Hexpol acquires US rubber compounder Portage Precision Polymers

MOSCOW (MRC) -- Swedish firm Hexpol has acquired the US-based rubber compounderPortage Precision Polymers Inc from the founder Doug Hartley and his family in a deal worth about USD13.2 million on a cash and debt free basis, said Business-standard.

The business will be consolidated from December 2014. Portage Precision Polymers, established by Doug Hartley in 2002, is today a well-known rubber compounder in the US market.

Tracy Garrison, President and CEO Hexpol Compounding NAFTA, said, “The acquisition is a very good complement to Hexpol Compounding in the US and broadens and strengthens our presence in rubber compounding. Portage Precision expands our capabilities and capacities to serve our customers in a more efficient way. Portage Precision has also a silicon rubber mixing unit in Mogadore, Ohia, which complements and expands our existing product portfolio."

Portage Precision Polymers, with two manufacturing facilities in Ohio (Ravenna and Mogadore), US, had a turnover of USD29 million in 2013. The Ravenna facility is not included in the transaction and its business will be transferred to other Hexpol facilities.

The acquired business has an EBITDA margin below the Hexpol Group and is expected to give a minor positive impact on earnings per share from start.

“This is a further step in expanding and strengthening the Hexpol Group with a further acquisition within our core business. Portage Precision Polymer product portfolio and customer base will fit nicely into the Hexpol Group," commented Georg Brunstam, CEO,Hexpol Group.

As MRC wrote before, Hexpol TPE group appointed MLPlastics as its distribution partner in the North of Germany.

Hexpol is a compounder of thermoplastics and TPEs as well as a processor of wheels made from polyurethane, other plastics and rubber. The company is headquartered in Sweden but has a global footprint.
MRC

MOSCOW (MRC) -- Hyundai Cosmo Petrochemical (HCP) is in plans to shut its No 1 aromatics plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in South Korea informed that the plant is likely to be shut in end-April 2015. It is planned to remain off-stream for around 40 days.

Located in Daesan, South Korea, the plant can produce 380,000 tonnes/year of PX and 120,000 tonnes/year of benzene.

As MRC wrote before, Indonesian state-owned energy company Pertamina shut down its aromatics plant in Indonesia for a 40-day maintenance turnaround in end-September 2014. Located in Cilacap, Indonesia, the plant has a PX capacity of 270,000 mt/year and benzene capacity of 110,000 mt/year.

Besides, South Korean petrochemical company LG Chemical took off-stream an aromatics plant in South Korea for maintenance turnaround on October 15, 2014. It remained off-stream till end-November 2014. Located at Yeosu in South Korea, the plant has a benzene capacity of 240,000 mt/year, toluene capacity of 100,000 mt/year and solvent-grade MX capacity of 55,000 mt/year.
MRC

MOSCOW (MRC) -- Mogilevkhimvolokno, the only Belarusian producer of polyethylene terephthalate (PET) chips, has announced to its customers a reduction in export prices for December shipments, according to ICIS-MRC Price report.

Export prices were reduced by EUR51-53/tonne FCA Mogilev, excluding VAT.

The producer is making concessions to buyers on the back of the overall downward price trend in Europe and Asia. The purchasing power of Belarusian PET consumers fell in the CIS countries. Consumers said they expect prices in foreign currencies to go down in December, following the November devaluation of the national currencies in Ukraine and Russia.

Open Joint Stock Company "Mogilevkhimvolokno" is the only Belarusian major producer of dimethyl terephthalate, PET polyester chips, food grade PET, polyester fibers and yarns and the main feedstock supplier for consumer industry of Belarus. The state's share in the company is 90.53%.
MRC

MOSCOW (MRC) -- Negotiations on Russian contract polyvinyl chloride (PVC) prices for December continued this week. Weaker demand and limited working capital at the converters made Russian producers cut PVC prices further, according to ICIS-MRC Price Report.

Negotiations on December contract prices for Russian PVC began last week. The discussions continued this week, many converters reported that the producers decreased contract PVC prices on average by Rb1,000/tonne, compared with the November level.

At the same time, a lot of companies said they were in no hurry to negotiate prices for December PVC delivery.
Contract prices of Russian PVC for December delivery were heard in the range of Rb48,000-50,000/tonne CPT Moscow, including VAT.

Some companies said that they managed to achieve prices below Rb48,000/tonne on 100% prepayment. Some producers said they had to reduce the contract price, despite a significant difference with imported material.
But it is quite likely that December will the last month for such a low prices of Russian PVC.

Demand for resin was quite strong for the current season and the current rouble devaluation offers great export prospects for producers. Two producers said that they concluded a few export contracts for December. Local converters reported that they understood that the low level of prices of Russian PVC will not last long.

Nevertheless, many of them planned to reduce PVC purchases in December, citing the decline in demand for finished PVC products and intended to shut their capacities for turnaround from 20s December to February.
MRC

MOSCOW (MRC) -- Polystyrene (PS) buyers in the CIS markets said they expect import prices of PS and styrene plastics in Europe to go down in December, according to ICIS-MRC Price report.

December contract prices of European PS will be reduced for consumers in the CIS countries. The reason for the price reduction are new prices of styrene monomer (SM), down by EUR150/tonne from November. A slump in prices in Asia is also putting preassure on PS producers in Europe. Producers will have to make concessions to their customers in the last month of 2014. Producers are expected to reduce their prices by EUR100-150/tonne.

November export prices of high impact polystyrene (HIPS) in Asia fell by USD110-140/tonne for consumers in the CIS countries. Prices of general purpose polystyrene (GPPS) in Asia slumped by USD120-140/tonne. Prices of expandable polystyrene (EPS) have fallen by USD120-140/tonne for importers from the CIS market since early November.
MRC