Jindal Poly buying ExxonMobil BOPP films business

By Michael Lauzon
Correspondent

Published: October 29, 2012 6:00 am ET

Related to this story

Topics Packaging, Mergers & Acquisitions, Film & Sheet

NEW DELHI (Updated Oct. 29, 1:15 p.m. ET) — An Indian company has agreed to buy ExxonMobil Chemical Co.’s global biaxially oriented polypropylene films operations, which comprise one of the world’s largest BOPP film manufacturers.

New Delhi-based Jindal Poly Films Ltd. said it signed the deal on Oct. 26, but it did not release terms. The company announced the acquisition to the Bombay Stock Exchange.

ExxonMobil has a leading position in BOPP films in both North America and Europe. Plants included in the deal are in Shawnee, Okla., LaGrange, Ga., Virton, Belgium, Brindisi, Italy, and Kerkrade, Netherlands. A BOPP plant in Belleville, Ontario, is not included in the agreement and will be closed in the first half of 2013, ExxonMobil spokeswoman Margaret Ross said in a telephone interview from ExxonMobil’s head office in Houston.

Belleville is ExxonMobil’s highest cost BOPP producer, Ross explained.

The BOPP films sale “is part of a long-standing practice to review assets and their potential value to others,” Ross said.

The deal is contingent on regulatory approvals. Neither ExxonMobil nor Jindal posited a likely timeline of its completion.

“We are excited to buy this business due to its excellent portfolio of premium products along with industry leading technology and R&D,” noted Jindal CEO Hemant Sharma in a news release. “We are equally excited to be acquiring an experienced and capable workforce.”

The agreement includes a technical center and sales office in Macedon, N.Y., and regional business and sales offices in Luxembourg, Spain, United Kingdom, Poland, Singapore, Italy, Germany and China.

ExxonMobil makes clear, metalized and white OPP films sold to converters in the packaging and labeling markets. The global BOPP films business employs about 1,500.

Plastics News recently estimated the company’s North American film sales at $530 million.

Jindal Poly is part of the diversified BC Jindal Group which has interests in flexible packaging, photographic products, thermal power generation and steel.

Jindal Poly claims to have the world’s largest single site for production of BOPP and biaxially oriented PET films in Nasik, India.

Jindal’s current combined capacity for BOPP and PET films is 741 million pounds per year. The business had sales of $452 million for the year ended in March, the company said in a news release.


Comments

Jindal Poly buying ExxonMobil BOPP films business

By Michael Lauzon
Correspondent

Published: October 29, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Kydex, Allen Extruders joined under Sekisui SPI name

September 17, 2014 4:12 pm ET

Sekisui Chemical Co. Ltd. is combining plastic sheet makers Kydex LLC and Allen Extruders LLC under one roof as Sekisui SPI.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events