Page 46 - Plastics News September 2019

BUSINESS NEWS

Tigerpoly to expand Ohio Essar Oil UK aims to lift US oil
operations with $10.7M investment UH¿QLQJ WR H\HV DVVHW VWDNH

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onda supplier Tigerpoly is to expand Ohio operations
Hwith $10.7M investment. A Japanese auto supplier
is expanding its operations in Grove City. Tigerpoly ssar Oil UK aims to lift
Manufacturing Inc. expects to invest more than $10.7 Eprocessing of U.S. oil at
million and add 40 new jobs at its Central Ohio facility. its200,000 barrels per day
Since 1987, Tigerpoly's state-of-the-art production facility Stanlow refinery by March
in Columbus, Ohio, has developed and manufactured the to 40% from 35% currently,
highest quality injection molded and blow molded plastic LWV &KLHI ([HFXWLYH 2IÀFHU 6
and rubber parts for the automotive industry. The decision Thangapandian said Speaking
to expand in Ohio comes after considering several options, on the sidelines of the Asia
including expansion to southern states, the company said. 3DFLÀF 3HWUROHXP &RQIHUHQFH
"Tigerpoly's investment is an example of how Japanese (APPEC), Thangapandian
companies are choosing to come to Ohio while continuing also told Reuters his company is in talks with some
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Ohio, offers a number of advantages for Tigerpoly, Terminal Ltd infrastructure business as it seeks to
including its proximity to Honda Manufacturing Inc., which leverage its portfolio of assets. He didn't identify
operates three Ohio plants — in Marysville, East Liberty and potential buyers, but said the company was looking
Anna. "Expanding in Grove City allows us to leverage our for "a strategic partner" for the majority stake in the
longstanding commitment to the Columbus region," Tim infrastructure business, which carries a value of around
Vanover, Tigerpoly senior operations manager, said in the $1 billion. "Currently U.S. crude is making sense to
news release. "The Columbus region is already home to a us," Thangapandian said. "As long as U.S oil is Brent-
robust automotive industry and friendly business climate, minus it is in the game," he said, referring to U.s.
allowing us to remain in a cost-competitive market from crude costing less than the international benchmark.
both a geographical and labor perspective." In 2002,
Thangapandian said his company procures most of the
U.S. oil from spot markets. India's Essar Oil in 2011
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Margins is $9.5-10/bbl. Essar Oil UK plans to increase
its retail fuel station network to 500 in 5 years from
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it has a 16% share of the market. Essar has invested
close to $1 billion in the UK since acquisition, with
impressive results. The company currently earns
circa $5.00/bbl additional margin compared to the
Tigerpoly constructed a new research and development benchmark margin (it was around $1 in 2011), it has
center on our Grove City site to expand our capabilities posted EBITDA of $300 million or above for the last
in the United States in cooperation with our parent three years and has delivered an improved safety and
company's state-of-the-art facility in Kobe, Japan. As a environmental performance. Essar Oil UK is a leading
wholly-owned subsidiary of Tigers Polymer Corporation, UK-focussed downstream energy company whose main
located in Osaka, Japan, Tigerpoly's extensive research, asset is the Stanlow Manufacturing Complex, one of
development, and manufacturing resources span the globe WKH PRVW DGYDQFHG UHÀQHULHV LQ (XURSH DQG VLWXDWHG
with 12 locations in 6 countries. close to the major cities of Liverpool and Manchester.

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