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Eurozone crisis sparks Procter & Gamble warning
FOCUS 6% lower in Swiss francs compared to the previous-year period. Additives benefited from good demand for waxes and continued solid business in non-halogenated flame retardants, especially in Asia. Business with waxes improved, with good demand for the innovative Licocene range. Further, a product based on renewable raw materials, introducing a new generation of lubricants to the PVC processing industry showed good progress. Sales in local currencies for Emulsions Detergents & Intermediates (ED&I) were slightly negative. Underlying demand in most business lines was robust, especially in the Intermediates business for agrochemicals and pharmaceuticals. Detergents experienced strong competitive pressure in TAED but will defend its strong market position. Sales in Emulsions benefited from the successful introduction of a new generation of terpolymers with an excellent cost-benefit ratio in comparison to pure acrylics and styrene-acrylics. After being successfully launched in Latin America, the product is taking shape with the successful market introduction in the Middle East and Africa. Paper Specialties sales were below previous-year’s levels, with demand impacted by weak sales in North America and Europe which could not be compensated by good demand from Latin America. Due to weaker paper consumption and overcapacities in the industry, customers have reduced their output. Profitability was affected by decreasing demand. However, there was some stabilization at the end of the first quarter. Sales in paper are expected to increase sequentially, driven by improved underlying demand and by the successful introduction of an innovative deposit control solution which improves paper machine cleanliness and operability when recycled paper is used as a raw material. Effective 1 Feb 2012, the business units (BUs) Emulsions and Detergents & Intermediates have been combined in one single BU: Emulsions Detergents & Intermediates. Original Source: Clariant International Ltd, Rothaustrasse 61, CH-4132 Muttenz 1, Switzerland, website: http://www.clariant.com (3 May 2012) © Clariant 2012
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COMPANY NEWS Solvay inaugurates research centre at Savli, Gujarat; eyeing surfactant unit acquisition
investors who believe the company is underperforming compared with its rivals. Original Source: The Independent, 21 Jun 2012, (Website: http://www.independent.co.uk) © independent.co.uk 2012
Coating additives: Elementis acquires Watercryl Quimica in Brazil
Solvay, Belgium, has commissioned a Rup 40 crore research, development and technology centre in Gujarat, India, to focus on organic chemistry, nanocomposites, green chemistry, and high performance polymers with a band of 200 researchers. The centre will work in association with premier institutions in India. The Solvay Group, having seven production sites and 900 employees in India since 2000 has been producing speciality polymers, surfactants, and engineering plastics. In India, the group recorded net sales of €180 M in 2011 and envisages doubling the same in 2012. Besides, the company is looking for acquiring small surfactant producing units in the country. (1 crore = 10 M, 1 lakh = 100,000).
UK chemicals company Elementis has paid $24 M to acquire Brazilian company Watercryl Quimica (which specializes in additives for coatings). Watercryl has production units in Palmital, Sao Paulo state. For the year to 31 Mar 2012, the company registered sales of $9.3 M and earnings before interest, tax, depreciation, and amortization of $2.3 M. The acquisition should be concluded during 2Q 2012. It will strengthen Elementis’ position on the South American market. The group made sales of $760.5 M in 2011 ($410.8 M of which came from its speciality products division). Elementis also produces and markets chromiumbased products and surfactants.
Original Source: Chemical Weekly, 5 Jun 2012, 136 (Website: http://www.chemicalweekly.com/) © Sevak Publications & Chemical Weekly Database P Ltd 2012
Original Source: Chimie Pharma Hebdo, 2 Jul 2012, (598), 10 (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2012
Eurozone crisis sparks Procter & Gamble warning
Clariant considers sale of some businesses
The world’s largest consumer goods group issued a profits warning on 20 Jun 2012 in another sign that the eurozone crisis is afflicting even the strongest businesses. Procter & Gamble admitted to worse-thanexpected sales in ‘developed regions’ such as western and southern Europe. Procter & Gamble, which owns scores of top brands such as Tide detergent and Ivory soap, lowered its earnings guidance for the current quarter and for the whole of 2013. Sales growth next year is now expected to be 2-3%, compared with a previous expectation of 4-5%. Net sales for the quarter are expected to be down 1-2%. There will also be a hit from foreign exchange rates. Its chairman and chief executive Bob McDonald is working on a $10 bn (£6 bn) cost-saving programme that will see the group focus on its most profitable arms. Mr McDonald wants Procter to have 5 bn customers by 2015. He is under pressure from
Swiss group Clariant recently confirmed that it is considering several options for its textile products, paper speciality chemicals, emulsions and detergents/intermediates businesses. Decisions should be announced within the next 18 months. The sale of these operations is in line with Clariant’s strategy to improve its profitability. The group wants to increase its earnings before interest, tax, depreciation, and amortization margin from 13.2% in 2011 to 17% by 2015 and to generate 70%+ of its sales from non-cyclical businesses. Between 2010 and 2011, Clariant’s textile products operations saw sales drop from SFR 821 M to SFR 675 M as a result of the strong Swiss franc and falling demand from China and South America. The other three businesses also had a negative effect on the group’s 2011 performance products sales. Chimie Pharma Hebdo, 2 Jul 2012, (598), 9 (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2012
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SEPTEMBER 2012
ON
S U R FA C TA N T S
COMPANY NEWS Solvay inaugurates research centre at Savli, Gujarat; eyeing surfactant unit acquisition
investors who believe the company is underperforming compared with its rivals. Original Source: The Independent, 21 Jun 2012, (Website: http://www.independent.co.uk) © independent.co.uk 2012
Coating additives: Elementis acquires Watercryl Quimica in Brazil
Solvay, Belgium, has commissioned a Rup 40 crore research, development and technology centre in Gujarat, India, to focus on organic chemistry, nanocomposites, green chemistry, and high performance polymers with a band of 200 researchers. The centre will work in association with premier institutions in India. The Solvay Group, having seven production sites and 900 employees in India since 2000 has been producing speciality polymers, surfactants, and engineering plastics. In India, the group recorded net sales of €180 M in 2011 and envisages doubling the same in 2012. Besides, the company is looking for acquiring small surfactant producing units in the country. (1 crore = 10 M, 1 lakh = 100,000).
UK chemicals company Elementis has paid $24 M to acquire Brazilian company Watercryl Quimica (which specializes in additives for coatings). Watercryl has production units in Palmital, Sao Paulo state. For the year to 31 Mar 2012, the company registered sales of $9.3 M and earnings before interest, tax, depreciation, and amortization of $2.3 M. The acquisition should be concluded during 2Q 2012. It will strengthen Elementis’ position on the South American market. The group made sales of $760.5 M in 2011 ($410.8 M of which came from its speciality products division). Elementis also produces and markets chromiumbased products and surfactants.
Original Source: Chemical Weekly, 5 Jun 2012, 136 (Website: http://www.chemicalweekly.com/) © Sevak Publications & Chemical Weekly Database P Ltd 2012
Original Source: Chimie Pharma Hebdo, 2 Jul 2012, (598), 10 (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2012
Eurozone crisis sparks Procter & Gamble warning
Clariant considers sale of some businesses
The world’s largest consumer goods group issued a profits warning on 20 Jun 2012 in another sign that the eurozone crisis is afflicting even the strongest businesses. Procter & Gamble admitted to worse-thanexpected sales in ‘developed regions’ such as western and southern Europe. Procter & Gamble, which owns scores of top brands such as Tide detergent and Ivory soap, lowered its earnings guidance for the current quarter and for the whole of 2013. Sales growth next year is now expected to be 2-3%, compared with a previous expectation of 4-5%. Net sales for the quarter are expected to be down 1-2%. There will also be a hit from foreign exchange rates. Its chairman and chief executive Bob McDonald is working on a $10 bn (£6 bn) cost-saving programme that will see the group focus on its most profitable arms. Mr McDonald wants Procter to have 5 bn customers by 2015. He is under pressure from
Swiss group Clariant recently confirmed that it is considering several options for its textile products, paper speciality chemicals, emulsions and detergents/intermediates businesses. Decisions should be announced within the next 18 months. The sale of these operations is in line with Clariant’s strategy to improve its profitability. The group wants to increase its earnings before interest, tax, depreciation, and amortization margin from 13.2% in 2011 to 17% by 2015 and to generate 70%+ of its sales from non-cyclical businesses. Between 2010 and 2011, Clariant’s textile products operations saw sales drop from SFR 821 M to SFR 675 M as a result of the strong Swiss franc and falling demand from China and South America. The other three businesses also had a negative effect on the group’s 2011 performance products sales. Chimie Pharma Hebdo, 2 Jul 2012, (598), 9 (Website: http://www.industrie.com/chimie/) (in French) © ETAI Information 2012
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