04 June 2013 17:58 [Source: ICIS news]
LINZ, Austria (ICIS)--The integration of Borealis Plastomers, formerly named DexPlastomers, into the whole group is on target, Jane Toogood, vice president of new business development at the Austria-headquartered plastics, chemicals and fertilizer producer, said on Tuesday.
“We are in the process of integrating this business [Borealis Plastomers] into our polyolefins business. It’s going very well. It is quite early days, we have not had very long. As you know [with] this sort of thing typically you have a 100 day tuition period where you make sure you can run the business properly,” Toogood said.
The acquisition of DEXPlastomers by Borealis was completed on 1 March 2013. It was previously a 50/50 joint venture between Royal DSM and ExxonMobil Chemical Company. The company, a supplier of plastomers and specialty polyethylenes, was renamed as Borealis Plastomers after the deal was completed.
Toogood said the first priority of the acquisition was safety and business continuity, adding the complete migration of all customer accounts globally into Borealis will have been done by the end of June.
“As of the end of last week, we completed the European migration,” she said.
Toogood said the acquisition strengthened Borealis’s polyolefins strategy, adding that plastomers are adjacent and complementary to its existing polyethylene (PE) business.
Global plastomer demand is expected to grow from around 850,000 tonnes in 2013 to 1.1m tonnes in 2017, she said.
The deal included the sale of DSM’s linear low density polyethylene (LLDPE) compact solution technology to Borealis, which Toogood said will provide further opportunities for new developments.
She added that the new company will have access to a wider global plastomers market through Borealis and Borouge, a joint-venture between Abu Dhabi National Oil Company (ADNOC) and Borealis.
Borealis Plastomers also announced on Tuesday that its metallocene-based plastomer Exact has been renamed Queo.
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