Page 44 - Plastics News July 2017

BUSINESS NEWS

Sunoco to acquire Clear Lam Dow to invests $100 mln in KSA

onoco, one of the largest diversified global packaging S-based Dow Chemical Company has announced plans
Scompanies, today announced it has signed a definitive Uto construct a new state-of-the-art manufacturing
agreement to acquire 100 percent of the stock of Clear facility to produce a range of polymers for coatings
Lam Packaging, Inc., a family-held developer and and water-treatment applications in Saudi Arabia at
manufacturer of flexible and forming plastic packaging an investment of over US$100 million, according to
films for approximately US$170 million in cash. The
transaction is subject to normal regulatory review and is TradeArabia News Service.
expected to close in Q3-2017. Located in the PlasChem Park in Jubail, the coatings

Clear Lam is facility will service the needs of the Saudi market with an
a technology innovative range of acrylic-based polymers for industrial
leader in the and architectural coatings and water-treatment and
development, detergent applications. The new coatings facility will
production and complement Dow’s existing coatings capabilities in the
conversion of
high barrier Middle East, which include an existing facility at Jebel
flexible and Ali, in Dubai, UAE. Apart from the waterborne polymer
forming films facility, the company has also signed an agreement for
used to package a feasibility study related to a proposed investment in
a variety of the company’s Performance Silicones franchise. “Dow has
products for consumer packaged goods companies, been a long-term strategic partner in Saudi Arabia for
retailers and other industrial manufacturers, with a focus nearly four decades and is the largest foreign investor in
on structures used for perishable foods. Clear Lam serves
markets including condiments, dairy, meats and cheese, the country,” remarked Andrew Liveris, Dow’s chairman
produce, confection, fresh and prepared foods, nuts and and chief executive officer, after signing the agreements
snacks, food service and personal care. According to Jack at a recent event in Riyadh, Saudi Arabia.
Sanders, Sonoco president and chief executive officer, the “Through our global and regional experience and
acquisition of Clear Lam will further build on Sonoco's
strategy of expanding its global Flexible Packaging and expertise, we have unmatched capabilities to deliver
Thermoforming Plastics operations to provide offerings high value, innovative solutions that support the kingdom
serving the fast-growing perimeter of grocery and retail in key growth areas that help advance the Saudi’s Vision
food stores. 2030 plan designed

"The addition of Clear Lam will significantly expand our to create a vibrant
Flexible Packaging and Thermoforming Plastics operations society and a
as we will be able to develop, produce and convert high thriving diversified
barrier flexible and forming film structures to package e con omy,” h e
fresh and prepared food products purchased in the growing added. According
store perimeter," said Sanders. Concerning the acquisition, to him, the
Clear Lam Packaging President James Sanfilippo said,
"We are excited to become part of the Sonoco family. I proposed silicones
see the two companies with similar cultures, focused on in ve st me nt
building strong relationships with employees, customers will include
and suppliers. Innovation has always been a driving force constructing a
within Clear Lam and Sonoco, and it will continue to be fully-integrated,
a foundation for further growth." Sonoco Executive Vice world-scale siloxanes and high-performance silicones
President and Chief Operating Officer Rob Tiede said the complex geared towards markets and industries such as
addition of Clear Lam provides significant technology
advantages as well as being able to drive synergies through home and personal care, automotive, high-performance
the internalization of materials for Sonoco's existing building and construction, solar energy, medical devices,
flexible and thermoforming customers. and oil and gas.

Plastics News | July 2017 44