- Email: [email protected]
Cognis sells stake in oleochemicals jv to PTT Chemical
STRATEGIES
The technology will be licensed by Polyfect to operators in the plastics supply chain to integrate into their existing processes. The capital expenditure and running costs of using this technology are reported to be low whilst the potential material cost savings are high, making it profitable for licensees with a short payback time. Initial feedback from potential licensees on the technology has been very positive and IPSO believes that this business model should quickly generate high-margin royalty revenues for Polyfect. IPSO has appointed Ian Balchin as Polyfect’s interim CEO. Balchin, who has more than 20 years of experience commercializing technologies, including polymer related technologies, says that Polyfect’s technology has the potential to create significant savings for polymer processors through reduced filler costs, light-weighting of components and the creation of new polymer materials without having to use chemical processing to ensure good dispersion of fillers. ‘At a time when high oil prices are impacting on polymer feedstock prices, Polyfect’s technology should be welcomed as a way of reducing manufacturing costs and environmental impact’, he says. Balchin’s initial focus will be on scaling up the technology and engaging with ‘a select number of organizations that recognize its potential and wish to be amongst the first to realize its benefits’. Contact: Anna Seddon, Loughborough University Enterprise Office, Loughborough, UK. Tel: +44 1509 223445, Email: [email protected] Or contact: IPSO Ventures plc, London, UK. Tel: +44 20 7395 1503, Web: www.ipsoventures.com
Clariant acquisition strengthens North American masterbatch position
I
n the USA, Clariant Masterbatches has acquired the combined companies of Rite Systems Inc and Ricon Colors Inc, leading US masterbatch suppliers with both liquid and solid technology. The purchase gives Clariant Masterbatches a stronger position in the liquid
6
Additives for Polymers
colouring field and substantially strengthens its market position in North America, which is an important growth region for this technology, it says. Terms of the acquisition agreement have not been revealed.
Rite Systems was founded in 1987 to offer liquid colorants to the plastics industry and three years later Ricon Colors was formed to produce colours and additives in powder and pellet form. With combined annual sales of around US$50 million, the two companies together employ approximately 150 people. They operate from three plants in the USA – West Chicago, IL, Mooresville, NC and Chino, CA – and a European operation based in Vienna, which opened five years ago. According to Clariant, the acquired portfolio comprises about two-thirds liquid and one-third solid masterbatches, with regard to turnover. ‘Rite Systems/Ricon Colors is an excellent partner to expand our product and service offering in North America, especially for our customers in the packaging and consumer goods market segments’, comments Dominik von Bertrab, head of Clariant Masterbatches. In particular, the ‘excellent knowledge’ of Rite Systems in the field of liquid masterbatches is a perfect addition to Clariant’s current capabilities, he says. ‘Further, Rite’s outstanding reputation in liquid colour will allow us to leverage this new competence into other regions where Clariant enjoys strong market positions, such as Europe, Asia and Latin America’, von Bertrab believes. Contact: Clariant Masterbatches Division, Muttenz, Switzerland. Tel: +41 61 469 6170, Web: www.clariant.masterbatches.com
Cognis sells stake in oleochemicals jv to PTT Chemical
C
ognis has sold its 50% stake in the Cognis Oleochemicals joint venture to PTT Chemical International Private Ltd for around 104 million in cash. The purchaser is a Singapore-based wholly owned subsidiary
October 2008
STRATEGIES
of Thailand’s olefin producer PTT Chemical Public Co Ltd. Cognis says that the sale is in line with its strategy of focusing on its core businesses driven by the ‘wellness and sustainability trends’.
Cognis Oleochemicals is a major producer of natural-based oleochemical products, used as plastics additives among other applications. Headquartered in Kuala Lumpur, Malaysia, it operates production sites in Europe, North America and Asia, with combined capacity of 925 000 tonnes/y, and sales and service centres in the UK, Brazil, Japan, China and Hong Kong. The operation achieved sales of 729 million in 2007, including 130 million in deliveries to Cognis. Until the divestment it was a 50:50 joint venture between Cognis and Sime Darby Plantation Sdn Bhd, a leading oil palm plantation company with additional interests in related downstream activities such as oleochemicals. Subject to the usual closing conditions, the sale was expected to be completed by the end of September 2008. The existing management team will remain in place and the joint venture will continue to operate under the Cognis Oleochemicals name for an interim period until a new name is established. Cognis has existing long-term relationships with both Sime Darby and PTT Chemical International and says it intends to continue sourcing products from the oleochemicals business under normal third-party commercial terms. ‘On the basis of our excellent experiences with Sime Darby and PTT Chemical over many years, we are convinced that the new joint venture offers synergies that will help Oleochemicals to further develop its businesses’, comments Cognis CEO Antonio Trius. The transaction is the latest in a series of recent oleochemicals-related divestments. Chemtura sold its global oleochemicals business earlier this year, to US-based PMC Group NA Inc [ADPO, April 2008], and Croda International recently announced the sale of its US oleochemicals operations to investment firm HIG Capital. Contact: Cognis GmbH, Monheim, Germany. Tel: +49 2173 4995 222, Web: www.cognis.com Or contact: PTT Chemical, Bangkok, Thailand. Tel: +66 2265 8400, Web: www1.pttchem.com
October 2008
TOR Minerals completes Malaysian powder treatment centre
P
igment and mineral filler firm TOR Minerals International of Corpus Christi, TX, USA, has completed its newest powder treatment centre in Malaysia. The company also reports that it has made changes to its production and logistics operations designed to improve efficiencies and customer service worldwide.
According to the company’s CEO Dr Olaf Karasch, making the Malaysian facility state of the art enables TOR Minerals to better serve the rapidly growing Asian markets, and increase worldwide production and logistics efficiencies. This enhanced efficiency has allowed the Malaysian plant to assume a significant portion of the production of TOR’s Hitox® rutile titanium dioxide pigment previously carried out at the Corpus Christi site. The Corpus facility now has increased capacity to focus on producing the company’s recently introduced Tioprem® coloured pigments, Karasch says. These high-performance, heat-stable, beige, orange, grey and brown pigments for plastics, coatings and speciality applications have received ‘strong initial interest’ from customers, Karasch reports. TOR is also planning to utilize two new US warehouse locations in Norfolk, VA and Oakland, CA to store HITOX and serve customers in the Northeastern and Northwestern regions of North America. The ability to ship product directly from the Malaysian operations to these strategically located warehouses shortens delivery times and reduces freight costs for TOR’s customers, Karasch comments. ‘These changes should have a positive impact on our profitability and reduce our stocking requirements of synthetic rutile, thereby improving inventory turns and cash flows’, adds Barbara Russell, TOR’s CFO. Contact: TOR Minerals International, Corpus Christi, TX, USA. Tel: +1 361 882 5175, Web: www.torminerals.com
Additives for Polymers
7
The technology will be licensed by Polyfect to operators in the plastics supply chain to integrate into their existing processes. The capital expenditure and running costs of using this technology are reported to be low whilst the potential material cost savings are high, making it profitable for licensees with a short payback time. Initial feedback from potential licensees on the technology has been very positive and IPSO believes that this business model should quickly generate high-margin royalty revenues for Polyfect. IPSO has appointed Ian Balchin as Polyfect’s interim CEO. Balchin, who has more than 20 years of experience commercializing technologies, including polymer related technologies, says that Polyfect’s technology has the potential to create significant savings for polymer processors through reduced filler costs, light-weighting of components and the creation of new polymer materials without having to use chemical processing to ensure good dispersion of fillers. ‘At a time when high oil prices are impacting on polymer feedstock prices, Polyfect’s technology should be welcomed as a way of reducing manufacturing costs and environmental impact’, he says. Balchin’s initial focus will be on scaling up the technology and engaging with ‘a select number of organizations that recognize its potential and wish to be amongst the first to realize its benefits’. Contact: Anna Seddon, Loughborough University Enterprise Office, Loughborough, UK. Tel: +44 1509 223445, Email: [email protected] Or contact: IPSO Ventures plc, London, UK. Tel: +44 20 7395 1503, Web: www.ipsoventures.com
Clariant acquisition strengthens North American masterbatch position
I
n the USA, Clariant Masterbatches has acquired the combined companies of Rite Systems Inc and Ricon Colors Inc, leading US masterbatch suppliers with both liquid and solid technology. The purchase gives Clariant Masterbatches a stronger position in the liquid
6
Additives for Polymers
colouring field and substantially strengthens its market position in North America, which is an important growth region for this technology, it says. Terms of the acquisition agreement have not been revealed.
Rite Systems was founded in 1987 to offer liquid colorants to the plastics industry and three years later Ricon Colors was formed to produce colours and additives in powder and pellet form. With combined annual sales of around US$50 million, the two companies together employ approximately 150 people. They operate from three plants in the USA – West Chicago, IL, Mooresville, NC and Chino, CA – and a European operation based in Vienna, which opened five years ago. According to Clariant, the acquired portfolio comprises about two-thirds liquid and one-third solid masterbatches, with regard to turnover. ‘Rite Systems/Ricon Colors is an excellent partner to expand our product and service offering in North America, especially for our customers in the packaging and consumer goods market segments’, comments Dominik von Bertrab, head of Clariant Masterbatches. In particular, the ‘excellent knowledge’ of Rite Systems in the field of liquid masterbatches is a perfect addition to Clariant’s current capabilities, he says. ‘Further, Rite’s outstanding reputation in liquid colour will allow us to leverage this new competence into other regions where Clariant enjoys strong market positions, such as Europe, Asia and Latin America’, von Bertrab believes. Contact: Clariant Masterbatches Division, Muttenz, Switzerland. Tel: +41 61 469 6170, Web: www.clariant.masterbatches.com
Cognis sells stake in oleochemicals jv to PTT Chemical
C
ognis has sold its 50% stake in the Cognis Oleochemicals joint venture to PTT Chemical International Private Ltd for around 104 million in cash. The purchaser is a Singapore-based wholly owned subsidiary
October 2008
STRATEGIES
of Thailand’s olefin producer PTT Chemical Public Co Ltd. Cognis says that the sale is in line with its strategy of focusing on its core businesses driven by the ‘wellness and sustainability trends’.
Cognis Oleochemicals is a major producer of natural-based oleochemical products, used as plastics additives among other applications. Headquartered in Kuala Lumpur, Malaysia, it operates production sites in Europe, North America and Asia, with combined capacity of 925 000 tonnes/y, and sales and service centres in the UK, Brazil, Japan, China and Hong Kong. The operation achieved sales of 729 million in 2007, including 130 million in deliveries to Cognis. Until the divestment it was a 50:50 joint venture between Cognis and Sime Darby Plantation Sdn Bhd, a leading oil palm plantation company with additional interests in related downstream activities such as oleochemicals. Subject to the usual closing conditions, the sale was expected to be completed by the end of September 2008. The existing management team will remain in place and the joint venture will continue to operate under the Cognis Oleochemicals name for an interim period until a new name is established. Cognis has existing long-term relationships with both Sime Darby and PTT Chemical International and says it intends to continue sourcing products from the oleochemicals business under normal third-party commercial terms. ‘On the basis of our excellent experiences with Sime Darby and PTT Chemical over many years, we are convinced that the new joint venture offers synergies that will help Oleochemicals to further develop its businesses’, comments Cognis CEO Antonio Trius. The transaction is the latest in a series of recent oleochemicals-related divestments. Chemtura sold its global oleochemicals business earlier this year, to US-based PMC Group NA Inc [ADPO, April 2008], and Croda International recently announced the sale of its US oleochemicals operations to investment firm HIG Capital. Contact: Cognis GmbH, Monheim, Germany. Tel: +49 2173 4995 222, Web: www.cognis.com Or contact: PTT Chemical, Bangkok, Thailand. Tel: +66 2265 8400, Web: www1.pttchem.com
October 2008
TOR Minerals completes Malaysian powder treatment centre
P
igment and mineral filler firm TOR Minerals International of Corpus Christi, TX, USA, has completed its newest powder treatment centre in Malaysia. The company also reports that it has made changes to its production and logistics operations designed to improve efficiencies and customer service worldwide.
According to the company’s CEO Dr Olaf Karasch, making the Malaysian facility state of the art enables TOR Minerals to better serve the rapidly growing Asian markets, and increase worldwide production and logistics efficiencies. This enhanced efficiency has allowed the Malaysian plant to assume a significant portion of the production of TOR’s Hitox® rutile titanium dioxide pigment previously carried out at the Corpus Christi site. The Corpus facility now has increased capacity to focus on producing the company’s recently introduced Tioprem® coloured pigments, Karasch says. These high-performance, heat-stable, beige, orange, grey and brown pigments for plastics, coatings and speciality applications have received ‘strong initial interest’ from customers, Karasch reports. TOR is also planning to utilize two new US warehouse locations in Norfolk, VA and Oakland, CA to store HITOX and serve customers in the Northeastern and Northwestern regions of North America. The ability to ship product directly from the Malaysian operations to these strategically located warehouses shortens delivery times and reduces freight costs for TOR’s customers, Karasch comments. ‘These changes should have a positive impact on our profitability and reduce our stocking requirements of synthetic rutile, thereby improving inventory turns and cash flows’, adds Barbara Russell, TOR’s CFO. Contact: TOR Minerals International, Corpus Christi, TX, USA. Tel: +1 361 882 5175, Web: www.torminerals.com
Additives for Polymers
7