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BASF report full year and 4Q 2010: BASF group business review 2010
FOCUS applications since it complies with FDA 21 CFR 175.300. PPCJ, Polymers, Paint, Colour Journal, Feb 2011, 201 (4557), 20,22 (Website: http://www.polymerspaintcolourjournal.com/)
Cationic photoinitiators for packaging printing German company BASF SE in Ludwigshafen developed the new cationic photoinitiator Irgacure 270 for the UV cure packaging/printing segment. Photoinitiators are substances that form radicals if radiated with UV light and activate polymerization. The product enables rapid UV curing with low emissions. Major applications for Irgacure 270 are in UV-cure applications, which work with low-emission systems. These include overprint coatings, flexographic printing inks, screen printing inks and inkjet paints for the coating of food packaging on different substrates such as cardboard, plastics or metals. Farbe und Lack, Mar 2011, 117 (3), 115 (Website: http://www.farbeundlack.de/) (in German)
Clariant introduces two new powder additives At the recent European Coatings Show, Clariant introduced new wax additive Ceridust 6050 M, a micronized polypropylene wax with narrow molecular weight distribution created by the company’s Metallocene processing technology. The technical advantages are claimed to be: improved surface adhesion allowing silicone-based sealants to have permanent adhesion when added at 2% to powder coating formulations; at this level of addition it also acts as a degassing agent and removes pinholes to give a more consistent surface offering better protection and good aesthetics. Another new product for powder coatings is a PTFE-free structuring agent Licocene PE MA 4351 FG, which produces unique structuring effects, matt finishes and exceptional edge covering, 6
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POWDER
and providing good all-round surface protection. It is claimed that the superior edge covering is due to the improved flow properties during powder curing, which eliminate bead formation at the edges and lips of metal components. This fine grain maleic anhydride modified polyethylene wax is another product manufactured by Clariant’s Metallocine technology. Press release from: Clariant, tel: +41 61 469 67 42, e-mail: stefanie.nehisen@ clariant.com (30 Mar 2011)
MARKETS BASF report full year and 4Q 2010: BASF group business review 2010 BASF achieved record sales and earnings in 2010. In 1H 2010, restocking in key customer industries additionally drove demand. There were temporary supply bottlenecks for some chemical products. Higher raw materials costs could be passed on to customers. Compared with 2009 sales increased by 26% to €63.873 bn. Income from operations improved by 111% to €7.761 bn. Business developed positively in all regions, particularly from Asia. Prices of many products were higher than in 2009. The appreciation of numerous currencies against the Euro helped to boost sales and the full-year inclusion of former Ciba businesses had a positive impact on growth. Other company purchases and divestitures only had a small influence on sales. In the Chemicals segment, sales were far above their 2009 level thanks to higher prices and volumes. There was a strong improvement in income from operations in the Petrochemicals segment thanks to increased margins and higher volumes. The Plastics segment posted a strong rise in sales compared with 2009. Capacity utilization rates at BASF’s plants were good. Prices
C O AT I N G S in the Polyurethanes business remained stable but rose in the Performance Polymers division because of higher raw materials costs. With margins stable, there was a strong improvement in income from operations. The Performance Products segment benefited from the economic recovery and from the successful integration of Ciba. In the Functional Solutions segment, sales were far above their 2009 level thanks to higher volumes and prices. In the Catalysts and Coatings divisions, an increase in sales volumes and sales was attributable to improved demand from the automotive industry. In the Construction Chemicals division sales growth was not as strong. Thanks to BASF’s strict cost discipline and measures to increase efficiency, all 3 divisions made a contribution to the segment’s strong improvement in income from operations. Agricultural Solutions exceeded the very good sales level of 2009. Lower prices were offset by the increase in business volume and positive currency effects. Income from operations remained stable despite increases in selling expenses as well as research and development expenses. Sales declined in the Oil and Gas segment. In Exploration and Production, volumes declined. In Natural Gas Trading, sales volumes increased but sales declined due to lower gas prices. Despite the decline in sales, income from operations in the segment improved slightly. Sales in other rose to €5.851 bn from €4.577 bn in 2009 thanks to higher prices and sales volumes in the Styrenics business. Income from operations in other declined from -€627 M to -€707 M due to higher expenses for the long-term incentive programme. Earnings after cost of capital amounted to €3.50 bn (a new record). In 2010, the negative impact on income from operations from special items was considerably less than in 2009 (€377 M, compared with €1.175 bn). In 2010, the Cognis MAY 2011
FOCUS integration resulted in special charges of €77 M. At €100 M, special charges related to restructuring measures were also considerably lower than in 2009 (€366 M). The divestiture of various businesses resulted in special income of €31 M (compared with a charge of €1 M in 2009). Other items resulted in special charges of €146 M. These include valuation adjustments of €96 M on oil and gas concessions in the British and Norwegian N Sea. BASF Report Full Year and 4Q 2010, 24 Feb 2011, (BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
BASF report full year and 4Q 2010: functional solutions business review 4Q 2010 Thanks to the rapid global recovery of the automotive industry in 2010, sales volumes in the segment were far higher than in the same quarter of 2009. Demand from the construction industry also increased slightly, primarily owing to the robust building activity in Asia. Higher precious metal prices and positive currency effects also boosted sales (volumes 15%, prices 10%, portfolio 1%, currencies 9%). Incomes from operations before special items were lower year-onyear as a result of one-time operating costs, for example, for personnel and valuation adjustments on inventories. Catalysts: Sales in the Catalysts division increased substantially, due mainly to higher sales volumes of mobile emissions and chemical catalysts. In addition, sales from precious metals trading rose by €281 M due to higher prices and volumes to €654 M. Earnings, however, decreased in comparison with 4Q 2009. Stronger demand from the automotive and chemical industries could not compensate for weaker earnings in precious metals trading and higher onetime cost, such as for personnel and maintenance. Construction MAY 2011
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Chemicals: BASF’s business in Europe and N America experienced a seasonal slowdown. Nevertheless, we were able to increase sales year-onyear in all regions, especially in Asia and other emerging markets. Positive currency effects also boosted sales. Earnings did not match the level of 4Q 2009, mainly as a result of personnelrelated provisions. BASF’s measures to improve efficiency resulted in special charges related to the restructuring of sites. Coatings: Sales volumes and sales in the Coatings division increased year-on-year in all business areas. The positive trend seen in previous quarters continued for automotive OEM coatings, automotive refinish coatings and architectural coatings. We were not yet able to fully pass on higher raw materials costs. Earnings therefore declined despite higher volumes. BASF Report Full Year and 4Q 2010, 24 Feb 2011, (BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
Long-chain dicarboxylic acids market is not favourable The use of long-chain dicarboxylic acids by foreign companies to produce nylon 11 and nylon 12 is noted. Since there are no Chinese producers of nylon 11 and nylon 12, the country has to import up to 20,000 tonne/y, at prices of about RMB Yuan 100,000/tonne for nylon 11 and up to RMB Yuan 120,000/tonne for nylon 12. As a result of research carried out at Zhengzhou University, Shandong Hilead Biotechnology Co Ltd is building units for nylon 1212 (3000 tonne/y) and semi-aromatic nylon 12T (2000 tonne/y), both of which have properties and applications similar to those of nylon 11 and nylon 12. Chinese demand for long-chain dicarboxylic acids could increase markedly if these domestically produced nylon engineering plastics prove to be good
C O AT I N G S substitutes for nylon 11 and nylon 12. China also imports about 2000 tonne/y of high-grade, polyamide hot-melt adhesives with an import value of about RMB Yuan 200 M/y. Development prospects for Chinese producers of hot-melt adhesives are not considered to be favourable. Chinese production of musk-T, a macrocyclic musk compound used in synthetic perfumes, is expected to have totalled more than 2000 tonnes in 2010 using long-chain dicarboxylic acids (mainly DC13) produced in the country. Production of speciality polyamide powder coatings (less than 200 tonne/y) accounts for less than 0.03% of Chinese powder coatings production. However, Chinese demand for the polyamide-based powder coatings is about 1500 tonne/y. Several production units for long-chain dicarboxylic acids have been commissioned recently in China. Because demand in downstream sectors remains limited, much of the new production is exported. The main end-use for long-chain dicarboxylic acids is in the production of nylon engineering plastics, ahead of synthetic perfumes. Use of the chemicals in the production of hot-melt adhesives, powder coatings, and lubricants remains at a very low level compared with total consumption, which totalled about 13,000 tonnes in 2009. Since some of the downstream products were for the export market, actual demand for long-chain dicarboxylic acids in China can be considered to be much lower. Chinese producers have been adversely impacted by lower prices and increased competition. The need for lower production costs, enhance product quality, and development of downstream sectors is noted. Future development of the Chinese longchain dicarboxylic acids sector will require increased levels of communication and coordination. China Chemical Reporter, 21 Feb 2011, 22 (4), 23 (Website: http://www.ccr.com.cn)
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Cationic photoinitiators for packaging printing German company BASF SE in Ludwigshafen developed the new cationic photoinitiator Irgacure 270 for the UV cure packaging/printing segment. Photoinitiators are substances that form radicals if radiated with UV light and activate polymerization. The product enables rapid UV curing with low emissions. Major applications for Irgacure 270 are in UV-cure applications, which work with low-emission systems. These include overprint coatings, flexographic printing inks, screen printing inks and inkjet paints for the coating of food packaging on different substrates such as cardboard, plastics or metals. Farbe und Lack, Mar 2011, 117 (3), 115 (Website: http://www.farbeundlack.de/) (in German)
Clariant introduces two new powder additives At the recent European Coatings Show, Clariant introduced new wax additive Ceridust 6050 M, a micronized polypropylene wax with narrow molecular weight distribution created by the company’s Metallocene processing technology. The technical advantages are claimed to be: improved surface adhesion allowing silicone-based sealants to have permanent adhesion when added at 2% to powder coating formulations; at this level of addition it also acts as a degassing agent and removes pinholes to give a more consistent surface offering better protection and good aesthetics. Another new product for powder coatings is a PTFE-free structuring agent Licocene PE MA 4351 FG, which produces unique structuring effects, matt finishes and exceptional edge covering, 6
ON
POWDER
and providing good all-round surface protection. It is claimed that the superior edge covering is due to the improved flow properties during powder curing, which eliminate bead formation at the edges and lips of metal components. This fine grain maleic anhydride modified polyethylene wax is another product manufactured by Clariant’s Metallocine technology. Press release from: Clariant, tel: +41 61 469 67 42, e-mail: stefanie.nehisen@ clariant.com (30 Mar 2011)
MARKETS BASF report full year and 4Q 2010: BASF group business review 2010 BASF achieved record sales and earnings in 2010. In 1H 2010, restocking in key customer industries additionally drove demand. There were temporary supply bottlenecks for some chemical products. Higher raw materials costs could be passed on to customers. Compared with 2009 sales increased by 26% to €63.873 bn. Income from operations improved by 111% to €7.761 bn. Business developed positively in all regions, particularly from Asia. Prices of many products were higher than in 2009. The appreciation of numerous currencies against the Euro helped to boost sales and the full-year inclusion of former Ciba businesses had a positive impact on growth. Other company purchases and divestitures only had a small influence on sales. In the Chemicals segment, sales were far above their 2009 level thanks to higher prices and volumes. There was a strong improvement in income from operations in the Petrochemicals segment thanks to increased margins and higher volumes. The Plastics segment posted a strong rise in sales compared with 2009. Capacity utilization rates at BASF’s plants were good. Prices
C O AT I N G S in the Polyurethanes business remained stable but rose in the Performance Polymers division because of higher raw materials costs. With margins stable, there was a strong improvement in income from operations. The Performance Products segment benefited from the economic recovery and from the successful integration of Ciba. In the Functional Solutions segment, sales were far above their 2009 level thanks to higher volumes and prices. In the Catalysts and Coatings divisions, an increase in sales volumes and sales was attributable to improved demand from the automotive industry. In the Construction Chemicals division sales growth was not as strong. Thanks to BASF’s strict cost discipline and measures to increase efficiency, all 3 divisions made a contribution to the segment’s strong improvement in income from operations. Agricultural Solutions exceeded the very good sales level of 2009. Lower prices were offset by the increase in business volume and positive currency effects. Income from operations remained stable despite increases in selling expenses as well as research and development expenses. Sales declined in the Oil and Gas segment. In Exploration and Production, volumes declined. In Natural Gas Trading, sales volumes increased but sales declined due to lower gas prices. Despite the decline in sales, income from operations in the segment improved slightly. Sales in other rose to €5.851 bn from €4.577 bn in 2009 thanks to higher prices and sales volumes in the Styrenics business. Income from operations in other declined from -€627 M to -€707 M due to higher expenses for the long-term incentive programme. Earnings after cost of capital amounted to €3.50 bn (a new record). In 2010, the negative impact on income from operations from special items was considerably less than in 2009 (€377 M, compared with €1.175 bn). In 2010, the Cognis MAY 2011
FOCUS integration resulted in special charges of €77 M. At €100 M, special charges related to restructuring measures were also considerably lower than in 2009 (€366 M). The divestiture of various businesses resulted in special income of €31 M (compared with a charge of €1 M in 2009). Other items resulted in special charges of €146 M. These include valuation adjustments of €96 M on oil and gas concessions in the British and Norwegian N Sea. BASF Report Full Year and 4Q 2010, 24 Feb 2011, (BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
BASF report full year and 4Q 2010: functional solutions business review 4Q 2010 Thanks to the rapid global recovery of the automotive industry in 2010, sales volumes in the segment were far higher than in the same quarter of 2009. Demand from the construction industry also increased slightly, primarily owing to the robust building activity in Asia. Higher precious metal prices and positive currency effects also boosted sales (volumes 15%, prices 10%, portfolio 1%, currencies 9%). Incomes from operations before special items were lower year-onyear as a result of one-time operating costs, for example, for personnel and valuation adjustments on inventories. Catalysts: Sales in the Catalysts division increased substantially, due mainly to higher sales volumes of mobile emissions and chemical catalysts. In addition, sales from precious metals trading rose by €281 M due to higher prices and volumes to €654 M. Earnings, however, decreased in comparison with 4Q 2009. Stronger demand from the automotive and chemical industries could not compensate for weaker earnings in precious metals trading and higher onetime cost, such as for personnel and maintenance. Construction MAY 2011
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Chemicals: BASF’s business in Europe and N America experienced a seasonal slowdown. Nevertheless, we were able to increase sales year-onyear in all regions, especially in Asia and other emerging markets. Positive currency effects also boosted sales. Earnings did not match the level of 4Q 2009, mainly as a result of personnelrelated provisions. BASF’s measures to improve efficiency resulted in special charges related to the restructuring of sites. Coatings: Sales volumes and sales in the Coatings division increased year-on-year in all business areas. The positive trend seen in previous quarters continued for automotive OEM coatings, automotive refinish coatings and architectural coatings. We were not yet able to fully pass on higher raw materials costs. Earnings therefore declined despite higher volumes. BASF Report Full Year and 4Q 2010, 24 Feb 2011, (BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
Long-chain dicarboxylic acids market is not favourable The use of long-chain dicarboxylic acids by foreign companies to produce nylon 11 and nylon 12 is noted. Since there are no Chinese producers of nylon 11 and nylon 12, the country has to import up to 20,000 tonne/y, at prices of about RMB Yuan 100,000/tonne for nylon 11 and up to RMB Yuan 120,000/tonne for nylon 12. As a result of research carried out at Zhengzhou University, Shandong Hilead Biotechnology Co Ltd is building units for nylon 1212 (3000 tonne/y) and semi-aromatic nylon 12T (2000 tonne/y), both of which have properties and applications similar to those of nylon 11 and nylon 12. Chinese demand for long-chain dicarboxylic acids could increase markedly if these domestically produced nylon engineering plastics prove to be good
C O AT I N G S substitutes for nylon 11 and nylon 12. China also imports about 2000 tonne/y of high-grade, polyamide hot-melt adhesives with an import value of about RMB Yuan 200 M/y. Development prospects for Chinese producers of hot-melt adhesives are not considered to be favourable. Chinese production of musk-T, a macrocyclic musk compound used in synthetic perfumes, is expected to have totalled more than 2000 tonnes in 2010 using long-chain dicarboxylic acids (mainly DC13) produced in the country. Production of speciality polyamide powder coatings (less than 200 tonne/y) accounts for less than 0.03% of Chinese powder coatings production. However, Chinese demand for the polyamide-based powder coatings is about 1500 tonne/y. Several production units for long-chain dicarboxylic acids have been commissioned recently in China. Because demand in downstream sectors remains limited, much of the new production is exported. The main end-use for long-chain dicarboxylic acids is in the production of nylon engineering plastics, ahead of synthetic perfumes. Use of the chemicals in the production of hot-melt adhesives, powder coatings, and lubricants remains at a very low level compared with total consumption, which totalled about 13,000 tonnes in 2009. Since some of the downstream products were for the export market, actual demand for long-chain dicarboxylic acids in China can be considered to be much lower. Chinese producers have been adversely impacted by lower prices and increased competition. The need for lower production costs, enhance product quality, and development of downstream sectors is noted. Future development of the Chinese longchain dicarboxylic acids sector will require increased levels of communication and coordination. China Chemical Reporter, 21 Feb 2011, 22 (4), 23 (Website: http://www.ccr.com.cn)
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