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Lanxess expands iron oxide manufacturing facility in China with black pigment unit
STRATEGIES
In China, Cabot Bluestar Chemical, a JV between subsidiaries of Cabot and China National Bluestar (Group) Corp, has started construction of the US$43 million expansion to its fumed silica plant in Jiangxi Province. Announced early in 2010 [ibid, March 2010], the expansion will utilize Cabot’s advanced manufacturing technology and position the Jiangxi site with the potential to produce up to 20 000 tonnes of fumed silica annually. In the first phase, capacity will increase from 5000 tonnes to 15 000 tonnes, with commissioning expected in 2H 2011. For its fiscal year 2010 (ended 30 September), Cabot reported net income of $154 million on net sales of $2.89 billion, compared to a net loss of $77 million on net sales of $2.24 billion in fiscal 2009. The Performance segment, which includes masterbatches, speciality carbon blacks and silicas, achieved a profit of $130 million on sales of $783 million for the year, up substantially on 2009 levels. Contact: Cabot Corp, Boston, MA, USA. Tel: +1 617 345 0100, Web: www.cabot-corp.com
Songwon to expand capacity for antioxidants at Maeam
S
ongwon Industrial Co Ltd is expanding its annual production capacity for antioxidants from 55 000 tonnes to 70 000 tonnes. The expanded capacity will be on stream from August 2011. The expansion is the result of the consolidation of Songnox® 1076 production into the company’s new, fully backward-integrated Maeam plant in South Korea. Songwon believes that Maeam is now the largest plant in the world dedicated to key antioxidants based on a fully integrated manufacturing process. Since 2006, Songwon has pursued a strategy to maximize backward integration and economies of scale, comments chairman and CEO of Songwon Industrial Jongho Park. From the outset, the state-of-the-art facility at Maeam [ADPO, November 2006] has been dedicated to key antioxidants, with critical intermediates – and, more recently, starting material isobutylene [ibid, September 2009] – fully integrated into the manufacturing process. The company has now decided to integrate the production of Songnox 1076 into Maeam in order to enhance its competiveness and consolidate its position ‘as partner of choice for the polymer
January 2011
industry’, says Park. According to Maurizio Butti, CEO of Songwon International, this latest integration decision is particularly important because it allows Songwon to create additional capacity, not only for Songnox 1076, but for all its antioxidants, as well as enhancing production flexibility. ‘These two aspects are paramount to our commitment to customers in periods of strong demand, when product availability is critical’, Butti adds. The company is also taking the opportunity to introduce a new enhanced physical form for Songnox 1076, he reveals. The new product, Songnox 1076 SB, will ‘upgrade critical properties making it more robust and easier to handle and will deliver clear benefits for our customers’, Butti concludes. For the first half of 2010, Songwon delivered a net profit of KRW13.31 billion (E8.88 million), up 5% compared to the same period in 2009, on sales revenue of KRW264.03 billion. Park comments that the positive result has been achieved despite severe and continuing increases in raw material costs, which were only partly offset by price increases. Contact: Songwon Industrial Co, Ltd, Ulsan, Korea. Tel: +82 522 739 841, Web: www.songwonind.com
Lanxess expands iron oxide manufacturing facility in China with black pigment unit
A
t its existing site in Jinshan near Shanghai, Lanxess has started up a new production unit for Bayferrox high-quality black iron oxide pigments. The new unit has an annual capacity of 10 000 tonnes of black iron oxides, adding to the 28 000 tonnes/year of high-end yellow iron oxides already produced at the site. The colour shades being produced in the new unit are the most advanced blueish type black pigments in the industry, the company says. These products are used in a wide range of market segments including the plastics, construction and paints industries. The new facility sets high standards in terms of environmental protection, Lanxess says. The manufacturing unit not only recycles by-products from other processes into high-quality black iron oxide pigments, but is also among the first in China equipped with an ultra-modern wastewa-
Additives for Polymers
9
FINANCIALS
ter treatment facility that is directly linked to an industrial water treatment plant. This technology significantly reduces the amount of wastewater generated in comparison to existing production units in the region, Lanxess maintains. The rising demand for inorganic pigments in China is mainly driven by its ongoing urbanization, which has led to a boom in the construction and paint industries. Lanxess also anticipates penetrating new markets for the bluish type blacks in the Asia region, including China, Australia and India. Lanxess Inorganic Pigments started production in Shanghai in 1996. In 2008, the company acquired the Jinshan manufacturing site for iron oxide pigments. It completed the first phase of technical improvements for the production of yellow iron oxide pigments in April 2010, allowing the plant to run at full capacity of 28 000 tonnes. A second phase of improvements is scheduled for completion in 2011 and will again reduce the plant’s emissions and further improve its already excellent environmental performance, Lanxess says. Elsewhere, the company has invested about E3 million to equip the Bayferrox coloured pigment production plant at its Krefeld-Uerdingen site in Germany with new pre-filter units. Apart from optimizing the safety of the plant, this will also enhance internal logistics processes, thereby improving the reliability of supply. In addition, it will lower energy consumption. Contact: Lanxess, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com
FINANCIALS Chemtura reports 17% sales growth in 3Q 2010 as it emerges from Chapter 11
F
or the third quarter of 2010, Chemtura Corp reported net earnings from continuing operations on a GAAP basis of US$12 million on net sales of $710 million. This represents a 20% increase in earnings and 17% sales growth compared to 3Q 2009 figures of $10 million and $606 million, respectively. The company has subsequently successfully completed its finan-
10
Additives for Polymers
cial restructuring and emerged from protection under Chapter 11 of the US Bankruptcy Code. The increase in net sales for 3Q 2010 was attributable to increased sales volumes of $91 million and an increase in selling prices of $18 million, partially offset by unfavourable foreign currency translation of $6 million and the sale of the sodium sulfonate business, which had a $2 million impact. Gross profit for 3Q 2010 was $160 million, an increase of $1 million compared with the same quarter in 2009. The positive impacts of higher sales prices and volumes and more favourable manufacturing costs (due to higher plant utilization) were largely offset by the increases in raw material and energy costs, costs relating to REACH registration in the EU and other costs. Gross profit as a percentage of sales decreased to 23% compared with 26% in 3Q 2010 primarily due to a widening lag between increases in raw material costs and resulting increases in selling prices. Operating profit rose from $31 million in 3Q 2009 to $69 million last year. Reorganization items were higher in 3Q 2010 at $33 million primarily due to higher professional fees related to the disclosure statement approval, solicitation and confirmation hearing activities directly associated with the Chapter 11 restructuring. Sales of Industrial Engineered Products, which include flame retardants, increased 42% to $190 million in 3Q 2010, primarily due to increased sales volume and higher selling prices. The higher sales volume reflected continued strong customer demand for products used in the electrical and electronics industry and, to a lesser extent, the building and construction industry compared with 3Q 2009. On a GAAP basis, operating profit decreased by $2 million to $8 million affected by charges resulting from restructuring initiatives in this segment. Industrial Performance Products’ net sales increased 18% to $321 million in 3Q 2010 while operating profit decreased by $2 million to $27 million. Chemtura received confirmation of its reorganization plan from the US Bankruptcy Court on 21 October 2010. Thereafter events moved rapidly towards a successful completion of its financial restructuring and emergence from Chapter 11 on 10 November. The company’s Canadian operation concluded its emergence from Chapter 11 on the same day. The company prefunded the approximately $750 million required in exit funding, which was released upon emergence to satisfy all undisputed creditors’ claims in cash and/or stock, as outlined in the plan [ADPO, August 2010]. Chemtura has since been relisted on the New York Stock Exchange under the ticker ‘CHMT’.
January 2011
In China, Cabot Bluestar Chemical, a JV between subsidiaries of Cabot and China National Bluestar (Group) Corp, has started construction of the US$43 million expansion to its fumed silica plant in Jiangxi Province. Announced early in 2010 [ibid, March 2010], the expansion will utilize Cabot’s advanced manufacturing technology and position the Jiangxi site with the potential to produce up to 20 000 tonnes of fumed silica annually. In the first phase, capacity will increase from 5000 tonnes to 15 000 tonnes, with commissioning expected in 2H 2011. For its fiscal year 2010 (ended 30 September), Cabot reported net income of $154 million on net sales of $2.89 billion, compared to a net loss of $77 million on net sales of $2.24 billion in fiscal 2009. The Performance segment, which includes masterbatches, speciality carbon blacks and silicas, achieved a profit of $130 million on sales of $783 million for the year, up substantially on 2009 levels. Contact: Cabot Corp, Boston, MA, USA. Tel: +1 617 345 0100, Web: www.cabot-corp.com
Songwon to expand capacity for antioxidants at Maeam
S
ongwon Industrial Co Ltd is expanding its annual production capacity for antioxidants from 55 000 tonnes to 70 000 tonnes. The expanded capacity will be on stream from August 2011. The expansion is the result of the consolidation of Songnox® 1076 production into the company’s new, fully backward-integrated Maeam plant in South Korea. Songwon believes that Maeam is now the largest plant in the world dedicated to key antioxidants based on a fully integrated manufacturing process. Since 2006, Songwon has pursued a strategy to maximize backward integration and economies of scale, comments chairman and CEO of Songwon Industrial Jongho Park. From the outset, the state-of-the-art facility at Maeam [ADPO, November 2006] has been dedicated to key antioxidants, with critical intermediates – and, more recently, starting material isobutylene [ibid, September 2009] – fully integrated into the manufacturing process. The company has now decided to integrate the production of Songnox 1076 into Maeam in order to enhance its competiveness and consolidate its position ‘as partner of choice for the polymer
January 2011
industry’, says Park. According to Maurizio Butti, CEO of Songwon International, this latest integration decision is particularly important because it allows Songwon to create additional capacity, not only for Songnox 1076, but for all its antioxidants, as well as enhancing production flexibility. ‘These two aspects are paramount to our commitment to customers in periods of strong demand, when product availability is critical’, Butti adds. The company is also taking the opportunity to introduce a new enhanced physical form for Songnox 1076, he reveals. The new product, Songnox 1076 SB, will ‘upgrade critical properties making it more robust and easier to handle and will deliver clear benefits for our customers’, Butti concludes. For the first half of 2010, Songwon delivered a net profit of KRW13.31 billion (E8.88 million), up 5% compared to the same period in 2009, on sales revenue of KRW264.03 billion. Park comments that the positive result has been achieved despite severe and continuing increases in raw material costs, which were only partly offset by price increases. Contact: Songwon Industrial Co, Ltd, Ulsan, Korea. Tel: +82 522 739 841, Web: www.songwonind.com
Lanxess expands iron oxide manufacturing facility in China with black pigment unit
A
t its existing site in Jinshan near Shanghai, Lanxess has started up a new production unit for Bayferrox high-quality black iron oxide pigments. The new unit has an annual capacity of 10 000 tonnes of black iron oxides, adding to the 28 000 tonnes/year of high-end yellow iron oxides already produced at the site. The colour shades being produced in the new unit are the most advanced blueish type black pigments in the industry, the company says. These products are used in a wide range of market segments including the plastics, construction and paints industries. The new facility sets high standards in terms of environmental protection, Lanxess says. The manufacturing unit not only recycles by-products from other processes into high-quality black iron oxide pigments, but is also among the first in China equipped with an ultra-modern wastewa-
Additives for Polymers
9
FINANCIALS
ter treatment facility that is directly linked to an industrial water treatment plant. This technology significantly reduces the amount of wastewater generated in comparison to existing production units in the region, Lanxess maintains. The rising demand for inorganic pigments in China is mainly driven by its ongoing urbanization, which has led to a boom in the construction and paint industries. Lanxess also anticipates penetrating new markets for the bluish type blacks in the Asia region, including China, Australia and India. Lanxess Inorganic Pigments started production in Shanghai in 1996. In 2008, the company acquired the Jinshan manufacturing site for iron oxide pigments. It completed the first phase of technical improvements for the production of yellow iron oxide pigments in April 2010, allowing the plant to run at full capacity of 28 000 tonnes. A second phase of improvements is scheduled for completion in 2011 and will again reduce the plant’s emissions and further improve its already excellent environmental performance, Lanxess says. Elsewhere, the company has invested about E3 million to equip the Bayferrox coloured pigment production plant at its Krefeld-Uerdingen site in Germany with new pre-filter units. Apart from optimizing the safety of the plant, this will also enhance internal logistics processes, thereby improving the reliability of supply. In addition, it will lower energy consumption. Contact: Lanxess, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com
FINANCIALS Chemtura reports 17% sales growth in 3Q 2010 as it emerges from Chapter 11
F
or the third quarter of 2010, Chemtura Corp reported net earnings from continuing operations on a GAAP basis of US$12 million on net sales of $710 million. This represents a 20% increase in earnings and 17% sales growth compared to 3Q 2009 figures of $10 million and $606 million, respectively. The company has subsequently successfully completed its finan-
10
Additives for Polymers
cial restructuring and emerged from protection under Chapter 11 of the US Bankruptcy Code. The increase in net sales for 3Q 2010 was attributable to increased sales volumes of $91 million and an increase in selling prices of $18 million, partially offset by unfavourable foreign currency translation of $6 million and the sale of the sodium sulfonate business, which had a $2 million impact. Gross profit for 3Q 2010 was $160 million, an increase of $1 million compared with the same quarter in 2009. The positive impacts of higher sales prices and volumes and more favourable manufacturing costs (due to higher plant utilization) were largely offset by the increases in raw material and energy costs, costs relating to REACH registration in the EU and other costs. Gross profit as a percentage of sales decreased to 23% compared with 26% in 3Q 2010 primarily due to a widening lag between increases in raw material costs and resulting increases in selling prices. Operating profit rose from $31 million in 3Q 2009 to $69 million last year. Reorganization items were higher in 3Q 2010 at $33 million primarily due to higher professional fees related to the disclosure statement approval, solicitation and confirmation hearing activities directly associated with the Chapter 11 restructuring. Sales of Industrial Engineered Products, which include flame retardants, increased 42% to $190 million in 3Q 2010, primarily due to increased sales volume and higher selling prices. The higher sales volume reflected continued strong customer demand for products used in the electrical and electronics industry and, to a lesser extent, the building and construction industry compared with 3Q 2009. On a GAAP basis, operating profit decreased by $2 million to $8 million affected by charges resulting from restructuring initiatives in this segment. Industrial Performance Products’ net sales increased 18% to $321 million in 3Q 2010 while operating profit decreased by $2 million to $27 million. Chemtura received confirmation of its reorganization plan from the US Bankruptcy Court on 21 October 2010. Thereafter events moved rapidly towards a successful completion of its financial restructuring and emergence from Chapter 11 on 10 November. The company’s Canadian operation concluded its emergence from Chapter 11 on the same day. The company prefunded the approximately $750 million required in exit funding, which was released upon emergence to satisfy all undisputed creditors’ claims in cash and/or stock, as outlined in the plan [ADPO, August 2010]. Chemtura has since been relisted on the New York Stock Exchange under the ticker ‘CHMT’.
January 2011