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

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Alex Brands buys iconic Shrinky Dinks toys

December 19, 2014 3:15 pm ET

First Slinky, now Shrinky Dinks. What will toy and games investment firm Alex Brands buy next?    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS...    More

Image

BASF to sell its share in Singapore JV

December 19, 2014 8:37 am ET

BASF SE has announced that it has reached an agreement for it to sell its share in the 50-50 joint venture ELLBA Eastern, at Jurong Island, Singapore ...    More

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

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

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

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events