INTERNATIONAL

ENI reinforces its polyethylene position Italy's state-owned

producer of oil and

chemicals buys Rome-

based firm and gets

Sicilian petrochemical

complex with

polyethylene plant

in $13 million deal

With purchase of Rome-based Asfalti Bitumi Cementi e Derivati (ABCD), buyer Ente Nazionale Idrocarburi (ENI) further reinforces its position as Italy's number two polyethylene producer (C&EN, Oct. 30, page 33). Already big in Italian polyethylene with an annual capacity of 60,000 metric tons, ENI, Italy's government-owned oil and chemical firm, will pay $13 million for ABCD's Ragusa, Sicily, petrochemical complex and its 25,000 metric tons a year of low-density poly­ethylene capacity.

For Bombrini Parodi Delfino (BPD), owner of ABCD, the decision to sell was purely economic. Rather than expand the polyethylene plant, BPD simply decided to sell. For ENI, the acquisition marks its latest effort in a continuing program to remain competitive in the petrochemical field. ENFs avowed policy has been to "off­set the large private groups as far as its integrated group structure per­mits . . . making the most of the inte­gration of the oil and petrochemical in­dustry."

ABCD will become a part of the ENI group. Its Ragusa complex, which produces cement, ethylene, pro­pylene, and butadiene in addition to polyethylene, will be integrated with ANIC, an ENI subsidiary which has petrochemical facilities at nearby Gela. ENFs current capacity for low-density polyethylene is 60,000 metric tons an­nually, produced at Gela.

Currently low-density polyethylene capacity in Italy is 270,000 metric tons. The largest producer is Montecatini Edison. Montesud Petrochimica, re­cently incorporated into Montecatini

Edison (C&EN, Oct. 9, page 37) , has a capacity of 85,000 metric tons—25,-000 metric tons at Ferrara and 60,000 metric tons at Brindisi. Celene, a 50/50 joint venture between Monte­catini Edison and Union Carbide, has a capacity of 60,000 metric tons at Prioli, Sicily. This plant will be ex­panded to 80,000 metric tons by early 1968. Indications are that Monteca­tini Edison is also planning a boost in its polyethylene capacity at Brindisi because the company recently an­nounced it will build a large naphtha cracker there. The new cracker, to provide 250,000 metric tons per year of ethylene, is slated to be operating in 1969.

With the acquisition of ABCD, Italy's only other low-density poly­ethylene producers now are Societa Italiana Résine (SIR) and Rumianca, and they are not big factors in this market. ENFs absorption of ABCD, therefore, means that the two pro­ducers are in for even stiffer competi­tion. However, SIR is adding another 30,000 metric tons of low-density pol­yethylene, due on stream next June, and Rumianca says it will double its

capacity if Esso Standard Italiana ex­ercises an option it has to tie in with Rumianca on polyethylene on a 50/50 basis. The option runs out at the end of this year.

In any event, business has been brisk for producers of the plastic. Last year production of low-density polyethylene in Italy amounted to about 200,000 metric tons. Nearly half—95,000 metric tons—was ex­ported, up 18% from 1965. Producers are predicting that exports will con­tinue to climb sharply, probably by 20% or more, over the next few years. Imports of low-density polyethylene have been rising, too. They were 7800 metric tons in 1966, compared to 6000 metric tons in 1965. They will probably increase substantially this year.

Italy's exports of both low-density and high-density polyethylene, at 105,000 metric tons in 1966, were second highest in the EEC. West Germany was on top with 141,000 metric tons. The Netherlands had polyethylene exports of 45,700 metric tons; France, 33,300 metric tons; and Belgium 19,100 metric tons.

Italy's first-half exports of polyethylene are up

Italy's exports of low-density polyethylene to:

Belgium

France

Germany

Netherlands

Total European Economic Community

Austria

Denmark

Norway

Portugal

Sweden

Switzerland

United Kingdom

2nd half 1st half 1966 1967

(Metric tons)

2,482

5,689

4,298

1,246

13,715

1,126

1,028

931

1,773

988

1,427

1,007

Total European Free Trade Association 87280

Finland

Greece

Spain

Turkey

Total rest of Europe Total Europe

1,695

1,098

7,476

274

10,543 32,538

6,743

9,399

5,810

2,990

24,942

1,075

970

621

2,030

1,925

1,651

2,546

10,818

1,834

1,666

2,439

615

6,563 42,323

% Change

+172%

+65

+35

+140

+82

- 5

- 6

-33

+14

+95

+16

+152

+31

+9 +52

-67

+124

-38 +30

NOV. 13, 1967 C&EN 41