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Lyondell to absorb Millennium
F O C US UK: Omya – GCC Omya has opened a new ground calcium carbonate plant at Melton Mowbray in Leicestershire. The grades produced here are said to be particularly suited to polyvinyl chloride (PVC) compounders because they can be used at higher loadings than most other fillers currently available. Capacity details have not been disclosed.
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project is budgeted at $25 M. The plant will employ Altair’s novel AHP technology, using locally mined ilmenite. This will be the country’s first TiO2 pigment plant and it will also be the first commercial-scale TiO2 plant using AHP technology. TiO2 Worldwide Update, Jan/Apr 2004, 12 (1/2), 22
COMPANIES
Plastics and Rubber Weekly, 23 Apr 2004, 12
Barloworld acquires ICC US: F & D Plastics – plastics colorants F & D Plastics has stepped up colour concentrates capacity at its Leominster, MA, plant with the installation of a sixth twin-screw extrusion line. The company’s facilities are currently housed at a 27,000 sq ft site at Leominster and 90% of its output is sold to customers in the Northeast and Midwest US, particularly in the cosmetics, housewares and electrical cable and wiring sectors. F & D Plastics is now considering setting up a manufacturing unit in the Southern States. The company currently employs 44 people and increased its sales revenue by 15% to $9 M in 2003. It is aiming to reach the $10 M mark for sales this year. Plastics News, 9 Mar 2004 (Website: http://www.plasticsnews.com)
US: Huber/Omya – GCC J.M.Huber Corp has acquired from Omya a calcium carbonate processing plant, located at Quincy, IL. The plant is believed to have been producing various “industrial grades” of ground calcium carbonate (GCC). Huber intends to transfer production of these GCC grades to its own existing facilities in Illinois and will presumably close the Quincy plant. Rubber and Plastics News, 5 Apr 2004, 33 (18), 19
Vietnam: Lidisaco – TiO2 pigment Mineral Development Co No.6 (aka Lidisaco) has been granted Government approval to go ahead with its plan to build a 10,000 tonnes/y TiO2 pigment plant at an undisclosed location in Vietnam. Investment in the
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International Chemical Corp (ICC), which claims to be the largest decorative paint colorant manufacturer in South Africa, has been acquired by Barloworld, described as a “global industrial brand management group.” ICC’s business will now be integrated with that of Longridge Colorant (Pty) Ltd. European Paint and Resin News, Mar 2004, 42 (3), 8
Clariant’s gradual rehabilitation to profitability thanks to cost-cutting Despite a downturn in profits in its Pigments & Additives segment, due to the impact of costs associated with plant closures in the UK and Germany, the Clariant group increased its overall operating profit by 62% to SFR 167 M in 1Q 2004, compared against 1Q 2003. Sales revenue increased by 6% to SFR 474 M for Pigments & Additives and by 9% to SFR 286 M for Masterbatches. It looks as though the group’s extensive cost-cutting campaign is beginning to achieve a “gradual rehabilitation.” (See also ‘Focus on Pigments’, May 2004, 5). Neue Zuercher Zeitung, 5 May 2004, 225 (103), 17 (in German)
Great Lakes & OxyChem pool resources in antimony oxide & related activities Great Lakes Chemical Corp (GLCC) and Laurel Industries (part of the OxyChem group, affiliated to Occidental Petroleum) have completed a transaction merging their antimony activities in a 50:50 joint venture, named GLCC Laurel LLC. Manufacturing will be consolidated at the existing GLCC complex at Reynosa in Mexico, while Laurel’s antimony-related plants at LaPorte in
Texas will be closed down by the end of 2004. The joint venture will take on responsibility for making and selling Timonox, TMS, and Trutint antimony oxide pigments and flame retardants; Pyrobloc sodium antimonate and zinc borate synergists; Oncor Smokebloc and Ongard smoke-suppressants; Fireshield and Thermoguard products based on antimony oxide and PetCat catalysts. Press release from: Great Lakes Chemical Corp, PO Box 2200, West Lafayette, IN 47906, USA. Website: http://www.greatlakeschem.com (26 Apr 2004)
Hickson & Welch becomes C6 Solutions after Dunedin takeover Hickson & Welch (of Castleford, Yorkshire) was sold by Arch Chemicals to Dunedin Capital Partners towards the end of last year. (See ‘Focus on Pigments’, Oct 2003, 5). The business has now been renamed C6 Solutions and it intends to focus on speciality chemicals, including optical brighteners and pigment intermediates, as well as on intermediates for use in crop protection, healthcare and nutrition. European Paint and Resin News, Mar 2004, 42 (3), 5
Holliday appoints Pavilion as Middle East sales agent Holliday Dispersions has appointed Pavilion Chemicals to market Holliday’s water-borne and solventborne pigment dispersions in Yemen, Iraq, Syria and Lebanon. In due course, the arrangement may be extended to cover other markets in the Middle East region. PPCJ, Polymers, Paint, Colour Journal, Apr 2004, 198 (4472), 13
Lyondell to absorb Millennium Lyondell Chemical will effectively acquire Millennium Chemicals, the world’s second largest TiO2 pigment producer, via a shares-exchange arrangement worth $2.3 bn. The transaction should be finalised by the end of September 2004 and it will create the third-largest US chemical company (after Dow Chemical and DuPont), with pro forma sales revenue in excess of $11 bn and an initial market capitalisation of $4 bn.
JUNE 2004
F O C US Synergy savings of around $50 M should be achievable, but there are unlikely to be major job cuts or plant closures because the activity portfolios of Lyondell and Millennium do not overlap to any great degree. Lyondell and Millennium are joint owners of Equistar, a leading US producer of olefins and polyolefins. Following the merger, Equistar will become a wholly-owned business within the Lyondell group. Lyondell also has a 58.75% stake in Lyondell Citgo Refining, which is one of the largest independent US oil refiners; the other 41.25% stake is owned by Citgo Petroleum Corp (formerly Cities Service Co). Lyondell also has a new propylene oxide joint venture with Bayer in the Netherlands and a joint venture with Sumitomo, namely Nihon Oxirane, in Japan. Millennium Chemicals is the world’s second largest TiO2 pigment producer, with plants in Australia, Brazil, France, the UK and the US. Its total combined TiO2 capacity is currently 690,000 tonnes/y, but this will be reduced to 670,000 tonnes/y as a result of planned retirement of some of the older sections of the Le Havre plant. TiO2 Worldwide Update, Jan/Apr 2004, 12 (1/2), 52-55
Nemoto grants Honeywell exclusive rights to make & sell its patented luminescent pigments Nemoto (of Japan) is one of the world’s leading producers of nonradioactive luminescent pigments, with its range of patented products based on strontium aluminate. These pigments typically give an after-glow for up to 60 hours and they are widely sold under the brandname Lumilux. They are used primarily for safety-way guidance systems in public buildings, factories and airports. Nemoto recently signed a worldwide licensing agreement with Honeywell, giving both companies and their approved agents exclusive rights to produce and distribute these pigments. Speciality Chemicals, Apr 2004, 24 (4), 6
O’Brien rescues Hubron Hubron Ltd ran into serious financial difficulties earlier this year and called in Ernst & Young as administrators in
JUNE 2004
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April. A number of companies expressed interest in buying Hubron as a going concern and on 31 May Hubron’s entire business and assets were sold to OBG Pharmaceuticals (part of the O’Brien group, headquartered in Liverpool). O’Brien declared its intention to retain all staff in their current positions and it will make no major changes to the company’s operations, except that the business will from now on trade as Hubron International. Hubron reported sales revenue at £25 M last year, with exports accounting for 25% of the total. The company is said to be the ninth largest masterbatch producer in Europe. It specialises in making black masterbatch and its plant is located at Failsworth, near Manchester. Plastics and Rubber Weekly, 9 Apr 2004, 3 & 21 May 2004, 2 & 4 Jun 2004
Oglebay Norton in Chapter 11 Oglebay Norton Co (of Cleveland, OH) filed for Chapter 11 protection from creditors on 23 February 2004 after missing loan repayment deadlines. The company had become quite highly geared as a result of pursuing a series of acquisitions in the industrial minerals and fillers sectors towards the end of the 1990s. Presumably potential predators are now evaluating options for buying some of Oglebay Norton’s businesses. Industrial Minerals, Apr 2004, (439), 8
acquisition of a package of Laporte’s assets by the private equity fund, Kohlberg Kravis Roberts (KKR). Thus Rockwood instantly became the world’s third largest iron oxide pigments supplier, with manufacturing facilities in China, Germany, Italy and the US. KKR retains a majority shareholding in Rockwood. CSFB Private Equity (an affiliate of Crédit Suisse First Boston) is helping to finance the acquisition of the Dynamit Nobel businesses and on completion it will also become a significant shareholder in Rockwood. The acquisition will establish Rockwood as one of the world’s largest speciality chemical companies, with pro forma sales revenue of around $2.5 bn, derived 53% from European markets, 34% from US markets and 14% from markets in the rest of the world. From the seller’s viewpoint, the sale of Sachtleben and the other Dynamit Nobel businesses represented an important component of MG Technologies’ programme to quit the chemical industry altogether. (See also ‘Focus on Pigments’, Mar 204, 56). In recent months, MG also agreed the sale of Dynamit Nobel Kunststoff (DNK) to Flex-N-Gate Corp (of the US) and it agreed the sale of Solvadis (its chemicals trading business) to Chemdis (a subsidiary of the private equity fund, Special Situations Ventures Partners LP). TiO2 Worldwide Update, Jan/Apr 2004, 12 (1/2), 55-57
Rockwood buys Sachtleben & other Dynamit Nobel businesses
Samudra to help ABL take full control of Indian venture to extract betacarotene from marine algae
Rockwood Specialties (of Princeton, NJ) has agreed to buy four business units of Dynamit Nobel (of Troisdorf, Germany, part of the MG Technologies group) for €2.25 bn. The business units comprise: Sachtleben Chemie, Chemetall, CeramTec AG and DNES Custom Synthesis. Sachtleben is one of the world’s top ten TiO2 pigment producers, with a 100,000 tonnes/y plant at DuisburgHomberg. Sachtleben is also one of the world’s leading suppliers of lithopone, sourcing product from its 40:60 joint venture with Guangzhou Huali in China. Rockwood was created in December 2000 as a result of the
ABL Biotechnologies Ltd (of Chennai/Madras) proposes to buy out the entire 60% stake of its partner Shantha Biotechnics Pvt Ltd (of Hyderabad), in their Rup 120 M joint venture – Shantha Marine Biotechnologies. This company was established about four years ago to culture marine algae from which to extract beta-carotene for sale as a food colorant and as a nutritional additive. Samudra Biotechnologies Inc (of Texas) will help to finance the transaction and will have exclusive rights to sell beta-carotene in the US market. Business Line, 30 Mar 2004, 11 (89), 2
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project is budgeted at $25 M. The plant will employ Altair’s novel AHP technology, using locally mined ilmenite. This will be the country’s first TiO2 pigment plant and it will also be the first commercial-scale TiO2 plant using AHP technology. TiO2 Worldwide Update, Jan/Apr 2004, 12 (1/2), 22
COMPANIES
Plastics and Rubber Weekly, 23 Apr 2004, 12
Barloworld acquires ICC US: F & D Plastics – plastics colorants F & D Plastics has stepped up colour concentrates capacity at its Leominster, MA, plant with the installation of a sixth twin-screw extrusion line. The company’s facilities are currently housed at a 27,000 sq ft site at Leominster and 90% of its output is sold to customers in the Northeast and Midwest US, particularly in the cosmetics, housewares and electrical cable and wiring sectors. F & D Plastics is now considering setting up a manufacturing unit in the Southern States. The company currently employs 44 people and increased its sales revenue by 15% to $9 M in 2003. It is aiming to reach the $10 M mark for sales this year. Plastics News, 9 Mar 2004 (Website: http://www.plasticsnews.com)
US: Huber/Omya – GCC J.M.Huber Corp has acquired from Omya a calcium carbonate processing plant, located at Quincy, IL. The plant is believed to have been producing various “industrial grades” of ground calcium carbonate (GCC). Huber intends to transfer production of these GCC grades to its own existing facilities in Illinois and will presumably close the Quincy plant. Rubber and Plastics News, 5 Apr 2004, 33 (18), 19
Vietnam: Lidisaco – TiO2 pigment Mineral Development Co No.6 (aka Lidisaco) has been granted Government approval to go ahead with its plan to build a 10,000 tonnes/y TiO2 pigment plant at an undisclosed location in Vietnam. Investment in the
6
International Chemical Corp (ICC), which claims to be the largest decorative paint colorant manufacturer in South Africa, has been acquired by Barloworld, described as a “global industrial brand management group.” ICC’s business will now be integrated with that of Longridge Colorant (Pty) Ltd. European Paint and Resin News, Mar 2004, 42 (3), 8
Clariant’s gradual rehabilitation to profitability thanks to cost-cutting Despite a downturn in profits in its Pigments & Additives segment, due to the impact of costs associated with plant closures in the UK and Germany, the Clariant group increased its overall operating profit by 62% to SFR 167 M in 1Q 2004, compared against 1Q 2003. Sales revenue increased by 6% to SFR 474 M for Pigments & Additives and by 9% to SFR 286 M for Masterbatches. It looks as though the group’s extensive cost-cutting campaign is beginning to achieve a “gradual rehabilitation.” (See also ‘Focus on Pigments’, May 2004, 5). Neue Zuercher Zeitung, 5 May 2004, 225 (103), 17 (in German)
Great Lakes & OxyChem pool resources in antimony oxide & related activities Great Lakes Chemical Corp (GLCC) and Laurel Industries (part of the OxyChem group, affiliated to Occidental Petroleum) have completed a transaction merging their antimony activities in a 50:50 joint venture, named GLCC Laurel LLC. Manufacturing will be consolidated at the existing GLCC complex at Reynosa in Mexico, while Laurel’s antimony-related plants at LaPorte in
Texas will be closed down by the end of 2004. The joint venture will take on responsibility for making and selling Timonox, TMS, and Trutint antimony oxide pigments and flame retardants; Pyrobloc sodium antimonate and zinc borate synergists; Oncor Smokebloc and Ongard smoke-suppressants; Fireshield and Thermoguard products based on antimony oxide and PetCat catalysts. Press release from: Great Lakes Chemical Corp, PO Box 2200, West Lafayette, IN 47906, USA. Website: http://www.greatlakeschem.com (26 Apr 2004)
Hickson & Welch becomes C6 Solutions after Dunedin takeover Hickson & Welch (of Castleford, Yorkshire) was sold by Arch Chemicals to Dunedin Capital Partners towards the end of last year. (See ‘Focus on Pigments’, Oct 2003, 5). The business has now been renamed C6 Solutions and it intends to focus on speciality chemicals, including optical brighteners and pigment intermediates, as well as on intermediates for use in crop protection, healthcare and nutrition. European Paint and Resin News, Mar 2004, 42 (3), 5
Holliday appoints Pavilion as Middle East sales agent Holliday Dispersions has appointed Pavilion Chemicals to market Holliday’s water-borne and solventborne pigment dispersions in Yemen, Iraq, Syria and Lebanon. In due course, the arrangement may be extended to cover other markets in the Middle East region. PPCJ, Polymers, Paint, Colour Journal, Apr 2004, 198 (4472), 13
Lyondell to absorb Millennium Lyondell Chemical will effectively acquire Millennium Chemicals, the world’s second largest TiO2 pigment producer, via a shares-exchange arrangement worth $2.3 bn. The transaction should be finalised by the end of September 2004 and it will create the third-largest US chemical company (after Dow Chemical and DuPont), with pro forma sales revenue in excess of $11 bn and an initial market capitalisation of $4 bn.
JUNE 2004
F O C US Synergy savings of around $50 M should be achievable, but there are unlikely to be major job cuts or plant closures because the activity portfolios of Lyondell and Millennium do not overlap to any great degree. Lyondell and Millennium are joint owners of Equistar, a leading US producer of olefins and polyolefins. Following the merger, Equistar will become a wholly-owned business within the Lyondell group. Lyondell also has a 58.75% stake in Lyondell Citgo Refining, which is one of the largest independent US oil refiners; the other 41.25% stake is owned by Citgo Petroleum Corp (formerly Cities Service Co). Lyondell also has a new propylene oxide joint venture with Bayer in the Netherlands and a joint venture with Sumitomo, namely Nihon Oxirane, in Japan. Millennium Chemicals is the world’s second largest TiO2 pigment producer, with plants in Australia, Brazil, France, the UK and the US. Its total combined TiO2 capacity is currently 690,000 tonnes/y, but this will be reduced to 670,000 tonnes/y as a result of planned retirement of some of the older sections of the Le Havre plant. TiO2 Worldwide Update, Jan/Apr 2004, 12 (1/2), 52-55
Nemoto grants Honeywell exclusive rights to make & sell its patented luminescent pigments Nemoto (of Japan) is one of the world’s leading producers of nonradioactive luminescent pigments, with its range of patented products based on strontium aluminate. These pigments typically give an after-glow for up to 60 hours and they are widely sold under the brandname Lumilux. They are used primarily for safety-way guidance systems in public buildings, factories and airports. Nemoto recently signed a worldwide licensing agreement with Honeywell, giving both companies and their approved agents exclusive rights to produce and distribute these pigments. Speciality Chemicals, Apr 2004, 24 (4), 6
O’Brien rescues Hubron Hubron Ltd ran into serious financial difficulties earlier this year and called in Ernst & Young as administrators in
JUNE 2004
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PIGMENTS
April. A number of companies expressed interest in buying Hubron as a going concern and on 31 May Hubron’s entire business and assets were sold to OBG Pharmaceuticals (part of the O’Brien group, headquartered in Liverpool). O’Brien declared its intention to retain all staff in their current positions and it will make no major changes to the company’s operations, except that the business will from now on trade as Hubron International. Hubron reported sales revenue at £25 M last year, with exports accounting for 25% of the total. The company is said to be the ninth largest masterbatch producer in Europe. It specialises in making black masterbatch and its plant is located at Failsworth, near Manchester. Plastics and Rubber Weekly, 9 Apr 2004, 3 & 21 May 2004, 2 & 4 Jun 2004
Oglebay Norton in Chapter 11 Oglebay Norton Co (of Cleveland, OH) filed for Chapter 11 protection from creditors on 23 February 2004 after missing loan repayment deadlines. The company had become quite highly geared as a result of pursuing a series of acquisitions in the industrial minerals and fillers sectors towards the end of the 1990s. Presumably potential predators are now evaluating options for buying some of Oglebay Norton’s businesses. Industrial Minerals, Apr 2004, (439), 8
acquisition of a package of Laporte’s assets by the private equity fund, Kohlberg Kravis Roberts (KKR). Thus Rockwood instantly became the world’s third largest iron oxide pigments supplier, with manufacturing facilities in China, Germany, Italy and the US. KKR retains a majority shareholding in Rockwood. CSFB Private Equity (an affiliate of Crédit Suisse First Boston) is helping to finance the acquisition of the Dynamit Nobel businesses and on completion it will also become a significant shareholder in Rockwood. The acquisition will establish Rockwood as one of the world’s largest speciality chemical companies, with pro forma sales revenue of around $2.5 bn, derived 53% from European markets, 34% from US markets and 14% from markets in the rest of the world. From the seller’s viewpoint, the sale of Sachtleben and the other Dynamit Nobel businesses represented an important component of MG Technologies’ programme to quit the chemical industry altogether. (See also ‘Focus on Pigments’, Mar 204, 56). In recent months, MG also agreed the sale of Dynamit Nobel Kunststoff (DNK) to Flex-N-Gate Corp (of the US) and it agreed the sale of Solvadis (its chemicals trading business) to Chemdis (a subsidiary of the private equity fund, Special Situations Ventures Partners LP). TiO2 Worldwide Update, Jan/Apr 2004, 12 (1/2), 55-57
Rockwood buys Sachtleben & other Dynamit Nobel businesses
Samudra to help ABL take full control of Indian venture to extract betacarotene from marine algae
Rockwood Specialties (of Princeton, NJ) has agreed to buy four business units of Dynamit Nobel (of Troisdorf, Germany, part of the MG Technologies group) for €2.25 bn. The business units comprise: Sachtleben Chemie, Chemetall, CeramTec AG and DNES Custom Synthesis. Sachtleben is one of the world’s top ten TiO2 pigment producers, with a 100,000 tonnes/y plant at DuisburgHomberg. Sachtleben is also one of the world’s leading suppliers of lithopone, sourcing product from its 40:60 joint venture with Guangzhou Huali in China. Rockwood was created in December 2000 as a result of the
ABL Biotechnologies Ltd (of Chennai/Madras) proposes to buy out the entire 60% stake of its partner Shantha Biotechnics Pvt Ltd (of Hyderabad), in their Rup 120 M joint venture – Shantha Marine Biotechnologies. This company was established about four years ago to culture marine algae from which to extract beta-carotene for sale as a food colorant and as a nutritional additive. Samudra Biotechnologies Inc (of Texas) will help to finance the transaction and will have exclusive rights to sell beta-carotene in the US market. Business Line, 30 Mar 2004, 11 (89), 2
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