen, Germany. BASF has more than 17,500 employees in North America, and had sales of USD16.2 billion in 2016.
MRC

Saudi Aramco IPO on track for 2018

MOSCOW (MRC) -- Saudi Aramco’s initial public offering is on track for next year and the national oil giant could be valued at more than USD2 trillion, Saudi Arabia’s Crown Prince Mohammad bin Salman told Reuters in an interview.

The sale of around 5% of Aramco next year is a centrepiece of Vision 2030, an ambitious reform plan to diversify the Saudi economy beyond oil which is championed by Prince Mohammad.

Saudi officials have said domestic and international exchanges such as New York, London, Tokyo and Hong Kong have been looked at for a partial listing of the state-run firm.

A decision on which exchange would secure the offering has still not been made, fuelling market speculation that the IPO could be delayed beyond 2018 or even shelved, amid growing concerns about the feasibility of an international listing.

"We are on track in 2018... but the listing (details) are still under discussion," Prince Mohammad told Reuters in an interview. "It will be IPO-ed in 2018."

The crown prince declined to discuss specific details of the IPO, which could be the biggest in history and is expected to raise as much as USD100 billion.

As MRC reported earlier, in June 2016, Saudi Arabian Oil Co. and Saudi Basic Industries Corp. became one step closer to building their first plant to process crude directly into chemicals, cutting out a link in the production chain from hydrocarbons to the finished products that go into plastics and other consumer goods. The state-owned companies signed an agreement to study such a project to be located in Saudi Arabia. A joint venture is possible if the companies decide to move ahead after the study is completed. Oil companies normally refine crude into transportation fuels including gasoline and diesel and leave byproducts such as naphtha to be processed separately into chemicals.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
MRC

Mexicos energy chief says plan coming to 'soften' retail fuel increases

MOSCOW (MRC) — Mexico's finance ministry is looking at ways to "soften" the price impact of gasoline market liberalization next year, as er Hydrocarbonprocessing.

Some independent fuel importers recently have complained about a lack of tax adjustments to reflect the at least 15% increase in recent weeks in international prices of gasoline and diesel, the two main refined products imported by Mexico.

Coldwell said through an interpreter that a tax mechanism will be designed "for softening these prices. This protects the Mexican consumer from abrupt increase in prices." He did not elaborate on the changes. Coldwell said overall energy reform efforts are benefiting Mexico's consumers, bringing wider choices for the first time in gasoline quality and brands.

The market reform ended the monopoly national oil company Pemex once enjoyed in everything from crude production to retail sales, paving way for international oil companies including Royal Dutch Shell Plc, BP Plc and ExxonMobil Corp to enter the retail market.

"Before we had only one brand for retail gasoline stations. Now we have 30," Coldwell said.
MRC