Polymer Solutions Group acquires assets of Phoenix Chemical Company

MOSCOW (MRC) -- Polymer Solutions Group, a leading manufacturer of specialty polymers and additives, has announced it has acquired the assets of Phoenix Chemical Company, Inc., reported PRWeb.

PSG is a portfolio company of Arsenal Capital Partners and was established in June 2015.

Based in Calhoun, GA, Phoenix Chemical is a specialty chemical manufacturer and distributor focused on the carpet, textile, water treatment, and household, industrial & institutional chemicals markets. Phoenix Chemical brings to PSG significant market expansion, technical and manufacturing capabilities, and enhanced logistics that complement PSG’s other business units; in particular, Peach State Labs (PSL), Flow Polymers, and SASCO Chemical.

Mike Ivany, President and Chief Executive Officer of Polymer Solutions Group, said, "The addition of Phoenix Chemical to PSG will allow us to further build our Functional Materials Business Unit. Phoenix Chemical brings unique skills and capabilities, and we look forward to all our businesses supporting each other as we build the PSG platform. We are fortunate that John Bryant will be staying on to lead the Phoenix Chemical business."

"I am delighted with the sale of our Phoenix Chemical business to PSG. We have built a great business and combining it with the PSG platform allows us to continue our growth with expanded technology and manufacturing resources," said John Bryant, President of Phoenix Chemical. "Our customer relationships are key to our success, and with PSG, we expect to be able to expand our offerings and enhance our ability to add value."

The assets of Phoenix Chemical and its affiliated entities, New South Distribution, Inc. and Olive Branch Distribution, Inc., are being acquired by Phoenix Chemical Company LLC, a newly formed subsidiary of PSG.

PSG is a manufacturer of specialty polymers and additives for the rubber, wood, consumer, construction, and medical industries. PSG was formed by Arsenal Capital Partners in 2015 with the acquisition of Peach State Labs (Rome, GA). Flow Polymers (Cleveland, OH), SASCO Chemical (Albany, GA) and Alkon Solutions (Leeds, UK) were added in 2016.

Established in 2000, Arsenal Capital Partners is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare companies. Since inception, Arsenal has raised institutional equity investment funds of approximately USD3 billion. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of USD100-500 million of initial enterprise value. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add.
MRC

Russian producers aimed to increase March PVC prices by Rb3,000/tonne

MOSCOW (MRC) -- Negotiations oN March shipments of suspension polyvinyl chloride (SPVC) began in Russia between producers and converters on Monday. All producers announced a Rb2,000-3,000/tonne price increase from February, according to ICIS-MRC Price report.

The growth of prices of suspension PVC in the Russian market began in January, and March will be the third month of resin appreciation. Despite the low seasonal demand for PVC and finished products, local producers managed to balance the domestic market. In addition, a two-week scheduled shutdown of production from the largest supplier, RusVinyl, is planned in April. It will affect the balance of the Russian market in the near future.

Some Russian producers announced a price increase of roubles (Rb) 3,000/tonne from the February level. The current strengthening of the rouble exchange rate against the dollar does not save the situation for Russian consumers. Prices for imported PVC continued to be much higher than Russian resin. Although the trend is possibly to change.

PVC prices have begun to rise sharply in Asia since December, with maximum reached two weeks ago. There is a certain pause after the New Year holidays (according to the Lunar calendar) in China. Price offers for acetylene resin from key Chinese suppliers were in the range of USD920-960/tonne DAP Moscow by mid-February. Taken into account the current strengthening of the rouble against the dollar makes the prices of Chinese PVC not less than Rb68,000/tonne DDP Moscow, including VAT.

Demand for PVC from Russian consumers in January-February was seasonally low due to a similar situation in the finished goods market. But some converters bought PVC in excess to smooth out the price growth for the next months.

Demand for finished products is not expected to increase significantly in March, however demand for PVC will improve in the domestic market, especially given the small volumes of imports and the forthcoming shutdown of the largest producer.

Overall, deals for March shipments are discussed in the range of Rb65 500-67 500/tonne CPT Moscow, including VAT, for K=65/67 and for volumes up to 500 tonnes, which was up by Rb2,000-3,000/tonne from February.
Negotiations on prices for resin with K70 started from Rb65,500/tonne CPT Moscow, including VAT, and reached Rb68,000/tonne CPT Moscow, including VAT.
MRC

SABIC in talks to join Shell in Iraq Nebras petrochemical project

MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, is in talks to become a partner in Iraq’s Nebras petrochemical project, an advisor to Iraqi Prime Minister Haider al-Abadi said, reported Reuters.

Kadhim Mohammed Jawad Hassan told Reuters on the sidelines of CWC’s Iraq Petroleum Conference in Berlin that talks between Saudi Arabia and Iraq on the project are advanced and at the ministerial level.

He said SABIC would enter as a fourth partner with Royal Dutch Shell, and the Iraqi oil and agriculture ministries.

SABIC was planning to open an office in Iraq late last year.

The Nebras project is still in the pre-FEED (front-end engineering design) stage.

As MRC wrote previously, SABIC continued its global expansion with the inauguration of a new polypropylene (PP) pilot plant in Geleen, the Netherlands, in September 2017, and the announcement of a new investment in a state-of-the-art PP extrusion facility to be built at the same location.

Saudi Basic Industries Corporation (Sabic) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

DowDuPont announces brand names for three independent companies it intends to create

MOSCOW (MRC) -- DowDuPont has announced the corporate brand names that each of its divisions plans to assume once they are separated as independent companies as intended, as per Hydrocarbonprocessing.

While certain product names will change at separation, many products within each intended company will continue to be sold under their current, widely known brand names.

Ed Breen, chief executive officer of DowDuPont, said, "Our selection of these company names is a major milestone in the process of creating three, strong independent companies, and each name reflects the unique strengths and value proposition of the company it will represent. As we move forward, a critical part of our work will be to build and strengthen the global corporate brands that express the commitment we are making to our customers, employees, investors, and all of our stakeholders, to grow value through innovation."

Andrew Liveris, executive chairman of DowDuPont said, "The Dow and DuPont teams have made incredible progress in six short months and today’s announcement is another demonstration of the unprecedented value creation potential of this historic merge and spin transaction. We are squarely focused on unlocking enhanced cost and growth synergies, delivering on our growth investments and innovation pipeline, and separating into three industry-leading companies on the accelerated timelines we recently announced."

The intended Agriculture company, headquartered in Wilmington, Delaware, will assume the name Corteva Agriscience, which is based on a combination of words meaning "heart" and "nature."

James C. Collins, Jr., chief operating officer, Agriculture Division of DowDuPont, said, "In Corteva Agriscience, we bring together three businesses with deep connections and dedication to generations of farmers. Our new name reflects our commitment to enhancing their productivity as well as the health and well-being of the consumers they serve. Our name reflects our purpose: enriching the lives of those who produce and those who consume, ensuring progress for generations to come. With the most balanced portfolio of products in the industry, nearly a century of agronomic expertise, and an unparalleled innovation engine, we are creating a new agriculture company that will work together with the entire food ecosystem to produce a secure supply of healthy food sustainably and efficiently."

With more than USD14 billion in 2017 pro forma revenue and USD2.6 billion in 2017 pro forma operating EBITDA, the Agriculture Division has the most comprehensive and balanced seed and crop protection portfolio in the world and a strong pipeline of new products that will enable it to continue to provide substantial value to farmers now and over the long term.

While Corteva Agriscience will be the corporate brand name upon the separation of the division from DowDuPont, the company will continue to offer products under a number of the most recognized and premium brands in agriculture: Pioneer, Mycogen, the newly launched Brevant Seeds, and its award-winning Crop Protection products, such as Aproach Prima fungicide and Quelex herbicide with Arylex active, as well as others it will introduce as it brings new products to market.

With respect to the intended Materials Science company, based in Midland, Michigan, Jim Fitterling, chief operating officer, Materials Science Division of DowDuPont said, "The Dow name and the Dow diamond have an extremely strong foundation from which we will grow and serve our customers. The iconic red diamond logo will serve as a point of continuity for all of our stakeholders as we build the most innovative, customer-centric, inclusive and sustainable materials science company in the world. We will continue Dow’s long history of innovation and be centred on Dow’s core values of respect for people, integrity, and protecting our planet."

With nearly USD44 billion in 2017 pro forma revenue1 and USD9.1 billion in 2017 pro forma operating EBITDA1, the Materials Science Division is the premier materials science solution provider, leveraging its integration and innovation strengths to focus on three high-growth market verticals - packaging, infrastructure and consumer care.

The intended Specialty Products company, headquartered in Wilmington, Delaware, will become the new DuPont, reflecting the strength of its technology-driven specialty businesses with highly-differentiated products and solutions that transform industries and everyday life.

With USD21 billion in 2017 pro forma revenue2 and USD5.3 billion in 2017 pro forma operating EBITDA2, the intended Specialty Products company is well positioned for growth opportunities where customer collaboration and innovation are central to value creation.

Additional brand development work for the intended Materials Science company and the intended Specialty Products company is ongoing.

As announced earlier this month, Materials Science is anticipated to separate by the end of the first quarter of 2019, and Agriculture and Specialty Products are expected to separate by June 1, 2019.

As MRC informed before, on 31 August 2017, Dow Chemical Co and DuPont said the companies successfully completed their planned USD130 billion merger to form DowDuPont.
MRC

Effective tender offer for Unipetrol shares

MOSCOW (MRC) -- PKN ORLEN made payments for shares tendered by minority shareholders in response to the tender offer for shares in Unipetrol a.s., announced in December 2017, said the company on its website.

The payments totalled PLN 3,5 bn. Thus, PKN ORLEN fulfilled the condition for recognising the tender as effective and achieved a 94.03% ownership of the Czech-based company.

PKN ORLEN offered a price of CZK 380 per Unipetrol share, which is close to the current market price of the stock. As part of the transaction, 826 acceptances were made by natural persons and 126 by legal persons. Together they represented 31.04% of Unipetrol shares. The transaction will be financed with PKN ORLEN’s own funds and with a syndicated loan facility available to the Company. After the buyout is completed, the Group’s net debt will remain at a safe level, with no effect on its credit rating.

Strengthening of PKN ORLEN’s position in the shareholding structure of the largest refining and petrochemical group in the Czech Republic is in line with the Group’s strategy, which envisages integration of refining assets, extension of the petrochemical value chain, and development of the retail network. It will enable more effective use of synergies within the ORLEN Group and consolidation of its competitive position.

Unipetrol a.s owns the refineries in Litvinov and Kralupy, the largest local retail chain Benzina (400 service stations), and Spolana, the sole PVC and caprolactam manufacturer on the Czech market. The company’s core asset is its Litvinov petrochemical operations – now the construction site for a polyethylene unit, the country’s largest petrochemical project to date.
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