La Seda could sell PET plants

Richard Higgs

Published: November 6, 2012 6:00 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Suppliers, Packaging, Blow Molding

BARCELONA, SPAIN (Nov. 6, 12:45 p.m. ET) — Packaging producer La Seda de Barcelona is prepared to sell its PET polymer and raw material plants to raise new capital if it cannot attract a minority industrial partner to help develop its PET and chemical operations.

This radical solution to the group’s current liquidity difficulties was revealed by La Seda’s executive president Carlos Moreira da Silva after an extraordinary LSB shareholders meeting. The move follows the Spanish group’s abortive attempt in July to raise 40 million euros in new share capital in support of an ambitious downstream investment program.

Barcelona-based LSB is in preliminary discussions with up to five potential partners with a view to one taking a 25 percent stake in a new business integrating all the group’s upstream PET, terephthalic acid (PTA), glycol and PET recycling operations.

LSB is hopeful that it will reach agreement with a suitable strategic partner in the first three months of 2013, a group spokeswoman confirmed. But, she stressed, the task of finding an industrial partner to invest in the business at this time of economic crisis would be “relatively difficult.”

If the Spanish group is unable to establish the joint venture, it would have to sell the upstream petrochemical assets. LSB has PET plants across Europe in Spain, Italy, Greece and Turkey and raw material chemical units in Spain and Portugal.

At a news conference after the shareholders’ meeting which was held to consider alternative board proposals to raise the investment capital, Moreira recognized there are many difficulties in trying to sell LSB assets in Spain, Portugal, Greece and Portugal.

La Seda’s Artenius PET plant at El Prat de Llobregat near Barcelona is currently operating at 70 percent of capacity while the PET unit at San Giorgio di Nogaro, Italy is at just 50 percent. However, the company’s PET plants in Adana, Turkey, and Volos, Greece, are running at full capacity.

With Turkey’s economy relatively buoyant, it is clear the most likely initial disposal, if it comes to a PET business sell off, would be the Adana business.

Despite its current financial difficulties, Moreira emphasised that LSB would continue operating and he was confident that projected sales for its petrochemicals businesses will be achieved in the first few months of next year.


Comments

La Seda could sell PET plants

Richard Higgs

Published: November 6, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Prices trending up for some recycled resins

July 24, 2014 1:27 pm ET

Plastics News is correcting prices for recycled grades of several commodity resins on this week's resin pricing chart.    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC,...    More

Image

BASF posts growth in second quarter

July 24, 2014 11:08 am ET

German chemical giant, BASF SE, has announced a 1 percent growth in sales for the second quarter of 2014 compared to the same period in...    More

Image

Bayer PC used for lightweight, durable luggage collection

July 24, 2014 10:52 am ET

Bayer MaterialScience has partnered with U.S.-based travel goods manufacturer Andiamo Luggage LLC to create a special plastic for suitcases that is...    More

Image

Sealed Air moving headquarters, 1,200 jobs to Charlotte, N.C.

July 23, 2014 2:06 pm ET

Sealed Air Corp. — which is known for its Bubble Wrap brand — is moving its headquarters from Elmwood Park, N.J., to Charlotte, N.C., and ...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

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

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

More Events