Key buys OLHO businesses in Europe
NORTHVILLE, MICH. Key Plastics LLC is boosting its ability to supply automotive air vents and interior mechanisms by purchasing certain assets in Germany and Czech Republic from Germany's OLHO GmbH of LÃ¶hne.
Key acquired the equipment and inventory of the OLHO plant in LÃ¶hne, as well as 100 percent of the shares of OLHO's business in Janovice, Czech Republic. The purchase price was not disclosed, but Northville-based Key said that together the acquired businesses have annual sales of about $75 million.
The OLHO transaction is a result of over eight months of diligence and is perfectly aligned with our strategic plan, Key CEO Terry Gohl said in a statement.
Key will use LÃ¶hne as its global center for design and development of air vents and interior mechanism products, the firm said. The Czech facility expands Key's Eastern European footprint. The deal also enhances Key's molding and decorating capabilities, according to the company.
OLHO designs and makes air vents, interior mechanisms and in-mold-decorated products for original equipment manufacturers and Tier 1 suppliers. OLHO had announced that it would enter pre-insolvency in May 2009. Key worked with the insolvency administrator and OLHO customers to structure the deal.
This marks the second German acquisition for Key in a month. In March, it boosted its European in-mold-decorated products by buying certain assets from Paulman & Crone GmbH of Ludenscheid. The assets are being consolidated into Key Plastics facilities in Kierspe and Lennestadt, Germany.
Sabic IP cutting 80 jobs at W.Va. site
PITTSFIELD, MASS. Sabic Innovative Plastics LP will cut 80 jobs from its resin plant in Washington, W.Va., by April 30.
The cuts represent about one-third of the workforce at the plant, which makes Cycolac-brand ABS, Cycoloy-brand polycarbonate/ABS alloys and Geloy-brand acrylic styrene acrylonitrile. Some production of those materials will be transferred to a Sabic IP plant in Ottawa, Ill.
The [Washington] site was built as a batch production facility, said Sheila Naab, a spokeswoman with Sabic IP's global headquarters in Pittsfield. The Ottawa site has continuous operation and has the capacity to make more volume at a time, which reduces costs.
No jobs will be added at Ottawa, which employs 250. Workers in Washington, near Parkersburg, will be offered a voluntary layoff program before cuts are made to reach the total of 80, Naab said in an April 1 phone interview.
News of the cuts comes only a few weeks after Sabic officials confirmed the rehiring of 60 workers at its plant in Mount Vernon, Ind., since the start of the year.
Sabic IP is a unit of Saudi Basic Industries Corp. of Riyadh, Saudi Arabia.
Celanese-Sabic JV to build acetal plant
DALLAS Celanese Corp. of Dallas plans to build a 110 million-pound-capacity acetal plant in Saudi Arabia through a joint venture partnership with Saudi Basic Industries Corp.
The $400 million project will be located in the industrial city of Jubail, officials with both firms said in an April 1 news release. Construction is set to begin next year, with an opening slated for 2013.
The plant will receive methanol feedstock from Ibn Sina, a specialty chemicals firm 50 percent owned by Sabic of Riyadh, Saudi Arabia. Celanese owns another 25 percent of Ibn Sina, with a unit of Charlotte, N.C.-based energy provider Duke Energy Corp. owning the remaining 25 percent.
The new acetal plant will boost Sabic's position in the performance chemicals industry as an important part of its 2020 strategic plan, Sabic officials said in the release. Celanese officials added that the project supports accelerated future growth plans for its Advanced Engineered Materials unit, which includes Ticona engineering polymers.
Ticona ranks as the world's largest acetals maker. Advanced Engineered Materials posted operating profit of $35 million for Celanese in 2009 up 9 percent from 2008 even as sales tumbled 24 percent to $808 million. AEM was the smallest of Celanese's four operating segments in 2009, generating about 15 percent of sales.
In addition to acetal, AEM's products include ultrahigh-molecular-weight polyethylene, liquid-crystal polymers and polyphenylene sulfide.
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