Arkema results down on lower prices, volumes

MOSCOW (MRC) -- Arkema SA has reported a 4.4% decline in first half earnings (EBITDA) at EUR777m, on flat sales of EUR4.4bn, said Plasticsnewseurope.

During the first six months of the year, volumes fell 2.4% compared to the year before, impacted by lower demand in automotive, oil & gas and consumer electronics, the French speciality chemicals company announced 1 Aug.

The 8% decline in volume was particularly noticeable within the high-performance materials segment. This was, however, offset by a 4.7% positive price development, leading to flat segment sales of EUR2bn.

Industrial specialities registered a 4% decline in sales during the first half, hit by 2.3% volume declines and 4.2% lower prices.

For the same period, Arkema witnessed “strong dynamic” in batteries and 3D printing as well as “good growth” in coating solutions, which registered 6.8% increase in volumes.

Prices across the group took a slight 0.6% hit for the period, impacted by lower prices in MMA/PMMA and fluorogases.

“Our performance, close to the record highs of last year, was driven in particular by the very solid performance of our speciality businesses,” said chairman and CEO Thierry Le Henaff commenting on the results.

Looking forward, Arkema has confirmed its outlook for 2019 despite expecting the macroeconomic environment to remain “volatile and complex” in the second half of the year.

The environment, said Arkema, will be marked by continued geopolitical uncertainties, which are weighing on global demand and raw material volatility.

The company, however, expects the inventory adjustments observed in the first half of the year in certain end-markets to ease in the second half.
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MOSCOW (MRC) -- Japanese chemicals manufacturer Sumitomo Chemical has bought Turkey-based company Emas Plastik and its affiliates for an undisclosed amount, said Chemicals-technology.

The deal will help the acquirer increase its global polypropylene (PP) compound business, as well as meet the growing demand for products manufactured from recycled materials in Europe.

The acquisition is also expected to improve Sumitomo’s production and marketing to Turkish automobile and white goods appliance manufacturers.

The transaction was carried out via Sumitomo Chemical’s UK-based engineering compound subsidiary Sumika Polymer Compounds Europe.

PP compounds are high-performance materials produced using fillers such as synthetic rubber, glass fibres and other inorganic fillers.

This kneading of fillers into PP enhances the impact of resistance or stiffness for use in target applications such as automobile bumpers, interior components, or casing for white goods appliances.

In a statement, Sumitomo Chemical said that it ‘will continue to work on further expanding its business through enhancing its global network of production and marketing of PP compounds to respond more speedily to customer needs’.

Emas Group is involved in the manufacturing and sale of PP and other plastic compounds. The group includes Emas Plastik, AKCE Plastik and ALMEN in Turkey.

With the completion of the deal, the Emas Group has now become Sumitomo Chemical’s consolidated subsidiaries.

Sumitomo Chemical owns 55.1% of Sumika Polymer Compounds and the remaining 25% and 19.9% are respectively held by Japanese printing ink manufacturer Toyo Ink and Japanese trading house Itochu.

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MOSCOW (MRC) -- Chemical recycling specialist Garbo Srl is to build a commercial-scale PET recovery plant at an undisclosed location in Italy, said Plasticsnewseurope.

Due for start-up in 2020, the plant will use Garbo proprietary technology for the production of Bis(2-Hydroxyethyl) terephthalate (BHET) from PET chemical recycling, the company announced 1 Aug.

In collaboration with the University of Modena and Bologna, Garbo has developed the ChemPET recycling process, which it says is capable of handling “almost all” the currently non-recoverable PET-based waste.

The technology involves a chemical process, through which the PET is “reacted selectively” with ethylene glycol and transformed into a BHET intermediate product.

If adequately purified, BHET can be used as feedstock for the production of PET.
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MOSCOW (MRC) -- Spanish thermoformed packaging moulder Coexpan SA. has launched a new EUR12.1m barrier films extrusion plant in the Moscow region of Russia to serve the food industry, said Plasticsnewseurope.

This modern purpose built 10,000 m2 facility in Naro-Fominsk will be operated by the company’s Russian subsidiary, Coexpan Extekh which previously occupied a leased nearby plant in the Selyatino district.

Coexpan acquired the Russian packaging business Ekstruzionnyye tekhnologii in 2006. In 2017, it bought a 4 hectare development site at Kotovo Industrial Park in Naro Fominsk where it built the new plant, warehousing and offices.

Inaugurated on 25 July, the plant, with a production area of 3,500m2, will initially employ 57. As output grows, Coexpan is due to increase the workforce to 120, according to a statement from the Moscow Region government.

Coexpan Extekh offers a wide portfolio of coextruded rigid sheet including polypropylene, PP barrier, polystyrene barrier and polylactic acid (PLA) based products used for form, fill and seal machines to package dairy and fresh foods.

The company aims to incorporate thermoforming technology at the new operation enabling it to diversify its product range still further. The design of the new Russian facility is based on lean manufacturing principles, Coexpan said.

“We are very proud of this project ... The new plant in Russia has been designed to comply with the most demanding international standards, allowing us to grow and diversify our business in new markets,” commented Tomasz Mikos, chief executive of Coexpan Extekh.

Coexpan is part of the Spanish print and packaging group Grupo Lantero with other subsidiaries including flexible plastics specialist Emsur. Emsur controls EximPack, a Russian manufacturer of shrink film labels, based in Vsevolozhsk near St Petersburg in the west of the country.

Coexpan, formed in 1973, is based at Alcala de Henares, outside Madrid, Spain has 13 production plants in eight countries of Europe and Latin America. It now runs production units in Brazil, Chile and Mexico.

Last year, the firm expanded its operations in Chile with the acquisition of the thermoforming capacity of Santiago, Chile-based BO Packaging. Coexpan group’s local offshoot Coexpan Coembal already ran its own plant at Quilicura, just outside Santiago, extruding and thermoforming packaging from PS, PP, PET and PLA plastics.

The Spanish company, with annual turnover of €350m, is continuing to grow its international footprint as part of the Grupo Lantero strategy of expanding its rigid and flexible plastic packaging manufacture worldwide.
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