ENI goes global in Petrochemical
In the same time as ConocoPhillips revives the Phillips 66 brand to reposition its Downstream activities, ENI has decided to rename Polimeri Europa into Versalis.
The new name represents a tangible sign of ENI‘s 2011 decision to relaunch its petrochemical business.
Born in 1994 from the joint venture between Enichem and Union Carbide, Polimeri Europa was so far the primary Italian chemical company, and one of the foremost in Europe. Today Polimeri Europa moves in a profoundly competitive and dynamic market which poses new challenges every day.
Versalis is a name with an international dimension, one that is strongly suggestive and laden with references to company values. It expresses fully the elements of radical change and renewal contained in Polimeri Europa‘s 2012-2015 Strategic Plan.
Part of the strategy will see the firm expand its geographical footprint to become less reliant on Europe, which has to compete with rapidly emerging markets such as Asia and the Middle East. Europe currently accounts for 90% of the company’s sales, with about 50% in Italy.
The name-change helps the company to overcome the geographical and operational confines inherent in the name “Polimeri Europa“. Hinging as it does on a universal and global concept which comprises widespread presence, stability and safety, the name Versalis fully expresses the company’s new approach.
The business will now be more market focused and has undergone extensive reorganisation to concentrate on licensing, innovation and four core business units: Styrenics, Polyethylene (PE), Phenol Derivatives and Elastomers.
Versalis has a leading position in the elastomers business, and this business, unlike some other product families, is less subject to competition from lower cost base regions. Elastomers are the cornerstone the strategy
This new strategy will see Versalis to regenerate several production sites, with improvements made to integration and production flexibility. There will also be efforts to develop green chemistry.
The capital expenditure includes the previously announced $66O million Matrica project, a 50:50 joint venture with Italy’s Novamont, to produce bio-based materials at its Porto Torres site in Sardinia, Italy.
This project will see the construction of seven new plants and a research centre, and will include 350,000 tonnes/year of bio-based capacity.
With completion targeted in 2015, ENI plans to spend $2.6 billion capital expenditure to reposition Versalis on a global base and to build an effective Market Leadership for its Petrochemical activities.
