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IPP acquires European LDPE plant
04
Jul '13
International Process Plants (IPP) is pleased to announce the purchase and acquisition of a European low density polyethylene (LDPE) production plant that is available immediately to be acquired, relocated and operated elsewhere. The plant produces LDPE resins that serve the top three consumers of those products: polyethylene film applications, extrusion coating and injection molding.

According to a 2012 study by IHS, those three applications make up 84% of global demand for low density polyethylene. The market is expected to grow at a healthy 3.5% CAGR through 2016.

The LDPE plant has three polyethylene production lines that produce up to 4.5 tons per hour, resulting in an annual capacity of approximately 110,000 tons. Those lines can produce more than ten different LDPE granules whose melt indexes range from 0.3 to 65 dg/min.

The LDPE production process uses a high-pressure reaction to produce grades with high purity and superior optical properties. The outputs are used to make a variety of products, from coating packages for food to injection mold-produced container caps and closures. The polyethylene manufacturing plant also produces low-density polyethylene resin grades used as carriers in master batch and compounding applications.

"This plant represents an opportunity for polyethylene manufacturers in top LDPE producing regions like the United States, Western Europe, the Middle East and China to capture more of the growing global demand. With recent PE expansion projects costing approximately $200 to $400 per ton of production capacity, buyers of this plant can acquire extra capacity at a fraction of the cost and time it would take to build a new polyethylene production facility.

“This plant also has potential for producers and consumers of ethylene vinyl acetate (EVA), another growing market, as its manufacturing process could be modified with an additional investment to produce EVA polymers. For example, one of EVA's growing applications is in solar panels. Solar panel manufacturers like Suntech in China or First Solar in the US could vertically integrate their supply chain by acquiring an EVA production plant," says Michael Joachim, IPP Director of Plants.

About International Process Plants

International Process Plants (IPP) is a self-funded global buyer and seller of surplus manufacturing facilities, process plants, industrial real estate, and individual equipment that are no longer needed by their original owners. 80% of IPP's purchases are from multinational companies and 20% are bought in distress situations. IPP's business model provides the opportunity for companies to acquire such assets at competitive prices and in a fraction of the lead time of building or buying new.

IPP also serves as an outlet for companies looking to divest surplus assets quickly in a fiscally and environmentally conscious manner. IPP currently owns 17complete plant sites including the land, buildings and equipment, 85 complete processes to be moved and operated elsewhere and a stock of 30,000 major pieces of process equipment.

One of the largest firms in this business, IPP operates globally from its headquarters in the US and its company-owned operations in 16 other countries. In business for over 35 years, IPP serves 160,000 clients in the chemical, agrichemical, petrochemical, oil & gas, paper, plastic, power generation, metallurgical, fertilizer, artificial fiber, pharmaceutical and food industries.

International Process Plants


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