Chemical Week articles from January 2007

Chemical Week archives from January 2007

Stage set for solid 2007.(viewpoint)
January 31, 2007... U.S. chemical makers closed out a strong 2006 by successfully navigating a difficult fourth-quarter operating environment. Weak U.S. volumes were offset by rebounds in Europe and continued strength in Asia (p. 8). Also, from a profit...

Dow eyes PP and PS ventures; creates coating and footwear units.(polypropylene)(polystyrene)(Brief article)
January 31, 2007... Dow Chemical says it is in discussion with potential partners regarding putting its polypropylene (PP) and polystyrene (PS) businesses into joint ventures. Dow is the world's largest PS maker globally with capacity of more than 2.1 million...

Eastman and Essar plan Indian oxos project ...(Essar Chemicals)(Eastman Chemical )(Brief article)
January 31, 2007... Eastman Chemical and Essar Chemicals (Vadinar, India), a subsidiary of Essar Group, say they have signed a memorandum of understanding for a 150,000-m.t./year oxo aldehyde and oxo derivatives plant at Vadinar, India. Financial terms were not...

... Eastman reports rise in earnings.(Financial report)
January 31, 2007... Eastman Chemical reported fourth-quarter net income up 44%, to $95 million ($1.12/share), including special items. Sales rose 1%, to $1.75 billion. The coatings, adhesives, specialty polymers, and inks division reported operating income up...

STB bars 'misleading' fuel surcharges.(Brief article)
January 31, 2007... The Surface Transportation Board (STB; Washington) has issued a final rule declaring it an "unreasonable" practice for railroads to compute fuel surcharges that do not correlate with actual fuel costs for specific rail shipments. The rule...

Rhodia upgrades surfactants plant.(Brief article)
January 31, 2007... Rhodia says it has completed a multimillion-dollar upgrade at its Blue Island, IL surfactants plant. The project included an upgraded sulphonation reactor system and blending vessels that increase Rhodia's overall capacity for specialty...

Cargill narrows ethanol site choice.(Emerald Renewable Energy)(Brief article)
January 31, 2007... Emerald Renewable Energy, a subsidiary of Cargill, has selected Tuscola, IL as a potential site for a planned 100-million gals/year ethanol plant, says Tuscola Economic Development Inc. (TEDI; Tuscola). Emerald will work with Lyondell...

Praxair buys midwest gases firm.
January 31, 2007... Praxair says it has agreed to acquire Mittler Supply (South Bend, IN), a distributor of industrial, medical, and specialty gases. Terms were not disclosed. Mittler reports annual sales of about $73 million, and has 210 employees, Praxair...

Songwon ahead of schedule.(Songwon Industrial Co. Ltd)(Brief article)
January 31, 2007... Songwon Industrial Co. Ltd. (Ulsan, Korea) says it is ahead of schedule to build its second antioxidants plant at Ulsan, Korea, and now expects to be online in April. The new plant will increase phenolic and phosphite antioxidant capacity by...

Chemical release at Texas plant.(E.I. du Pont de Nemours and Co.)(Brief article)
January 31, 2007... DuPont's La Porte, TX plant released oleum, a disulfuric acid, last Thursday, prompting officials to issue a shelter-in-place order, which was lifted the same day, emergency officials say. There were no injuries reported. Oleum is used to...

Phyto-Source raises capacity.(Phyto-Source)(Brief article)
January 31, 2007... Phyto-Source (Houston), a producer of high-purity plant sterols, says it has increased capacity at its Houston plant by 40% through a debottlenecking project and technology upgrade. The company says it plans to further expand capacity and...

Akzo Nobel restates plan to list pharma business.(Brief article)
January 31, 2007... Akzo Nobel has restated its intention to divest a 20%-30% stake in its Organon BioSciences (OBS) pharmaceuticals business early this year through an initial public offering, quashing speculation that Akzo will sell OBS to a consortium of...

PetroChina handed maximum fine for river pollution accident.(Jilin Petrochemical Company Ltd.)(Brief article)
January 31, 2007... Jilin Petrochemical (JPC; Jilin, China), a PetroChina subsidiary, has been fined Rmbl million ($129,000) for an explosion in November, 2005 at the company's Jilin site that caused about 100 m.t. of benzene to flow into the Songhua River,...

Ineos to cut jobs at U.K. Silicas plant.
January 31, 2007... Ineos Silicas, an Ineos subsidiary, says it will cut 67 jobs at its Warrington, U.K. plant, about 18% of the site's total. The job cuts will be spread across manufacturing and management positions, and take place within three years. They are...

Thai government launches probe into air pollution at Map Ta Phut.(Brief article)
January 31, 2007... The Thai government says it is proposing to declare the Map Ta Phut, Thailand industrial estate an "environmentally controlled zone," which would trigger a cleanup of the site and subject it to tough environmental regulations. Almost all of...

Global biotech crop area grows beyond 100 million hectares.(Brief article)
January 31, 2007... The area of land cultivated with genetically modified (GM) crops increased 13% in 2006, to more than 100 million hectares, and will reach 200 million hectares by 2015, according to a study by biotechnology industry- and charity-funded body...

Arkema plans job cuts at French hydrogen sulfide plant.(Brief article)
January 31, 2007... Arkema says it is considering plans to eliminate 48 jobs at its Lacq-Mourenx, France plant where it produces hydrogen sulfide derivatives. The cuts, 18% of the site's staff, will be made in 2007-08, the company says. Financial results at the...

Merck KGaA issues shares.
January 31, 2007... Merck KGaA says it aims to raise just over 2 billion [euro] ($2.6 billion) by issuing new shares to its shareholders and to its family-owned holding company E. Merck OHG, to help finance Merck KGaA's recent 11-billion [euro] acquisition of...

Management keeps a stake in Azelis.(Brief article)
January 31, 2007... The management of chemical distributor Azelis (Milan) will own about 32% of the company following the acquisition of a majority stake in Azelis by private equity firm 3i Group (London), sources say. The rest will be held by 3i. Azelis's...

Air Liquide's fourth-quarter sales slip.(Financial report)
January 31, 2007... Air Liquide says its fourth-quarter 2006 sales fell about I%, to 2.8 billion [euro] ($3.6 billion). Earnings were not disclosed. Gas and services sales slipped 1%, to 2.44 billion [euro]. The welding division's sales rose 16%, to 159 million...

Lurgi forms bioethanol JV.(PKM Duda and Lurgi form joint venture)(Brief article)
January 31, 2007... Meat producer PKM Duda (Warsaw) says it has agreed to form a 90-10 joint venture with Lurgi to construct a bioethanol plant at an undisclosed location in southwestern Poland. The plant will use Lurgi technology and have a capacity of 100,000...

Lower costs lift basic and diversified chemical earnings.(top of the week)
January 31, 2007... Most North American basic and diversified chemical makers beat analysts' fourth-quarter earnings estimates (table). Lower raw material and energy costs helped to offset weak demand in U.S. automotive and housing markets. Dow Chemical's...

Specialty chemical earnings rise on higher selling prices.(UNITED STATES/AMERICAS)
January 31, 2007... Most U.S. specialty chemical makers' fourth-quarter 2006 results came out ahead of analysts' estimates. Specialty producers say they benefited from higher selling prices and improved volumes, as well as an easing in raw material and energy...

Congress to consider second OCS bill.(business & finance news)(Outer Continental Shelf, United States. Congress)(Brief article)
January 31, 2007... Senators Mary Landrieu (D., LA) and Representative John Peterson (R., PA) say lawmakers on the House and Senate energy committees will consider drafting legislation this year to open additional areas of the U.S. Outer Continental Shelf (OCS)...

Mosaic to mitigate brine inflow at mine.(business & finance news)(Brief article)
January 31, 2007... Mosaic says it will spend $20 million-$40 million to pump out a new brine inflow at a mined out portion of its Esterhazy, SK potash mines. The tom pany says it does not expect the inflow to impact production for the fiscal year ending May 31....

New security regulations expected this year.(UNITED STATES/AMERICAS)
January 31, 2007... The chemical industry is likely to face implementation of more security regulations this year, including new rules aimed at safeguarding chemical facilities, as well as those to track rail shipments of hazardous materials, said speakers at...

Major corporations form advocacy group to curb climate change.(UNITED STATES/AMERICAS)
January 31, 2007... BP, DuPont, General Electric, and seven other major corporations say they have formed the U.S. Climate Action Partnership (USCAP), a coalition that will lobby lawmakers to enact "a policy framework for mandatory reduction of greenhouse gas...

Bush visits DuPont; promotes biofuels.(business & finance news, E.I. du Pont de Nemours and Co., George W. Bush)(Brief article)
January 31, 2007... President Bush paid a visit to DuPont last week to draw attention to technologies under development that could help the nation reach a goal of reducing gasoline consumption by 20% over the next 10 years. The president discussed that goal last...

Kinder Morgan to go private.(business & finance news)(Magellan Midstream Partners, Kinder Morgan Inc.)(Brief article)
January 31, 2007... The Federal Trade Commission (FTC; Washington) has approved a $22-billion takeover bid by an investment group to acquire Kinder Morgan (Houston), on condition that two of the investors give up controlling interest in competitor Magellan...

Power company signs supply deal with French purchasing group.(EUROPE/MIDEAST)(Electricite de France, Exeltium)
January 31, 2007... Power generating company Electricite de France (EdF; Paris) says it has signed a long-term agreement to supply French electricity-purchasing consortium Exeltium, which includes among its members Air Liquide, Arkema, Rhodia, and Solvay. Terms...

Lonza rides biopharma wave.(EUROPE/MIDEAST)(Lonza Group Ltd.)(Financial report)(Brief article)(Statistical data)
January 31, 2007... Lonza has unveiled a robust set of 2006 results, bolstered by a substantial contribution from the company's fast-growing biopharmaceuticals business. Lonza's biopharma sales increased 31% last year, to SF468 million ($375 million), the...

German firm builds biodiesel unit.(business & finance news)(Petrotec)(Brief article)
January 31, 2007... Petrotec (Borken, Germany) says it has started building a 100,000-m.t./year biodiesel plant at Emden, Germany. The 15 [euro]-million ($20 million) plant is due to be completed in the fourth quarter of this year, the company says. It will use...

Sabic renames U.K. business.(business & finance news)(Saudi Basic Industries Corp.)(Brief article)
January 31, 2007... Sabic says it has renamed the petrochemicals business in the U.K. that it acquired recently from Huntsman, giving the business the name Sabic U.K. Petrochemicals. The business's capacities include 865,000 m.t./year of ethylene and 1.3 million...

SK's Alliance with Nippon Oil features petchems collaboration.(ASIA/PACIFIC)
January 31, 2007... Energy and petrochemical firm SK Corp. (Seoul) and Japan's largest oil company Nippon Oil Corp. (NOC; Tokyo) say they have formed a 10-year alliance, pledging to work together in all areas of the companies' businesses. They will collaborate...

Arkema eyes Indian acrylic acid venture.(business & finance news)(Essar Chemicals)(construction of acrylic acid plant at Vadinar, India)(Brief article)
January 31, 2007... Arkema says it has agreed with Essar Chemicals (Mumbai) to study forming a 50-50 joint venture to manufacture acrylic acid and esters in India. "This will be the first acrylic acid plant to be built in India, and will serve the fast-growing...

Sibur appoints fluor to manage propylene-PP investment.(new construction projects)(Sibur Holding , polypropylene )(Brief article)
January 31, 2007... Sibur Holding (Moscow) says it has selected Fluor as project manager for construction of a propane dehydrogenation and polypropylene (PP) complex at Sibur's Tobolsk, Russia site. Fluor, together with experts from Sibur, will form a project...

UOP lands contract to design aromatics plant in China.(new construction projects)
January 31, 2007... UOP says it has been selected by PetroChina to supply technology, basic engineering services, and equipment for an aromatics complex at PetroChina's refining and petrochemical site at Urumqi, China. Basic engineering design is under way, and...

Grasim expands rayon fiber capacity in India and China.(new construction projects)
January 31, 2007... Grasim Industries (Nagda, India) says it is expanding capacity for rayon staple fiber by more than 49,000 m.t./year, to almost 316,000 m.t./year, for completion by the end of March. The expansion is split among sites at Harihar, Kharach, and...

Ineos plans major upgrade at European PP and HDPE plants.(new construction project)(Ineos Polyolefins)(Brief article)
January 31, 2007... Ineos Polyolefins, an Ineos subsidiary, says it plans to invest more than 150 million [euro] ($194 million) over the next three years to expand and upgrade its capacity in Europe. The program also involves closing some capacity. Ineos will...

Praxair to build Asia's biggest single-train gases plant.(new construction projects)(Jiangsu Sopo Group )
January 31, 2007... Praxair China (Shanghai), a Praxair subsidiary, says it has signed a contract for the supply of industrial gases to an acetic acid plant operated by Jiangsu Sopo Group (Zhenjiang, China). Praxair says it will design, build, operate, and own...

Coal to chemicals: coming out of the dark.
January 31, 2007... High crude oil and natural gas prices are pushing coal to the forefront as a lower-cost alternative energy and feedstock source. An increasing number of companies in the U.S. could start to turn to coal in a bid to secure a more reliable...

Pfizer opts for major surgery, slashing facilities and staff.(RESTRUCTURING)
January 31, 2007... Pfizer has announced sweeping plans to cut costs by reducing the number of its research and manufacturing sites, streamlining its organizational structure, reducing staff, increasing outsourcing, and reducing procurement costs. The program...

Indian firms record extraordinary growth.(MARKETS)
January 31, 2007... Leading pharma and fine chemical companies from India have announced record breaking financial results for calendar year 2006. India's largest pharma company, Ranbaxy Laboratories (Gurgaon), has recorded a doubling of net profit to $117...

Lanxess details measures to raise Saltigo's profitability.(pharmaceuticals & fine chemicals)(Brief article)
January 31, 2007... Lanxess's recently announced 30-million [euro] ($39 million) investment to modernize the production base of its Saltigo fine chemical business and introduce new work time models are designed to give a much-needed boost to Saltigo's margins,...

Suppliers focus on emerging regions; price hikes help margins.(PAPER CHEMICALS)(Industry overview)
January 31, 2007... Paper chemical markets in North America and Western Europe are expected to grow only slightly this year, while Latin America, Eastern Europe, and Asia are predicted to post higher gains, suppliers say (table). Hercules, Nalco, and Ciba...

PVC in the doldrums.(POLYMERS)(Brief article)
January 31, 2007... Polyvinyl chloride (PVC) producers are hoping to keep January prices steady after three successive months of declines. Producers are hopeful that a combination of rising demand and feedstock costs could help maintain prices despite seasonally...

Xylenes resist broader slump.(AROMATICS)(Brief article)
January 31, 2007... Resilient mixed xylenes feedstock prices have prompted U.S. ortho-xylene producers to nominate contract price increases for February of 2 cts-4.5 cts/lb despite softening o-xylene spot prices in recent weeks. O-xylenes contracts rose 2.5...

Dow closes Australia PS plant.(basic chemicals & plastics)
January 31, 2007... Dow Chemical says it has shut down its 35,000-m.t./year polystyrene (PS) plant at Altona, Australia, citing the inability to secure a long-term, economic supply of styrene. Dow says it will maintain sales and technical support for its...

Zeolite becomes Shengda, ups NPCC.(basic chemicals & plastics)(Zeolite Exploration)(nano-precipitated calcium carbonate)(Brief article)
January 31, 2007... Zeolite Exploration (Tai'an City, China) says it has changed its name to ShengdaTech. The company makes nano-precipitated calcium carbonate (NPCC) and coal-based chemical products in China. It has also changed its ticker symbol to SGAT....

Lanxess picks Ashland, PolyOne.(basic chemicals & plastics)(Brief article)
January 31, 2007... Lanxess' Lustrain Polymers has appointed Ashland and PolyOne as exclusive national distributors for its range of polymers including acrylonitrile-butadiene-styrene (ABS), styrene-acrylonitrile, and its ABS-nylon alloys. The distribution will...

PET producers want hikes.(basic chemicals & plastics)(polyethylene terephthalate )(Brief article)
January 31, 2007... U.S. polyethylene terephthalate (PET) producers have announced a 5-cts/Ib price increase, effective February 15 and March 1, depending on producer. Rising feedstock costs pushed PET margins into the red in December, despite a rollover in...

Carbon black.(product focus)(Statistical data)
January 31, 2007... Prices U.S.: 38 cts-42 cts/lb ex-works, contract EUROPE: 695 [euro]-750 [euro]/m.t. ex-works, contract ASIA/PACIFIC: $750-$930/m.t. ex-works, contract Outlook Global carbon black demand is forecast to grow 3.6%/year over...

CW price report.(COMMENTARY)(Statistical data)
January 31, 2007... After the general retreat in spot prices two weeks ago, the relative strengths and weaknesses of various products came to the fore last week. Spot ethylene in the U.S. turned upward about 2 cts/lb following several weeks of decline. January...

Oral arguments heard in D.C. hazmat rerouting case.(SAFETY AND SECURITY)(case of hazmat rail shipments in Washington D.C. )
January 31, 2007... A federal judge heard oral arguments last week in a lawsuit brought by CSX against a District of Columbia (D.C.) ordinance requiring hazmat rail shipments to be rerouted around the greater metropolitan D.C. area when practical alternative...

EPA allows Clorox to promote its donations to charities on pesticide labels.(Environmental Protection Agency)(Brief article)
January 31, 2007... EPA has approved a request by Clorox for permission to post information about the company's contributions to charities on certain product labels regulated under pesticide laws. The Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)...

ACC adds global warming and energy metrics to Web site.(regulatory)(www.responsiblecare-us.com)(Brief article)
January 31, 2007... ACC says its members have posted new performance metrics on its Responsible Care Web site, www.responsiblecare-us.com, including energy efficiency data and sector-wide greenhouse gas (GHG) emission trends. ACC says member firms have reduced...

CW75 stock performance.(Statistical table)
January 31, 2007... Strong earnings reports helped lift the CW75 Index by 1% for the week ending January 24. Most chemical companies that reported earnings by CW press time last week met or beat analysts' estimates. The index was in line with broader market...

DSM makes case for sustainability: biomaterials targeted for greener performance and profitability.
January 31, 2007... DSM says it is making "significant I progress in its quest to become an environmentally sustainable company. Sustainability involves various social, economic, and environmental performance criteria, DSM says. The company says it has yet to...

Grace Darex Packaging Technologies.(appointments)(Brief article)
January 31, 2007... GRACE DAREX PACKAGING TECHNOLOGIES, a business of W. R. Grace, has promoted John Griffiths to R&D manager/ closure sealants worldwide. Griffiths was previously marketing manager/closure. Grace Darex has also named Christophe Geffray business...

RPM.(appointment of Frederick R. Nance)(Brief article)
January 31, 2007... RPM has appointed Frederick R. Nance to its board of directors. He replaces Max. D Amstutz, who is retiring. Nance is currently managing partner/Cleveland office of Squire, Sanders & Dempsey.

Rhodia.(key changes)
January 31, 2007... RHODIA has appointed Pascual Juery v.p./ group purchasing and member of the executive board. Juery was most recently general manager/Europe for Rhodia Novecare.

PPG Industries.(key changes)
January 31, 2007... PPG INDUSTRIES has appointed Mauro Eiras general manager/architectural coatings, Latin America.

Airgas.(key changes)
January 31, 2007... AIRGAS has named James A. Muller senior v.p./specialty gases and life sciences. Muller was previously regional company president of Airgas East.

Elementis.(key changes)
January 31, 2007... ELEMENTIS has appointed David Dutro to its board as group chief executive. Dutro is currently president and COO of Elementis Worldwide.

Advanced Materials.(key changes)
January 31, 2007... ADVANCED MATERIALS has named David Pokorski national sales manager. Pokorski was previously national account manager for Avery Denison Medical.

PKN Orlen.(key changes)
January 31, 2007... PKN ORLEN has appointed Piotr Kownacki president and CEO of its management board. Kownacki was previously v.p. of the board.

H.B. Fuller.(appointment of Jim McCreary)(Brief article)
January 31, 2007... H.B. FULLER has named Jim McCreary interim CFO, replacing John Fuller, who has resigned to become executive v.p. and CFO of John Maneely. McCreary was formerly v.p. and controller.

Sequa.(appointments)(Brief article)
January 31, 2007... SEQUA has elected Gail Binderman to its board of directors. Binderman is director/ corporate strategy and development and an investment officer at Ampacet. The company has also named Kenneth J. Binder executive v.p. and CFO, and Leonard P....

SDCmaterials.(key changes)
January 31, 2007... SDCMATERIALS has appointed Joseph Bronson to its board of directors.

Diosynth Biotechnology.(key changes)
January 31, 2007... Jacques van Kimmenaede has been named president of DIOSYNTH BIOTECHNOLOGY. Kimmenaede was previously a senior executive at Organon.

Ashland.(appointment of Barry W. Perry)(Ashland Bancshares Inc.)(Brief article)
January 31, 2007... ASHLAND has elected Barry W. Perry to its board of directors. Perry was most recently chairman and CEO at Engelhard. Perry is also a director at Arrow Electronics.

Chemtura.(appointment of Edward P. Garden )(Brief article)
January 31, 2007... CHEMTURA has appointed Edward P. Garden to its board of directors. Garden is vice chairman and a director of Triarc, and also a founding partner of Trian.

American Institute of Chemical Engineers.(key changes)
January 31, 2007... Lawrence Evans has been named president of the AMERICAN INSTITUTE OF CHEMICAL ENGINEERS.

Novartis Biopharmaceutical.(key changes)
January 31, 2007... NOVARTIS BIOPHARMACEUTICAL has appointed Robert Carter senior director/ manufacturing.

CH2M Hill.(key changes)
January 31, 2007... CH2M HILL has named Dale Sands v.p./client development.

BP appoints new CEO.(British Petroleum Company PLC)(appointment of Tony Hayward)(Brief article)
January 31, 2007... BP has appointed Tony Hayward to succeed Lord John Browne as CEO, effective at the end of July. Browne is retiring. "Tony has an excellent track record and extensive knowledge of the sector and will be able to draw on John's wealth of...

Meetings.(Calendar)
January 31, 2007... AMERICAS February 4-9 HOUSTON American Institute of Chemical Engineers' Second North American Symposium on Chemical Reaction Engineering. Tel: 800 242 4363; Fax: 212 591 8888....

What private equity boom?(viewpoint)
January 24, 2007... Public perception may be that private equity firms are gobbling up whole parts of the chemical industry, but a closer look at the data shows that industry buyers remain the driving force behind M&A activity--and even managed to take back a...

Reliance posts record profit.(financial report Reliance Industries )(Financial report)(Brief article)
January 24, 2007... Reliance Industries (RIL; Mumbal) says it has recorded net profit of $631 million for its quarter ended December 31, 2006, a 58% increase over the same period in 2005. Sales rose 46%, to $6 billion. Reliance's results for the previous year...

Indian Petrochemicals reports gain.(financial report)(Financial report)(Brief article)
January 24, 2007... Indian Petrochemicals (IPCL; Vadodara) reported earnings up 40%, to $91.2 million, for its fiscal third quarter ended December 31, 2006. Sales were up 10%, to $704 million. "Despite a challenging environment, improvement in performance was...

Air Products boosts WF6 capacity.(Air Products and Chemicals Inc)(Brief article)
January 24, 2007... Air Products says it will boost capacity of tungsten hexafluoride (WF6) by about 60% at its Hometown, PA facility. The additional capacity, which is due onstream during the first half of this year, will supply the semiconductor industry,...

DuPont licenses Mitsui fungicide.(E.I. du Pont de Nemours and Co.)(Mitsui Chemical Co.)(supply agreements)(Brief article)
January 24, 2007... DuPont says it has completed supply agreements with Mitsui Chemicals (Tokyo) for the fungicide active ingredient Penthiopyrad. Terms were not disclosed. DuPont and Mitsui had previously signed a joint development agreement for new fungicides...

GE confirms plan to sell plastics unit; plastics earnings fall.(General Electric )(Brief article)
January 24, 2007... General Electric (GE) CEO Jeffrey Immelt confirmed that the company is exploring a sale of its $6.6-billion/year GE Plastics unit (CW, Jan. 17, p. 8). Some 15 potential buyers, both industry and private equity firms, have expressed interest...

PPG buys paintmaker in Brazil as acquisition spree continues.
January 24, 2007... PPG Industries says it has acquired the architectural and industrial coatings business of Renner Sayerlack (Gravatai, Brazil). Terms of the transaction were not disclosed, but analysts estimate Sayerlack has annual sales of about $150...