Perstorp upgraded to B- by S&P

MOSCOW (MRC) -- S&P Global Ratings announced on 23 July 2018 that it has upgraded its long-term issuer credit rating for Perstorp Holding AB to B-. The outlook is stable, as per the company's press release.

Concurrently, S&P announced that it is raising the issue rating on Perstorp’s Euro and USD Senior Secured Notes to B and that it is raising the issue rating on the company’s Second Lien Secured notes to CCC and the issue rating on Prague CE Sarl’s Subordinated Notes to CCC.

According to S&P, the upgrade reflects Perstorp’s sustained EBITDA growth and deleveraging, having seen strong volume growth in its main business lines over the past several quarters.

"We are pleased to see our investment discipline and performance reflected in this upgrade decision. This should further increase our financial flexibility and the potential to lower our future cost of capital", says Magnus Heimburg, Chief Financial Officer of Perstorp.

As MRC informed earlier, in May 2018, Perstorp AB, global leading specialty chemicals company, and 3D4Makers, a high performance 3D printing filament producer, joined forces with a new Joint Venture: ElogioAM, to bring new material solutions in order to advance the additive manufacturing industry. By combining the deep insights of both companies into chemicals and polymers, ElogioAM is bringing the world’s first fifth-generation 3D filament, Facilan, which enables applications previously unobtainable with other 3D printing materials.

Perstorp is one of the world leaders in various sectors of the specialty chemicals market, it's pioneer in formalin chemistry, plastics and surface materials. Perstorp was founded in 1881 and is controlled by PAI partners,a major European private equity company. The company has around 1,500 employees in with 22 production plants in Europe, Asia and North America.
MRC

MOSCOW (MRC) -- Marathon Petroleum Corp plans to “maximize” input of U.S. crude in the third quarter, taking advantage of bottlenecks in key shale plays that have weakened domestic prices, reported Reuters.

The company said during an earnings call that about 32 percent of its total throughput of 1.95 million barrels per day will be crude linked to the U.S. benchmark price, up from 23 percent during the same stretch last year.

Input of U.S. crude at the company’s Midwest refineries is expected to jump to 53 percent of total throughput in the third quarter, up from 38 percent last year.

U.S. and Canadian producers have been forced to sell crude at a discount versus global prices as production has outpaced pipeline capacity.

As MRC wrote before, in July 2018б Marathon Petroleum Corp. and Andeavor announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired in connection with the proposed transaction whereby MPC would acquire all of Andeavor's outstanding shares. The transaction is still expected to close in the second half of 2018, and remains subject to customary closing conditions, including approval by Andeavor shareholders of the proposed merger, approval by MPC shareholders of the new MPC shares to be issued in connection with the transaction, and the receipt of other required regulatory approvals.
MRC

MOSCOW (MRC) -- ExxonMobil said that operations have commenced at its new 1.5 million ton-per-year ethane cracker at the company’s integrated Baytown chemical and refining complex, as per Hydrocarbonprocessing.

The new cracker, part of ExxonMobil’s Growing the Gulf initiative, will provide ethylene feedstock to new performance polyethylene lines at the company’s Mont Belvieu plastics plant, which began production in the fall of 2017. The Mont Belvieu plant is one of the largest polyethylene plants in the world, with a manufacturing capacity of about 1.3 million tons per year.

"Our new ethane cracker will help us meet the growing global demand for high-performance plastic products that deliver key sustainability benefits such as lighter packaging weight, lower energy consumption and reduced emissions, further enhancing our competitiveness worldwide," said John Verity, president of ExxonMobil Chemical Company. "The abundance of domestically produced oil and natural gas has reduced energy costs and created new sources of feedstock for U.S. Gulf refining and chemical manufacturing while creating jobs and expanding economic activity in the area."

Together, the Baytown ethane cracker and Mont Belvieu plant represent ExxonMobil’s largest chemical investment in the U.S. to date. Operations associated with the Baytown and Mont Belvieu projects are expected to increase regional economic activity by roughly USD870 million per year and generate more than USD90 million per year in local tax revenues. The two projects have created more than 10,000 construction jobs, 4,000 jobs in nearby communities and 350 permanent positions.

ExxonMobil is strategically investing in new refining and chemical-manufacturing projects in the U.S. Gulf Coast region to expand its manufacturing and export capacity. The company’s more than USD20 billion Growing the Gulf expansion program consists of major chemical, refining, lubricant and liquefied natural gas projects at proposed new and existing facilities along the Texas and Louisiana coasts. Investments began in 2013 and are expected to continue through at least 2022.

With the increase in chemical manufacturing and the industry’s need for more skilled workers, ExxonMobil has contributed more than USD2 million over the last five years to the Community College Petrochemical Initiative, a training program offered by nine Houston-area community colleges to provide technical skills to high school graduates, returning military veterans and others.

As MRC informed earlier, in November 2016, Jacobs Engineering Group Inc. announced it received a contract from ExxonMobil Chemical Company to provide engineering, design and construction management services as part of a new 650 kTa polyethylene facility to be located at ExxonMobil’s Beaumont polyethylene plant.

ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC

MOSCOW (MRC) -- Mitsui Chemicals, the Japanese-based maker of spunbond nonwovens, is eyeing several Asian countries for its next investment opportunity, as per Nonwovens-industry.

The company has recently expanded its Japanese output with the addition of a new line and currently has foreign operations in China and Thailand, but sources familiar with the company say it is now weighing its options in India, Thailand and Indonesia.

India, with its rapidly growing diaper market, is the more likely choice. An investment would likely add 15,000 tons to its currently global capacity which is currently 115,000 tons.

As per MRC, in June 2018, a fire that broke out at Mitsui Chemicals' plant in Osaka in western Japan was extinguished on Friday morning. The fire started on Thursday afternoon in the chimney of a utility unit that supplies electricity, water and steam to multiple petrochemical facilities at the firm's Osaka Works in Takaishi City.

Mitsui Chemicals is a leading manufacturer and supplier of value added specialty chemicals, plastics and materials for the automotive, healthcare, packaging, agricultural, building, and semiconductor and electronics markets. Mitsui Chemicals is a Japanese Chemicals company, a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. The company mainly deals in performance materials, petro and basic chemicals and functional polymeric materials.
MRC

MOSCOW (MRC) -- Global chemical producer Indorama Ventures Public Company Limited (IVL) has announced that it has completed the acquisition of Israeli nonwoven hygiene fabrics manufacturer Avgol Nonwoven Industries Ltd, as per Calcalistech.

Indorama bought a controlling 66% stake in Avgol from Ethemba and Leumi Partners for NIS 5.88 per share at a company valuation of NIS 1.7 billion/ The sellers recorded more than 100% profit.

Indorama Ventures first announced its agreement to acquire Avgol two months ago. The acquisition is well aligned with IVL’s strategy of pursuing accretive growth opportunities in the high value-added hygiene segment.

Avgol is a leading manufacturer of high-performance nonwovens for hygiene applications serving the global baby diaper, adult incontinence and feminine hygiene markets. Avgol offers a comprehensive range of nonwoven fabrics and has broad expertise in developing and manufacturing customized solutions to address consumer requirements. The company has six production sites globally in Israel, the US, Russia, China and India, with a combined production capacity of 203,000 tonnes/annum, and has around 900 employees worldwide.

The acquisition offers extensive value creation and synergy within Indorama Ventures, including growth opportunities in adjacent segments through the strong innovation pipeline. The addition of Avgol reinforces IVL’s existing leading position in this segment. IVL now offers a full suite of personal hygiene-oriented nonwoven products that best serve customer needs.

Group CEO of Indorama Ventures Group CEO Aloke Lohia said, "Avgol is an excellent complement to the IVL’s HVA portfolio, and brings a unique expertise in high-performance nonwoven. Given their distinctive position and strong reputation in the personal hygiene segment, IVL now have significant presence in this high-growth market, and are well-positioned to capture new growth opportunities."
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