Alcan Chemicals to shut UK flame retardants plant

Alcan Chemicals to shut UK flame retardants plant

November 2002 COMPANY STRATEGIES Alcan Chemicals to shut UK flame retardants plant Alcan Chemicals is proposing to close its UK aluminas site at Burn...

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November 2002

COMPANY STRATEGIES Alcan Chemicals to shut UK flame retardants plant Alcan Chemicals is proposing to close its UK aluminas site at Burntisland in Scotland, with the loss of nearly 400 jobs. The decision follows the company’s failure to find a buyer for the operation. The site is a major source of aluminiumbased chemicals including Alcan’s Superfine range of aluminium trihydroxide (ATH) flame retardants, which are used widely in the polymer industry, especially the cable sector. The group announced in January 2002 that it would exit the European speciality chemicals market and start a search for buyers. However, subsequent attempts at putting together a viable management buy-out, as well as plans by the Rider Group to buy the unit, have failed to reach Alcan’s valuation and the company has now started the consultation process with union representatives on the proposed closure. Alcan says the plant has been losing US$1 million a month. Set up in 1917 as a smelter, Burntisland is today dedicated to production of special aluminas and has a capacity of more than 100 000 tonnes/annum. As recently as 1997, Alcan committed more than £20 million (31.8 million) to an expansion of its Superfine flame retardant capacity at the site, more than doubling the capability in one line. The plant is the UK’s only source of ATH flame retardant and its closure will therefore remove the main source of supply to the UK market, with Albemarle’s Martinswerk subsidiary in Germany being the main alternative. Contact: Alcan Chemicals Europe Ltd, Zweigniederlassung Deutschland, Postfach 1363 53888, Mechernich, Germany; tel: +492443-9872-0; fax: +49-2443-9870-15

Albemarle-Martinswerk to increase fine ATH capacity Following close on the heels of the announcement of the proposed Alcan closure reported above, Albemarle Corp has disclosed plans to increase production capacity for fine precipitated aluminium hydroxide (ATH) at affiliate

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Additives for Polymers

Martinswerk GmbH’s plant in Bergheim, Germany. The company expects expansion of the plant, which is already the largest ATH facility in the world, to be complete in early 2003. “This investment reflects anticipated growing market demand for ATH, in particular for fine powder,” comments Wolfgang Hardtke, Albemarle global manager mineral flame retardants. Fine ATH is non-toxic, environmentally friendly, recyclable and smoke-suppressing, and is therefore widely used as a flame retardant in the plastics and rubber industries. Albemarle says it outperforms other solutions in wire and cable applications as well as in selected segments of the construction industry. Fine ATH powders and slurries are also used in the paper and board industries. Albemarle Deutschland GmbH acquired Martinswerk in June 2001. Contact: Martinswerk GmbH, Kölner Straße 110, D-50127 Bergheim, Germany; tel: +492271-902-0; fax: +49-2271-902-555; URL: www.martinswerk.com

Clariant restructures Pigments & Additives Division Swiss chemicals group Clariant is restructuring its Pigments & Additives Division in order to improve its focus on the market, the company’s customers and its services. According to the company, the new structure has a number of important advantages: a simplified internal structure, easier knowledge management and a global brand strategy. With an increased focus on the customers, Clariant believes it will be able to boost the flexibility, speed and quality of its service. Clariant’s new focus also opens additional possibilities for sustainable growth, which will secure result-oriented business for the division in the future, it says. The most important change in restructuring the division will be the strategic merger of the two areas: pigments and additives. The restructured division will be divided into four industryfocused business units covering the coating, plastics, printing and specialized industries. The company says that all activities of the four new units are exactly tailored to the respective market segments, and will be supported by sales, product management and production management.

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