Controlling stake in South Korean compounder / Polyolefins stable in pandemicDYM Solutionâ??s headquarters in Cheonan / South Korea (Photo: DYM Solution)Borealis
(Vienna / Austria; www.borealisgroup.com
) has completed its acquisition of a controlling stake in compounder DYM Solution
(Cheonan / South Korea). Financial details were not disclosed. The olefins and polyolefins group said the deal initially announced in 2018 (see Plasteurope.com of 31.10.2018
) will solidify its position as a supplier of the global wire and cable industry. The Korean company founded in 1992 produces semi-conductive, halogen-free flame retardant (HFFR), rubber and cross-linkable silane cured compounds based on PVC or ethylene-butyl-acrylate copolymers.
Thanks to the portfolio extension, which Borealis said complements its own slate, the Vienna-based chemical producer together with Borouge
(Ruwais / United Arab Emirates; www.borouge.com
) â?? a joint venture with Abu Dhabi National Oil Company
(Adnoc, Abu Dhabi / United Arab Emirates; www.adnoc.ae
) â?? will be able to offer an immediate capacity increase and geographically extend their asset footprint and supply base in the Asian region. Borealis and DYM Solution believe together they will be in a better position to meet the growing market requirements for longer lifetime cables, where decarbonisation of the energy sector is creating â??substantial growth opportunities,â? Lucrà¨ce Foufopoulos
, Borealisâ?? executive VP Polyolefins, Innovation and Circular Economy Solutions, noted.
Under the Borealis umbrella, DYM Solution said it will be able to secure a world-class method of compound production and to significantly expand its capabilities. With continuous and organic cooperation, the two companies will be able to provide services that â??far exceedâ? customer requirements in the wire and cable industries.Borealis sees sales and earnings drop in Q2In the 2020 second quarter, which was under the shadow of the global coronavirus pandemic, net profit at Borealis plunged to EUR 64m from EUR 328m in the same quarter of 2019 â?? the group did not publish operating figures. Management blamed the deterioration on â??negative inventory value developmentâ? that it said reflected a declining oil price, a decreased advantage from the use of light feedstock versus naphtha as well as the unplanned outage of its steam cracker in Sweden (see Plasteurope.com of 11.05.2020
The polyolefins business remained relatively stable, even during the pandemic, Borealis said. While Borouge saw higher sales volumes year-on-year, weaker polyolefin prices in Asia impacted earnings negatively. The groupâ??s business with the automotive industry â??was not spared the challenges experienced by many players in this industry,â? CEO Alfred Stern
Nevertheless, Stern said the resilience programme implemented with an eye to rescuing costs and capital investment is helping to maintain positive results and strong cash flow even during the Covid-19 crisis. During the second half of 2020, the CEO said he expects net profit to increase against the first half year and that Borealis â??is in a good position to successfully weather this challenging period.â?08.09.2020 Plasteurope.com [245841-0]