Echemic

SPX acquisition of CLYDEUNION Pumps now complete

Shirin Etemadi — Tue, 17 Jan 2012 20:04:03 +0000

SPX Corporation has completed its acquisition of CLYDEUNION Pumps, a global supplier of pump technologies used in oil and gas processing, power generation and other industrial applications.

The final agreement, amended Dec. 22, states the total purchase price as 500 million British Pounds (GBP), about $779 million. The agreement also includes a potential earn-out payment next year based on the 2012 EBITDA performance, though the total consideration may not exceed 750 million GBP. The earn out was structured to reduce the upfront payment risks to SPX and better alignment the acquisition agreement with expectations regarding CLYDEUNION’s financial performance.

Christopher Kearney, SPX’s chairman, president and CEO, says that the purchase is consistent with SPX’s long-term strategy of expanding its Flow Technology capabilities. CLYDEUNION will increase SPX’s global presence, especially in emerging markets where there’s significant growth in energy infrastructure.

“We expect this will be a defining acquisition for us,” Kearney says. “It immediately establishes a global platform for our Flow segment in the power and energy sector.”

CLYDEUNION Pumps’ products include centrifugal pumps and reciprocating pumps. It also provides aftermarket repair services on a global basis. CLYDEUNION Pumps has approximately 2,000 global employees, is based in Glasgow, United Kingdom, and operates eight manufacturing facilities and 25 service centers worldwide.

Source: Clydeunion.com

S Korea’s Hanwha runs PA plant at 20% after unexpected shutdown

Shirin Etemadi — Thu, 29 Dec 2011 12:36:24 +0000

Singapore (Platts)–29Dec2011/359 am EST/859 GMT

South Korea’s Hanwha Chemical restarted its 80,000 mt/year phthalic anhydride plant at Ulsan on Wednesday after it was shut unexpectedly on December 22 due to a mechanical problem, a company source said Thursday.

Hanwha is currently operating the plant at a 20% production rate after Wednesday’s restart.

The plant was initially expected to operate at its full nameplate capacity from mid-December onwards after it was shut between October 23-November 19 for scheduled maintenance.

Source: Platts.com –Joycelyn Chua, joycelyn_chua@platts.com

Neste Oil to sell its holding in an iso-octane plant in Canada

Shirin Etemadi — Fri, 25 Nov 2011 00:09:43 +0000

Neste Oil is to sell its 50% holding in an iso-octane plant in Edmonton, Canada to Canada’s Keyera Corp. The plant has an annual nameplate capacity of 520,000 tons and employs 100 people. Neste Oil will sell its whole asset, which is valued at USD 99 million or over euro 70 million. Furthermore Neste Oil shall sell the associated product and feedstock inventories at closing to the buyer.

The divestment will require the approval of the US and Canadian competition authorities. The transaction is expected to be closed within a couple of months. The divestment will have a nearly euro 90 million positive impact on Neste Oil’s cash flow and over euro 20 million positive impact on IFRS result.

Iso-octane is a gasoline component produced at Edmonton plant from butane using Neste Oil’s NExOCTANE technology. It is used in the production of low-emission, high-octane gasoline.

“The sale of the holding concludes Neste Oil’s planned divestment program for the Oil Products & Renewables business area designed to enable us to concentrate on our core businesses,” says Matti Lehmus, Neste Oil’s Executive Vice President, Oil Products & Renewables. “Over the last 1.5 years, we have already divested our ETBE plant in Portugal and our PAO plant in Belgium. In line with our strategy, we are focusing on growth in renewable fuels and premium-quality VHVI base oil and in developing our refining operations.

“Keyera is a natural choice to take over our holding in the Edmonton plant, as it has supplied feedstock to the facility and provided storage services for several years. We believe that they will be well placed to develop the business in the future.”

Source: Neste Oil