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Akzo nobel: trapped in the ICI deal?
FOCUS company’s Global Group continued its aggressive program of new branch openings within and outside North America, adding 41 net new branches. The company invested prudently in new product development for automotive finishes and in its colour matching capabilities and resources. Sherwin-William’s automotive finishes continues to be the coatings of choice in motor sports as a key partner for the Champ Car Series and several Nextel Cup teams. Original equipment manufacturers (OEM) are very familiar with the company’s chemical coatings line of solvent-based and waterborne liquid, powder and UV-curable coatings. In 2006, the company introduced 20 new products to the factory-applied finishes market and opened a new warehouse complex at its manufacturing site in China. The Sherwin Williams Co Annual Report 2006, 26 Feb 2007, 4,10-11,78 (The Sherwin-Williams Co, 101 Prospect Avenue NW, Cleveland, Ohio 44115, USA, tel: +1 216 566 2000, website: http://www.sherwinwilliams.com)
Akzo Nobel opens its first powder coatings factory in Russia Akzo Nobel recently opened its first powder coatings production unit in Russia in Orekhovo-Zuevo, near Moscow. The factory represents a €13 M investment and will consolidate the group’s position on the central and east European industrial paints market. According to Akzo Nobel, almost 80% of powder paints used in Russia are imported. The new unit has 2 production lines but a further 2 could be added by mid2008. Chimie Pharma Hebdo, 16 Jul 2007, (390), 7 (Website: http://www.france-chimie.com) (in French)
Moscow plant gives Akzo coatings clout Akzo Nobel has inaugurated its first powder coatings facility in Russia. The plant, which costs €13 M ($17.8 M), has two 4
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production lines currently, with two more slated to come online by mid-2008. Akzo Nobel said two-thirds of the facility is currently available for future expansion. The plant will allow Akzo Nobel to gain greater foothold in the central and east European market for industrial coatings. Russia currently accounts for 46% of the region’s industrial coatings market. ICIS Chemical Business, 9 Jul 2007, (Website: http://icischemicalbusiness.com)
BASF increases capacity for neopentylglycol BASF JCIC Neopentylglycol Co Ltd (BJNC), a 60/40 joint venture of BASF and Jilin Chemical Industrial Co Ltd in Jilin, China, will expand its neopentylglycol (NPG) capacity by 10,000 tonnes/y. Together with the capacity increase in Ludwigshafen, Germany, announced in Mar 2007, the global NPG capacity of BASF will be 165,000 tonnes/y by the end of 2007. The capacity increase is due to a growing demand for the versatile chemical intermediate, mainly in coatings applications. For example, NPG is a tried and tested essential component for eco-efficient powder coating resins. It is also used for unsaturated polyester and alkyd resins, which serve as binders in a variety of liquid coatings. Press release from: BASF Group, website: http://media.basf.com (2 Jul 2007)
Annual meeting of Federation des Industries des Peintures, Encres, Couleurs, Colles et Adhesifs The annual meeting of the Federation des Industries des Peintures, Encres, Couleurs, Colles et Adhesifs (FIPEC) is discussed. A table from an FIPEC panel is entitled Tonnages. This shows the changes (presumably in %) of 10 different types of paint over each pair of years from 1995/1996 to 2005/2006. The total change from 2005/2006
C OAT I N G S was +2.0. The types of paint are: anticorrosion; building, divided into paints and varnishes itself divided into those for external walls of house and other uses; consumer sector; car body work; industry, divided into liquid and powder. The three largest increases for 2005/2006 were anticorrosive 5.4; powder paints 5.0 and consumer paints 3.8. Building paints for exterior walls of houses and varnishes for other uses both decreased by 3.7 although building itself grew by 1.3. Double Liaison, Jul 2007, 3 (557), 10-13 (in French)
New Felling facility opens in UK Akzo Nobel’s International Paint business has officially opened its new €7.3 M R&D Technology and Administration Centre at Felling, Gateshead, UK. The facility is part of ongoing development plans and follows a previous R&D investment at the site completed in 2004. It will serve International Paint’s worldwide Marine, Protective and Yacht Coatings business from one central location, replacing previous laboratory facilities. Press release from: Akzo Nobel nv, Velperweg 76, PO Box 9300, 6800 SB Arnhem, The Netherlands, tel: +31 26 366 43 43, fax: +31 26 366 49 40, website: http://www.akzonobel.com (28 Jun 2007)
Akzo Nobel: trapped in the ICI deal? Akzo Nobel is under pressure not to overvalue UK-based ICI as US hedge funds reportedly insist on clearer explanations on how ICI will fit within Akzo’s businesses. ICI’s share value has gone up significantly since the company’s turnaround started gaining attention and is now concentrating on decorative paints and speciality starches. Insiders are not certain whether Akzo will make a fresh offer, although they state that Akzo must obtain better competencies in its decorative paints division if its objective is to AUGUST 2007
FOCUS be a leader in the world market. ICI produces the Dulux and Glidden decorative paints. ICIS Chemical Business, 9 Jul 2007, (Website: http://icischemicalbusiness.com)
Radiator relationship BASF Coatings has reached a new sales agreement with Termo Teknik, a Turkish manufacturer of radiators. Under the new agreement, BASF Coatings (Italy) will supply Termo Teknik’s plant in Corlu, Turkey, with white waterborne e-coat. The Corlu facility produces 500,000 heated towel rails and 50,000 wallmounted hot water heaters as well as 4 M steel radiators, annually. Additionally, BASF Coatings will also supply powder coatings to Termo Teknik. PPCJ, Polymers, Paint, Colour Journal, Jun 2007, 197 (4513), 4
Double action from Silcoco Silcoco offers composite coatings available as a two-part item composed of a powder and a liquid. When mixed, the coatings can be applied to virtually any surfaces from wood to rusty steel. The powder and liquid mixture can be applied using brush or shutz spray gun or a hopper gun. The company also offers an antislip coating, called Silcocote 500, that can be applied to where heat or corrosion protection is deemed necessary. The coatings are water-based. PPCJ, Polymers, Paint, Colour Journal, Jun 2007, 197 (4513), 55
Akzo Nobel raises ICI bid to 670p/share Akzo Nobel, the Dutch chemicals giant, has moved a step closer to securing a deal to buy ICI, after increasing its offer for its UK rival to £8 bn, a price that should tempt the British company’s management into opening its books. The renewed offer, pitched at 670p/share, is the second time the Dutch company has increased AUGUST 2007
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its bid. It first approached ICI a month ago with a £7.2 bn, 600p/share offer. Akzo Nobel has yet to scrutinise its rival’s books, but has struck a deal with German chemicals company Henkel to sell on two ICI businesses in order to increase its bid. An ICI spokesman said that talks would continue during the week beginning 6 Aug 2007. The Dutch company still faces significant hurdles, with a number of its shareholders opposing the deal, as well as the need to plug ICI’s near-£700 M pension deficit. The Independent, 6 Aug 2007, (Website: http://www.independent.co.uk)
Cytec boosts resins capacity worldwide Cytec Industries will raise its worldwide capacity for Crylcoat brand powder coating resins by 20,000 tonnes/y within 2007. The expansion will lift the company’s total capacity to 200,000 tonnes/y. The firm plans to debottleneck plants at Romano, Italy; Fenxiang, China; and Rayong Thailand. The investment is targeted at the thriving markets in China, the Mideast, and Eastern Europe. Chemical Week, 25 Jul 2007, (Website: http://www.chemweek.com)
Dai Nippon Toryo to optimize coatings operations Dai Nippon Toryo has invested Yen 2-3 bn ($16.7 M) for the reintegration of its local manufacturing and R&D network for coatings under its three-year, medium-term management plan starting FY 2007 beginning Apr 1 until 2010. The firm will restructure its production plant in Komaki, Japan, and will build new facilities for large and medium volume industrial coatings. Dai Nippon Toryo intends to concentrate its R&D functions in Komaki and Nasu facilities to create efficient product development centres. The Komaki facility produces automotive
C OAT I N G S coatings, plastics, building material, baking, powder and anticorrosion agents. Japan Chemical Week, 19 Jul 2007, 48 (2425), 2
Rohm and Haas Europe trading Aps, Deutsche Zweigniederlassung, Ruhr-Pulverlack Arnsberg/Deutschland Rohm and Haas Powder Coatings has appointed Cetelon GmbH as a new distributor for their powder coatings in Germany. A sales force of six people from Cetetelon will operate in Germany in addition to the Rohm’s sales force. A warehouse has already been implemented to meet market demand. Press release from: Rohm and Haas BV, Delfzijl, the Netherlands, tel: +33 1 40 02 51 24, website: http://www.rohmhaas.com (20 Jul 2007)
Ferro reports 2Q 2007 results Ferro Corp announced sales of $554 M for 2Q ended Jun 2007 (+3% over $538 M in 2Q 2006). Income from continuing operations for 2Q 2007 was $4.6 M, or $0.1/diluted share ($10.5 M, or $0.24/diluted share, in 2Q 2006). Sales in the Performance Coatings segment increased in both the tile and porcelain enamel product areas. Both the Performance Coatings and Colour and Glass Performance Materials segments experienced growth in international sales, particularly in Europe. Sales in Polymer Additives also increased, with increased sales in both North America and internationally, driven by repositioning sales toward a more favourable price and product mix. Sales in Electronic Materials declined in the quarter, primarily driven by weaker dielectric materials demand from supply chain inventory reductions by customers who manufacture capacitors. Sales in Speciality Plastics declined, largely due to weaker demand in the US residential housing, appliance and automotive markets. The 5
Akzo Nobel opens its first powder coatings factory in Russia Akzo Nobel recently opened its first powder coatings production unit in Russia in Orekhovo-Zuevo, near Moscow. The factory represents a €13 M investment and will consolidate the group’s position on the central and east European industrial paints market. According to Akzo Nobel, almost 80% of powder paints used in Russia are imported. The new unit has 2 production lines but a further 2 could be added by mid2008. Chimie Pharma Hebdo, 16 Jul 2007, (390), 7 (Website: http://www.france-chimie.com) (in French)
Moscow plant gives Akzo coatings clout Akzo Nobel has inaugurated its first powder coatings facility in Russia. The plant, which costs €13 M ($17.8 M), has two 4
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POWDER
production lines currently, with two more slated to come online by mid-2008. Akzo Nobel said two-thirds of the facility is currently available for future expansion. The plant will allow Akzo Nobel to gain greater foothold in the central and east European market for industrial coatings. Russia currently accounts for 46% of the region’s industrial coatings market. ICIS Chemical Business, 9 Jul 2007, (Website: http://icischemicalbusiness.com)
BASF increases capacity for neopentylglycol BASF JCIC Neopentylglycol Co Ltd (BJNC), a 60/40 joint venture of BASF and Jilin Chemical Industrial Co Ltd in Jilin, China, will expand its neopentylglycol (NPG) capacity by 10,000 tonnes/y. Together with the capacity increase in Ludwigshafen, Germany, announced in Mar 2007, the global NPG capacity of BASF will be 165,000 tonnes/y by the end of 2007. The capacity increase is due to a growing demand for the versatile chemical intermediate, mainly in coatings applications. For example, NPG is a tried and tested essential component for eco-efficient powder coating resins. It is also used for unsaturated polyester and alkyd resins, which serve as binders in a variety of liquid coatings. Press release from: BASF Group, website: http://media.basf.com (2 Jul 2007)
Annual meeting of Federation des Industries des Peintures, Encres, Couleurs, Colles et Adhesifs The annual meeting of the Federation des Industries des Peintures, Encres, Couleurs, Colles et Adhesifs (FIPEC) is discussed. A table from an FIPEC panel is entitled Tonnages. This shows the changes (presumably in %) of 10 different types of paint over each pair of years from 1995/1996 to 2005/2006. The total change from 2005/2006
C OAT I N G S was +2.0. The types of paint are: anticorrosion; building, divided into paints and varnishes itself divided into those for external walls of house and other uses; consumer sector; car body work; industry, divided into liquid and powder. The three largest increases for 2005/2006 were anticorrosive 5.4; powder paints 5.0 and consumer paints 3.8. Building paints for exterior walls of houses and varnishes for other uses both decreased by 3.7 although building itself grew by 1.3. Double Liaison, Jul 2007, 3 (557), 10-13 (in French)
New Felling facility opens in UK Akzo Nobel’s International Paint business has officially opened its new €7.3 M R&D Technology and Administration Centre at Felling, Gateshead, UK. The facility is part of ongoing development plans and follows a previous R&D investment at the site completed in 2004. It will serve International Paint’s worldwide Marine, Protective and Yacht Coatings business from one central location, replacing previous laboratory facilities. Press release from: Akzo Nobel nv, Velperweg 76, PO Box 9300, 6800 SB Arnhem, The Netherlands, tel: +31 26 366 43 43, fax: +31 26 366 49 40, website: http://www.akzonobel.com (28 Jun 2007)
Akzo Nobel: trapped in the ICI deal? Akzo Nobel is under pressure not to overvalue UK-based ICI as US hedge funds reportedly insist on clearer explanations on how ICI will fit within Akzo’s businesses. ICI’s share value has gone up significantly since the company’s turnaround started gaining attention and is now concentrating on decorative paints and speciality starches. Insiders are not certain whether Akzo will make a fresh offer, although they state that Akzo must obtain better competencies in its decorative paints division if its objective is to AUGUST 2007
FOCUS be a leader in the world market. ICI produces the Dulux and Glidden decorative paints. ICIS Chemical Business, 9 Jul 2007, (Website: http://icischemicalbusiness.com)
Radiator relationship BASF Coatings has reached a new sales agreement with Termo Teknik, a Turkish manufacturer of radiators. Under the new agreement, BASF Coatings (Italy) will supply Termo Teknik’s plant in Corlu, Turkey, with white waterborne e-coat. The Corlu facility produces 500,000 heated towel rails and 50,000 wallmounted hot water heaters as well as 4 M steel radiators, annually. Additionally, BASF Coatings will also supply powder coatings to Termo Teknik. PPCJ, Polymers, Paint, Colour Journal, Jun 2007, 197 (4513), 4
Double action from Silcoco Silcoco offers composite coatings available as a two-part item composed of a powder and a liquid. When mixed, the coatings can be applied to virtually any surfaces from wood to rusty steel. The powder and liquid mixture can be applied using brush or shutz spray gun or a hopper gun. The company also offers an antislip coating, called Silcocote 500, that can be applied to where heat or corrosion protection is deemed necessary. The coatings are water-based. PPCJ, Polymers, Paint, Colour Journal, Jun 2007, 197 (4513), 55
Akzo Nobel raises ICI bid to 670p/share Akzo Nobel, the Dutch chemicals giant, has moved a step closer to securing a deal to buy ICI, after increasing its offer for its UK rival to £8 bn, a price that should tempt the British company’s management into opening its books. The renewed offer, pitched at 670p/share, is the second time the Dutch company has increased AUGUST 2007
ON
POWDER
its bid. It first approached ICI a month ago with a £7.2 bn, 600p/share offer. Akzo Nobel has yet to scrutinise its rival’s books, but has struck a deal with German chemicals company Henkel to sell on two ICI businesses in order to increase its bid. An ICI spokesman said that talks would continue during the week beginning 6 Aug 2007. The Dutch company still faces significant hurdles, with a number of its shareholders opposing the deal, as well as the need to plug ICI’s near-£700 M pension deficit. The Independent, 6 Aug 2007, (Website: http://www.independent.co.uk)
Cytec boosts resins capacity worldwide Cytec Industries will raise its worldwide capacity for Crylcoat brand powder coating resins by 20,000 tonnes/y within 2007. The expansion will lift the company’s total capacity to 200,000 tonnes/y. The firm plans to debottleneck plants at Romano, Italy; Fenxiang, China; and Rayong Thailand. The investment is targeted at the thriving markets in China, the Mideast, and Eastern Europe. Chemical Week, 25 Jul 2007, (Website: http://www.chemweek.com)
Dai Nippon Toryo to optimize coatings operations Dai Nippon Toryo has invested Yen 2-3 bn ($16.7 M) for the reintegration of its local manufacturing and R&D network for coatings under its three-year, medium-term management plan starting FY 2007 beginning Apr 1 until 2010. The firm will restructure its production plant in Komaki, Japan, and will build new facilities for large and medium volume industrial coatings. Dai Nippon Toryo intends to concentrate its R&D functions in Komaki and Nasu facilities to create efficient product development centres. The Komaki facility produces automotive
C OAT I N G S coatings, plastics, building material, baking, powder and anticorrosion agents. Japan Chemical Week, 19 Jul 2007, 48 (2425), 2
Rohm and Haas Europe trading Aps, Deutsche Zweigniederlassung, Ruhr-Pulverlack Arnsberg/Deutschland Rohm and Haas Powder Coatings has appointed Cetelon GmbH as a new distributor for their powder coatings in Germany. A sales force of six people from Cetetelon will operate in Germany in addition to the Rohm’s sales force. A warehouse has already been implemented to meet market demand. Press release from: Rohm and Haas BV, Delfzijl, the Netherlands, tel: +33 1 40 02 51 24, website: http://www.rohmhaas.com (20 Jul 2007)
Ferro reports 2Q 2007 results Ferro Corp announced sales of $554 M for 2Q ended Jun 2007 (+3% over $538 M in 2Q 2006). Income from continuing operations for 2Q 2007 was $4.6 M, or $0.1/diluted share ($10.5 M, or $0.24/diluted share, in 2Q 2006). Sales in the Performance Coatings segment increased in both the tile and porcelain enamel product areas. Both the Performance Coatings and Colour and Glass Performance Materials segments experienced growth in international sales, particularly in Europe. Sales in Polymer Additives also increased, with increased sales in both North America and internationally, driven by repositioning sales toward a more favourable price and product mix. Sales in Electronic Materials declined in the quarter, primarily driven by weaker dielectric materials demand from supply chain inventory reductions by customers who manufacture capacitors. Sales in Speciality Plastics declined, largely due to weaker demand in the US residential housing, appliance and automotive markets. The 5