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Firms take pricing action to improve profitability for flame retardants, antioxidants
Additives for Polymers
November 2005
Bahia state of Brazil. Construction of the facility is anticipated to begin in early 2006 with production commencing in the first quarter of 2007.
plastics, including PVC piping and plastic resins, as well as in hair treatment products. Terms of the agreement, which was expected to close mid September, have not been disclosed.
Columbian says it will utilize the latest environmental and energy conservation technologies in this state-of-the-art facility. Construction cost is estimated at US$67 million for the 55 000 tonne facility, which will have the capability of expanding as the market develops, the company says.
Pam Butcher, president of Hampshire Chemical, comments, “This agreement helps fulfil our strategic commitment to a more focused portfolio. Evans Chemetics products provide important qualities in their market applications and we believe they are better aligned within Bruno Bock, a company with long and dedicated participation in the organic sulphur derivatives industry.”
Columbian received the construction permit in June from the Bahian environmental authorities and now has all of the necessary permits and approvals to proceed with the project. The company completed the preliminary engineering and economic analysis earlier this year. Furthermore, the company is engaged in ongoing discussions with customers in the region for anticipated supply. “This project is further evidence of Columbian’s ongoing commitment to remain a global leader in carbon black,” comments James P. Berresse, president and CEO. The tyre manufacturing industry is growing rapidly in the Bahia region with several of the company’s largest customers already there or making plans to be there, he adds. Columbian Chemicals has 12 existing carbon black manufacturing facilities, located in Brazil, Canada, Germany, Hungary, Italy, Korea, Spain, the UK and the USA. Contact: Columbian Chemicals Co, 1800 West Oak Commons Court, Marietta, GA 30062-2253, USA; tel: +1-770-792-9400; URL: www.columbianchemicals.com
Hampshire Chemical to sell Evans Chemetics to Bruno Bock Dow subsidiary Hampshire Chemical Corp is selling its Evans Chemetics business and Waterloo, New York manufacturing facility to Bruno Bock Chemische Fabrik GmbH & Co KG of Germany. The upstate NY facility produces organic sulphur derivatives, which are used as additives in the manufacturing of
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Evans Chemetics was founded in 1938 and established manufacturing in the historic Waterloo Woolen Manufacturing Company mill in 1943. It later was acquired by W.R. Grace and Co and divested as part of Hampshire Chemical in 1992. Hampshire Chemical became a whollyowned subsidiary of The Dow Chemical Company in 1997. Contact: The Dow Chemical Company, 47 Building, Midland, MI 48667, USA; tel: +1-989-636-1000; fax: +1-989-638-7238; URL: www.dow.com
Firms take pricing action to improve profitability for flame retardants, antioxidants With raw material, energy, packaging and transportation costs continuing to rise, many plastics additives manufacturers are experiencing a decline in margins for their product lines. To restore profitability and also provide for anticipated investment needs, both Chemtura Corp and Albemarle Corp have introduced a raft of pricing measures. At Chemtura, worldwide prices on a wide range of brominated flame retardant grades have been increased by 20–40% (US$0.65/kg to $1.40/kg) effective 1 October 2005. Products affected are: Firemaster® 504, 520, 550, 551 and 552 (+$0.65/kg); Great Lakes PH-73FF™ (+$0.70/kg); Great Lakes BA-59P™ tetrabromobisphenol A (TBBPA; +$0.75/kg); Great Lakes DBS™ and PDBS-80™ (+$0.90/kg); Firemaster® 2100 decabromodiphenylethane and BZ-54 (+$1.00/kg); Great Lakes DE-83R™
November 2005
decabromodiphenyloxide, BE-51™ TBBPA, FF-680™, BC-58™, BC-52HP™ and BC52™, PHT4™, PHT4-Diol™ and DP-45™ (+$1.00/kg); Great Lakes CD-75P™, CD75PM™, SP-75™ and SP-75C™ (+$1.30/kg); and all Fyrebloc® grades (+$1.40/kg). The company has also placed a $0.70/kg increase on worldwide prices for its Reofos® and Kronitex® phosphorus flame retardant grades from 15 October. In the main solid antioxidant categories, prices for phenolic antioxidants have been raised by 18% from 1 October. The price for solid phosphite Alkanox 240 (offered by subsidiary Great Lakes) has been increased by 5% and for Ultranox 626 (offered by Chemtura) by 19%. NDB and other blends will see increases pro rata based upon composition. With respect to other antioxidants, price changes are as follows: Anox IC-14 and 330, Lowinox GP 45, Lowinox DLTDP and DSTDP up 4.5%; Lowinox 1790, 22IB46, AH 25, MD24, TBM6 and WSP up 9%; and Anox 29 and 1315, Emulsion L, Flexamine and Naugard grades EL 17, Super Q, Ultra Q, and Naugard 445 up 11%. Certain customers may see higher percentage increases. On top of these specific product line measures, Chemtura is establishing a separate $0.02/lb energy surcharge on sales of all chemical products sold globally, effective 1 October or as contracts permit. The company says the surcharge is necessary to deal with rapidly escalating energy-related costs, which have impacted both product manufacturing costs and transportation. Chemtura says it will review both the need and amount of this surcharge on an ongoing basis and make adjustments subject to market conditions affecting those costs. Albemarle has also brought in price rises for brominated flame retardants and antioxidants from 1 October. For Saytex® 102E (decabromodiphenyloxide), HP-900 and 9006L (hexabromocyclododecane) the increase is $1.00/kg and for Saytex CP-2000 (TBBPA) $0.50/kg. In addition, the prices for Saytex RZ-243, RX 8500, 8010, HP-7010, 120 and RB-49, and Pyro-Chek® 68PB have been raised by 10–20%.
Additives for Polymers
From the same date, Albemarle’s Ethanox ® and Ethaphos™ polymer antioxidants, and ALBlend™ polymer additive blends, among other products, have also been subject to price increases of 5–20%, depending on the product. Minimum order quantities and shipping terms may also change. All cited pricing changes are subject to existing contracts. Contact: Albemarle Corp, 451 Florida Street, Baton Rouge, LA 70801-1765, USA; tel: +1-225-388-7402; fax: +1-225-388-7848; URL: www.albemarle.com or www.ethanox.com Chemtura Corp, 199 Benson Rd, Middlebury, CT 06749, USA; tel: +1-203-573-2220; fax: +1-203-573-2800; URL: www.chemtura.com or www.fr.greatlakes.com
Further price increases for pigments, plasticizers and other additives In addition to flame retardants and antioxidants, there has been a recent spate of price changes for other plastics additives as manufacturers seek to offset rising costs. For some the situation has been exacerbated by loss of production at plants in southern US states through shutdowns or actual damage as a result of Hurricanes Katrina and Rita. DuPont Titanium Technologies has instituted further regional price increases for its titanium dioxide (TiO2) grades, from 1 October. In Europe the increase is 180/tonne and in the Middle East US$200/tonne. North American prices for all grades are increasing by US$0.06/lb. In Asia Pacific the price increase is US$100/tonne. In Latin America prices have increased by US$120/tonne, and in Central America and the Caribbean by US$150/tonne. The company’s DeLisle TiO2 plant in Mississippi was badly affected by flooding after Hurricane Katrina, forcing the company to declare ‘force majeure’ for the business. Repair work has been estimated to take three months with production back to full capacity by spring 2006. Increases in all rutile and anatase Tiona® prices at Lyondell Chemical are largely in line with DuPont’s changes, with the exception of a
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November 2005
Bahia state of Brazil. Construction of the facility is anticipated to begin in early 2006 with production commencing in the first quarter of 2007.
plastics, including PVC piping and plastic resins, as well as in hair treatment products. Terms of the agreement, which was expected to close mid September, have not been disclosed.
Columbian says it will utilize the latest environmental and energy conservation technologies in this state-of-the-art facility. Construction cost is estimated at US$67 million for the 55 000 tonne facility, which will have the capability of expanding as the market develops, the company says.
Pam Butcher, president of Hampshire Chemical, comments, “This agreement helps fulfil our strategic commitment to a more focused portfolio. Evans Chemetics products provide important qualities in their market applications and we believe they are better aligned within Bruno Bock, a company with long and dedicated participation in the organic sulphur derivatives industry.”
Columbian received the construction permit in June from the Bahian environmental authorities and now has all of the necessary permits and approvals to proceed with the project. The company completed the preliminary engineering and economic analysis earlier this year. Furthermore, the company is engaged in ongoing discussions with customers in the region for anticipated supply. “This project is further evidence of Columbian’s ongoing commitment to remain a global leader in carbon black,” comments James P. Berresse, president and CEO. The tyre manufacturing industry is growing rapidly in the Bahia region with several of the company’s largest customers already there or making plans to be there, he adds. Columbian Chemicals has 12 existing carbon black manufacturing facilities, located in Brazil, Canada, Germany, Hungary, Italy, Korea, Spain, the UK and the USA. Contact: Columbian Chemicals Co, 1800 West Oak Commons Court, Marietta, GA 30062-2253, USA; tel: +1-770-792-9400; URL: www.columbianchemicals.com
Hampshire Chemical to sell Evans Chemetics to Bruno Bock Dow subsidiary Hampshire Chemical Corp is selling its Evans Chemetics business and Waterloo, New York manufacturing facility to Bruno Bock Chemische Fabrik GmbH & Co KG of Germany. The upstate NY facility produces organic sulphur derivatives, which are used as additives in the manufacturing of
6
Evans Chemetics was founded in 1938 and established manufacturing in the historic Waterloo Woolen Manufacturing Company mill in 1943. It later was acquired by W.R. Grace and Co and divested as part of Hampshire Chemical in 1992. Hampshire Chemical became a whollyowned subsidiary of The Dow Chemical Company in 1997. Contact: The Dow Chemical Company, 47 Building, Midland, MI 48667, USA; tel: +1-989-636-1000; fax: +1-989-638-7238; URL: www.dow.com
Firms take pricing action to improve profitability for flame retardants, antioxidants With raw material, energy, packaging and transportation costs continuing to rise, many plastics additives manufacturers are experiencing a decline in margins for their product lines. To restore profitability and also provide for anticipated investment needs, both Chemtura Corp and Albemarle Corp have introduced a raft of pricing measures. At Chemtura, worldwide prices on a wide range of brominated flame retardant grades have been increased by 20–40% (US$0.65/kg to $1.40/kg) effective 1 October 2005. Products affected are: Firemaster® 504, 520, 550, 551 and 552 (+$0.65/kg); Great Lakes PH-73FF™ (+$0.70/kg); Great Lakes BA-59P™ tetrabromobisphenol A (TBBPA; +$0.75/kg); Great Lakes DBS™ and PDBS-80™ (+$0.90/kg); Firemaster® 2100 decabromodiphenylethane and BZ-54 (+$1.00/kg); Great Lakes DE-83R™
November 2005
decabromodiphenyloxide, BE-51™ TBBPA, FF-680™, BC-58™, BC-52HP™ and BC52™, PHT4™, PHT4-Diol™ and DP-45™ (+$1.00/kg); Great Lakes CD-75P™, CD75PM™, SP-75™ and SP-75C™ (+$1.30/kg); and all Fyrebloc® grades (+$1.40/kg). The company has also placed a $0.70/kg increase on worldwide prices for its Reofos® and Kronitex® phosphorus flame retardant grades from 15 October. In the main solid antioxidant categories, prices for phenolic antioxidants have been raised by 18% from 1 October. The price for solid phosphite Alkanox 240 (offered by subsidiary Great Lakes) has been increased by 5% and for Ultranox 626 (offered by Chemtura) by 19%. NDB and other blends will see increases pro rata based upon composition. With respect to other antioxidants, price changes are as follows: Anox IC-14 and 330, Lowinox GP 45, Lowinox DLTDP and DSTDP up 4.5%; Lowinox 1790, 22IB46, AH 25, MD24, TBM6 and WSP up 9%; and Anox 29 and 1315, Emulsion L, Flexamine and Naugard grades EL 17, Super Q, Ultra Q, and Naugard 445 up 11%. Certain customers may see higher percentage increases. On top of these specific product line measures, Chemtura is establishing a separate $0.02/lb energy surcharge on sales of all chemical products sold globally, effective 1 October or as contracts permit. The company says the surcharge is necessary to deal with rapidly escalating energy-related costs, which have impacted both product manufacturing costs and transportation. Chemtura says it will review both the need and amount of this surcharge on an ongoing basis and make adjustments subject to market conditions affecting those costs. Albemarle has also brought in price rises for brominated flame retardants and antioxidants from 1 October. For Saytex® 102E (decabromodiphenyloxide), HP-900 and 9006L (hexabromocyclododecane) the increase is $1.00/kg and for Saytex CP-2000 (TBBPA) $0.50/kg. In addition, the prices for Saytex RZ-243, RX 8500, 8010, HP-7010, 120 and RB-49, and Pyro-Chek® 68PB have been raised by 10–20%.
Additives for Polymers
From the same date, Albemarle’s Ethanox ® and Ethaphos™ polymer antioxidants, and ALBlend™ polymer additive blends, among other products, have also been subject to price increases of 5–20%, depending on the product. Minimum order quantities and shipping terms may also change. All cited pricing changes are subject to existing contracts. Contact: Albemarle Corp, 451 Florida Street, Baton Rouge, LA 70801-1765, USA; tel: +1-225-388-7402; fax: +1-225-388-7848; URL: www.albemarle.com or www.ethanox.com Chemtura Corp, 199 Benson Rd, Middlebury, CT 06749, USA; tel: +1-203-573-2220; fax: +1-203-573-2800; URL: www.chemtura.com or www.fr.greatlakes.com
Further price increases for pigments, plasticizers and other additives In addition to flame retardants and antioxidants, there has been a recent spate of price changes for other plastics additives as manufacturers seek to offset rising costs. For some the situation has been exacerbated by loss of production at plants in southern US states through shutdowns or actual damage as a result of Hurricanes Katrina and Rita. DuPont Titanium Technologies has instituted further regional price increases for its titanium dioxide (TiO2) grades, from 1 October. In Europe the increase is 180/tonne and in the Middle East US$200/tonne. North American prices for all grades are increasing by US$0.06/lb. In Asia Pacific the price increase is US$100/tonne. In Latin America prices have increased by US$120/tonne, and in Central America and the Caribbean by US$150/tonne. The company’s DeLisle TiO2 plant in Mississippi was badly affected by flooding after Hurricane Katrina, forcing the company to declare ‘force majeure’ for the business. Repair work has been estimated to take three months with production back to full capacity by spring 2006. Increases in all rutile and anatase Tiona® prices at Lyondell Chemical are largely in line with DuPont’s changes, with the exception of a
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