La Seda could sell PET plants

Richard Higgs

Published: November 6, 2012 6:00 am ET

Related to this story

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

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

Citadel opens second compounding facility in China, near Shanghai

January 27, 2015 3:22 pm ET

Citadel Plastics Inc., the American manufacturer of thermoplastic and engineered composite compounds, has opened its second facility in China,...    More

Image

Sales, profit fall at DuPont

January 27, 2015 3:13 pm ET

Materials giant DuPont Co. will use almost all of the proceeds from an upcoming spinoff — one that includes its fluoropolymer and titanium...    More

Image

A. Schulman, Citadel continue buying blitz

January 27, 2015 11:32 am ET

A. Schulman Inc. and Citadel Plastics Inc. — two deal-happy materials firms — were at it again in the second half of 2014.    More

Image

It's becoming a seller's market for plastics firms

January 27, 2015 11:37 am ET

The pace of plastics mergers and acquisitions activity slowed a bit in the second half of 2014 — but market watchers have high expectations for ...    More

Image

Materials market sees more deals

January 27, 2015 11:26 am ET

Plastics materials deals showed modest growth in 2014, increasing 6 percent vs. their 2013 total.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

More Events