- Email: [email protected]
Cytec installs new stabilizers line in China, reports improved additive sales in 2Q 2011
STRATEGIES
Evonik sells acrylate-based plastic additives & plastisols business to Kaneka
J
apanese chemical company Kaneka Corp, through its European subsidiary Kaneka Belgium NV, has acquired the acrylate-based plastic additives and plastisols businesses of Evonik Röhm GmbH, part of Germany’s Evonik Industries AG Group. Both parties have agreed not to disclose the selling price. The transaction includes two production plants at Wesseling, near Cologne in Germany, and affects some 30 employees at the location, all of whom were to be offered the opportunity to stay on, the companies confirmed. The plastic additives produced in Wesseling are used as processing aids or impact modifiers for PVC and engineering plastics. Plastisols are used in the automotive industry as a PVC substitute for underbody protection and as sealants. According to Kaneka, its modifiers business has been growing with its global manufacturing and sales facilities in Japan, the USA, Europe (Belgium) and Asia (Singapore, Malaysia, China, India, Australia and Vietnam). The Evonik acquisition is designed to expand Kaneka’s operations and strengthen the competitive advantage of this business in Europe, while also promoting its ongoing development through the acquisition of promising technology and improved access to local markets. Initially, Kaneka Belgium was to manage the sales and production of the acquired businesses while setting up a new company, provisionally named Kaneka Modifiers Deutschland GmbH, to take over operations at the Wesseling site. The new company, which will have a capital of E3 million, was scheduled to commence operating during August 2011. It will remain a 100%-owned subsidiary of Kaneka Belgium. Contact: Evonik Industries AG, Essen, Germany. Tel: +49 201 177 3333, Web: www.evonik.com Or contact: Kaneka Belgium NV, Nijverheidsstraat 16, B-2260 Westerlo-Oevel, Belgium. Tel: +32 14 25 78 00, Fax: +32 14 25 78 81, Web: www.kaneka.be
6
Additives for Polymers
Cytec installs new stabilizers line in China, reports improved additive sales in 2Q 2011
C
ytec Industries Inc is setting up a new production line for its Cyasorb Cynergy Solutions™ stabilizers at its manufacturing site in Fengxian (Shanghai), China. Start up of the new production line is expected in the first quarter of 2012. The new line will manufacture, among other products, Cyasorb Cynergy Solutions™ V703 stabilizer, the company’s most recent UV stabilization solution for automotive thermoplastic olefin (TPO) compounds [ADPO, December 2010]. The production of the monomeric hindered amine light stabilizer Cyasorb UV-3853 will also be increased. The addition of this production line will allow Cytec’s customers in the Asia Pacific, and particularly in China, to get a faster supply of its highperformance UV stabilizers, says Domenico Romanino, global business director Polymer Additives. This investment, in conjunction with the already-announced manufacturing expansions in Willow Island, WV, USA [ibid, February 2011], represents ‘an important commitment to our customers and to their need for high-performance UV protection solutions’, Romanino adds. For the second quarter of 2011, Cytec posted net earnings of US$35.1 million on net sales of $798 million. Earnings from continuing operations attributable to Cytec were $36.2 million while the loss from discontinued operations was $1.1 million. Special items for the quarter totalled $9.7 million of net expense after-tax. By comparison, net earnings for 2Q 2010 were $61.8 million on net sales of $702 million. Net earnings from continuing operations excluding special items were $53.6 million. According to company president and CEO Shane Fleming, Cytec overcame the challenge of continued raw material cost escalation and macroeconomic uncertainty and delivered good sequential sales and earnings growth across its portfolio. ‘We remained disciplined in our pricing actions in our Specialty Chemicals businesses and were able to more than offset the impact of sharply increased raw material costs’, he says. Sales growth for the quarter included 10% from higher selling prices and 5% from exchange rate changes versus 2Q 2010. This was partially offset by slightly lower sell-
September 2011
STRATEGIES
ing volumes of 1%. In the Coating Resins and Additive Technologies segments industrial markets softened in the latter part of the quarter, though good volume growth continued for the company’s other segments. In Additive Technologies, 2Q sales increased 10% to $73 million compared to the same period in 2010. Overall selling volumes were down by 3% year on year, attributed primarily to weaker demand in the North America and Asia Pacific regions, as well as to limited product availability given the short-term capacity constraints in this business as Cytec operates at high utilization levels and focuses on asset reliability to meet customers’ needs. This was offset by higher selling prices of 8% and the favourable impact of changes in exchange rates of 5%. Quarterly operating earnings of $10.1 million for the segment were down slightly compared to $10.7 million in 2Q 2010, mainly as a result of lower selling volumes and higher operating expenses. Increased selling prices essentially offset increased raw material costs of $5.6 million. Contact: Cytec Industries Inc, Woodland Park, NJ, USA. Tel: +1 973 357 3100, Web: www.cytec.com
Sudarshan invests US$20 million in pigment facility upgrade
A
s part of its globalization strategy, India’s Sudarshan is upgrading its pigments manufacturing facility at Roha in the state of Maharashtra with an investment of Rup 1 billion (c. US$20 million). According to the company, the key developments include new highperformance pigment plants, capacity expansion for pearlescent effect pigments, a 120 000 ft2 (11 150 m2) warehouse with a storage capacity of 1600 tonnes, and expansions in R&D and application laboratories. Sudarshan says that the upgrade will make Roha a world-class facility and allow the company to cater to the increasing demand for pigments from the booming automotive, plastics and cosmetics industries. The new plants are being equipped with a high level of automation and instrumentation for better process control, the company says. The site will also recycle 1000 m3 of water each
September 2011
day and has a co-generation plant with a high-efficiency boiler to reduce effluent load and suspended particulate matter levels so as to ensure that the surrounding environment is not impacted in a negative way. According to Sudarshan Chemicals’ director Rajesh Rathi, the company aspires to be amongst the top four pigment players worldwide by 2014, and the Roha expansion is part of the strategy to achieve this goal. The company also has plans to invest a further Rup 1 billion to upgrade and expand its second pigment production facility at Mahad. Investment to establish a ‘robust global supply chain’ is also planned. With a turnover of about Rup 7 billion for fiscal year 2010–2011, Sudarshan Chemicals commands about a third of India’s Rup 5 billion/year market for pigments. It now intends to make ‘exports its main growth driver’, says Rathi. The company started its expansion into global markets in 2008, setting up wholly-owned subsidiaries in Europe [ADPO, November 2008] and North America. It is now preparing to open sales offices in China and Latin America by the end of 2011, Rathi reports. Beyond 2013–2014, the company is also looking at establishing manufacturing facilities outside India, especially in China, it says. Sudarshan manufactures a range of more than 400 organic, inorganic and pearlescent pigments and dispersions serving the worldwide coatings, plastics, inks, cosmetics, textiles and construction industries. Production capacity for both inorganic and organic pigments exceeds 10 000 tonnes per year. Contact: Sudarshan Chemical Industries Ltd, 162 Wellesley Road, Pune, 411 001, India. Tel: +91 20 26058888, Fax: +91 20 26058222, Web: www.sudarshan.com
Vertellus establishes new applications development research centre
S
peciality chemicals company Vertellus Specialties Inc is establishing a more-centralized applications development research centre in Ledgewood, NJ, close to its Parsippany office, as part of its aggressive growth strategy. The company says that the new lab will enable it to pursue opportunities that have recently
Additives for Polymers
7
Evonik sells acrylate-based plastic additives & plastisols business to Kaneka
J
apanese chemical company Kaneka Corp, through its European subsidiary Kaneka Belgium NV, has acquired the acrylate-based plastic additives and plastisols businesses of Evonik Röhm GmbH, part of Germany’s Evonik Industries AG Group. Both parties have agreed not to disclose the selling price. The transaction includes two production plants at Wesseling, near Cologne in Germany, and affects some 30 employees at the location, all of whom were to be offered the opportunity to stay on, the companies confirmed. The plastic additives produced in Wesseling are used as processing aids or impact modifiers for PVC and engineering plastics. Plastisols are used in the automotive industry as a PVC substitute for underbody protection and as sealants. According to Kaneka, its modifiers business has been growing with its global manufacturing and sales facilities in Japan, the USA, Europe (Belgium) and Asia (Singapore, Malaysia, China, India, Australia and Vietnam). The Evonik acquisition is designed to expand Kaneka’s operations and strengthen the competitive advantage of this business in Europe, while also promoting its ongoing development through the acquisition of promising technology and improved access to local markets. Initially, Kaneka Belgium was to manage the sales and production of the acquired businesses while setting up a new company, provisionally named Kaneka Modifiers Deutschland GmbH, to take over operations at the Wesseling site. The new company, which will have a capital of E3 million, was scheduled to commence operating during August 2011. It will remain a 100%-owned subsidiary of Kaneka Belgium. Contact: Evonik Industries AG, Essen, Germany. Tel: +49 201 177 3333, Web: www.evonik.com Or contact: Kaneka Belgium NV, Nijverheidsstraat 16, B-2260 Westerlo-Oevel, Belgium. Tel: +32 14 25 78 00, Fax: +32 14 25 78 81, Web: www.kaneka.be
6
Additives for Polymers
Cytec installs new stabilizers line in China, reports improved additive sales in 2Q 2011
C
ytec Industries Inc is setting up a new production line for its Cyasorb Cynergy Solutions™ stabilizers at its manufacturing site in Fengxian (Shanghai), China. Start up of the new production line is expected in the first quarter of 2012. The new line will manufacture, among other products, Cyasorb Cynergy Solutions™ V703 stabilizer, the company’s most recent UV stabilization solution for automotive thermoplastic olefin (TPO) compounds [ADPO, December 2010]. The production of the monomeric hindered amine light stabilizer Cyasorb UV-3853 will also be increased. The addition of this production line will allow Cytec’s customers in the Asia Pacific, and particularly in China, to get a faster supply of its highperformance UV stabilizers, says Domenico Romanino, global business director Polymer Additives. This investment, in conjunction with the already-announced manufacturing expansions in Willow Island, WV, USA [ibid, February 2011], represents ‘an important commitment to our customers and to their need for high-performance UV protection solutions’, Romanino adds. For the second quarter of 2011, Cytec posted net earnings of US$35.1 million on net sales of $798 million. Earnings from continuing operations attributable to Cytec were $36.2 million while the loss from discontinued operations was $1.1 million. Special items for the quarter totalled $9.7 million of net expense after-tax. By comparison, net earnings for 2Q 2010 were $61.8 million on net sales of $702 million. Net earnings from continuing operations excluding special items were $53.6 million. According to company president and CEO Shane Fleming, Cytec overcame the challenge of continued raw material cost escalation and macroeconomic uncertainty and delivered good sequential sales and earnings growth across its portfolio. ‘We remained disciplined in our pricing actions in our Specialty Chemicals businesses and were able to more than offset the impact of sharply increased raw material costs’, he says. Sales growth for the quarter included 10% from higher selling prices and 5% from exchange rate changes versus 2Q 2010. This was partially offset by slightly lower sell-
September 2011
STRATEGIES
ing volumes of 1%. In the Coating Resins and Additive Technologies segments industrial markets softened in the latter part of the quarter, though good volume growth continued for the company’s other segments. In Additive Technologies, 2Q sales increased 10% to $73 million compared to the same period in 2010. Overall selling volumes were down by 3% year on year, attributed primarily to weaker demand in the North America and Asia Pacific regions, as well as to limited product availability given the short-term capacity constraints in this business as Cytec operates at high utilization levels and focuses on asset reliability to meet customers’ needs. This was offset by higher selling prices of 8% and the favourable impact of changes in exchange rates of 5%. Quarterly operating earnings of $10.1 million for the segment were down slightly compared to $10.7 million in 2Q 2010, mainly as a result of lower selling volumes and higher operating expenses. Increased selling prices essentially offset increased raw material costs of $5.6 million. Contact: Cytec Industries Inc, Woodland Park, NJ, USA. Tel: +1 973 357 3100, Web: www.cytec.com
Sudarshan invests US$20 million in pigment facility upgrade
A
s part of its globalization strategy, India’s Sudarshan is upgrading its pigments manufacturing facility at Roha in the state of Maharashtra with an investment of Rup 1 billion (c. US$20 million). According to the company, the key developments include new highperformance pigment plants, capacity expansion for pearlescent effect pigments, a 120 000 ft2 (11 150 m2) warehouse with a storage capacity of 1600 tonnes, and expansions in R&D and application laboratories. Sudarshan says that the upgrade will make Roha a world-class facility and allow the company to cater to the increasing demand for pigments from the booming automotive, plastics and cosmetics industries. The new plants are being equipped with a high level of automation and instrumentation for better process control, the company says. The site will also recycle 1000 m3 of water each
September 2011
day and has a co-generation plant with a high-efficiency boiler to reduce effluent load and suspended particulate matter levels so as to ensure that the surrounding environment is not impacted in a negative way. According to Sudarshan Chemicals’ director Rajesh Rathi, the company aspires to be amongst the top four pigment players worldwide by 2014, and the Roha expansion is part of the strategy to achieve this goal. The company also has plans to invest a further Rup 1 billion to upgrade and expand its second pigment production facility at Mahad. Investment to establish a ‘robust global supply chain’ is also planned. With a turnover of about Rup 7 billion for fiscal year 2010–2011, Sudarshan Chemicals commands about a third of India’s Rup 5 billion/year market for pigments. It now intends to make ‘exports its main growth driver’, says Rathi. The company started its expansion into global markets in 2008, setting up wholly-owned subsidiaries in Europe [ADPO, November 2008] and North America. It is now preparing to open sales offices in China and Latin America by the end of 2011, Rathi reports. Beyond 2013–2014, the company is also looking at establishing manufacturing facilities outside India, especially in China, it says. Sudarshan manufactures a range of more than 400 organic, inorganic and pearlescent pigments and dispersions serving the worldwide coatings, plastics, inks, cosmetics, textiles and construction industries. Production capacity for both inorganic and organic pigments exceeds 10 000 tonnes per year. Contact: Sudarshan Chemical Industries Ltd, 162 Wellesley Road, Pune, 411 001, India. Tel: +91 20 26058888, Fax: +91 20 26058222, Web: www.sudarshan.com
Vertellus establishes new applications development research centre
S
peciality chemicals company Vertellus Specialties Inc is establishing a more-centralized applications development research centre in Ledgewood, NJ, close to its Parsippany office, as part of its aggressive growth strategy. The company says that the new lab will enable it to pursue opportunities that have recently
Additives for Polymers
7