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Solutia closes sale of its resins, additives and adhesives businesses
F O C U S resins or epoxy novolac modified bisphenol A (EPN) resins to formulate epoxy powder coatings. A paper by researchers at Vantico discusses the film performance of the curing agents when cured at low temperature (120°C/248°F) and attention is also given to the fast curing properties of these hardeners. Properties evaluated include: gel time at 180°C; pencil hardness; direct and reverse impact resistance; conical mandrel bend; MEK resistance, yellowness index; and chemical resistance. The first curing agent CA1 is a solid amine adduct with high reactivity. Although it is designed as a curing agent for low temperature homo-polymerization of epoxy resins, it can also be used as an accelerator for other crosslinking reactions. This hardener gives excellent impact resistance and flexibility, excellent adhesion and good chemical resistance without adversely affecting the yellowness index of the cured coating. The second curing agent CA2 is a highly reactive resinous material that can be used with both bis-phenol epoxies and epoxy phenol novolac modified solid resins. The formulations based on this hardener will cure at temperatures as low as 120°C or rapidly at higher temperatures to give good overall performance. The colour of CA2 systems is generally better than that of the CA1 systems. Recommended levels of addition are 5-8 parts per 100 resin for CA1 and 12-20 parts per 100 resin for CA2. The softening range of CA1 is 90-110°C and 84-94°C for CA2. Low temperature curing systems are very reactive and the film has little time to flow out before the onset of cure. It is. therefore, recommended that the selected epoxy resin should have a low melt viscosity. Improved film hardness and crosslinking density is a feature of the EPN systems. Suggested formulations are given in the paper for low temperature cure based on both 4
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resin systems. The recommended levels of curing agent CA1 is 5-8 phr and 12.5 phr for CA2 and each is pigmented with titanium dioxide at 35% by weight. An additional formulation is provided for a fast cure system in which the amount of CA2 is increased to 19.05 phr. It is critical to store these powder coatings in a cool dry place to prevent caking and crosslinking. In warmer climates it is often necessary to refrigerate these materials. The film properties of the above formulations are tabulated and show that CA1 based powder coatings give excellent film appearance with 60° gloss of 100+ and very low yellowing. In addition to the excellent adhesion and flexibility qualities, the coating has excellent chemical resistance, not only to MEK double rubs but resistance to DOT No 3 and 4 brake fluids for more than 60 days. The CA2 formulation with an EPN resin also gives similar gloss readings and a harder film without adverse effect on impact resistance, together with equivalent chemical resistance. Pencil hardness readings as high as 6H are achieved with the CA2/EPN system at low temperature cure. Paper entitled “Curing Agents for Low Temperature Cure Epoxy Powder Coatings” by Todd Antenucci and Mae C Grant of Vantico, Inc presented at Powder Coating 2002 in Indianapolis on 23-24 Sep 2002. Bound copies of the conference papers available from the organizers: The Powder Coating Institute, 2121 Eisenhower Avenue, Suite 401, Alexandria, VA 22314, USA. Tel: +1 703 684 1770
INDUSTRY NEWS Ferro forecasts 4Q 2002 earnings growth and schedules 4Q 2002 earnings release and conference call Ferro Corp expects 4Q 2002 fully diluted earnings/share from continuing operations to be between $0.16 and $0.22 (diluted
C OAT I N G S earnings/share of $0.12 in 4Q 2001). The earnings growth reflects higher volumes and cost savings associated with the integration of the dmc2 businesses, which were acquired in Sep 2001. Revenue from continuing operations is expected to increase nearly 5% for both the Coatings segment and the Performance Chemicals segment compared with 4Q 2001. The Performance Chemicals segment earnings are expected to be less than that in 4Q 2001 due to the higher raw material costs and lower production rates as the company continued its effort to lower net inventory levels. Ferro Corp is a major international producer of performance materials for industry, including coatings and performance chemicals. Ferro 4Q 2002 earnings forecast, 15 Jan 2003 (Ferro Corp, 1000, Lakeside Avenue, Cleveland, OH 44114-7000, USA. Tel: +1 216 641 8580. Website: http://www.ferro.com)
Solutia closes sale of its resins, additives and adhesives businesses Solutia Inc closed the sale of its resins, additives and adhesives businesses to UCB SA for $500 M cash. Solutia will use the proceeds to substantially pay down debt, which will strengthen its balance sheet and provide the company with greater flexibility to deal with future business risk and uncertainty. The transaction is anticipated to be slightly cash accretive and 7 to 9 cts dilutive to earnings/share in 2003. Upon closing, a modest accounting gain is expected. The company expects about $40 M in cash interest savings in 2003. The agreement includes 10 production sites that make liquid and powder coatings resins, technical resins, additives products and pressuresensitive adhesives. The resins, additives and adhesives businesses together employ about 1700 individuals in 22 countries and have sales of about $560 M for the year ended Dec 2002. Solutia will sell manufacturing MARCH 2003
F O C US facilities in: Wiesbaden, FrankfurtFechenheim and Hamburg, Germany; Werndorf, Austria; Romano d’Ezzelino, Italy; Dijon, France; Soborg, Denmark; La Llagosta, Spain; Rayong, Thailand and Suzano, Brazil, as well as research and development facilities in Graz, Austria, and Springfield, MA. Solutia will continue to manufacture Resimene amino cross-linking resins for UCB at its LaSalle, Canada, facility, and its Indian Orchard plant in Springfield, MA, as well as Gelva adhesives also at the Indian Orchard facility. All other manufacturing assets at Indian Orchard will remain part of Solutia. The sale does not include Solutia’s industrial products businesses or its Butvar specials and dispersions and Santotac thermoplastic resins. As part of the agreement, current employees of the resins, additives and adhesives businesses will transfer to UCB. At the La Salle, Canada, and Springfield, MA locations, manufacturing employees will remain Solutia employees and manufacture Resimene resins and Gelva adhesives for UCB under operating agreements. In a limited number of areas, Solutia has agreed to provide transition services to UCB. Solutia is a world leader in performance films for laminated safety glass and after-market applications; process development and scale-up services for pharmaceutical fine chemicals; specialities such as water treatment chemicals, heat transfer fluids and aviation hydraulic fluid and an integrated family of nylon products including high-performance polymers and fibres. Press release from: Solutia Inc, PO Box 66760, St Louis, MO 63166-6760, USA. Tel: +1 314 674 1000. Website: http://www.solutia.com (31 Jan 2003)
Akzo Nobel likely to cut more jobs Akzo Nobel of the Netherlands has reported it may undertake a further job reduction at its MARCH 2003
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pharmaceutical and coatings operations as part of its costcutting program. The firm did not specify the time frame and the number of the possible job cuts. Akzo Nobel announced earlier it would eliminate 2000 jobs in the coatings unit and recently reported it has already shed 700 coating positions. Paint & Coatings Industry (PCI), Jan 2003, 2003 (1), 22
Rohm and Haas Co issues outlook for 4Q 2002 Rohm and Haas said that sales for 4Q 2002 are expected to be about 4 to 5% higher than 4Q 2001, although several key businesses are showing weakening demand, compared to earlier expectations, particularly in Dec 2002. The expected sales increase for 4Q 2002 reflects an almost 20% improvement, yearover-year, in Electronic Materials, and about 15% increase in sales for Coatings, of which 5% represents the impact of the recently acquired European Powder Coatings business of Ferro Corp. Sales for Adhesives and Sealants will be down almost 15%. However, after adjusting for the sales from the exited liquid polysulfide business, the sales in this business will be up about 5%. The company expects modest global economic growth with recovery in the electronic market in 2H 2002. Rohm and Haas 4Q 2002 expected sales, 18 Dec 2002 (Rohm and Haas Co, 100, Independence Mall West, Philadelphia, PA 19106-2399, USA. Tel: +1 215 592 3000 or +1 215 592 3377. Website: http://www.rohmhaas.com)
Ciba Specialty Chemicals Business Review 2002: Coating effects For fiscal 2002 (ends 31 Dec 2002), the Coating Effects division of Ciba Specialty Chemicals has reported sales of SFR 1920 M (SFR 1944 M in fiscal 2001) and EBITDA of SFR 440 M (SFR 411 M). Coating Effects had a strong
C OAT I N G S year, with higher results in sales in local currencies (+5%) and in profitability. A good increase in volumes was due to strong demand in the coatings, plastics and inks markets, which represent the bulk of the segment’s sales. Excellent growth was also achieved in digital printing as well as in pigments for LCD displays because of market developments in the notebook and computer monitor markets. A large number of new product introductions met with excellent customer acceptance. The segment introduced Ciba TINUVIN 405, a new ultraviolet absorber which is compatible with powder coatings. In addition, two new photo-initiators for the curing of coatings were launched: the state-of-the-art Ciba IRGACURE 819 DW and Ciba IRGACURE 250 for cationic curing. Several new pigments were also launched and, in Dec 2002, Ciba LlGNOSTAB 1198 was presented, which protects wood’s natural colour. Further advancements were made in e-commerce, with new polymer colorant services available on the industry Internet platform SpecialChem as well as with new features on Ciba Specialty Chemicals’ own Internet site, better tailored to specific industry segments. Customer Brand Management, a service introduced in 2000 to offer Ciba Specialty Chemicals’ expertise in colour across a range of substrates to advise global companies on the maintenance of colour consistency and protection of the quality of their valuable brand logos, generated more new business opportunities as well. Ciba Specialty Chemicals Business Review 2002, 17 Jan 2003, ifc (Ciba Specialty Chemicals, Klybeckstrasse 41, CH-4002 Basel, Switzerland. Tel: +41 61 636 1111, fax: +41 61 636 2222. Website: http://www.cibasc.com)
Akzo Nobel forecasts savings of €300 M by 2004 Akzo Nobel predicts that its current restructuring programme 5
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resin systems. The recommended levels of curing agent CA1 is 5-8 phr and 12.5 phr for CA2 and each is pigmented with titanium dioxide at 35% by weight. An additional formulation is provided for a fast cure system in which the amount of CA2 is increased to 19.05 phr. It is critical to store these powder coatings in a cool dry place to prevent caking and crosslinking. In warmer climates it is often necessary to refrigerate these materials. The film properties of the above formulations are tabulated and show that CA1 based powder coatings give excellent film appearance with 60° gloss of 100+ and very low yellowing. In addition to the excellent adhesion and flexibility qualities, the coating has excellent chemical resistance, not only to MEK double rubs but resistance to DOT No 3 and 4 brake fluids for more than 60 days. The CA2 formulation with an EPN resin also gives similar gloss readings and a harder film without adverse effect on impact resistance, together with equivalent chemical resistance. Pencil hardness readings as high as 6H are achieved with the CA2/EPN system at low temperature cure. Paper entitled “Curing Agents for Low Temperature Cure Epoxy Powder Coatings” by Todd Antenucci and Mae C Grant of Vantico, Inc presented at Powder Coating 2002 in Indianapolis on 23-24 Sep 2002. Bound copies of the conference papers available from the organizers: The Powder Coating Institute, 2121 Eisenhower Avenue, Suite 401, Alexandria, VA 22314, USA. Tel: +1 703 684 1770
INDUSTRY NEWS Ferro forecasts 4Q 2002 earnings growth and schedules 4Q 2002 earnings release and conference call Ferro Corp expects 4Q 2002 fully diluted earnings/share from continuing operations to be between $0.16 and $0.22 (diluted
C OAT I N G S earnings/share of $0.12 in 4Q 2001). The earnings growth reflects higher volumes and cost savings associated with the integration of the dmc2 businesses, which were acquired in Sep 2001. Revenue from continuing operations is expected to increase nearly 5% for both the Coatings segment and the Performance Chemicals segment compared with 4Q 2001. The Performance Chemicals segment earnings are expected to be less than that in 4Q 2001 due to the higher raw material costs and lower production rates as the company continued its effort to lower net inventory levels. Ferro Corp is a major international producer of performance materials for industry, including coatings and performance chemicals. Ferro 4Q 2002 earnings forecast, 15 Jan 2003 (Ferro Corp, 1000, Lakeside Avenue, Cleveland, OH 44114-7000, USA. Tel: +1 216 641 8580. Website: http://www.ferro.com)
Solutia closes sale of its resins, additives and adhesives businesses Solutia Inc closed the sale of its resins, additives and adhesives businesses to UCB SA for $500 M cash. Solutia will use the proceeds to substantially pay down debt, which will strengthen its balance sheet and provide the company with greater flexibility to deal with future business risk and uncertainty. The transaction is anticipated to be slightly cash accretive and 7 to 9 cts dilutive to earnings/share in 2003. Upon closing, a modest accounting gain is expected. The company expects about $40 M in cash interest savings in 2003. The agreement includes 10 production sites that make liquid and powder coatings resins, technical resins, additives products and pressuresensitive adhesives. The resins, additives and adhesives businesses together employ about 1700 individuals in 22 countries and have sales of about $560 M for the year ended Dec 2002. Solutia will sell manufacturing MARCH 2003
F O C US facilities in: Wiesbaden, FrankfurtFechenheim and Hamburg, Germany; Werndorf, Austria; Romano d’Ezzelino, Italy; Dijon, France; Soborg, Denmark; La Llagosta, Spain; Rayong, Thailand and Suzano, Brazil, as well as research and development facilities in Graz, Austria, and Springfield, MA. Solutia will continue to manufacture Resimene amino cross-linking resins for UCB at its LaSalle, Canada, facility, and its Indian Orchard plant in Springfield, MA, as well as Gelva adhesives also at the Indian Orchard facility. All other manufacturing assets at Indian Orchard will remain part of Solutia. The sale does not include Solutia’s industrial products businesses or its Butvar specials and dispersions and Santotac thermoplastic resins. As part of the agreement, current employees of the resins, additives and adhesives businesses will transfer to UCB. At the La Salle, Canada, and Springfield, MA locations, manufacturing employees will remain Solutia employees and manufacture Resimene resins and Gelva adhesives for UCB under operating agreements. In a limited number of areas, Solutia has agreed to provide transition services to UCB. Solutia is a world leader in performance films for laminated safety glass and after-market applications; process development and scale-up services for pharmaceutical fine chemicals; specialities such as water treatment chemicals, heat transfer fluids and aviation hydraulic fluid and an integrated family of nylon products including high-performance polymers and fibres. Press release from: Solutia Inc, PO Box 66760, St Louis, MO 63166-6760, USA. Tel: +1 314 674 1000. Website: http://www.solutia.com (31 Jan 2003)
Akzo Nobel likely to cut more jobs Akzo Nobel of the Netherlands has reported it may undertake a further job reduction at its MARCH 2003
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pharmaceutical and coatings operations as part of its costcutting program. The firm did not specify the time frame and the number of the possible job cuts. Akzo Nobel announced earlier it would eliminate 2000 jobs in the coatings unit and recently reported it has already shed 700 coating positions. Paint & Coatings Industry (PCI), Jan 2003, 2003 (1), 22
Rohm and Haas Co issues outlook for 4Q 2002 Rohm and Haas said that sales for 4Q 2002 are expected to be about 4 to 5% higher than 4Q 2001, although several key businesses are showing weakening demand, compared to earlier expectations, particularly in Dec 2002. The expected sales increase for 4Q 2002 reflects an almost 20% improvement, yearover-year, in Electronic Materials, and about 15% increase in sales for Coatings, of which 5% represents the impact of the recently acquired European Powder Coatings business of Ferro Corp. Sales for Adhesives and Sealants will be down almost 15%. However, after adjusting for the sales from the exited liquid polysulfide business, the sales in this business will be up about 5%. The company expects modest global economic growth with recovery in the electronic market in 2H 2002. Rohm and Haas 4Q 2002 expected sales, 18 Dec 2002 (Rohm and Haas Co, 100, Independence Mall West, Philadelphia, PA 19106-2399, USA. Tel: +1 215 592 3000 or +1 215 592 3377. Website: http://www.rohmhaas.com)
Ciba Specialty Chemicals Business Review 2002: Coating effects For fiscal 2002 (ends 31 Dec 2002), the Coating Effects division of Ciba Specialty Chemicals has reported sales of SFR 1920 M (SFR 1944 M in fiscal 2001) and EBITDA of SFR 440 M (SFR 411 M). Coating Effects had a strong
C OAT I N G S year, with higher results in sales in local currencies (+5%) and in profitability. A good increase in volumes was due to strong demand in the coatings, plastics and inks markets, which represent the bulk of the segment’s sales. Excellent growth was also achieved in digital printing as well as in pigments for LCD displays because of market developments in the notebook and computer monitor markets. A large number of new product introductions met with excellent customer acceptance. The segment introduced Ciba TINUVIN 405, a new ultraviolet absorber which is compatible with powder coatings. In addition, two new photo-initiators for the curing of coatings were launched: the state-of-the-art Ciba IRGACURE 819 DW and Ciba IRGACURE 250 for cationic curing. Several new pigments were also launched and, in Dec 2002, Ciba LlGNOSTAB 1198 was presented, which protects wood’s natural colour. Further advancements were made in e-commerce, with new polymer colorant services available on the industry Internet platform SpecialChem as well as with new features on Ciba Specialty Chemicals’ own Internet site, better tailored to specific industry segments. Customer Brand Management, a service introduced in 2000 to offer Ciba Specialty Chemicals’ expertise in colour across a range of substrates to advise global companies on the maintenance of colour consistency and protection of the quality of their valuable brand logos, generated more new business opportunities as well. Ciba Specialty Chemicals Business Review 2002, 17 Jan 2003, ifc (Ciba Specialty Chemicals, Klybeckstrasse 41, CH-4002 Basel, Switzerland. Tel: +41 61 636 1111, fax: +41 61 636 2222. Website: http://www.cibasc.com)
Akzo Nobel forecasts savings of €300 M by 2004 Akzo Nobel predicts that its current restructuring programme 5