Israel's Carmel Olefins to double polypropylene production
Israel's Carmel Olefins is planning to invest $232-mil over the next two years to double its polypropylene production at Haifa from 200,000mt to around 400,000mt, the company announced Jan 26.
"We believe the expansion will enable the company to better compete on world markets," company chairman David Friedman said, since most of the additional production is earmarked for the export market. The planned expansion, which is expected to increase the company's work force by a thousand, is also expected to increase the company's annual revenues by about $180-mil, he added. The upgrade was however contingent on necessary approval by Oil Refineries and the Israeli government's state-owned Corporations Authority. The company would also like to expand its ethylene production, although specific details were not released. The company boasted revenues of $243-mil in the first nine months of 2003.
Israel's Carmel to raise $150-mil to fund PP expansion: sources
Israel's Carmel Olefins plans to raise $150-mil on the Tel Aviv stock marketto cover the cost of its planned expansion, according to petrochemical industry sources.
The company is planning to expand polypropylene production from 205,000 mt/yr to 405,000 mt/yr. The total cost of the expansion was put at $310-mil, sources said. The remainder of the funds would come from bank financing.
Carmel is Israel's sole producer of ethylene, polyethylene and polypropylene. Approximately 70% of total PP production would be sold in the local market and the remainder is exported to Europe, primarily Britain, Italy and Turkey.
Carmel is jointly owned by Oil Refineries Ltd and Israel Petrochemical Enterprises Ltd. It reported a net profit of $24-mil on revenues to $122-mil in the first quarter of 2005.
Israel's Carmel increases PP expansion investment to $315/mil
Israel's Carmel Olefins has approved an additional investment in the expansion of Carmel Olefins' polypropylene plant, company sources have reported. The investment has been upped from the original $245-mil, to $315-mil. The existing plant will more than double polypropylene production from 200,000 mt/yr to 450,000 mt/yr. The increased investment surpassed the initial expansion plan, which called for production to increase to 400,000 mt/yr.
Carmel is Israel's sole producer of ethylene, polyethylene and polypropylene. Approximately 70% of total PP production would be sold in the local market and the remainder exported to Europe, primarily Britain, Italy and Turkey. Carmel is jointly owned by Oil Refineries Ltd and Israel Petrochemical Enterprises.
Carmel Olefins Ltd. is Israel's largest producer of polymers and the sole producer of polyolefins.
The Company manufactures and sells:
@ELow-Density Polyethylene under the registered trade mark IPETHENE
@EPolypropylene under the registered trade mark CAPILENE
@EVarious technical Compounds
These product lines are marketed both in Israel and abroad.
Ipethene® is the registered trade name of a large variety of Low-Density Polyethylene grades produced since 1963 and used for the production of films for agriculture and packaging, irrigation pipes and for various injection and blow moulded articles.
Capilene® is the registered trade name of Polypropylene homopolymers, impact and random copolymers, produced since 1993 and used for production of garden furniture, cabinets, lockers, storage systems, toys, toolboxes, household articles, packaging, transparent films, fibers, fabrics - woven and non woven, and many others.
CarmelTechTM is the trade name of PP-R compounds produced since 1998, for sanitary pipes and fittings.
CarmelStatTM is the trade name of a series of electrostatic dissipative (ESD) compounds produced since 1996, for reusable packaging boxes, shipping containers, material handling bins and partitions and chip trays that are widely used throughout many industries including the hardware and automotive industries.
Petrochemical Enterprises Ltd. (IPE)
Petrochemical Enterprises Ltd. (IPE) is a public holding company with
investments in the Israeli economy. IPEfs main shareholdings are Carmel Olefins
(50%), Israelfs largest
petrochemical enterprise, and investments in natural gas
exploration in the territorial waters off the coast of Israel.
The companyfs shares have
been traded on the Tel Aviv Stock Exchange since 1978.
Four Decades of Production Experience
IPE was established in 1961 as an industrial manufacturer, engaged mainly in the production of polyethylene. In 1991, a new subsidiary, Carmel Olefins Ltd. (COL), was established. COL consolidated the ethylene facility owned by Oil Refineries Ltd. (ORL) and IPEfs polyethylene facilities. Following the merger, IPE became a holding company, whose principal investment is 50% of COLfs share capital.
Expanding the Range of Holdings
During 1999, Modgal Industries Ltd. gained control over the company, and today it holds a 59% stake in IPE. IPE is considering new investments during 2003, with the aim of expanding its range of holdings.
COL is a leading manufacturer of ethylene, polyethylene and polypropylene, the main raw materials used in the plastics industry. COL is the predominant supplier of raw materials to Israelfs highly developed plastics processing industry, whose turnover is assessed at about $2.3 billion per annum. In addition, COL exports its products to more than 20 countries in Europe, the Middle East and Africa. Headquartered in Haifa, the companyfs state-of-the-art facilities have a current annual capacity of 185,000 tons of ethylene, 165,000 tons of low-density polyethylene and 185,000 tons of polypropylene.
COLfs products are manufactured according to the highest international standards and thus compete successfully with those of major manufacturers worldwide. COL employs a highly skilled workforce of 470 to operate the companyfs complex facilities.
COLfs sales in 2002 totaled approximately $262 million, with annual exports totaling $86 million. The high growth rate of the plastics industry in Israel, which is expected to continue in the years to come, strengthens COLfs advantages in the local market. At the same time, COL is concentrating resources on R&D in order to develop new products, and to continue upgrading the current output and improving the existing manufacturing processes.
Investments in Natural Gas Exploration
In addition to its shareholdings in COL, the company is a partner in a consortium of Israeli and international companies engaged in natural gas exploration in territorial waters off the coast of Israel by virtue of licenses granted to them by the State of Israel. During the last few years, explorations have produced commercially viable reserves of natural gas, discoveries that provide the basis for restructuring Israelfs energy economy through the use of cleaner energy sources.
Israel's Dankner family
sells $30-mil stake in Dor Chemicals
Israel's Dankner family has sold its majority stake in Dor Chemicals to Inter Holdings 1 Ltd for $30-mil, according to a joint statement. Dor has faced financial difficulties following an ambitious expansion plan abroad.
The deal between Dankner and Inter Holdings, which is controlled by Israeli businessman Amit Berger, is expected to close in April. The company has a plant in Haifa which produces MTBE, formaldehyde, methanol and a production facility in Carmiel which produces biaxally-oriented polypropylene (BOPP).
Dor was forced to reach an agreement with creditor banks last year whereby the control in its German based Treofan Group subsidiary was transferred to creditor banks headed by Goldman Sachs. The German subsidiary is a leading global producer of BOPP.
Last February, Dor's senior management resigned over accusations of mismanagement of the company's foreign operations, which account for over 90% of its revenues. The company has reported heavy losses in recent years. The former senior managers were behind the Israeli company?s aggressive global campaign of BOPP acquisitions in recent years.
|Dor Chemicals Group@http://www.dorchemicals.com/ @|
|E||Public company, traded on the Tel-Aviv stock Exchange|
|E||The company is composed of two main operational divisions|
|E||The Chemical Division produces and distributes intermediate materials includes methanol, MTBE, formaldehyde, ultra-pure hydrogen and FORDOR disinfectant formulations for agricultural use|
|E||The Plastic Division includes Dor Film Israel, The company production facility capable of producing the full range of PP films. Its capacity is 15,000 tons p/a of Bopp(Biaxially Oriented Polypropylene).|
|E||Teleparking System - Parking Management System with wireless communication|
|E||Natural Gas Exploration with British Gas partnership and others|
Dor Chemicals Group is a
world-wide leading player in developing, manufacturing and
marketing high-performance oriented polypropylene (OPP) films.
The Group is also a leading Israeli producer of chemicals for
industrial and agricultural use. Established in 1973 as a
petrochemical plant, Dor Chemicalsf shares have been publicly traded
on the Tel Aviv Stock Exchange since 1994. The Group is
controlled by the Dankner Group, one of Israelfs leading holding companies with
interests in the media, real estate and banking, as well as
plastics and chemicals.
With the acquisition of companies in Italy, Germany, the US, Mexico, France, Belgium, South Africa, the UK and Australia in recent years, and the formation of the Treofan Group, Dor Chemicals now has 11 production facilities in eight countries, and has become one of Israelfs fastest growing companies. Sales climbed from $46 million in 2001 to $255 million in 2002 and $612 million in 2003.
Dor Chemicals - Petrochemicals Division
Based in Israel, Dor Chemicals has 30 years of experience in the production of intermediate materials for the gasoline, chemical, plastics, pharmaceutical and wood industries. The product range includes: methanol, MTBE (a high octane gasoline component), pure hydrogen, formaldehyde and paraformaldehyde, as well as several disinfectant formulations including FORDOR, an innovative formulation for agricultural use.
The Treofan Group - Flexible Film (OPP) Division
The Treofan Group develops, manufactures and markets high-performance OPP films (oriented polypropylene), CPP (cast polypropylene) under the brand name of Treofan, as well as BO-PLA films (biaxial oriented biodegradable polylactic acid) under the brand name of Biophan. Formed in 2002, the Treofan Group resulted from a merger between Trespaphan (Germany), Moplefan (Italy) and Shorko (Australia). Treofan's most comprehensive line of products includes film types for a very large scale of applications, such as food packaging for baked goods, pasta, confectionery, snack foods, gifts, tobacco and labeling, and technical applications such as dielectric films for capacitors. Dor has a 51% stake in the Treofan Group, while Bain Capital, a leader in acquisitions since 1984 with currently $15 billion of capital under management, holds the remaining 49%.
Combined Strength and Synergy
The new merger has resulted in a core business group at the top end of the OPP market. The combined organization is bigger and stronger, and as a unified and integrated group producing highly specialized OPP and CPP films, is more responsive to customer needs in the constantly evolving global marketplace.
Increased Production Capacity
The new combined Group, with an annual production capacity of 285,000 tons and some 2,100 employees, offers a comprehensive range of technologies and state-of-the-art production systems, a wide-reaching and efficient distribution network, two technological R&D centers contributing more than 30 years of advanced research, development and experience, and enjoys a prestigious worldwide reputation.
Leading by Volume and Performance
Treofan currently controls 6% of the global and 18% of the Western European OPP production capacity. In terms of sales Treofan holds 22% of the OPP market in Western Europe and 8% of the market worldwide. The Group will strengthen its position globally by improving its performance and commitment to customers, the environment and quality of life. The Group is well equipped to serve the most demanding customers,with improved competitiveness and optimized production, marketing, R&D and purchasing capacities.
Jul 18, 2006 (Globes -
Knight Ridder/Tribune Business News via COMTEX)
Petrochemicals Enterprises shuts Carmel Olefins plant
Israel Petrochemical Enterprises Ltd. last night announced that it was shutting the plant of Carmel Olefins Ltd., which makes polymers for the plastics industry, because of the fighting in the north. The plant is located in the Haifa Bay area, which has been subject to Katyusha rocket fire from Hizbullah in Lebanon. Petrochemical Enterprises owns 50 percent of Carmel Olefins. Oil Refineries Ltd., which owns the other half of the company, has also greatly reduced production at its Haifa refinery since the fighting began.
Modgal Industries Ltd., owned by David Federmann, Petrochemical Enterprises chairman Jacob Gottenstein, and Group Menatep, owned by Leonid Nevzlin, Vladimir Dubov Mikhail Brudno controls Petrochemical Enterprises with a 58 percent stake. Petrochemical Enterprises declined to comment on the decision to shut Carmel Olefins, which has 470 employees.
The order to close the plant reportedly came from the IDF Homefront Command, which has called on all sensitive factories in the line of fire to reduce inventories to a minimum.
Petrochemical Enterprises added, "At this time, Carmel Oledins cannot assess the impact of the shutdown on it." On the basis of 16 percent drop in Petrochemical Enterprises' share in the past few sessions, investors have already concluded that the halt in production will affect the company's financial results.
Israel's 130,000 Haifa refinery cuts rates after rocket attacks
Israel has cut refining rates at the 130,000 b/d refinery in Haifa and is operating the refinery and petrochemical plants in the northern port city in an emergency status after Lebanese Shi'ite Hezbollah militia rocket attacks, Israeli National Infrastructure Ministry sources said Sunday.
Production at the refinery dropped after rockets fired by Hezbollah landed in the Haifa area, the location of Israel's largest refinery and a major petrochemical complex, the ministry sources said.
The refinery's operations are being run from an underground facility specially designed for emergency situations, the source said adding that crude and other inventories at the Haifa plant were reduced over the past few days.
But the reduction is not expected to have an impact on supplies of refined products within Israel as the country has extensive emergency reserves in storage at various parts of the country, the sources said.
The Israel Petrochemical Enterprises has also reduced its inventories and lowered production to a minimum. IPE and Oil Refineries jointly own and operate Carmel Olefins, Israel's sole producer of polyethylene, ethylene and polypropylene.
The Israel Ports Authority also ordered the closure of Haifa port to all ships carrying hazardous materials were instructed not to enter the port.
Israeli sources have expressed concern about the possibility of Hezbollah rockets hitting the oil and petrochemical complex in the Haifa bay area.
Hezbollah earlier claimed it was targeting the refinery.
"The resistance fires rockets on the oil refinery in Haifa, north of occupied Palestine," Lebanese Hezbollah satellite station Al-Manar reported on Sunday.
The attack came after Israeli war planes went into action over Lebanon again before dawn on the fifth day of an intensifying assault that has killed scores of people and left the country almost completely cut off from the outside world.
Israeli medical sources said nine people were killed and dozens wounded in the attack on Haifa, AFP reported.
Israel's Carmel Olefins signs MOU to buy Europe petchem company
Israel's Carmel Olefins
said Monday it has signed a memorandum of understanding with a
European company to acquire a 49% stake in a Europe-based
petrochemical company for Eur20 million, plus an annual payment
of Eur1 million for five years, beginning in 2013.
Carmel Olefins did not disclose the names of either European company, nor provide any further details about the proposed deal.
Carmel Olefins is Israel's largest petrochemical company, producing ethylene, polyethylene and polypropylene. The Haifa-based company is jointly owned by Israel Petrochemical Enterprises Ltd and Oil Refineries Ltd.
January 24, 2008
Oil Refineries Subsidiary Carmel Olefins Acquires 49% of Netherland-Based Domo Polypropylene
Oil Refineries Ltd.("ORL"), Israel's largest oil refiner, announced today that a wholly owned foreign subsidiary of Carmel Olefins Ltd. (a private company in which ORL holds 50%, hereinafter: "COL") signed an agreement to acquire 49% of the outstanding share capital of Domo Polypropylene BV (hereinafter: "Domo").
The said agreement follows the letter of intent signed between the parties on November 1, 2007, the terms and conditions of which are outlined in detailed in section 126.96.36.199 of the Prospectus filed by the Company on November 28, 2007. To the best of the Company's knowledge, there has been no material change in the terms outlined in the agreement, from the terms agreed upon in the letter of intent outlined in the Company's Prospectus.
Domo, incorporated in the Netherlands, is active in the manufacturing and marketing of Polypropylene, which serves as a raw material in the plastics industry for a variety of uses and products. Domo owns one Polypropylene manufacturing facility, located in the Netherlands with manufacturing capacity of 180,000 ton Polypropylene per annum. Domo's revenues for full year 2006 and for the nine month period ending September 30, 2007, totaled approximately 176 million Euro and 154 million Euro, respectively. Domo's net income for the said periods totaled approximately 1 million Euro and 6.3 million Euro, respectively. Completion of the transaction is subject to the approval of the relevant anti-trust authorities as well as the receipt of an environmental report with respect to the condition of the ground on which the Domo plant is situated.
This acquisition is COL's first acquisition of a foreign manufacturing plant under its strategy to identify opportunities for the acquisition of foreign companies active in its business areas. This acquisition is in line with ORL's strategy to expand its businesses, including in petrochemicals, while identifying, among others, expansion opportunities abroad.
About Oil Refineries Ltd.
Oil Refineries Ltd. (ORL), located in the bay area of the city of Haifa, is Israel's largest oil refinery. ORL operates sophisticated and state-of-the-art industrial facilities with refining capacity of 9 million tons of crude oil per year, with a Nelson complexity index of 7.4, providing a variety of quality products used in industrial operation, transportation, private consumption, agriculture and infrastructure. The company is also active in the area of Aromatics and Polymers through wholly-owned Gadiv Petrochemical Industries Ltd. and 50% owned Carmel Olefins Ltd. ORL is traded on the Tel Aviv Stock Exchange under the ticker ORL. For additional information please visit the Company's website: http://www.orl.co.il.
Oil Refineries Ltd. (ORL), located in the bay area of Haifa, is Israel's largest Oil refinery. Using its sophisticated and state-of-the-art industrial facilities, ORL is capable of refining approximately 9 million tons of crude oil per year providing a variety of products used in industrial operation, transportation, private consumption, agriculture and infrastructures.
With the refining business representing 90% of the Company's total activities, ORL produces refined products with a high added value by using complex refinery facilities and at 7.4 on the Nelson Complexity Index, among the highest in the East Mediterranean region. The Company has a maximum crude oil refining capacity of approximately 24,800 tons per day (180,000 barrels per day). Over 75% of the Company's produce goes to local consumption, while the balance is exported, primarily to the Mediterranean basin.
The company is active in the area of Polymers and Aromatics through its holdings in Carmel Olefins Ltd. and wholly-owned Gadiv Petrochemical Industries Ltd. Oil Refineries is traded on the Tel Aviv Stock Exchange under the ticker ORL.
The Company also provides power and heat services (electricity and steam) to industrial customers in the Haifa Bay, as well as infrastructure services (storage, pumping and truck loading of fuel products).
Chemical Market Reporter, May, 2001
Carpet Maker Domo Buys Basell PP Plant in Back-Integration Move.(polypropylene plant in the Netherlands)(Brief Article)
DOMO, THE BELGIAN carpet manufacturer and chemicals producer, is taking over Basell's 180,000-metric-ton-a-year polypropylene plant at Rozenburg, the Netherlands. The move is designed to open up new business opportunities through vertical integration. Around a third of the plant's output will be for captive use by Domo, which in addition to making soft floorings produces fibers and yarns.
Israel's Oil Refineries deal for Carmel Olefins control delayed
Israel's Oil Refineries Ltd
it has not completed as scheduled the acquisition of Israel
Petrochemical Enterprises' 50% holdings in Carmel Olefins it does not already own as the
conditions of deal have yet to be met.
Under the terms of a July 2008 agreement, IPE was to be given a 20.53% stake in Oil Refineries in exchange for its 50% share in Carmel Olefins, Israel's largest petrochemical company. Oil Refineries already owns the other 50% of Carmel.
The agreement assessed the value of Oil Refineries at between $1.624 billion to $1.927 billion and Carmel Olefins at $860 million to $959 million.
Without giving further details, Oil Refineries Ltd said, as of the agreed December 31, 2008 close date, some the prerequisite conditions to the agreement have not been met.
"Since the key rationales serving as the basis for the board's decision to approve the merger of CAOL's business with the company are still valid, IPE and the company have decided to continue to cooperate with a view to trying to complete a merger transaction," Oil Refineries said in a statement.
In July, Oil Refineries said the agreement for Carmel is a key to its expansion strategy in the petrochemicals markets where it hopes to take advantage of synergies between the two companies.
Oil Refineries operates an 8 million mt/year refinery in Haifa, the largest in Israel. In November Oil Refineries announced a $1.12 billion expansion plan focused on increasing the company's derivative and downstream production in the coming years.
The expansion plan involves a change in the company's product mix with a substantial reduction in the production of fuel oil and VGO and an increase in diesel, naphtha and jet fuel. As part of this plan, the company will upgrade the Haifa refinery to increase production and product mix. The upgrade is due to be completed in 2011.
Carmel Olefins produces polyethylene, polypropylene and ethylene.