Page 56 - Plastics News December2018

BUSINESS NEWS

Indorama acquires a 74 percent INEOS acquires Ashland
stake in MedcoPlast composites for $1.1 billion

ndorama Ventures Public Co. Ltd. (IVL) has completed K-headquartered multinational chemicals company
Ithe acquisition of 74 percent of the share capital of UINEOS Enterprises has acquired Ashland Global
Medco Plast for Packing and Packaging Systems S.A.E. Holdings Inc. composites business and butanediol
(Medco Plast) from Middle East Glass Manufacturing Co. manufacturing facility in Germany, to in a deal valued
S.A.E. (MEG) and the Samaha family. at $1.1 billion. The two segments have combined sales
of more than $1.1 billion a year and have around 1,300
Aloke Lohia, group chief employees, said Ashland. Ashland also said it will use
executive of Indorama Ventures the expected net proceeds of the sale, which it expects
said “The acquisition of to be around $1 billion, to reduce outstanding debt. The
Medco aligns with Indorama deal is expected to close before the end of the June
Ventures’ strategic focus, which 2019 quarter. Ashley Reed, CEO INEOS Enterprises said,
includes capitalizing on growth “Ashland’s composite resins have been the materials of
opportunities in emerging choice for the world’s boat builders for 30 years, and
Mr. Aloke Lohia markets. Medco’s strong for good reason. They are light, strong and resistant to
Group Chief Excutive Officer presence in the domestic market attack from chemicals and even fire. Unlike wood they
and a longstanding customer don’t rot, unlike metal they don’t corrode and unlike
relationship with all beverage majors operating in concrete they don’t crack. We believe that they have
Egypt will enable the Company to support growing local great potential for growth under INEOS ownership and
customers’ demand and provide a platform for further we are looking forward to working with a great team
growth in the Middle East and African regions.” of people who are determined to meet the developing

Following the acquisition, MEG will retain a 16% needs of our customers.”
shareholding in Medco Plast, and the Samaha family Ashland’s Composites Business is a global leader in
10 percent. Medco Plast is the largest manufacturer of unsaturated polyester resins, vinyl ester resins and gel
recyclable PET preforms, injection molded products, and coats. In addition to its wide range of gelcoats, the
closures to all the multinational soft drink and water business also provides corrosion-resistant fiberglass
manufacturers operating in Egypt, with a 25 percent reinforced plastic (FRP) which provide exceptional
market share. Medco Plast currently has 11 state-of-the- durability, superior heat resistance, low maintenance
art production lines with a combined annual production and high performance for challenging environments.
capacity of 70,000 metric tons of PET preforms. Egypt Bill Wulfsohn, Ashland chairman and chief executive
is one of the most developed and diversified economies officer said, “Composites and Marl are outstanding
in the Middle East, with economic growth of around businesses with strong market positions and high-
5 percent. Egypt’s membership of COMESA regional performing teams. At the same time, the divestiture
economic bloc, coupled with its strategic location linking of these businesses is consistent with Ashland’s
the EMEA and Asia, makes the country the gateway to vision of becoming the premier specialty chemicals
the East and North African markets with favorable trade company. With a more streamlined and focused product
agreements. This acquisition will provide Indorama portfolio, improved margins and reduced earnings
Ventures exposure to the East African PET packaging volatility, Ashland will be better positioned to deliver
market, complementing its existing footprint in West sustained earnings growth and unlock significant value
Africa, where the company has presence in Nigeria for shareholders. INEOS is a global manufacturer of
and Ghana. Indorama Ventures will bring best-in-class petrochemicals, speciality chemicals and oil products.
knowhow capabilities as well as supply chain economies It comprises 34 businesses each with a major chemical
to further enhance Medco Plast’s leadership position and company heritage. Its production network spans 171
grow it into the leading regional player. sites in 24 countries throughout the world.

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