[GRRN] Virgin Resin Prices - Effect of Exxon/Mobil Merger

RecycleWorlds (anderson@msn.fullfeed.com)
Tue, 8 Dec 1998 12:42:42 -0600

According to the 12/7/98 Plastic News ("Film, resin industries eye
Mobil-Exxon merger," by Frank Esposito)

"Plastics film and resin markets could feel the repercussions of the
massive merger between oil giants Exxon Corp. and Mobil Corp....
"The deal, which is being driven by industrial overcapacity, declining
oil prices and increased international competition, could alter the
landscape of the North American plastic film market. Mobil´s Pittsford,
N.Y.-based films unit, which leads the world in oriented polypropylene film
production, ranked 13th in Plastics News´ 1998 ranking of North American
film and sheet extruders, with $350 million in sales.
"Exxon´s films business, which makes polyethylene and PP film, ranked
41st in the PN ranking, with $125 million in related 1997 sales. Exxon
officials, however, said recently that the company is looking to sell its
films ...
"From a resins standpoint, the potential coupling would boost Exxon´s
presence as the world´s largest PE maker. Exxon/Mobil would rank second in
North America in both high and linear low density PE, and would move past
Westlake Polymers and Chevron Corp. into the third position in LDPE....
"The combined numbers are astronomical," Bahl said. "This has got to be
a concern for companies like (PE makers) Dow, Equistar, Borealis and
Elenac. Dow is already global, but the others that aren´t are going to have
to think about it."

Peter Anderson
RecycleWorlds Consulting
4513 Vernon Blvd. Ste. 15
Madison, WI 53705-4964
Phone:(608) 231-1100/Fax: (608) 233-0011