SOKA to sell its stake in AGS

FOCUS completed the buy-out of the remaining minority shareholders in Huntsman International Holdings, including ICI. J.P.Morgan Partners and MidOcean Capital Investors. There may have been some further slight modification to the ownership structure: ‘CW’ recently reported that Matlin Patterson’s stake in the ultimate holding company was 48.6% (rather than 49.9%). Huntsman is the world’s largest privately owned chemicals company and its asset base was substantially boosted in mid-1999 as a result of taking control of ICI’s global polyurethanes and TiO2 pigment businesses, as well as various petrochemical interests. The international asset base was then increased further thanks to acquisitions of other chemical businesses from Rhodia, Rohm & Haas, Dow Chemical and Orica. Huntsman’s overall earnings before interest, tax, depreciation and amortisation (EBITDA) for full-year 2002 were $698 M, compared against a loss of $131 M in 2001. The group reported its financial results for last year in terms of “adjusted EBITDA”, after setting aside the one-off costs of restructuring and securitisation of its accounts receivable. Adjusted EBITDA was $777 M in full-year 2003, compared against $772 M in 2002. However, the group was still operating in the red. HMP Equity Holdings’ total consolidated net loss for full-year 2003 was $335 M. Towards the end of 2003, Mr Peter Huntsman declared that the Huntsman group of companies intended to cut fixed costs by $200 M during 2004 and 1H 2005 in order to restore profitability to acceptable levels. More recently, Huntsman has stated that the global workforce will be reduced by 1000 to around 14,000, though up to 90% of the reduction will be implemented by early retirement and voluntary departures. As part of the cost-cutting campaign, Huntsman Tioxide’s global TiO2 capacity will be reduced by 10%, with the retirement of older high-cost sections of the Grimsby (UK) and Umbogintwini (South Africa) plants. The workforce will be cut by 160 at Grimsby and by 100 at Umbogintwini. Another 40 jobs will be lost elsewhere, including 30 at Tioxide’s Billingham headquarters. (See also ‘Focus on Pigments’, Jun

DECEMBER 2004

ON

PIGMENTS

2004, 5). On 24 November 2004, Huntsman confirmed that it had filed a plan with the Securities & Exchange Commission (SEC) to raise about $1.25 bn by means of an initial public offering (IPO) on the New York Stock Exchange. Citigroup, Credit Suisse First Boston, Merrill Lynch and Deutsche Bank have been appointed as underwriters. The proceeds of the IPO will be used to repay debt, which stood at $5.96 bn at the end of September 2004. Huntsman also confirmed that its head office will be relocated from Salt Lake City, Utah, to Houston. There will also be further rationalisation of its sales and customer service offices. Huntsman currently has 10 customer service centres in Europe and more than 12 in the United States. Tioxide’s Chicago office will be relocated to Houston. European Chemical News, 4 Oct 2004, 81 (2118), 8 & Chemical Week, 22 Sep 2004, 166 (31) & TiO2 Worldwide Update, Sep/Dec 2004, 12 (5/6), 19

Ishihara to take full control of Fuji Titanium Fuji Titanium is to become a whollyowned subsidiary of Ishihara Sangyo Kaisha. At present, Fuji Titanium is owned 25.6% by Ishihara, 25.6% by Asahi Glass and 48.8% by various financial institutions and small investors. According to ‘JCW’, Fuji Titanium’s 17,000 tonnes/y sulfateroute TiO2 pigment plant at Kobe is currently operating at full capacity. It specialises in supplying TiO2 for applications in the textiles and fibres industry. Fuji Titanium has a well established sales network in China, the world’s third largest producer of synthetic fibres nowadays. Based on by-product copperas, the company also runs a thriving export business in iron sulfate. Fuji Titanium is also the country’s biggest producer of barium titanate, most of which is used in electronic capacitors. Ishihara is the largest TiO2 producer in Japan, with 160,000 tonnes/y of capacity at Yokkaichi. It also makes barium titanate and magnetic iron oxides. The acquisition of Fuji Titanium will be accomplished by a shares-exchange, to take effect in March 2005. Japan Chemical Week, 28 Oct 2004, 45 (2292), 12

Kafrit creates Alqemia following its acquisitions of Constab & Areton Alqemia is the name of the new group created by Kafrit Industries following its acquisition of both Constab Additive Polymers and Areton International Plastics by Kafrit Industries last year. Kafrit is now evaluating four or five companies in Europe. Kafrit specialises in the provision of masterbatches and additives for the plastics industry. The company’s current global masterbatch capacity is 46,000 tonnes/y, derived from plants in Israel, Germany and the UK. For full-year 2004, Kafrit is aiming to achieve sales revenue of around €70 M. Plastics and Rubber Weekly, 29 Oct 2004, 3

Kunststof Kemi boost profits, despite drop in sales of pigments for plastics Kunststof Kemi, the Danish manufacturer of pigments and additives for the plastics industry, recently reported its results for fiscal year 2003/04. Its pre-tax profits increased by 7% to DKR 40 M, despite a 4% drop in sales revenue to DKR 339 M. Dagbladet Borsen, 11 Oct 2004, 109 (196), 10 (in Danish)

SOKA to sell its stake in AGS Sté Kaolinière Armoricaine (SOKA) has announced its intention to sell its 47.5% stake in AGS Mineraux. Effectively, AGS Mineraux will buy back its own shares and then cancel them. The value of the transaction has not been revealed. SOKA will concentrate on its core business – producing up to 200,000 tonnes/y of kaolin at its Quessoy mine (near Saint Brieuc). Industrial Minerals, Nov 2004, (446), 10

Ter Hell to sell for Ege Kimya Ter Hell GmbH & Co (of Hamburg) has been appointed by Ege Kimya (of Istanbul) to sell its paint driers and zinc oxides in Germany, Austria and Switzerland. Chemische Rundschau, 28 Sep 2004, 57 (9), 12 (in German)

7