OpenGate Capital to acquire PVC subsidiary from Solvay

MOSCOW (MRC) -- OpenGate Capital, a global private buyout firm, has signed an exclusivity agreement with Belgian chemicals leader, Solvay S.A. to acquire Benvic, a leading PVC compounder with three manufacturing plants in Europe, according to the company's statement.

This project is subject to applicable information/consultation procedures with employee representatives and regulatory approvals. The sale is expected to be completed by the first half of 2014.

Under the Benvic brand name, the business develops, produces and markets high quality innovative PVC based thermoplastic solutions in the form of powders and compounds that are utilized across a wide range of end-applications including building and construction, automotive and aerospace, cabling, pharmaceutical, packaging and fluid transport.

Andrew Nikou, OpenGate Capital’s founder, Managing Partner and CEO stated, "Benvic would be a strategic complement to OpenGate Capital’s portfolio in Europe. The project would be in line with our strategy to develop our presence in the global PVC industry after having acquired Profialis from Tessenderlo Group in January of 2013, a leading European PVC profiles manufacturer. Profialis and Benvic would have a total annual production capacity of more than 200,000 tonnes and close to USD330 million in consolidated annual revenues. This is another testament to the merits of our firm’s investment strategy to build and operate businesses in diverse and global markets."

As MRC informed previously, Braskem, the largest polymer producer in the Americas and the world leader in biopolymers, has recently announced the execution of an agreement with Grupo Solvay for the acquisition of 70.59% of the total and voting capital of Solvay Indupa, which produces PVC and caustic soda and owns two integrated industrial facilities in Brazil and Argentina.

Benvic operates across Europe from its manufacturing facilities in France, Italy and Spain. The business employs over 200 people with annual revenues of USD220 million.

OpenGate Capital is a global private buyout firm specializing in the acquisition and operation of businesses seeking revitalization through growth and operational improvements. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California and maintains offices in Paris, France and Sao Paulo, Brazil.
MRC

MOSCOW (MRC) -- Sinopec Shanghai Petrochemical has restarted its acrylonitrile (ACN) plant, said Apic-online.

A source in China informed that the plant resumed operations on December 25, 2013. It was shut on November 20, 2013 for maintenance turnaround.

Located in Shanghai, China , the plant has a production capacity of 130,000 mt/year.

As MRC wrote before, Top Asian refiner Sinopec Corp won initial approval last month from China's top economic planner for a plan to build a USD10-billion refinery and petrochemical complex in Shanghai.

Sinopec Corp. is one of the largest scale integrated energy and chemical companies with upstream, midstream and downstream operations. Its refining and ethylene capacity ranks No.2 and No.4 globally. The Company has 30,000 sales and distribution networks of oil products and chemical products, its service stations are now ranked third largest in the world.
MRC

MOSCOW (MRC) -- French company Total has announced Qatar Petroleum International has taken a 15% interest in its subsidiary, Total Exploration & Production Congo, said Upstreamonline.

The original agreement was signed in May this year, which will see Total transfer a stake in the company to QPI.

The USD1.6 billion increase in Total E&P Congo’s capital will consolidate its financial capacity as the company progresses the Moho Nord deep offshore project.

Total chief executive Christophe de Margerie said this was an important milestone.

“This builds on Total’s already well-established partnership with Qatar and at the same time strengthens our commitment to the development of the Congolese petroleum industry," he said.

As MRC wrote before, Total, Europe’s third-largest oil company, intends to invest EUR160m before 2016 to adapt its petrochemical platform in Carling, in the Lorraine region of eastern France, and to restore its competitiveness. Total plans indeed to develop new activities on the platform in the growing markets for hydrocarbon resins (Cray Valley) and for polymers, while shutting down the acutely loss-making steam cracker in the second half of 2015.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.

MRC

MOSCOW (MRC) -- The US Environmental Protection Agency (EPA) has honored The Dow Chemical Company, the largest US chemical maker by sales, as one of the honorees of the 18th annual US Presidential Green Chemistry Challenge Award, for the development of EVOQUE pre-composite polymer technology, reported Dow on its site.

This win marks the ninth time that Dow and its affiliates have received this recognition, more than double any other company since the award’s inception in 1996.

The US Presidential Green Chemistry Challenge Award is presented annually to organizations that incorporate the principles of green chemistry into chemical design, manufacture, and use. Dow’s past recognitions span innovation across a broad number of applications, including environmentally-friendly insect control, synthetic pathways that reduce carbon dioxide waste, and an environmentally safe marine anti-foulant.

The 2013 award recognizes the innovative technology behind EVOQUE that is changing the way paint is made and allowing more effective hiding with lower environmental impact. This technology improves sustainability and performance such as rust resistance, protection and durability, while requiring less titanium dioxide, helps to reduce the paint’s carbon footprint by more than 22% and water consumption by 30%.

As MRC wrote previously, earlier this month, Dow Chemical unveiled its plans to separate chlorine-related assets including its epoxy business as the company focuses on higher-margin activities. The chlorine assets account for as much as USD5 billion of annual revenue and include plants at 11 sites employing almost 2,000 people, Midland.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Veka Recycling is investing almost Euro 1.2 million (USD1.6 million) in its south-east England facility to produce high-quality recyclate suitable for PVC extruded products, said Recyclinginternational.

A new compounding line will enable the company to supply European markets with PVC pellets derived from post-industrial or post-consumer window frame material. According to the firm, this is in addition to the existing supply of both pellet and micronised PVC from its German and French factories.

According to Veka's managing director Tony Cattini, the investment will help to meet continuing demand for recycled content in new products with all the associated economic and environmental benefits for manufacturers and consumers. 'It also underlines our commitment to progressive growth and development in this sector as well as continuing to offer a sustainable and reliable outlet for PVC window waste,' he says.

As MRC wrote before, Veka Recycling Ltd, will be joining colleagues from France and Germany at K 2013 to announce the launch of its high-quality recyclate suitable for a wide range of new PVC-U extruded products.

Established in the UK since 2007 and with an annual recycling capacity of 20 000-plus tonnes, the Kent-based company is part of the VEKA Recycling Group, which has processing facilities in three European countries and has more than two decades' recycling experience in producing pelletised material that can be used in new extrusion products, including windows.
MRC