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SABIC acquires GE Plastics
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SABIC acquires GE Plastics Saudi Basic Industries Corporation (SABIC) has reached an agreement with GE to acquire GE Plastics. The purchase price is reported to be US$11.6 billion. The transaction is expected to be completed by the third quarter of 2007, subject to completing regulatory approvals.
GE Plastics, headquartered in Pittsfield, Massachusetts, USA, is a global supplier of plastic resins used in automotive, healthcare, consumer electronics, transportation, performance packaging, building and construction, telecommunications and optical media. Brian Gladden, who currently serves as vice president
of GE Plastics’ resin business, will be the president and chief executive officer of the new business, which will be renamed on completion of the transaction. “SABIC is the right owner for our customers and our employees,” comments Jeff Immelt, chairman and chief executive officer of GE. “This transaction will transform the
plastics industry by combining SABIC’s low-cost materials position and global reach with GE Plastics’ strong marketing and technology capabilities.” Contact: GE Website: www.ge.com Saudi Basic Industries Corporation Website: www.sabic.com
Report shows increase in Russian thermoplastic demand Demand for thermoplastics in Russia was almost 3.3 million tonnes in 2006, according to AMI’s 2007 Russian and CIS plastics industry report. The report indicates that since the year 2000, demand for thermoplastics has more than doubled. However, the market is still underdeveloped in comparison to the rest of Europe – per capita consumption is 23 kg compared with over 80 kg for the EU 25. Commodity polymers have accounted for over 97% of demand; polyvinyl chloride (PVC) and expanded
Source: Applied Market Information Limited
End use applications for thermoplastics in Russia. polystyrene (EPS) have shown the largest volume increases since 2000, driven mainly by growth in demand for building products. Packaging is also
driving polymer demand with large investments in capacity for the production of BOPP film, polyethylene terephthalate (PET) preforms
and bottles and polyethylene stretch films. Current capacity within the Commonwealth of Independent States (CIS) for commodity thermoplastics is just over 4 million tonnes, according to AMI, with nearly three-quarters being located in Russia. There are also plans in the pipeline for new plants, particularly in Russia, where a further 3 million tonnes of new capacity could be added by 2010. Contact: AMI Consulting Website: www.amiplastics.com
Antioxidant facility goes into production Songwon Industrial Co Ltd’s antioxidant manufacturing site in Maeam, Korea, has gone into commercial production. Around US$120 million was invested in the design, construction and initial operation of the new plant, which increases Songwon’s
antioxidant production capacity to 55,000 tonnes. The facility has been designed to support a further doubling of capacity to a total capacity of 80,000 tonnes. It also includes back integration into key raw materials and intermediates which, the company says,
Plastics Additives & Compounding July/August 2007
brings value to the customers and enhances security of supply, control of quality and efficiency. “The plant is located at a new site a few miles from the existing Ulsan plant and is fully dedicated to polymer stabilizers, to ensure that Songwon will always have
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at least one plant in operation in case of interruptions,” comments Jongho Park, chairman and chief executive officer of Songwon Industrial Co Ltd. Contact: Songwon Industrial Co Ltd Website: www.songwonind.com
News
SABIC acquires GE Plastics Saudi Basic Industries Corporation (SABIC) has reached an agreement with GE to acquire GE Plastics. The purchase price is reported to be US$11.6 billion. The transaction is expected to be completed by the third quarter of 2007, subject to completing regulatory approvals.
GE Plastics, headquartered in Pittsfield, Massachusetts, USA, is a global supplier of plastic resins used in automotive, healthcare, consumer electronics, transportation, performance packaging, building and construction, telecommunications and optical media. Brian Gladden, who currently serves as vice president
of GE Plastics’ resin business, will be the president and chief executive officer of the new business, which will be renamed on completion of the transaction. “SABIC is the right owner for our customers and our employees,” comments Jeff Immelt, chairman and chief executive officer of GE. “This transaction will transform the
plastics industry by combining SABIC’s low-cost materials position and global reach with GE Plastics’ strong marketing and technology capabilities.” Contact: GE Website: www.ge.com Saudi Basic Industries Corporation Website: www.sabic.com
Report shows increase in Russian thermoplastic demand Demand for thermoplastics in Russia was almost 3.3 million tonnes in 2006, according to AMI’s 2007 Russian and CIS plastics industry report. The report indicates that since the year 2000, demand for thermoplastics has more than doubled. However, the market is still underdeveloped in comparison to the rest of Europe – per capita consumption is 23 kg compared with over 80 kg for the EU 25. Commodity polymers have accounted for over 97% of demand; polyvinyl chloride (PVC) and expanded
Source: Applied Market Information Limited
End use applications for thermoplastics in Russia. polystyrene (EPS) have shown the largest volume increases since 2000, driven mainly by growth in demand for building products. Packaging is also
driving polymer demand with large investments in capacity for the production of BOPP film, polyethylene terephthalate (PET) preforms
and bottles and polyethylene stretch films. Current capacity within the Commonwealth of Independent States (CIS) for commodity thermoplastics is just over 4 million tonnes, according to AMI, with nearly three-quarters being located in Russia. There are also plans in the pipeline for new plants, particularly in Russia, where a further 3 million tonnes of new capacity could be added by 2010. Contact: AMI Consulting Website: www.amiplastics.com
Antioxidant facility goes into production Songwon Industrial Co Ltd’s antioxidant manufacturing site in Maeam, Korea, has gone into commercial production. Around US$120 million was invested in the design, construction and initial operation of the new plant, which increases Songwon’s
antioxidant production capacity to 55,000 tonnes. The facility has been designed to support a further doubling of capacity to a total capacity of 80,000 tonnes. It also includes back integration into key raw materials and intermediates which, the company says,
Plastics Additives & Compounding July/August 2007
brings value to the customers and enhances security of supply, control of quality and efficiency. “The plant is located at a new site a few miles from the existing Ulsan plant and is fully dedicated to polymer stabilizers, to ensure that Songwon will always have
6
at least one plant in operation in case of interruptions,” comments Jongho Park, chairman and chief executive officer of Songwon Industrial Co Ltd. Contact: Songwon Industrial Co Ltd Website: www.songwonind.com