Dor Chemicals has said that it has signed an agreement to purchase polypropylene packaging products maker Shorko Australia for $24 million (€24.1m) from Dutch chemical company Basell, according to a report in the Jerusalem News. Dor's acquisition of Australia's largest polypropylene manufacturer follows its purchase of Moplefan, the wholly-owned Italian subsidiary of Basell, for $45 million at the end of last year.
The Israel-based company decided to buy Shorko from Basell as part of a long-term "synergy" strategy. Basell was created by the merging of Shell and BASF, and has now sold its entire polypropylene business to Dor.
"This purchase will give us a better geographical spread," said Michael Yanovski, Dor's general manager, when the deal was first announced in May. "We can now expand production, logistics, and marketing."
The company said that production of polypropylene sheets is one of the fastest growing industrial fields in the world.
Dor Chemicals is part of the Dankner Group, and produces a range of petrochemical products used in the chemical, plastics, pharmaceuticals, and wood industries. The company's products include methanol, formaldeyde, ultra-pure hydrogen, and several disinfectants.
Dor also owns Dor Film in Karmiel, which produces flexible packaging film used in snack food bags, cigarette box wrapping, labels, lamination, and adhesive tape.
It was through Dor Film that Dor purchased 80 per cent of Basell's Moplefan polypropylene film business. Basell, a major supplier of polyethylene, also held Shorko, which was "downstream" to its activity.
The Australian company produces flexible packaging designed to extend the shelf life of most packaged products, including snack foods, cookies, and ice cream.
With a staff of 115, Moplefan already has fully developed marketing and logistics divisions, which Shorko currently lacks. Dor said Shorko has an annual production capacity of 20,000 tons.