Jindal Poly buying ExxonMobil BOPP films business

By Michael Lauzon
Correspondent

Published: October 29, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Packaging, 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

NY packaging company aims for zero waste

September 16, 2014 1:36 pm ET

Plastic folding carton maker Diamond Packaging is no longer sending any manufacturing waste to landfills.    More

Image

American Renolit sees steady gains in the film market

September 16, 2014 11:51 am ET

American Renolit Corp. has changed its product mix, changed its customer base and managed to grow in a market that was initially skeptical about the...    More

Image

Flexibility for complexity key for Brampton

September 16, 2014 11:26 am ET

Blown film machinery maker Brampton Engineering Inc. is well positioned to meet growing demand for complex film structures, highly customized...    More

Image

Primex finds success among diverse product offerings

September 15, 2014 3:09 pm ET

What was once a run-down stretch of road in Richmond, Ind., has given way to building after building of extrusion machinery at Primex Plastics Corp....    More

Image

Primex names new tech center after John Farber, a steady supporter

September 15, 2014 3:00 pm ET

RICHMOND, IND. — John J. Farber was there when Primex Plastics Corp. was founded in 1965. And he has been a steady source of support...    More

Market Reports

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

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

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