Page 49 - Plastics News October 2019

BUSINESS NEWS

CCI clears 70% stake acquisition Chroma Color completes $1m
in SABIC by Saudi Aramco investment

he Competition Commission of India has given approval hroma Color Corporation has just completed a
Tto the acquisition of 70 per cent stake in Saudi Basic C\HDUORQJ H[SDQVLRQ DQG RYHU D PLOOLRQ LQYHVWPHQW
Industries Corporation (SABIC) by Saudi Arabian Oil in the Leominster, MA manufacturing operation. These
Company. Through this acquisition, Saudi Aramco will have LQYHVWPHQWV LQFOXGHG VLJQLÀFDQW VWUXFWXUDO XSJUDGHV
sole control over SABIC. In India, SABIC is mainly active new compounding lines, a dust collection system, new
state of the art color development laboratory, along
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environments.Tom Bolger, CEO, Chroma Color Corporation
stated, “As we continue to strengthen our position in
the color concentrate marketplace, we determined
manufacturing site upgrades would be necessary to
serve our customers growing need for technically strong
partners. Today, I am proud to say Chroma Leominster has
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a true manufacturing center of excellence. Because
in the supply of agri-nutrient and petrochemical products of the new investments and capacity expansion in
while Saudi Aramco is active in the supply of crude oil, Leominster, Chroma Color Corporation is pursuing
opportunities to better serve our customers across
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products. In March 2019, Saudi Aramco had announced the the entire manufacturing footprint. Earlier today,
signing of a share purchase agreement to acquire 70 per representatives of Chroma Color Corporation met
cent majority stake in SABIC from the public investment with employees at the Clinton, MA facility to inform
fund of Saudi Arabia. them that the Clinton operations will be relocating
to the improved Leominster manufacturing site.
The transaction value was pegged at 69.1 billion dollar. A majority of current Clinton employees will be given the
7KH UHPDLQLQJ SXEOLFO\ WUDGHG VKDUHV LQ 6$%,& DUH QRW opportunity to continue their careers with Chroma. The
part of the transaction, and Saudi Aramco has no plans Leominster facility is just 10 miles from the Clinton
to acquire these remaining shares. The transaction is site. Transition assistance will be made available for
subject to certain closing conditions, including regulatory those few employees not offered a transfer.“This
approvals. Amin Nasser, President & CEO, Saudi Aramco move is intended to streamline operations and better
said: “This transaction is a major step in accelerating Saudi
Aramco’s transformative downstream growth strategy
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world-class company with an outstanding workforce and
chemicals capabilities. As part of the Saudi Aramco family
of companies, together we will create a stronger, more
robust business to enhance competitiveness and help meet
rising demand for energy and chemicals products needed
by our customers around the world.” The acquisition is serve customers by integrating key operations into
in line with Saudi Aramco’s long-term strategy to drive existing manufacturing facilities where we have more
growth through an enhanced Downstream portfolio by advanced lab and technical equipment leveraging
LQFUHDVLQJ JOREDO SDUWLFLSDWHG UHÀQLQJ FDSDFLW\ IURP robust analytical and formulation resources. The value
4.9 million to 8-10 million barrels per day by 2030, of we can bring to our customers will be strengthened
which 2-3 million barrels per day will be converted into E\ WKHVH LPSURYHG HIÀFLHQFLHV DQG FDSDELOLWLHV µ VDLG
petrochemical products. Tom Bolger, CEO, Chroma Color Corporation.

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49 October 2019 Plastics News