China: DIC — organic pigments

FOCUS products. Wood-plastic composite planking typically consists of 47% polymer, 47% wood fibre and 6% additives. ‘CMR’ reports that total US annual expenditure on additives used in making wood-plastic composites is currently around $30 M and it is projected to double by 2005. The breakdown of this additives market is estimated as: 35% colorants (both organic and inorganic); 30% lubricants; 20% heat and light stabilisers; 10% coupling agents; 5% others (including rheology control agents and softeners). Crompton Corp, Struktol Co of America, Ciba Specialty Chemicals and Rohm & Haas are among the major suppliers of additives for wood-plastic composites. Modern Plastics International, Jan 2003, 33 (1), 30-33 & Chemical Market Reporter, 20 Jan 2003, (http://www.chemicalmarketreporter.com)

Asia/Pacific paint consumption to rise above 11 M tonnes by 2005 In most countries of Asia, the paint industry typically consists of a few large plants wholly or partly owned by major multinationals and a lot of plants, ranging from large to small, operated by indigenous manufacturers. Akzo Nobel has operating subsidiaries in a number of Asian markets and one of its latest projects is for the setting up of an architectural paints plant at Cikarang as part of a 65:35 joint venture with the locally owned Bina Propertindo Edikarya. Akzo Nobel boosted its prominence in the region with the acquisition of all of Ferro Corp’s powder coatings facilities in Asia and the Americas; the $73 M deal was completed in August 2002. Asian Paints has recently acquired a controlling interest in Berger International (based in Singapore) and this means that the company now has paint-related operations in 23 countries. As well as being the largest Indian paintmaker, Asian Paints has now joined the ranks of the world’s top ten paint manufacturing companies. Total paint consumption in the Asia/Pacific region was 7.9 M tonnes in 2000 and this is forecast to increase to more than 11.1 M tonnes by 2005. Consumption in China is expected to increase from 2.5 M

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tonnes to more than 4 M tonnes. Elsewhere in East Asia, Japan currently consumes 1.86 M tonnes/y of paint; South Korea 850,000 tonnes/y; Taiwan 410,000 tonnes/y; and HongKong 130,000 tonnes/y. Total consumption in East Asia is forecast to rise to 8.3 M tonnes by 2005. Paint consumption in Southeast Asia is forecast to increase from 1.0 M tonnes/y in 2000 to 1.2 M tonnes/y in 2005. Paint consumption in India is forecast to rise from 0.8 M tonnes/y to 1.0 M tonnes/y. Consumption in Oceania is forecast to rise from 340,000 tonnes/y to 370,000 tonnes/y. For the most part, paint output tends to equate to consumption in a particular country. Nevertheless, Singapore and HongKong are both net exporters of good-quality paint, with substantial shipments to Bangladesh, Cambodia, China, Myanmar and Pakistan. Asian Chemical News, 28 Oct 2002, 9 (377), 16-20

PLANTS China: Cathay Pacific Pigment – organic pigments Cathay Pacific Pigment Holding Co has invested $20 M to acquire a 67.11% share in a new company, Chongqing Pesticide & Chemical Industrial (Group) Co Ltd, which has has a registered capital of $29.8 M. The company intends to become one of the largest producers of biological and low-toxicity pesticides in China. It is also committing itself to investing in new organic pigment capacity. Corporate sales revenue is estimated at RMB 1.5 bn in 2003 and the company wants to raise this to Yuan 5 bn by 2008. China Chemical Reporter, 26 Dec 2002, 13 (36), 8

China: Datong Changan – kaolin Construction work is about to begin on a 50,000 tonnes/y kaolin calciner at the Datong minesite in Shanxi province. The kaolin facilities here are operated by Datong Changan Kaolin Corp. Nearly Yuan 52 M has been budgetted for the new calciner. When it is in full production, the kaolin calciner is expected to generate

annual sales revenue of Yuan 40.356 M, with a pre-tax profit of Yuan 13 M. China Chemical Reporter, 6 Jan 2003, 14 (1), 10

China: DIC – organic pigments Dainippon Ink and Chemicals (DIC, of Tokyo) is on the point of commissioning its major new manufacturing complex at Nantong (Jiangsu province). The complex includes facilities for making 2500 tonnes/y of organic pigments and 4500 tonnes/y of intermediates used in the manufacture of printing inks. DIC is also evaluating Chinese sites for setting up a second major complex, with Shanghai-Pudong apparently a strong candidate. Japan Chemical Week, 2 Jan 2003, 44 (2202), 12

China: Elementis – inorganic pigments Elementis plc is budgeting £10 M to install a new “basic pigments” plant at Taicang. Presumably, the plant will be designed to produce inorganic pigments, but it is not yet clear whether the range will include iron oxide pigments, chrome pigments or other types. The plant should be onstream in 2004. Elementis already has several manufacturing operations in China, including an iron oxide pigments plant at Shenzhen and a recently inaugurated plant for producing organoclays at Changxing, near Nanjing. Press release from: Elementis plc, Ash House, Fairfield Avenue, Staines, TW18 4ES, UK. Tel: +44 1784 224212 (13 Dec 2002)

China: Engelhard – kaolin Engelhard, one of the leading US kaolin suppliers, now has a manufacturing presence in China thanks to the $12 M acquisition of Shuozhou Anpeak Kaolin. The company employs 230 people and its operations are located in the Pinglu district of Shuozhou city in Shanxi province. The mining and processing facilities are relatively modern and currently produce 18,500 tonnes/y of marketable kaolin. Engelhard will upgrade the facilities and intends to raise capacity here to 30,000 tonnes/y by 2005. Engelhard believes that Shuozhou

JANUARY 2003