Page 43 - Plastics News August 2018

BUSINESS NEWS

BASF group records slight sales Japanese MNC Toray to invest
and earnings growth Rs1,000 crore in Sri City

n the second quarter of 2018, oray Industries (India), a subsidiary of Toray
IBASF Group achieved a slight TIndustries, Inc, a Japanese major producing key
increase in sales and earnings. materials for a range of industries, plans to invest
“Compared with the second Rs 1,000 crore in setting up a manufacturing unit
quarter of 2017, sales rose by in Sri City, Andhra Pradesh. N Amarnatha Reddy,
€518 million to €16.8 billion,” Minister of Industries, AP Government, unveiled a
said Dr. Martin Brudermüller, plaque marking the start of project construction
Chairman of the Board of in the presence of Uchiyama, Consul General of
Executive Directors of BASF SE. -DSDQ LQ &KHQQDL DQG $NLKLUR 1LNNDN\ &(2 &22
This was driven by higher prices Toray Industries, Inc. Amarnatha Reddy said due to
in all segments, particularly in Functional Materials & ease of doing business in the State and industry-
Solutions and Oil & Gas. In addition, with the exception friendly policy of the government, several Japanese
of Performance Products, all segments achieved volumes companies preferred it, particularly Sri City. Akihiro
growth. This was partially offset by negative currency 1LNNDN\ VDLG ´:H DFTXLUHG D ODUJH SORW WR KRXVH
effects.BASF increased income from operations (EBIT) several facilities at a single location in the integrated
before special items by €105 million year on year to industrial township, Sri City. Toray has plans to make
½ ELOOLRQ ODUJHO\ WKDQNV WR WKH VLJQLÀFDQWO\ LPSURYHG advanced raw materials for Indian industries and
contribution from the Oil & Gas segment. EBIT before manufacturing clusters for the next decade.” Toray
special items rose slightly in the Agricultural Solutions and is the 20th Japanese company setting up facility in
Performance Products segments but decreased slightly Sri City, and this is Toray’s second production unit
in the Chemicals segment and declined considerably in in India. Its products will be used by diaper makers
the Functional Materials & Solutions segment. Sales also like Unicharm, Proctor & Gamble and Kimberley
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€307 million to €33.4 billion. This was due to higher sales
prices, especially in the Functional Materials & Solutions,
Chemicals and Oil & Gas segments, as well as volumes
growth in all segments except Performance Products.
Negative currency effects, primarily relating to the U.S.
dollar, dampened sales in all segments.
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of 2018 by €160 million to €4.9 billion, largely thanks Clark and the automotive, electrical and fast moving
WR WKH VLJQLÀFDQWO\ LPSURYHG FRQWULEXWLRQ IURP WKH 2LO consumer goods industries. The 85-acre site will
& Gas segment. EBIT before special items rose slightly have two plants. One, a poly propylene spun bond
in the Chemicals segment but decreased slightly in the plant that will produce advanced technical textile
Performance Products segment and declined considerably Meditech used in diapers. It is expected to start
in the Functional Materials & Solutions and Agricultural commercial production in March 2020. The other unit
Solutions segments. Sales of €4.1 billion in the Chemicals will be a an Engineered Plastics Resin Compounding
segment slightly exceeded the €4 billion reported in the plant that will make raw materials for electrical
prior-year quarter. This was the result of higher prices, components used in automobiles and in electrical
especially in the Monomers and Intermediates divisions, as and electronic connectors. This unit will start
well as volumes growth. By contrast, sales were negatively commercial production in September 2019, according
impacted by currency effects, primarily relating to the to a statement. Both plants will initially generate
U.S. dollar. EBIT before special items declined slightly 130 direct and 520 indirect jobs, and these numbers
compared with the second quarter of 2017, but remained will go up during subsequent phase.
high at €1.1 billion.

43 August 2018 Plastics News