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Mexichem buying PolyOne PVC resin assets

AKRON, OHIO — An asset sale and a capacity expansion from PolyOne Corp. are featured in this week's Material Insights video. Also featured this week is Dow Chemical's decision to add polyethylene resin capacity in the Gulf Coast, and two more compounding-related news stories.

Published: March 25, 2013 2:32 pm ET
Updated: April 1, 2013 3:41 pm ET

AKRON, OHIO — An asset sale and a capacity expansion from PolyOne Corp. are featured in this week's Material Insights video.

PolyOne — North America's largest compounder — has sold its PVC dispersion, blending and suspension resin assets to Mexichem for $250 million in cash. The firm also announced capacity expansions at plants in Poland and China for PVC powders used in slush molding for the auto market.

Dow Chemical's decision to add polyethylene resin capacity in the Gulf Coast also is featured in this week's video. Dow previously had announced plans to add a new unit making ethylene feedstock in Freeport, Texas. Dow now joins a growing list of firms that are adding PE capacity in North America because of newfound supplies of natural gas in shale deposits.

The video wraps up with two more compounding-related news items. A. Schulman's continued pursuit of Ferro Corp. also is featured in this week's video. Schulman has hired investment banking firm Moelis & Co. after Ferro officials rejected Schulman's $855 million purchase offer. Schulman is one of North America's largest compounders and concentrate makers, while Ferro gets about 30 percent of its sales from plastics-related businesses. In Fowlerville, Mich., Asahi Kasei Plastics will spend $5 million on a new extruder and additional upgrades. The project will increase site capacity by 10 percent, including a 30 percent capacity boost for long-glass-fiber-reinforced polypropylene.

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