Mobil Chemical Co. will increase its European supply of oriented polypropylene packaging films through an agreement with a Hungarian producer.
Tiszai Vegyi Kombinat Rt will install an OPP film line with Mobil's technical help at TVK's Tisza£jv ros, Hungary, headquarters. The new line, with annual capacity of 33 million pounds, is scheduled to begin operating in the second half of 1999, Mobil announced Nov. 19. Mobil also will provide technical assistance in running the line.
Mobil Plastics Europe Inc. will market all the new line's output, said Mobil spokeswoman Lauren Kerr. However, neither Mobil nor its European subsidiary will hold equity in the new line, Kerr said by telephone from Mobil's Fairfax, Va., office.
Already a major player in Europe's specialty and commodity OPP films market, Mobil has plants in Virton, Belgium; Kerkrade, the Netherlands; and Brindisi, Italy, with combined current capacity of 264 million pounds per year. Mobil also plans to start a new, 33 million-pound line in Kerkrade early next year.
Mobil's Films Division President Robert Dobies estimates OPP film demand is growing more than 10 percent annually in central and Eastern Europe. Miklos Varhegyi, TVK chairman and chief executive officer, said Mobil's involvement in the new line will help it quickly reach full-scale production and provide a better return on investment.
TVK's line will more than triple its OPP film capacity. The company, based about 110 miles east of Budapest, is Hungary's largest chemical company. It also makes ethylene, propylene, polyethylene, PP and finished plastic products.
Mobil had been poised to increase its OPP presence in Europe indirectly through a 50-50 joint venture with Hoechst AG this year. But the firms called off the venture Sept. 1. A Hoechst spokeswoman said the potential partners could not agree on the value of their respective businesses.