Canadian General-Tower acquires French plastic film makers

MOSCOW (MRC) -- Canadian General-Tower Ltd. (CGT), a Cambridge, Ont.-based supplier of coated fabric and film products, has acquired Liancourt, France-based companies AlkorDraka Industries and Alkor Medical Tubing, specialists in the formulation of plastic films, said Canplastics.

The financial terms of the deal have not been disclosed. The new trade names for the European businesses will now be CGT Alkor and CGT Medical Products, CGT said in a statement.

As a previous supplier of high-quality pool liners to CGT Europe, AlkorDraka Industries now covers eight business sectors: Ceiling and wall decoration, coatings for window marketing, dance floor films, consumer product packaging, pool liners, containment film, movie screens and various technical applications.

“This new development is an important strategic opportunity and comes with great excitement for the future of CGT as we continue to fulfill our global growth endeavors,” CGT CEO Craig Richardson said. “The initial reaction we have received from our stakeholders has been extremely positive as CGT moves toward investing both personnel and capital into the European markets to grow these newly acquired businesses.”

The acquisition will provide CGT, which is celebrating its 150th anniversary this year, with a strategic base of operations in Europe, Richardson said, adding to the company’s existing portfolio in North America and China.

CGT manufacturers coated fabrics and films for the automotive, building products, and pool liner sectors.
MRC

Trinseo raises September prices for latex products in North America

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex and rubber, has announced that effective September 16, 2019, the company is increasing the prices of all Styrene Butadiene and Styrene Acrylate products sold into the carpet, paper, and paperboard markets in North America, as per the company's press release.

The increase will be USD0.06/dry lb. for all indexed and non-indexed customers, as contracts allow.

This increase is necessary due to changes in market conditions and to offset rising costs to manufacture and transport our products, and to remain a strong and reliable supplier.

As MRC informed before, Trinseo last raised its prices for all PS, ABS and SAN grades on 1 Jue 2018, as stated below:

- STYRON general purpose polystyrene grades (GPPS) - by EUR50 per metric ton;
- STYRON and STYRON A-Tech high impact polystyrene grades (HIPS) - by EUR50 per metric ton;
- MAGNUM ABS resins - by EUR35 per metric ton;
- TYRIL SAN resins - by EUR35 per metric ton.

According to ICIS-MRC Price report, in the Russian market, the general price range of the Nizhnekamskneftekhim's material did not change. Major traders offered Nizhnekamskneftekhim's injection moulding and extrusion grade GPPS at roubles (Rb) 90,000-91,000/tonne and HIPS - at 94,000-95,000/tonne CPT Moscow, including VAT.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.6 billion in net sales in 2018, with 16 manufacturing sites around the world, and approximately 2,500 employees.
MRC

S. Korea slams Japan as 'white list' removal takes effect

MOSCOW (MRC) -- South Korea slammed Japan for effectively downgrading Seoul's trade status and accused Prime Minister Shinzo Abe of treating the neighbour as an "adversary", said Forbes.

The comments are the latest in a bitter tit-for-tat row stemming from a long-running diplomatic dispute over Japan's use of forced labour during its colonial rule over the peninsula from 1910 to 1945.

They came as Tokyo's removal of the South from its "white list" of trusted trade partners went into effect -- Seoul has already announced it will reciprocate, and last week said it will terminate a military information-sharing pact with Japan, raising concerns in Washington, which has security treaties with both.

"Prime Minister Abe commented twice that Korea cannot be trusted and is treating us like an adversary," said Kim Hyun-chong, a national security official at the Blue House.

He insisted Seoul's decision to terminate the intelligence-sharing deal, known as the General Security of Military Information Agreement (GSOMIA), would not lead to "fissures" in the alliance between the US and the South.

But last week's announcement caught many off guard, including Washington, with Secretary of State Mike Pompeo saying the US was "disappointed" by the move.

Separately, Seoul's foreign ministry summoned the Japanese ambassador to protest the "white list" removal.

Both Japan and the U.S. have shown their unhappiness over Korea’s decision on GSOMIA. A U.S. spokesman said it put U.S. forces in the region at increased risk while lowering defense capabilities.
MRC

Tallgrass Energy receives proposal to take company private

MOSCOW (MRC) -- Midstream energy firm Tallgrass Energy said on Tuesday it had received an offer from Blackstone Infrastructure Partners, its partners and affiliates to acquire the shares in the company that they do not already own, said the company.

These shareholders, who together already own about a 44.2% stake in Tallgrass including 23.7 million Class A shares, have made a non-binding preliminary proposal to buy Tallgrass’ remaining Class A shares at USD19.50 per unit, the company said.

The offer represents a 35.9% premium to the company’s last close on Tuesday.

The latest transaction will be valued at USD3.03 billion based on the number of Class A shares of 179.2 million at the end of July 31, as reported in the company’s latest filing.

In January, Blackstone Group LP said it would buy a controlling stake in Tallgrass for USD3.3 billion. Tallgrass said its board intends to form a committee consisting of independent directors to consider the proposal.

Citigroup Inc is the financial adviser and Vinson & Elkins the legal adviser to the midstream energy firm.
MRC

Oil rises as drop in US inventories eases recession worries

MOSCOW (MRC) -- Oil prices rose on Wednesday, with U.S. crude gaining 1% after an inventory report showed US stockpiles fell more than expected, helping ease worries about economic growth due to the Sino-US trade war, reported Reuters.

Brent crude was up by 37 cents, or 0.6%, at USD59.88 a barrel by 0220 GMT. West Texas intermediate crude was up 55 cents, or 1.0%, at USD55.48 a barrel.

US crude stockpiles fell sharply last week as imports dropped, plummeting by 11.1 million barrels, compared with expectations for a 2 million barrel draw, data from industry group, the American Petroleum Institute (API), showed.

The US government's weekly report is due to be released Wednesday morning and if official numbers confirm the API data then it will be the biggest weekly decline in nine weeks.

"The mammoth crude inventory draw has, at least for the time being, put to rest those U.S. recessionary doom and gloom fears that have been hanging over oil markets like a dark cloud," said Stephen Innes, managing partner at Valour Markets.

Still, concerns about global growth amid the raging trade war between the United States and China are likely to cap gains.

US President Donald Trump said on Monday that he believed China was sincere about wanting to reach a deal, while Chinese Vice Premier Liu He said China was willing to resolve the dispute through "calm" negotiations.

On Tuesday, however, concerns about trade resurfaced after China's foreign ministry that it had not heard of any recent telephone call between the United States and China on trade, and said it hopes Washington can stop its wrong actions and create conditions for talks.

Crude oil prices have fallen about 20% from 2019 highs reached in April, partly because of worries that the US-China trade war is hurting the global economy, which could dent demand for oil.

"Global recession risks are higher than at any stage since the (global financial crisis) and the U.S. is not immune," Morgan Stanley said.

China's Commerce Ministry last week said it would impose additional tariffs of 5% or 10% on 5,078 products originating from the United States, including crude oil, agricultural products and small aircraft.

In retaliation, Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States.

As MRC wrote before, in mid-August 2019, Goldman Sachs Group Inc (GS.N) said that fears of the US-China trade war leading to a recession are increasing and that Goldman no longer expects a trade deal between the world’s two largest economies before the 2020 US presidential election.
MRC