Montell to sell PP arm to AET

27 July 1998 00:00  [Source: ICB]

Applied Extrusion Technologies (AET) is set to buy Montell's European and Australian polypropylene (PP) film business for $220m.

AET has signed a letter of intent to buy production plants at Terni, Battipaglia, San Gimignano and Lamezia in Italy; Liege in Belgium; Brantham in the UK; and Wodonga in Australia. The business to be bought operates under Moplefan and Shorko names and had 1997 sales of $200m.

After completing the acquisition, AET will have over 250 000 tonne/year of PP films capacity, doubling its existing capacity.

###6756###

Montell's chief executive officer, Peter Vogtländer, said: 'We carefully studied this divestment opportunity and decided that in light of the global restructuring taking place in the film industry, there was a better future for our downstream film business when it is combined with AET's film activites.' AET has increased its capacity of OPP film production by 41 000 tonne/year in the past two years and opened a ten-metre-wide production line in Q2 1998.

Earlier this year, UCB bought ICI's OPP business (ECN 9 February 1998) while leading players Hoechst and Mobil also joined their OPP operations in a joint venture ECN 16 March 1998).(

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly