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Penn Color buys Infinity
FOCUS
ON
PIGMENTS
the special focus on high-performance coloured pigments”.
competitive pricing pressure within the Estane TPU product line.
Press release from: Heubach GmbH, D-38685 Langelsheim, Germany, Website: http://www.heubachcolor.de (1 Jan 2003)
Press releases from: Noveon Inc, 9911 Brecksville Road, Cleveland, OH 44141-3427, USA. Website: http://www.noveoninc.com (14 Nov & 2 Dec 2002)
Penn Color buys Infinity Noveon buys CDI’s pigments dispersions business Noveon Inc (of Cleveland, OH) has acquired certain assets, technology and other intellectual property from CDI Dispersions (of Newark, NJ) and is absorbing the acquisition within its existing pigment dispersions business under the aegis of its Hilton Davis subsidiary. The Newark plant, formerly operated by CDI, will be closed. Meanwhile, Noveon Hilton Davis will expand its capacity for making pigment dispersions at the Cincinnati, OH, plant. The workforce here will be stepped up from the current level of 170, there will be significant building renovation and additional specialised milling and grinding equipment will be installed. The entire project should be completed by the end of March 2003. The absorption of the CDI business should help Noveon Hilton Davis to consolidate its position as a major supplier of colours and pigment dispersions that are used by customers in the food and beverage, personal care, paint, home care, pharmaceutical and other industrial sectors. The Noveon group as whole is a leading global producer and marketer of technologically advanced speciality chemicals for a broad range of consumer and industrial applications. It employs 2800 people and reported net income at $36.6 M on sales of $813.5 M for the first nine months of 2002. That compares against a net loss of $32 M on sales of $815.2 M in the first nine months of 2001. The 4% sales increase was achieved thanks to stronger volumes within Noveon’s personal care, Estane TPU and speciality coating product lines, incremental acquisition-related revenue and the impact of the stronger Euro; though these increases were partially offset by the impact of discontinued product lines at the Cincinnati colorants complex and a product mix shift coupled with
6
Penn Color Inc has acquired Infinity Color, a producer of colour concentrates for the synthetic fibres sector. Infinity employs 12 people and reported sales revenue at $2 M for fullyear 2002. Most of Infinity’s products are based on nylon, polypropylene or polyethylene terephthalate (PET) at present; Penn Color plans to expand the range to include colour concentrates based on polyethylene and polycarbonate. It also plans to install a new twin-screw extruder at Infinity’s manufacturing site. Penn Color itself already has two US sites manufacturing plastic colorants. It also makes liquid pigment dispersions in the US and in the Netherlands. It employs more than 600 people and reported sales revenue in excess of $140 M for fullyear 2002, of which more than half came from sales to the plastics sector. Plastics News, 22 Jan 2003. Website: http://www.plasticsnews.com
PolyOne makes more cuts in North America & buys Transcolor in Spain PolyOne (of Cleveland. OH), the world’s largest plastics compounder, had been expecting to report a breakeven position in its overall financial results for 4Q 2002. However, by midDecember, it became clear that the company was heading for a loss of between $16 M and $20 M, the key factors being a sharp decline in demand combined with reduced earnings from its joint venture interests due to falling PVC resin shipments and a lower than expected selling price for caustic soda. In trading on the New York Stock Exchange, the price of PolyOne’s shares crashed from $6.40 to $3.20 on 18 December, though it had rebounded a little to just over $4 two days later. As recently as mid-September 2002, PolyOne’s shares were trading at more than $10. The company was already in the middle of a stringent cost-cutting programme, entailing the closure of 14 high-cost plants and the
elimination of 600 jobs. To streamline its operations, the North American plastic compounding business was recently reorganised into three segments: Vinyl, Engineered Materials and Colors. Now further drastic measures have been proposed. PolyOne will cease paying quarterly dividends to shareholders until further notice. The salary freeze for all PolyOne employees will be prolonged into 2003. Another 400 jobs (5% of the total workforce) will be cut in 1Q 2003, 90% of them in North America. This should yield annual savings of $30-35 M in selling, general and administrative (SG&A) costs. The aim is to cut SG&A costs from 12% of sales revenue to 10%. PolyOne also wants to cut its debt by at least $200300 M by selling off non-core assets, probably including its 50% stake in Sunbelt ChlorAlkali and its 24% stake in OxyVinyls. Olin and OxyChem, PolyOne’s respective partners in these two joint ventures, would have first right of refusal in the event of those assets being put up for sale. Meanwhile, in mid-December 2002, PolyOne completed its acquisition of Transformacion de Pigmentos & Colorantes SA (Transcolor, of Pamplona in northern Spain). Transcolor generates annual sales revenues of about $36 M from producing and selling plastic colour concentrates, with special emphasis on black and white products. (See also ‘Focus on Pigments’, Dec 2001, 7). The existing Transcolor management team, which will remain in place, has been integrated into PolyOne’s European Color & Additives division. PolyOne has already moved some production from the Saint Ouen L’Aumone site (near Paris) to Transcolor’s Spanish plant, freeing capacity and allowing the French plant to focus on the production of colour and additive systems for local customers. Plastics News, 20 Dec 2002. Website: http://www.plasticsnews.com & Chemical Week, 1 Jan 2003, 165 (1), 9 & 22 Jan 2003, 165 (3), 9 & Press release from: PolyOne Corp, 200 Public Square, Suite 36-5000, Cleveland, OH 44114, USA, Website: http://www.polyone.com (15 Jan 2003)
Schulman doubles net income For the year to end-August 2002, A.Schulman (of Akron, OH) reported
FEBRUARY 2003
ON
PIGMENTS
the special focus on high-performance coloured pigments”.
competitive pricing pressure within the Estane TPU product line.
Press release from: Heubach GmbH, D-38685 Langelsheim, Germany, Website: http://www.heubachcolor.de (1 Jan 2003)
Press releases from: Noveon Inc, 9911 Brecksville Road, Cleveland, OH 44141-3427, USA. Website: http://www.noveoninc.com (14 Nov & 2 Dec 2002)
Penn Color buys Infinity Noveon buys CDI’s pigments dispersions business Noveon Inc (of Cleveland, OH) has acquired certain assets, technology and other intellectual property from CDI Dispersions (of Newark, NJ) and is absorbing the acquisition within its existing pigment dispersions business under the aegis of its Hilton Davis subsidiary. The Newark plant, formerly operated by CDI, will be closed. Meanwhile, Noveon Hilton Davis will expand its capacity for making pigment dispersions at the Cincinnati, OH, plant. The workforce here will be stepped up from the current level of 170, there will be significant building renovation and additional specialised milling and grinding equipment will be installed. The entire project should be completed by the end of March 2003. The absorption of the CDI business should help Noveon Hilton Davis to consolidate its position as a major supplier of colours and pigment dispersions that are used by customers in the food and beverage, personal care, paint, home care, pharmaceutical and other industrial sectors. The Noveon group as whole is a leading global producer and marketer of technologically advanced speciality chemicals for a broad range of consumer and industrial applications. It employs 2800 people and reported net income at $36.6 M on sales of $813.5 M for the first nine months of 2002. That compares against a net loss of $32 M on sales of $815.2 M in the first nine months of 2001. The 4% sales increase was achieved thanks to stronger volumes within Noveon’s personal care, Estane TPU and speciality coating product lines, incremental acquisition-related revenue and the impact of the stronger Euro; though these increases were partially offset by the impact of discontinued product lines at the Cincinnati colorants complex and a product mix shift coupled with
6
Penn Color Inc has acquired Infinity Color, a producer of colour concentrates for the synthetic fibres sector. Infinity employs 12 people and reported sales revenue at $2 M for fullyear 2002. Most of Infinity’s products are based on nylon, polypropylene or polyethylene terephthalate (PET) at present; Penn Color plans to expand the range to include colour concentrates based on polyethylene and polycarbonate. It also plans to install a new twin-screw extruder at Infinity’s manufacturing site. Penn Color itself already has two US sites manufacturing plastic colorants. It also makes liquid pigment dispersions in the US and in the Netherlands. It employs more than 600 people and reported sales revenue in excess of $140 M for fullyear 2002, of which more than half came from sales to the plastics sector. Plastics News, 22 Jan 2003. Website: http://www.plasticsnews.com
PolyOne makes more cuts in North America & buys Transcolor in Spain PolyOne (of Cleveland. OH), the world’s largest plastics compounder, had been expecting to report a breakeven position in its overall financial results for 4Q 2002. However, by midDecember, it became clear that the company was heading for a loss of between $16 M and $20 M, the key factors being a sharp decline in demand combined with reduced earnings from its joint venture interests due to falling PVC resin shipments and a lower than expected selling price for caustic soda. In trading on the New York Stock Exchange, the price of PolyOne’s shares crashed from $6.40 to $3.20 on 18 December, though it had rebounded a little to just over $4 two days later. As recently as mid-September 2002, PolyOne’s shares were trading at more than $10. The company was already in the middle of a stringent cost-cutting programme, entailing the closure of 14 high-cost plants and the
elimination of 600 jobs. To streamline its operations, the North American plastic compounding business was recently reorganised into three segments: Vinyl, Engineered Materials and Colors. Now further drastic measures have been proposed. PolyOne will cease paying quarterly dividends to shareholders until further notice. The salary freeze for all PolyOne employees will be prolonged into 2003. Another 400 jobs (5% of the total workforce) will be cut in 1Q 2003, 90% of them in North America. This should yield annual savings of $30-35 M in selling, general and administrative (SG&A) costs. The aim is to cut SG&A costs from 12% of sales revenue to 10%. PolyOne also wants to cut its debt by at least $200300 M by selling off non-core assets, probably including its 50% stake in Sunbelt ChlorAlkali and its 24% stake in OxyVinyls. Olin and OxyChem, PolyOne’s respective partners in these two joint ventures, would have first right of refusal in the event of those assets being put up for sale. Meanwhile, in mid-December 2002, PolyOne completed its acquisition of Transformacion de Pigmentos & Colorantes SA (Transcolor, of Pamplona in northern Spain). Transcolor generates annual sales revenues of about $36 M from producing and selling plastic colour concentrates, with special emphasis on black and white products. (See also ‘Focus on Pigments’, Dec 2001, 7). The existing Transcolor management team, which will remain in place, has been integrated into PolyOne’s European Color & Additives division. PolyOne has already moved some production from the Saint Ouen L’Aumone site (near Paris) to Transcolor’s Spanish plant, freeing capacity and allowing the French plant to focus on the production of colour and additive systems for local customers. Plastics News, 20 Dec 2002. Website: http://www.plasticsnews.com & Chemical Week, 1 Jan 2003, 165 (1), 9 & 22 Jan 2003, 165 (3), 9 & Press release from: PolyOne Corp, 200 Public Square, Suite 36-5000, Cleveland, OH 44114, USA, Website: http://www.polyone.com (15 Jan 2003)
Schulman doubles net income For the year to end-August 2002, A.Schulman (of Akron, OH) reported
FEBRUARY 2003