Clearlake Capital acquires coatings company IXS

MOSCOW (MRC) -- Clearlake Capital Group LP is purchasing Innovative XCessories & Services LLC from private equity peer Olympus Partners, said Spglobal.

The target company operates through its Ground Effects and IXS Coatings divisions. It offers coating solutions and vehicle upfitting services to original equipment manufacturers, the automotive aftermarket and diversified industrial end markets. CEO Jim Scott, alongside the current management team, will continue to run the business.

The acquisition is expected to be finalized in the first quarter.

It has more than 20 company-operated facilities across the Americas, Asia-Pacific and Europe.

UBS was financial adviser to Clearlake. Jefferies LLC and Harris Williams & Co. were financial advisers to Innovative XCessories.

As MRC informed earlier, Clearlake Capital Group, L.P. (together with its affiliates, "Clearlake") in partnership with management announced that it has acquired Pretium Packaging ("Pretium" or the "Company") from Genstar Capital.

As MRC informed earlier, Russia's output of chemical products rose in December 2018 by 1.2% month on month.
Production of basic chemicals increased by 3.4% in 2019. According to the Federal State Statistics Service of the Russian Federation, the largest increase in production volumes on an annualized basis accounted for polymers in primary form. Thus, 264 ,000 tonnes of ethylene were produced in December, compared to 255,000 tonnes a month earlier. Thus, 2,984,000 tonnes of this olefin were produced in January-December 2019, down by 0.2% year on year. December production of benzene was 132,000 tonnes, compared to 134,000 tonnes a month earlier. Overall output of this product reached 1,470,000 tonnes over the stated period, down by 4.2%year on year.

Clearlake Capital Group, L.P. is a leading private investment firm founded in 2006. With a sector-focused approach, the firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake's operational improvement approach, O.P.S.® The firm's core target sectors are industrials and energy; software and technology-enabled services; and consumer. Clearlake has managed over USD16 billion of institutional capital since inception and its senior investment principals have led or co-led over 200 investments.
MRC

MOSCOW (MRC) -- UK compounder Polystar Plastics has developed a new post-consumer waste polyethylene material containing up to 100% recycled materials, said Sustainableplastics.

PCWflexTM films incorporate UK sourced post-consumer waste (pcw), which is used to create the middle layers of a co-extruded film structure.

The company said it uses recipes that contain varying amounts of the recycled polymer to deliver the same robust performance, optical clarity and line efficiency as virgin grade PE.

The new grades can be applied across much of Polystar’s product range and are 100% recyclable.

Non-shrink films start at 30% but can contain up to 100% PCW polymers, while shrink film recipes can include up to 50% PCW polymers without losing any functionality.

"Our PCWflexTM films are some of the greenest products on the market. The development of this new material has been driven by customers who are under increasing pressure to reduce their carbon footprint and future tax liabilities," said Suchin Talwar, Polystar’s commercial director, commenting on the new product.

The materials, he said, significantly reduce the requirement for virgin grade PE.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC

MOSCOW (MRC) -- Fluor Corporation announced that it was awarded a project management consultancy services contract by Bharat Petroleum Corporation Limited (BPCL) for its Polyols Petrochemicals Project at its existing integrated refinery and petrochemicals complex in Kochi, Kerala, India, according to Hydrocarbonprocessing.

Fluor’s scope of work includes front-end engineering and design of both the inside and outside battery limits as well as detailed design, engineering, procurement and construction management services for the facility’s utilities and offsites. Fluor booked its portion of the undisclosed contract value in the fourth quarter of 2019.

"Fluor is honored to be selected as the project management consultant for BPCL’s prestigious polyols project in Kochi," said Mark Fields, group president of Fluor’s Energy & Chemicals business. "We look forward to working with BPCL to deliver a world-class facility that will help meet growing domestic demand for polyols and reduce India’s dependence on petrochemicals imports."

Six new process units will be built as part of this project and integrated into the existing refinery. New process units will include propylene oxide, propylene glycol, polyols, ethylene oxide/monoethylene glycol (MEG), ethylene recovery unit and a cumene unit.

When complete, the Kochi complex will produce propylene glycol, ethylene glycol and various grades of polyols based on 250 kilotonnes per annum of polymer grade propylene. Polyols are used for a variety of applications in the automobile, textile and furniture industries. They are also widely used in construction as insulation and sealants.

“BPCL is making major advancements at its Kochi Refinery to produce niche petrochemicals that are extensively imported into India to manufacture polyurethanes used in footwear, foam and other items," said Mr. Murali Madhavan, executive director of BPCL’s Kochi Refinery. "We are happy that Fluor, an internationally reputed engineering and consultancy organization, has been selected as the project management consultant for the project."

Fluor's New Delhi office will lead project execution with support provided by Fluor’s network of global experts.

As MRC informed previously, BPCL plans to set up a petrochemicals unit at its Bina refinery in Madhya Pradesh as part of its Rs25,000 crore expansion plan for the refinery. The petrochemical unit, which will include a 1.5 mln tpa naphtha cracker, is expected to cost Rs6,000-7,000 crore.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-controlled oil and gas company headquartered in Mumbai, India. Bharat Petroleum owns refineries at Mumbai, Maharashtra and Kochi, Kerala (Kochi Refineries) with a capacity of 12 and 9.5 million metric tonnes per year.
MRC

MOSCOW (MRC) -- German speciality chemicals company Evonik has completed the acquisition of US-based chemical manufacturing firm PeroxyChem for USD640m, said the company.

The deal was closed after a court in Washington DC dismissed the lawsuit filed by the Federal Trade Commission (FTC) to block the acquisition. Evonik executive board chairman Christian Kullmann said: “In its judgment, the court confirmed our view of the H2O2 and PAA market and, above all, the strong speciality focus of PeroxyChem’s portfolio.

"The acquisition unlocks additional growth opportunities for us, especially in the market for environmentally friendly disinfectants."

In 2018, Evonik entered an agreement with One Equity Partners to acquire PeroxyChem.

Headquartered in Philadelphia, PeroxyChem is involved in the manufacturing of hydrogen peroxide (H2O2) and peracetic acid.

Hydrogen peroxide is a sustainable and resource-efficient chemical that is converted into hydrogen and water during processing.

The anti-trust authorities outside the US had also given their clearance for the transaction. However, the FTC had filed a lawsuit to stop the completion of the acquisition in August 2019.

As MRC informed earlier, Evonik joined with other manufacturers in the High Phthalates Panel (HPP), a sector group of the American Chemistry Council (ACC), in a voluntary manufacturer request to the US Environmental Protection Agency (EPA) to conduct a broad-based risk evaluation of the uses of DINP. The EPA granted the request in early December 2019, a decision welcomed by Evonik. The EPA’s risk evaluation will be performed using the best available science and weight of scientific evidence. The process will be documented and open for public review and comment.

As per MRC's ScanPlast, Russia's overall production of polyvinyl chloride (PVC) reached 975,000 tonnes in 2019, up by 2% year on year. At the same time, not all Russian producers raised their output. December total production of unmixed PVC was about 81,400 tonnes versus 84,600 tonnes a month earlier, RusVinyl decreased their capacity utilisation in November. Overall PVC production reached 975,000 tonnes in January-December 2019, compared to 958,600 tonnes a year earlier. All plants raised their output, except for Kaustik Volgograd.

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees.
MRC

MOSCOW (MRC) -- China’s crude oil throughput rose to a record high in 2019 following the start-up of two mega-refineries, official data showed, with December posting the highest daily run-rate on record, reported Reuters.

The total amount of oil processed for the year reached 651.98 million tonnes, or about 13.04 million barrels per day (bpd) according to Reuters calculations, up 7.6% from 2018, National Bureau of Statistics figures showed.

Refinery runs in December came in at 58.51 million tonnes, or about 13.78 million barrels per day (bpd), up from 12.07 million bpd a year ago.

China added 28.5 million tonnes of new refining capacity in 2019 from mega-sized integrated refining plants, taking its total crude throughput capacity to 860 million tonnes.

The country is expected to launch at least another six refineries this year with combined oil processing capacity of 27 million tonnes, according to a think tank at China National Petroleum Corp (CNPC).

The group also forecast China’s crude oil throughput would grow to 675 million tonnes in 2020, with average utilization rate at refineries across the country to hold at around 75%.

The increased refining capacity and tepid demand in the local market knocked profit margins at refineries to around break-even in December, from a profit of nearly 300 yuan ($43.55) a ton in October, analysts estimated.

"Domestic demand for refined oil products is very weak, which sent prices of the refined products down and largely reduced the revenue at refineries, but meanwhile raw material prices were high," said Wang Zhao, analyst at Sublime Information Corp, before the data was released.

Friday’s data also showed China’s domestic crude oil output fell 1.9% in December from a year earlier to 16.06 million tonnes, or about 3.78 million bpd.

For 2019, crude output edged up 0.8% on year, reaching 191.01 million tonnes.

Meanwhile, China’s natural gas production rose 7.5% year-on-year to 16 billion cubic meters (bcm) in December, while full year output rose to 173.6 bcm, up 9.8%, in line with a central government push to boost domestic supply.
MRC