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Ciba & Techmer PM create masterbatch alliance
F O C US Vietnam: VCC – carbon black Vietnam Chemical Corp (VCC) has started construction work on the country’s first carbon black plant, which should be ready by the beginning of 2005. Investment in the project is budgeted at $40 M and several companies based in the US or Thailand have expressed interest in participating on a joint venture basis. The initial capacity of the plant, located at Dung Quat, will be 50,000 tonnes/y. Chimie Hebdo, 15 Sep 2003, (226), 6 (in French)
COMPANIES Arch sells Hickson & Welch Arch Chemicals Inc has sold Hickson & Welch Ltd to Greentag Ltd. (a subsidiary of Dunedin Capital Partners Ltd) for £11 M. Hickson & Welch (based in Castleford, Yorkshire) makes fine organic chemicals and has a substantial business in contract chemical manufacturing for the pigments and dyes sector, as well as for the agricultural chemical, pharmaceutical and detergent sectors. Hickson & Welch currently employs 300 people and reported sales of £40 M for fullyear 2002. Hickson & Welch is the world’s leading supplier of p-toluidine2-sulfonic acid, an important intermediate in the manufacture of certain organic pigments. It is also a leading supplier of optical brighteners. Chimie Hebdo, 1 Sep 2003, (224), 8 (in French)
Cabot’s tonnage sales of carbon black down 4% in June quarter Cabot Corp reported an operating loss of $5 M for the quarter to endJune 2003, bringing the total operating profit for the first nine months of the company’s financial year down to $52 M. Results for the latest quarter were mainly affected by one-off charges, including $14 M related to the acquisition of Superior Micropowders and $17 M associated with a major restructuring exercise for carbon black and other activities in Europe. Cabot also took a charge of $20 M to cover its estimated share of pay-outs on existing and future
OCTOBER 2003
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PIGMENTS
respirator product liability claims, arising from exposure to asbestos and other materials. Cabot’s sales volumes of carbon black volumes increased in South America and Asia Pacific, but decreased in North America and Europe, comparing the June 2003 quarter against the June 2002 quarter. Globally, Cabot’s carbon black sales volume fell by 4%. Reduced profit margins and higher manufacturing and administrative costs significantly impacted profitability. Due to the weakening of the US dollar, the translation of foreign operating earnings provided a $12 M benefit (year over year) and this was enough to more than offset all the negative factors. In North America, Cabot suffered a 12% drop in sales volume, due to lower market demand, particularly for rubber blacks. Margins were lower and these factors caused a $7 M decline in regional operating profit. In South America, sales remained strong, though the volume increase over last year was only 1%. As a result of lower margins, operating profit decreased by $1 M. In Europe, Cabot’s carbon black sales volume fell by 6%, but this was more than offset by favourable exchange rates (ie the strengthening Euro), so that regional operating profit increased by $7 M, compared against the same quarter last year. In Asia/Pacific, Cabot’s sales volume increased by 12%, but margins were lower and so regional operating profit improved by only $1 M. Cabot’s global sales of fumed metal oxides (including fumed silica) declined in volume by 1%, compared against the equivalent period of last year. Sales to the traditional silicone rubber sector improved, but they decreased slightly in both the electronics and niche market sectors. Press release from: Cabot Corp, 2 Seaport Lane, Suite 1300, Boston, MA 02210, USA. Website: http://www.cabot-corp.com (11 Aug 2003)
Ciba & Techmer PM create masterbatch alliance Ciba Speciality Chemicals and Techmer PM have signed an agreement creating a global alliance for their plastics masterbatch businesses. Ciba will sell Techmer’s
masterbatches – made in the US – under the brandname Techsperse. In return, Ciba’s own masterbatch products – made in Europe, East Asia and the Middle East – will be sold by Techmer under Ciba’s normal brandname. The agreement also covers non-exclusive licensing of knowhow and patents Kunststoffe, Jul 2003, 93 (7), 11 (in German)
Clariant still in the red & planning massive divestment programme Clariant reported a consolidated loss of SFR 49 M in 1H 2003, following losses of SFR 648 M for full-year 2002 and SFR 1.242 bn for full-year 2001. Thanks to a vigorous costcutting programme, the group reduced annual costs by SFR 60 M during 1H 2003 and it plans to make savings worth a further SFR 100 M per annum by the end of 2004. However, the Clariant group still has outstanding debt of SFR 3.7 bn, which is more than three times the current value of its equity. With the aim of reducing debt to SFR 2.5 bn, a massive divestment programme is now planned, entailing the sell-off of activities currently generating 15-20% of Clariant’s global turnover. Mr Roland Lösser, who took over as CEO in March 2003, is convinced that assets sales represent the best way to strengthen Clariant’s balance sheet. His predecessor, Mr Reinhard Handte, had proposed issuing new shares to raise capital, but these proposals were rejected by the Clariant Board and shareholders, thereby prompting Mr Handte’s resignation. Clariant is already negotiating with potential buyers for its cellulose ethers business (with annual sales of SFR 250 M) and its electronic materials business (with annual sales of SFR 400 M). The sale of these two businesses is expected to raise more than SFR 1.5 bn. The company will also close two agricultural chemical custom synthesis plants at Griesheim (near Frankfurt, Germany) and two similar plants at Elgin, SC, and Mount Holly, NC, in the United States. These closures will take place by the end of 2004, with the loss of 200 jobs; they should enable Clariant to improve its return on capital from 7% to 12%. For 1H 2003, Clariant reported
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COMPANIES Arch sells Hickson & Welch Arch Chemicals Inc has sold Hickson & Welch Ltd to Greentag Ltd. (a subsidiary of Dunedin Capital Partners Ltd) for £11 M. Hickson & Welch (based in Castleford, Yorkshire) makes fine organic chemicals and has a substantial business in contract chemical manufacturing for the pigments and dyes sector, as well as for the agricultural chemical, pharmaceutical and detergent sectors. Hickson & Welch currently employs 300 people and reported sales of £40 M for fullyear 2002. Hickson & Welch is the world’s leading supplier of p-toluidine2-sulfonic acid, an important intermediate in the manufacture of certain organic pigments. It is also a leading supplier of optical brighteners. Chimie Hebdo, 1 Sep 2003, (224), 8 (in French)
Cabot’s tonnage sales of carbon black down 4% in June quarter Cabot Corp reported an operating loss of $5 M for the quarter to endJune 2003, bringing the total operating profit for the first nine months of the company’s financial year down to $52 M. Results for the latest quarter were mainly affected by one-off charges, including $14 M related to the acquisition of Superior Micropowders and $17 M associated with a major restructuring exercise for carbon black and other activities in Europe. Cabot also took a charge of $20 M to cover its estimated share of pay-outs on existing and future
OCTOBER 2003
O N
PIGMENTS
respirator product liability claims, arising from exposure to asbestos and other materials. Cabot’s sales volumes of carbon black volumes increased in South America and Asia Pacific, but decreased in North America and Europe, comparing the June 2003 quarter against the June 2002 quarter. Globally, Cabot’s carbon black sales volume fell by 4%. Reduced profit margins and higher manufacturing and administrative costs significantly impacted profitability. Due to the weakening of the US dollar, the translation of foreign operating earnings provided a $12 M benefit (year over year) and this was enough to more than offset all the negative factors. In North America, Cabot suffered a 12% drop in sales volume, due to lower market demand, particularly for rubber blacks. Margins were lower and these factors caused a $7 M decline in regional operating profit. In South America, sales remained strong, though the volume increase over last year was only 1%. As a result of lower margins, operating profit decreased by $1 M. In Europe, Cabot’s carbon black sales volume fell by 6%, but this was more than offset by favourable exchange rates (ie the strengthening Euro), so that regional operating profit increased by $7 M, compared against the same quarter last year. In Asia/Pacific, Cabot’s sales volume increased by 12%, but margins were lower and so regional operating profit improved by only $1 M. Cabot’s global sales of fumed metal oxides (including fumed silica) declined in volume by 1%, compared against the equivalent period of last year. Sales to the traditional silicone rubber sector improved, but they decreased slightly in both the electronics and niche market sectors. Press release from: Cabot Corp, 2 Seaport Lane, Suite 1300, Boston, MA 02210, USA. Website: http://www.cabot-corp.com (11 Aug 2003)
Ciba & Techmer PM create masterbatch alliance Ciba Speciality Chemicals and Techmer PM have signed an agreement creating a global alliance for their plastics masterbatch businesses. Ciba will sell Techmer’s
masterbatches – made in the US – under the brandname Techsperse. In return, Ciba’s own masterbatch products – made in Europe, East Asia and the Middle East – will be sold by Techmer under Ciba’s normal brandname. The agreement also covers non-exclusive licensing of knowhow and patents Kunststoffe, Jul 2003, 93 (7), 11 (in German)
Clariant still in the red & planning massive divestment programme Clariant reported a consolidated loss of SFR 49 M in 1H 2003, following losses of SFR 648 M for full-year 2002 and SFR 1.242 bn for full-year 2001. Thanks to a vigorous costcutting programme, the group reduced annual costs by SFR 60 M during 1H 2003 and it plans to make savings worth a further SFR 100 M per annum by the end of 2004. However, the Clariant group still has outstanding debt of SFR 3.7 bn, which is more than three times the current value of its equity. With the aim of reducing debt to SFR 2.5 bn, a massive divestment programme is now planned, entailing the sell-off of activities currently generating 15-20% of Clariant’s global turnover. Mr Roland Lösser, who took over as CEO in March 2003, is convinced that assets sales represent the best way to strengthen Clariant’s balance sheet. His predecessor, Mr Reinhard Handte, had proposed issuing new shares to raise capital, but these proposals were rejected by the Clariant Board and shareholders, thereby prompting Mr Handte’s resignation. Clariant is already negotiating with potential buyers for its cellulose ethers business (with annual sales of SFR 250 M) and its electronic materials business (with annual sales of SFR 400 M). The sale of these two businesses is expected to raise more than SFR 1.5 bn. The company will also close two agricultural chemical custom synthesis plants at Griesheim (near Frankfurt, Germany) and two similar plants at Elgin, SC, and Mount Holly, NC, in the United States. These closures will take place by the end of 2004, with the loss of 200 jobs; they should enable Clariant to improve its return on capital from 7% to 12%. For 1H 2003, Clariant reported
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