09 May 2012 22:28 [Source: ICIS news]
HOUSTON (ICIS)--Versalis, the chemical business of Italy-based energy producer Eni, outlined on Wednesday its four-year €1.6bn ($2.1bn) investment plan, which includes investments in its elastomers business and its operations in Priolo, Italy.
Versalis will spend more than €500m on developing its elastomers business, the company said. It plans to double the company's turnover and increase margins to 30% from 15% in the next 5 years.
Versalis will also set aside more than €350m to convert its chemical plant in Priolo with special attention paid to the cracker and polyethylene (PE) plants, the company said. In addition, versalis plans to build new plants to ensure the sites profitability.
Under the plan, versalis will also target international growth by using its licensing and patents to develop joint venture agreements, it said. In particular, it will target markets in Asia.
Already, the company has entered China through Eni Chemicals Shanghai, which is distributing products in the Chinese market, the company said. Versalis Pacific operates in all Asian markets.
In 2015, the plan should create more than €400m in improvements in earnings before interest and tax (EBIT), versalis said.
The company was previously known as Polimeri Europa. The new name is intended to highlight the company's new international focus and its goal to becoming more efficient and more sustainable.
Versalis is still pursuing its €500m renewable chemical project, an amount in addition to the €1.6bn four-year plan.
The project will be developed through a joint venture made up of versalis and Novamont at the Porto Torres complex in Italy.
Under the three-phase project, the joint venture will build facilities that produce renewable feedstocks; renewable intermediates and additives for elastomers; and bioplastics.
($1 = €0.77)
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