ORBIS Corp. reorganizes U.S. manufacturing facilities

MOSCOW (MRC) -- ORBIS Corp., a manufacturer of plastic recycling bins and organic barrels, is cutting a total of more than 70 jobs at two sites as the company reorganizes operations in a handful of locations, as per Canplastics.

ORBIS will move the dunnage manufacturing capabilities from its Perrysburg, Ohio, plant to other plants within its manufacturing fleet. This affects about 70 jobs in Perrysburg. The transition is anticipated to be completed on or around Nov. 15, 2018.

ORBIS said that it will maintain a presence in Perrysburg to operate a design and collaboration centre for customer interaction. “This space will be used for product design, customer support and program management,” the company said. “About 15 employees will remain in Perrysburg."

Also, ORBIS’ thin-gauge thermoforming facility in Dearborn, Mich., will be consolidated into other manufacturing facilities, affecting seven employees. The transition is anticipated to be completed on or around Dec. 15, 2018.

ORBIS currently operates a sales and design office in Madison Heights, Mich., to provide parts packaging design and support for automotive companies. ORBIS will combine this office with the newly acquired Auburn Hills, Mich. office and create a larger, collaborative space for sales and design associates to meet with customers, present concepts and finalize packaging designs. "Employees will transition to the new, combined location,” the company said. “Timing of this move has yet to be finalized."

Finally, ORBIS will utilize its newly acquired Piedmont, S.C. facility to house its southeast ORBIShield Innovation Center, currently located in Spartanburg, S.C. “This Innovation Center provides design, prototyping and packaging support services to southeast U.S. automotive companies,” ORBIS said. “Spartanburg employees will transition to the Piedmont location, and the timing has yet to be determined."

The reorganization comes during a busy time for ORBIS. Last month, the company acquired Hinkle Manufacturing of Perrysburg, Ohio; Hinkle serves the automotive market with highly engineered custom dunnage designed for part protection. And in April 2018, ORBIS purchased Piedmont, S.C.-based Response Packaging, a manufacturer and supplier of reusable custom dunnage and fabricated rack solutions.

ORBIS is headquartered in Oconomowoc, Wis. The company has an injection molding plant in Toronto.
MRC

MOSCOW (MRC) -- Arkema confirms a detailed investment review, with its partner Novus International, Inc., to double production capacities at Arkema’s Beaumont Thiochemicals site in the United States, according to Hydrocarbonprocessing.

This project will support the strong global growth in the animal nutrition market and further strengthens Arkema’s world-leading position in high value-added sulfur derivatives.

Arkema is reviewing in detail, with its partner Novus, the doubling of production capacities at its Beaumont site in Texas to supply high value-added sulfur derivatives for the new methionine hydroxy analogue production unit announced by Novus at the end of 2017 at a site in Calhoun County, Texas.

This project would support the strong annual growth of the global demand for methionine, an essential amino acid for animal nutrition, which should reach 6% over the coming years.

Subject to a final decision on this investment, expected to be made at the end of 2018, the new units should come on stream by the summer of 2021.

Arkema thus confirms its technological leadership in thiochemical processes and its ambition to strengthen its world-leading position in sulfur derivatives.

This project is part of Arkema’s long-term ambition announced by the Group at its 2017 Capital Markets Day and would represent a milestone in the Group’s future growth.

As MRC reported before, in late January 2017, Arkema announced a project for the sale to INEOS of its 50% stake in Oxochimie. Arkema produced oxo alcohols on the Lavera site (France) in a 50/50 manufacturing joint venture with INEOS. These products were used in part for the production of the group’s acrylic esters in Europe.

We also remind that on 2 February 2015, Arkema finalized the acquisition of Bostik, the world's No. 3 in adhesives. With this acquisition, the group reached a new milestone in its development, and confirmed its ambition to become a world leader in specialty chemicals and advanced materials. Bostik's growth prospects and the complementarities identified between the two groups will sustain the success of this high value creating project.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
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MOSCOW (MRC) -- Russian petrochemical company Sibur said its plans to build a gas chemical complex in Russia's Far East will require preliminary investments of up to USD8 billion and it is still looking for Asian partners, reported Reuters.

Sibur said a year ago that it had been in talks with a number of Chinese investors about participating in the project to build the complex in Amur.

Sibur's Chief Executive Officer Dmitry Konov told Reuters in a recent interview, that the company, Russia's largest petrochemicals company, was still talking to investors, without giving details on their progress.

"We look at the implementation of the Amur complex as a joint venture, that's why the investments will be shared among the partners," Konov said.

He estimated preliminary investments in the Amur complex at USD7 billion-USD8 billion.

The plant will be built to serve Asian markets as part of a broader plan by Russian gas export monopoly Gazprom to supply gas to China.

Gazprom will supply the complex with around 2 million tonnes of ethane per year.

The plant will also enable Sibur to diversify into Asia.

"The location of the Far Eastern project is not usual for us," Konov said. "At the moment, our supplies to Asia are not that big. That's why we see benefits in Asian partners."

Sibur said last year that it had been in talks with China's Sinopec, which holds a 10 percent stake in Sibur, about investment in the project. A spokeswoman for Sibur declined to comment on Friday on whether Sinopec might invest in the project.

Konov said in March that a final decision on investments would be taken next year.

Sibur expects the plant to start operating after 2024, following the launch of Gazprom's own gas processing plant, also called Amur, which will process the gas before it is exported to China. Sibur's complex will produce different forms of ethylene from the gas supplied by Gazprom's plant.

Sibur currently mainly serves clients in the former Soviet Union, although its polymer exports are set to rise with the launch of a USD9 billion plant in Tobolsk in Western Siberia by 2020.

Sibur also has been in talks with Saudi Aramco to set up a venture to produce synthetic rubber, a move highlighting growing cooperation between OPEC leader Saudi Arabia and Russia, the biggest non-OPEC oil exporter.

Businessman Leonid Mikhelson, the head of and a major shareholder in Russia's largest gas producer Novatek, owns 48.5 percent of Sibur. His business partner Gennady Timchenko owns 17 percent, while China's Sinopec and Silk Fund control 10 percent each.

Once the Amur and Tobolsk plants are up and running, Sibur will cut exports of liquefied petroleum gas (LPG), the feed stock for petrochemicals production.

Analysts forecast production in the former Soviet Union of basic polymers, such as polyethylene and polypropylene, will more than double to 9.6 million tonnes per year by 2024, from 4 million tonnes in 2017.

Demand for basic polymers in the former Soviet Union is expected to rise to 5.3 million tonnes, from 4 million tonnes.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2014, SIBUR operated 27 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 27,000 personnel.
MRC

MOSCOW (MRC) -- RTP Companyб a global compounder of custom engineered thermoplastics, is expanding into Poland, by opening new facility. RTP’s newest manufacturing unit is located at Prologis Park V in Wroclaw, Poland, as per the company's press release.

This newest manufacturing location will support regional demand and provide a consistent supply of our products to customers operating in Europe.

The 8,000 m2 facility has a wide dock area with a high clearance ceiling, external office space, and a laboratory with controlled temperature and humidity.

The production area will feature extra natural light, additional ventilation and drainage, and will accommodate up to six production lines. The park provides room to expand operations in the future.

The plant is scheduled to open in summer 2018 and will employ 25 or more people.

As MRC informed before, in 2015, Solvay Specialty Polymers, a leading global supplier of high-performance thermoplastics, announced a new licensing agreement that enables RTP Company to produce and sell Solvay’s Radel R-7000 series of polyphenylsulfone (PPSU) resins to the global commercial aircraft industry.

RTP company is a producer of specialty compounds from a wide range of base polymers, including polypropylene, polystyrene, low density polyethylene, high density polyethylene, polycarbonate, polyvinyl chloride, etc.
MRC

MOSCOW (MRC) -- Devon Energy has entered into an agreement with Global Infrastructure Partners (GIP) to sell its stakes in EnLink Midstream Partners (ENLK) and EnLink Midstream (ENLC) for USD3.1bn, as per Compello.

The transaction is expected to reduce Devon Energy’s consolidated debt by 40%. The company had a debt of USD10.29bn at the end of 2017.

Devon Energy president and CEO Dave Hager said: "The sale of our EnLink interests represents a significant step forward in achieving our 2020 Vision to further simplify our asset portfolio and return excess cash to shareholders."

The transaction is subject to customary terms and conditions and is expected to be completed in July 2018. Following the completion of the transaction, the EnLink Midstream companies (EnLink) will continue a commercial relationship with Devon under long-term commercial contracts.

The companies will continue to partner to maximize returns in the STACK, redevelop the Barnett Shale, and team on new potential opportunities, such as crude gathering in the Delaware Basin.

Devon will extend its fixed-fee gathering and processing contracts with respect to the Bridgeport and Cana plants with EnLink through 2029.

Hager said: "EnLink remains a preferred partner for us in the midstream space, and we will continue to pursue mutually beneficial ways to grow our respective businesses across North America’s most prolific growth basins."

After the completion of the stake sale, the infrastructure fund manager GIP will 100% stake in EnLink Midstream Manager, nearly 64% limited partner equity interest in ENLC, and an approximate 23% limited partner equity interest in ENLK.

In conjunction with the EnLink transaction, Devon has also decided to increase its share repurchase program from USD1bn to USD4bn.

However, the expanded share repurchase program, which will extend through 31 December 2019, is subject to the closing of the EnLink transaction.

Based in Oklahoma City, Devon operates in several of the most prolific oil and natural gas plays in the US and Canada.
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