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
Companies & Associations

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

TricorBraun opening three regional centers

April 27, 2015 11:23 am ET

TricorBraun is opening three new, expanded regional centers in the United States: two in California and one in Tennessee.    More

Image

Bemis Co. reports sales growth

April 24, 2015 9:57 am ET

Bemis Co. Inc., in what the company is describing as a strong quarter, saw consistent earnings from continuing operations.    More

Image

KHS cuts packaging with direct printing on PET bottles, adhesive multi-packs

April 23, 2015 1:39 pm ET

KHS GmbH has been pouring a lot of time into solving issues related to direct printing on PET bottles, and after eight years of work, everyone...    More

Image

MeadWestvaco joins the Recycling Partnership

April 23, 2015 11:19 am ET

MeadWestvaco Corp., a global packaging company with some operations in plastics, is joining the Recycling Partnership.    More

Image

Sidel, BMS reach agreement on spindle patent case

April 20, 2015 1:24 pm ET

Sidel Group and Blow Mold Services LLC have reached an agreement in Sidel's patent infringement lawsuit against BMS involving the spindle chain on a b...    More

Market Reports

North American Thermoformed Packaging Market Outlook & Review 2015

Our annual report provides a thorough review and analysis of economic and political conditions, emerging market trends, packaging design advances, materials pricing and sustainable packaging issues impacting supply and demand in the TP segment. Our analysts identify key drivers of growth and opportunities for processors to remain competitive in the years ahead through innovation, production efficiencies and more.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

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

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events