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Hillenbrand to sell Cimcool business to DuBois Chemicals

March 25/2020

MOSCOW (MRC) -- Indiana-based Hillenbrand’s fully owned subsidiary Milacron Holdings has signed an agreement to sell its Cimcool business to DuBois Chemicals for USD224m, said Chemicals-technology.

In addition, Hillenbrand will receive USD26m in contingent purchase price upon a future sale of the combined DuBois and Cimcool businesses. The sale is part of Hillenbrand’s previously announced strategic review of alternatives for the business, which was part of the 2019 acquisition of Milacron Holdings.

The company intends to use proceeds from the sale for de-leveraging activities that will strengthen its financial position. Hillenbrand president and CEO Joe Raver said: “The divestiture of Cimcool aligns with our previously disclosed intent to seek strategic alternatives for the business and allows us to remain focused on the continued integration of the Milacron APPT and MDCS businesses with Hillenbrand."

DuBois specialises in customised and value-added speciality chemicals solutions and services. It manufactures a broad range of speciality chemical products and related equipment for a variety of industries.

DuBois president and CEO Jeff Welsh said: “We are excited that our customers will have access to a new set of solutions, applications experts, and technical service resources to support and add value to their businesses. Sorry, there are no polls available at the moment.

"We believe that this acquisition will allow us to increase our presence among significant customers and important segments. The expanded product portfolio of the combined organisation will also allow us to meet our customers’ evolving needs in new applications areas."

Cimcool produces metalworking fluids for the automotive, aerospace, and industrial sectors. The transaction is expected to be closed on 30 March this year.

As MRC informed earlier, ExxonMobil said last Monday that it is looking to reduce spending significantly as a result of market conditions caused by the coronavirus disease 2019 (COVID-19) pandemic and commodity price decreases.

We also remind that in September 2019, ExxonMobil announced plans to spend GBP140 million over the next two years in an additional investment program at its Fife ethylene plant, which has a capacity of more than 800,000 t/y.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 215,390 tonnes in the first month of 2020, up by 23% year on year. Shipments of all grades of high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) increased due to higher capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 127,240 tonnes in January 2020, up by 33% year on year. ZapSibNeftekhim's homopolymer PP accounted for the main increase in shipments.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, crude oil, petrochemistry.
Category:General News
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