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Rio Tinto's talc assets are back on the block, but not borates
FOCUS 1H 2010 were especially high, as demand from both the automotive and cosmetic industries came back to or exceeded levels prevailing before the 2009 crisis.” During 2009, Merck expanded its position in the global market for effect pigments with the acquisition of Suzhou Taizhu, with a plant at Taicang (in Jiangsu province, 55 km northwest of Shanghai). This acquisition has enabled Merck to more actively target the “mid-range, value-for-money” segment of the effect pigments market. Merck also extended its business in functional pigments, with the acquisition of the Micabs lasermarking pigments business from DSM (of the Netherlands). The Micabs product line has been integrated with Merck’s existing Laserflair product range. To widen the scope of its activity in the cosmetic pigments market, Merck entered into a licensing agreement with Antaria (of Australia) to gain exclusive worldwide rights to the use of Alusion technology for making plate-like alumina functional fillers, imparting “soft focus” characteristics to cosmetic products. Meanwhile, Merck has also stepped up sales of new effect pigments, such as the Pyrisma range and the Candurin range for food and pharmaceutical coatings. But according to ‘NfA’, in the wake of the Millipore acquisition, Merck has indicated that it will carry out a strategic evaluation for the future of its pigments business, presumably with a view to hiving it off as a separate entity or putting the business up for sale. Nachrichten fuer Aussenhandel, 16 Jul 2010, (Website: http://www.nfa-online.de) (in German) & Press Releases from: Merck KgaA, Frankfurterstrasse 250, D-64293 Darmstadt, Germany. Website: http://www.merck.de (11 Mar & 29 Jul 2010)
Nubiola extends Keyser & Mackay’s European sales territory Nubiola (of Barcelona) has extended the territory covered by Keyser & Mackay (of Amsterdam) for distribution of its inorganic and anticorrosion pigments. Under existing agreements, Keyser & Mackay was already selling Nubiola pigments in the Benelux region, France and Poland. In September 2009, Keyser & Mackay’s German subsidiary (based in Cologne) was appointed as the
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exclusive German distributor for Nubirox pigments. Effective April 2010, Keyser & Mackay’s Swiss subsidiary (based in Zurich) was appointed to sell the full range of Nubiola pigments in Switzerland. Nubiola’s range of inorganic pigments includes: ultramarine, iron oxides, zinc ferrites, chromium oxide greens, chrome yellows and molybdate oranges. Its Nubirox range of anti-corrosion pigments includes: modified zinc phosphates, zinc-free pigments and flash-rust inhibitors. Nubiola has a global workforce of about 600, operates four pigment manufacturing plants and sells pigments to customers in more than 85 countries around the world. Paint & Coatings Industry (PCI), Jul 2010, 26 (7), 16
Rio Tinto’s talc assets are back on the block, but not borates Rio Tinto (of London and Melbourne) is looking to divest its global talc business. Speaking at the Industrial Minerals Conference at MiamiAventura in March 2010, Mr Gary Goldberg (CEO of Rio Tinto Minerals) restated the company’s current position thus: “The borates business will be retained, at least for the foreseeable future, while serious enquiries for the purchase of the talc business would be welcomed.” This position was confirmed in the commentary accompanying the halfyear financial report for 1H 2010. Soon after the $44 bn acquisition of the Alcan aluminium group in October 2007, Rio Tinto outlined a programme of divestments designed to raise about $10 bn and reduce its financial gearing. The programme included the potential sale of its talc and borates businesses, together valued at $1.0-1.2 bn. (See ‘Focus on Pigments’, Mar 2008, 6). However, on 22 May 2009, Rio Tinto announced that it was no longer interested in selling the borates business and in September 2009, the company declared that it was no longer actively marketing the talc assets. Six months later, it changed its position again. Meanwhile, the company continues to develop its talc marketing network. It recently extended the sales territory of FitzChem Corp (headquartered at Itasca, IL). Previously, FitzChem was selling Rio Tinto talc to customers in
Illinois, Indiana, Iowa, Michigan and Wisconsin. The territory has now been extended to cover North Dakota, South Dakota and Minnesota. Rio Tinto: Talc Output (‘000 tonnes) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H 2009 2H 2009 1H 2010
1261 1266 1329 1357 1443 1364 1392 1281 1163 888 426 462 504
For full-year 2009, Rio Tinto Minerals (which essentially comprises the talc and borates businesses) reported post-tax operating profit at $78 M on sales revenues of $882 M, compared against $86 M on $1.061 bn for 2008. Rio Tinto is the world’s leading producer of talc, with a market share of around 25%. It runs about 30 mines and processing facilities in Australia, Austria, Belgium, Canada, France, Italy, Mexico, Spain, the UK and the US. It also has a 60% stake in the Nihon Mistron joint venture in Japan. Rio Tinto’s global talc output reached a peak of 1.4 M tonnes in 2004 and then steadily declined onwards from 2006. In response to weak global demand, output was sharply reduced last year to 888,000 tonnes. Industrial Minerals, May 2010, (512), 14-15 and Paint & Coatings Industry (PCI), Jun 2010, 26 (6), 16 & Press Release from: Rio Tinto plc, 2 Eastbourne Terrace, London W2 6LG, UK. Website: http://www.riotinto.com (5 Aug 2010)
Bankruptcy Court to consider Tronox plan for survival The latest chapter in the somewhat chequered history of Tronox (one of the world’s top four TiO2 pigment producers) has opened with the company filing details of its plan for reorganisation and survival with the US Bankruptcy Court for the Southern District of New York. Tronox Inc (headquartered in Oklahoma City, US) was floated off as a separate entity from Kerr-McGee
SEPTEMBER 2010
Nubiola extends Keyser & Mackay’s European sales territory Nubiola (of Barcelona) has extended the territory covered by Keyser & Mackay (of Amsterdam) for distribution of its inorganic and anticorrosion pigments. Under existing agreements, Keyser & Mackay was already selling Nubiola pigments in the Benelux region, France and Poland. In September 2009, Keyser & Mackay’s German subsidiary (based in Cologne) was appointed as the
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exclusive German distributor for Nubirox pigments. Effective April 2010, Keyser & Mackay’s Swiss subsidiary (based in Zurich) was appointed to sell the full range of Nubiola pigments in Switzerland. Nubiola’s range of inorganic pigments includes: ultramarine, iron oxides, zinc ferrites, chromium oxide greens, chrome yellows and molybdate oranges. Its Nubirox range of anti-corrosion pigments includes: modified zinc phosphates, zinc-free pigments and flash-rust inhibitors. Nubiola has a global workforce of about 600, operates four pigment manufacturing plants and sells pigments to customers in more than 85 countries around the world. Paint & Coatings Industry (PCI), Jul 2010, 26 (7), 16
Rio Tinto’s talc assets are back on the block, but not borates Rio Tinto (of London and Melbourne) is looking to divest its global talc business. Speaking at the Industrial Minerals Conference at MiamiAventura in March 2010, Mr Gary Goldberg (CEO of Rio Tinto Minerals) restated the company’s current position thus: “The borates business will be retained, at least for the foreseeable future, while serious enquiries for the purchase of the talc business would be welcomed.” This position was confirmed in the commentary accompanying the halfyear financial report for 1H 2010. Soon after the $44 bn acquisition of the Alcan aluminium group in October 2007, Rio Tinto outlined a programme of divestments designed to raise about $10 bn and reduce its financial gearing. The programme included the potential sale of its talc and borates businesses, together valued at $1.0-1.2 bn. (See ‘Focus on Pigments’, Mar 2008, 6). However, on 22 May 2009, Rio Tinto announced that it was no longer interested in selling the borates business and in September 2009, the company declared that it was no longer actively marketing the talc assets. Six months later, it changed its position again. Meanwhile, the company continues to develop its talc marketing network. It recently extended the sales territory of FitzChem Corp (headquartered at Itasca, IL). Previously, FitzChem was selling Rio Tinto talc to customers in
Illinois, Indiana, Iowa, Michigan and Wisconsin. The territory has now been extended to cover North Dakota, South Dakota and Minnesota. Rio Tinto: Talc Output (‘000 tonnes) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1H 2009 2H 2009 1H 2010
1261 1266 1329 1357 1443 1364 1392 1281 1163 888 426 462 504
For full-year 2009, Rio Tinto Minerals (which essentially comprises the talc and borates businesses) reported post-tax operating profit at $78 M on sales revenues of $882 M, compared against $86 M on $1.061 bn for 2008. Rio Tinto is the world’s leading producer of talc, with a market share of around 25%. It runs about 30 mines and processing facilities in Australia, Austria, Belgium, Canada, France, Italy, Mexico, Spain, the UK and the US. It also has a 60% stake in the Nihon Mistron joint venture in Japan. Rio Tinto’s global talc output reached a peak of 1.4 M tonnes in 2004 and then steadily declined onwards from 2006. In response to weak global demand, output was sharply reduced last year to 888,000 tonnes. Industrial Minerals, May 2010, (512), 14-15 and Paint & Coatings Industry (PCI), Jun 2010, 26 (6), 16 & Press Release from: Rio Tinto plc, 2 Eastbourne Terrace, London W2 6LG, UK. Website: http://www.riotinto.com (5 Aug 2010)
Bankruptcy Court to consider Tronox plan for survival The latest chapter in the somewhat chequered history of Tronox (one of the world’s top four TiO2 pigment producers) has opened with the company filing details of its plan for reorganisation and survival with the US Bankruptcy Court for the Southern District of New York. Tronox Inc (headquartered in Oklahoma City, US) was floated off as a separate entity from Kerr-McGee
SEPTEMBER 2010