Dow, EniChem trade for businesses
MIDLAND, MICH. — Dow Chemical Co. and EniChem SpA are pulling off a swap of European polyurethanes and polyethylene businesses.
Dow, based in Midland, will receive EniChem's PU business in exchange for the 50 percent stake in Italian PE maker Polimeri Europa that Dow acquired through its just-completed merger with Union Carbide Corp.
EniChem, based in Milan, Italy, produces about 260 million pounds of toluene diisocyanate, 170 million pounds of methylene diphenyl isocyanate and 350 million pounds of polyols annually. It operates plants in Venice, Brindisi and Siracusa, Italy; and Tertre, Belgium; as well as PU systems operations in Varese, Italy; Erstein, France; and Osnabreuck, Germany; and several research facilities.
EniChem's PU unit posts annual sales of about $500 million.
Polimeri Europa produces 3.5 billion pounds of PE at plants in Brindisi, Ferrara, Priolo, Ragusa and Gela, Italy; Dunquerque, France; and Oberhausen, Germany, with annual sales of 1.8 billion euros ($1.67 billion).
Sentinel refocuses on specialized foam
HYANNIS, MASS. — Sentinel Polyolefins LLC has exited the commodity packaging foam market to focus on specialized foams.
The Hyannis-based firm announced it has sold its physically blown foam business, including production plants in Queensbury, N.Y., and Plymouth, England. It did not disclose the buyer. Coincident with the sale, Sentinel's president and chief executive officer, Scott Smith, bought controlling interest in Sentinel.
Sentinel changed its name to Cellect LLC to reflect the restructuring. It did not reveal terms of the two transactions.
Smith said the transactions give Cellect more liquidity to fund rapid growth. Over the past two years Sentinel grew at an average annual rate of 40 percent to about $45 million.
Sentinel has developed a range of patented specialty foams. Its markets include marine equipment, sports equipment, auto interiors and industrial gaskets. It specializes in foams made from cross-linked metallocene-catalyzed polyethylene.
Partnership allows UPG to mold in Asia
WESTMONT, ILL. — United Plastics Group Inc. is teaming up with Singapore's First Engineering Ltd. to begin molding some products in Asia.
The system will allow UPG to operate under just-in-time delivery demands while also potentially opening the door for future sales. The Westmont-based firm now ships molded parts from North American manufacturing sites to customers in Asia, UPG President William J. Kriss, said in a Feb. 9 telephone interview.
"This establishes a supply base that is more local to the customers there," Kriss said. "We're looking to expand."
UPG expects to use First Engineering's production facilities to mold parts for the electronic, consumer and industrial markets.
Working with First Engineering, he said, gives United Plastics a good opportunity to test the waters for future growth in Asia.
United Plastics has about $100 million in annual sales; First Engineering has more than $68 million in sales.