ExxonMobil Chemical has sold its global film packaging business to Jindal Poly Films saying it didn't fit in with their future plans.
The agreement for the biaxially orientated polypropylene (BOPP) global film business was signed last Friday and is subject to necessary approval from regulatory authorities. No financial details were disclosed.
The deal covers five BOPP production locations in the US and Europe and a technology centre and sales office in New York and Luxembourg.
Manufacturing sites are in Oklahoma and Georgia in the US and Italy, Netherlands and Belgium.
The Indian-based firm manufacturers polyethylene terephthalate (PET) packaging that is food contact approved and BOPP films for markets including dairy.
Hemant Sharma, CEO of Jindal Poly Films, said: “We are excited to buy this business due to its excellent portfolio of premium products along with industry leading technology and R&D.
“We are confident that in combination with our existing Indian operations, we will be able to deliver effective long-term solutions to our customers globally.”
Jindal Poly Films has a capacity of BOPP film of 214,000 and biaxially orientated polyethylene terephthalate (BOPET) of 127,000 tons per annum as of July 2012 and annual sales turnover in March this year was $452m.
The firm claims it is the largest manufacturer of BOPET and BOPP films in India and their plant at Nasik, Maharashtra is the world's largest single location plant for the manufacture of BOPET and BOPP films.
Continually reviewing business
ExxonMobil Chemical produces Bicor, OPPalyte, Metalyte, Digilyte, Label-Lyte and Metallyte OPP film for industries ranging from bakery to frozen foods.
In a statement sent to FoodProductionDaily.com, the firm said: “On 26 October 2012, ExxonMobil Chemical Company signed a framework agreement with Jindal Poly Films Limited for the potential sale of its global bi-axially oriented polypropylene (OPP) Films Business.
“The anticipated transaction is subject to regulatory approval and completion of consultation with local employee bodies, as appropriate.
“ExxonMobil has a long-standing practice of continually reviewing its assets for their contribution to the company’s operating and financial objectives, alignment with its strategic priorities, and their potential value to others.”
In the same space, Indian flexible packaging company, Uflex, announced this month that they were pressing ahead with global expansion plans, including the start-up of their US polyester film plant this year with a capacity of 30,000 tonnes per annum.
Max India exited their BOPP film business in September with a $97m deal to German firm Treofan to focus on healthcare services, clinical research and life and health insurance.