Page 48 - Plastics News May 2019

BUSINESS NEWS

%RUHDOLV 4 SUR¿W GHFOLQHV DSM buys SRF engineering
y-o-y due to low PO margins plastics business for Rs 320 cr

orealis AG has reported a 16.6 percent year-over-year
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utch chemical
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Dcompany Royal DSM is
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base chemicals India with the acquisition
and fertilizers, of the engineering plastics
announces a net
business of leading
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million for the company SRF Ltd., for
first quarter of Rs 320 crore as part of a
2019, compared strategy to focus on core operation. The Gurugram-
to EUR 240 based SRF is a chemical based multi-business entity
million in the engaged in the manufacturing of industrial and
same quarter of
speciality intermediates.SRF's engineering plastics
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quarter of 2018 was driven by lower European integrated
plastic compounds, catering to the automotive and
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electrical industries. "Today marks a significant
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quarter of 2019 was below the same period in 2018, step along our strategic direction of focusing on our
mainly due to the Borouge 3 turnaround and weaker
core businesses," said Ashish Bharat Ram, Managing
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quarter of 2018, driven by an improved operability of the felt that scaling it into a large business would have
assets and an improved fertilizer market environment.In
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onto a credible player would be logical for everyone
ODUJHO\ GXH WR WKH SD\PHQW RI D (85 PLOOLRQ ÀQDO involved," he added. The transaction would enable
dividend payment over 2018 to Borealis' shareholders. SRF to strengthen balance sheet and focus its efforts
In September 2018 a EUR 300 million interim dividend and resources on developing more-and-more complex
was already paid for 2018. A second main factor leading technologies within the chemicals business. SRF, which
to the increased debt position was the implementation was set up in 1970, has an annual turnover of Rs 5,600
of the new accounting standard for lease contracts (IFRS crore. It has twelve manufacturing plants in India,
16) impacting the reported debt by EUR 210 million. The
two in Thailand and one in South Africa. DSM India is
FDVK LQÁRZ IURP WKH VROLG EXVLQHVV UHVXOW DQG GLYLGHQGV a subsidiary of the Netherlands-based Royal DSM, or
from Borouge allowed Borealis’ financial position to
Koninklijke DSM NV. The group operates in the human
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and animal nutrition, medical devices and personal care
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segments. It reported net sales of €2.3 billion (about
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business. Borouge is also expected to perform well after quarter of 2019.In a separate statement, Royal DSM
the successful completion of the Borouge 3 turn-around. said the deal will help the India unit expand production
Our focus in 2019 shall remain on driving top performance and sales of its speciality materials without having to
of our existing business and on advancing the major global PDNH VLJQLÀFDQW FDSLWDO H[SHQGLWXUH DSM has about
growth projects.
550 employees in India.

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Plastics News May 2019 48