- Email: [email protected]
Comai increases capacity for masterbatches
STRATEGIES
and has become one of the world’s largest custom colour and additives concentrates manufacturers. Americhem also has locations in North Carolina, Texas and Georgia in the USA, and in the UK and China, and maintains representative sales offices in Luxembourg and Mexico. Contact: Americhem, Inc, Cuyahoga Falls, OH, USA. Tel: +1 330 929 4213, Web: www.americhem.com
Eastman to acquire Sterling Chemicals and restart plasticizer plant
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lobal chemicals company Eastman Chemical Co has entered into a definitive merger agreement to acquire Sterling Chemicals, Inc, a single-site North American petrochemical producer, for US$100 million in cash, subject to modest deductions at closing as provided in the merger agreement. The transaction, which includes Sterling’s idled plasticizer and acetic acid manufacturing assets in Texas City, TX, will enable Eastman to expand its non-phthalate plasticizer capacity to meet growing market demand. The transaction, which has been approved by both boards of directors, is expected to be completed after receipt of required regulatory approvals, approval of Sterling’s stockholders and satisfaction of other customary closing conditions. It is expected to be funded with available cash and to be accretive to Eastman’s full-year 2012 earnings per share in excess of Eastman’s cost of capital. Eastman plans to modify and restart Sterling’s currently mothballed plasticizer manufacturing facility to produce non-phthalate plasticizers, including Eastman 168™. The company says that this additional capacity will enable its Performance Chemicals and Intermediates (PCI) segment to serve the growing market demand for non-phthalate alternatives. In the North American and European nonphthalate plasticizers markets, total sales volume is expected to increase at a compounded annual rate of approximately 7% over the next five years. ‘This acquisition supports our growth strategy for our plasticizer product line, and will enable us to keep pace with the growing demand for non-phthalate alternatives,’ says Ron Lindsay, executive VP PCI and fibers. The acquisition also includes Sterling’s
8
Additives for Polymers
acetic acid production facility and its supply to BP Amoco Chemical under a long-term production agreement. For the first quarter of 2011, Eastman reported sales revenue of $1.75 billion, a 28% increase compared with $1.37 billion in 1Q 2010, due to higher sales volume and higher selling prices. Operating earnings in 1Q 2011 increased to $284 million compared with $189 million a year earlier, while net earnings more than doubled to $220 million. For the PCI segment, 1Q 2011 sales revenue was $694 million, up 44% compared with the same period in 2010. The increase was due to higher sales volume, including growth in plasticizer product lines, and higher selling prices in response to higher raw material and energy costs coupled with strengthened demand in the USA and tight industry supply. Quarterly operating earnings rose from $35 million to $88 million in 1Q 2011. Contact: Eastman Chemical Co, Kingsport, TN, USA. Tel: +1 423 229 2000, Web: www.eastman.com
Comai increases capacity for masterbatches
S
outh American masterbatch producer Comai Ltda is increasing its production capacity for carbon black, white and additive masterbatches based on polypropylene, polyethylene and polystyrene by around 10 000 tonnes/year. The company, which is located in Cartagena, Colombia, is investing in an additional production line, comprising a ZSK Mc18 twin screw compounding extruder equipped with 70 mm twin screws, a ZS-B twin screw side-feeder, a SWZ continuous screen pack changer and an UG underwater pelletizer from Germany’s Coperion GmbH. According to Comai’s managing director Antonio Sedan, the company already has three ZSK compounding extruders in operation. With the additional ZSK 70 Mc18 the company will be able to achieve a considerably higher output from the new production line, and also be able to change over from one product to another much faster and with less cleaning time than hitherto, Sedan comments. ‘We shall be able to respond more flexibly and quickly to customer requirements and to the temporary demands of the market’ he says. Comai Ltda was founded in Cartegena as Compounding and Masterbatching Industry Ltda in
August 2011
FINANCIALS
1991. The plant has existing production capacity of 24 000 tonnes per year of polypropylene compounds and masterbatches for a wide range of applications. Contact: Comai Ltda, Zona Franca Industrial Mamonal Bdg 7 y 8, Cartagena de Indias, Colombia. Tel: +57 5 668 5862, Fax: +57 5 668 5858, Email: [email protected], Web: www.comai.com.co
FINANCIALS Chemtura returns to profit in 1Q 2011, launches toll manufacturing service
F
or the first quarter ended 31 March 2011, Chemtura Corp posted net earnings from continuing operations on a GAAP basis of US$7 million on net sales of $699 million. This compares with a net loss of $177 million on net sales of $603 million for 1Q 2010. Describing the first quarter results as a ‘solid start to 2011’, CEO Craig A. Rogerson comments: ‘With the reorganization costs almost behind us, we returned to profitability on a GAAP basis’. Importantly, the company made ‘significant progress’ in recovering the increases in raw material costs through year-on-year changes, he says. According to Rogerson, the company is pursuing several ‘opportunities for earnings growth’, including the establishment of a strategic alliance in bromine and brominated derivatives with Archean Group in Chennai, India, which will provide a ‘cost-competitive and robust’ long-term bromine source for the Great Lakes Solutions business; a future joint venture between the two companies is also planned. In addition, Chemtura is deferring the planned idling of some of its own bromine and brine capacity at its South Arkansas facility and will invest to improve the operating efficiency of those assets to further boost earnings potential for the Industrial Engineered Products segment, he says. Industrial Engineered Products’ net sales increased $49 million or 31% to $209 million in 1Q 2011. The higher volume reflects increased sales to customers in the electronics, fine chemicals, pharmaceutical, insulation and furniture foam industries due in large
August 2011
part to improved global macroeconomic conditions. On a GAAP basis, operating profit increased $36 million to $33 million. Net sales by the Industrial Performance Products segment increased $50 million or 17% to $336 million while operating profit rose by $5 million. In other developments, Chemtura has launched a contract and toll manufacturing service including various alkylation, hydrogenation and trans-esterification technologies, aqueous and solvent polymerization, manufacture of dispersions and emulsions, and powder and liquid blending. ‘Chemtura has been manufacturing speciality chemicals for more than 57 years and knows that, when looking for a production partner, you need a company you can trust to deliver the quality and the service you expect’, says Peter Smith, general manager, Chemtura Antioxidants & UV Stabilizer Solutions business. Chemtura’s experience will allow customers to benefit from pilot to full-scale production, and a variety of process technologies for the manufacture of different product forms including powders, granules, pellets, liquids, dispersions and emulsions, it says. The support of highly qualified staff to develop formulations according to customer’s individual needs will also be available. All Chemtura manufacturing locations are certified to at least ISO 9001. The company says its new service offers production partners flexibility in increasing capacity, quicker and more cost-effective commercialization of new products, with lower risks and reduced capital investment. The company has also recently announced plans to build a multipurpose manufacturing facility in Nantong, China. It will initially serve the petroleum additives and urethanes businesses but is also expected to provide ‘sufficient additional capacity’ for other Chemtura businesses. Contact: Chemtura Corp, Middlebury, CT, USA. Tel: +1 203 573 2000, Web: www.chemtura.com
Lanxess reports ‘best-ever’ quarter, announces HQ move to Cologne
G
erman speciality chemicals company Lanxess reports that it achieved its best-ever
Additives for Polymers
9
and has become one of the world’s largest custom colour and additives concentrates manufacturers. Americhem also has locations in North Carolina, Texas and Georgia in the USA, and in the UK and China, and maintains representative sales offices in Luxembourg and Mexico. Contact: Americhem, Inc, Cuyahoga Falls, OH, USA. Tel: +1 330 929 4213, Web: www.americhem.com
Eastman to acquire Sterling Chemicals and restart plasticizer plant
G
lobal chemicals company Eastman Chemical Co has entered into a definitive merger agreement to acquire Sterling Chemicals, Inc, a single-site North American petrochemical producer, for US$100 million in cash, subject to modest deductions at closing as provided in the merger agreement. The transaction, which includes Sterling’s idled plasticizer and acetic acid manufacturing assets in Texas City, TX, will enable Eastman to expand its non-phthalate plasticizer capacity to meet growing market demand. The transaction, which has been approved by both boards of directors, is expected to be completed after receipt of required regulatory approvals, approval of Sterling’s stockholders and satisfaction of other customary closing conditions. It is expected to be funded with available cash and to be accretive to Eastman’s full-year 2012 earnings per share in excess of Eastman’s cost of capital. Eastman plans to modify and restart Sterling’s currently mothballed plasticizer manufacturing facility to produce non-phthalate plasticizers, including Eastman 168™. The company says that this additional capacity will enable its Performance Chemicals and Intermediates (PCI) segment to serve the growing market demand for non-phthalate alternatives. In the North American and European nonphthalate plasticizers markets, total sales volume is expected to increase at a compounded annual rate of approximately 7% over the next five years. ‘This acquisition supports our growth strategy for our plasticizer product line, and will enable us to keep pace with the growing demand for non-phthalate alternatives,’ says Ron Lindsay, executive VP PCI and fibers. The acquisition also includes Sterling’s
8
Additives for Polymers
acetic acid production facility and its supply to BP Amoco Chemical under a long-term production agreement. For the first quarter of 2011, Eastman reported sales revenue of $1.75 billion, a 28% increase compared with $1.37 billion in 1Q 2010, due to higher sales volume and higher selling prices. Operating earnings in 1Q 2011 increased to $284 million compared with $189 million a year earlier, while net earnings more than doubled to $220 million. For the PCI segment, 1Q 2011 sales revenue was $694 million, up 44% compared with the same period in 2010. The increase was due to higher sales volume, including growth in plasticizer product lines, and higher selling prices in response to higher raw material and energy costs coupled with strengthened demand in the USA and tight industry supply. Quarterly operating earnings rose from $35 million to $88 million in 1Q 2011. Contact: Eastman Chemical Co, Kingsport, TN, USA. Tel: +1 423 229 2000, Web: www.eastman.com
Comai increases capacity for masterbatches
S
outh American masterbatch producer Comai Ltda is increasing its production capacity for carbon black, white and additive masterbatches based on polypropylene, polyethylene and polystyrene by around 10 000 tonnes/year. The company, which is located in Cartagena, Colombia, is investing in an additional production line, comprising a ZSK Mc18 twin screw compounding extruder equipped with 70 mm twin screws, a ZS-B twin screw side-feeder, a SWZ continuous screen pack changer and an UG underwater pelletizer from Germany’s Coperion GmbH. According to Comai’s managing director Antonio Sedan, the company already has three ZSK compounding extruders in operation. With the additional ZSK 70 Mc18 the company will be able to achieve a considerably higher output from the new production line, and also be able to change over from one product to another much faster and with less cleaning time than hitherto, Sedan comments. ‘We shall be able to respond more flexibly and quickly to customer requirements and to the temporary demands of the market’ he says. Comai Ltda was founded in Cartegena as Compounding and Masterbatching Industry Ltda in
August 2011
FINANCIALS
1991. The plant has existing production capacity of 24 000 tonnes per year of polypropylene compounds and masterbatches for a wide range of applications. Contact: Comai Ltda, Zona Franca Industrial Mamonal Bdg 7 y 8, Cartagena de Indias, Colombia. Tel: +57 5 668 5862, Fax: +57 5 668 5858, Email: [email protected], Web: www.comai.com.co
FINANCIALS Chemtura returns to profit in 1Q 2011, launches toll manufacturing service
F
or the first quarter ended 31 March 2011, Chemtura Corp posted net earnings from continuing operations on a GAAP basis of US$7 million on net sales of $699 million. This compares with a net loss of $177 million on net sales of $603 million for 1Q 2010. Describing the first quarter results as a ‘solid start to 2011’, CEO Craig A. Rogerson comments: ‘With the reorganization costs almost behind us, we returned to profitability on a GAAP basis’. Importantly, the company made ‘significant progress’ in recovering the increases in raw material costs through year-on-year changes, he says. According to Rogerson, the company is pursuing several ‘opportunities for earnings growth’, including the establishment of a strategic alliance in bromine and brominated derivatives with Archean Group in Chennai, India, which will provide a ‘cost-competitive and robust’ long-term bromine source for the Great Lakes Solutions business; a future joint venture between the two companies is also planned. In addition, Chemtura is deferring the planned idling of some of its own bromine and brine capacity at its South Arkansas facility and will invest to improve the operating efficiency of those assets to further boost earnings potential for the Industrial Engineered Products segment, he says. Industrial Engineered Products’ net sales increased $49 million or 31% to $209 million in 1Q 2011. The higher volume reflects increased sales to customers in the electronics, fine chemicals, pharmaceutical, insulation and furniture foam industries due in large
August 2011
part to improved global macroeconomic conditions. On a GAAP basis, operating profit increased $36 million to $33 million. Net sales by the Industrial Performance Products segment increased $50 million or 17% to $336 million while operating profit rose by $5 million. In other developments, Chemtura has launched a contract and toll manufacturing service including various alkylation, hydrogenation and trans-esterification technologies, aqueous and solvent polymerization, manufacture of dispersions and emulsions, and powder and liquid blending. ‘Chemtura has been manufacturing speciality chemicals for more than 57 years and knows that, when looking for a production partner, you need a company you can trust to deliver the quality and the service you expect’, says Peter Smith, general manager, Chemtura Antioxidants & UV Stabilizer Solutions business. Chemtura’s experience will allow customers to benefit from pilot to full-scale production, and a variety of process technologies for the manufacture of different product forms including powders, granules, pellets, liquids, dispersions and emulsions, it says. The support of highly qualified staff to develop formulations according to customer’s individual needs will also be available. All Chemtura manufacturing locations are certified to at least ISO 9001. The company says its new service offers production partners flexibility in increasing capacity, quicker and more cost-effective commercialization of new products, with lower risks and reduced capital investment. The company has also recently announced plans to build a multipurpose manufacturing facility in Nantong, China. It will initially serve the petroleum additives and urethanes businesses but is also expected to provide ‘sufficient additional capacity’ for other Chemtura businesses. Contact: Chemtura Corp, Middlebury, CT, USA. Tel: +1 203 573 2000, Web: www.chemtura.com
Lanxess reports ‘best-ever’ quarter, announces HQ move to Cologne
G
erman speciality chemicals company Lanxess reports that it achieved its best-ever
Additives for Polymers
9