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Hoechst rethinks Ticona and Celanese disposals November 18, 1998
Hoechst is to combine its main industrial chemicals businesses - principally Ticona and Celanese - into a separate publicly quoted company called Celanese AG, and give it away to its existing shareholders. This is instead of the plan to float the companies independently on the stock market announced in May.
The company is taking this step because of the downturn in world financial markets which would have jeopardised the flotation. The size of flotation would have made it necessary to be carried out in several steps, and worsening market conditions would have made the process too slow for Hoechst's ambitions to convert itself into a life sciences company. It would also have risked the stock being undervalued.
There has been speculation that another major chemicals company may buy the businesses - particularly Ticona - before public flotation. This has also been ruled out because of the market situation which would have kept the price too low.
The new plan, which Hoechst says has never been attempted on this scale in Germany although it is not uncommon in other countries, is to give existing Hoechst shareholders one share in Celanese for every 10 Hoechst shares held. This means that shareholdings remain at the same value, and that the actual values of the two businesses will be determined by the trading value of their shares.
The principal businesses in the new Celanese AG will be those of Celanese and Ticona, encompassing acetyl chain products such as cellulose acetate; chemical intermediates such as acrylic acid, acrylates, oxo products, amines and catalysts; and technical polymers including acetal and COC. In addition Celanese will hold investments in, among others, Celgard separation products, Thermphos phosphorus and phosphorus derivatives, and the Vinnolit PVC joint venture with Wacker. The 1997 turnover of the businesses was around DM 9·6 billion with about 15,000 employees.
Hoechst will remain essentially a life sciences company comprising Hoechst Marion Roussel (pharmaceuticals), Hoechst Schering AgrEvo (crop production and protection), Hoechst Roussel Vet (animal health) and equity in relating joint ventures. It will, however, retain investments in some industrial chemicals operations which it plans to sell when the price is right, sometime in the next two years. These include Clariant, Dyneon, DyStar, Messer, Targor, Trespaphan and Wacker.
Subject to an approval by an extraordinary general meeting on January 22, the demerger is expected to be completed by next spring.
Hoechst has been restructuring since 1994, and in 1997 formed a holding company which has facilitated development of the independent group businesses. Its declared aim is to major on life sciences and to withdraw from industrial chemicals, hence the announcement in May that is was to sell its Celanese and Ticona businesses. During this year it has sold or agreed to sell a number of other industrial chemicals businesses:
Trevira polyester textiles - sold to the Multikarsa Group.
Diafoil polyester films - joint venture interest sold to its partner Mitsubishi Chemical.
Polyester fibre and bottle resin - to be sold to the Koch-Saba consortium.
Polyester spunbond and monofilament - to be sold to Johns Manville.
Herberts paints and coatings - to be sold to DuPont.
Vianova synthetic resins - to be sold to Morgan Grenfell.
Polyethylene - to be sold to Elenac.
Hoechst's latest restructuring moves come against a background of falling sales across the whole group, largely, but not solely, in the industrial chemicals business. Group sales in the first nine months of this year were down 17 per cent at DM 33 billion. This was mainly (13 per cent) due to deconsolidations, but price pressures chipped 3 per cent off sales and volume decline cost another 1 per cent. Operating profit was down 16 per cent at DM 2·4 billion (a fall of 3 per cent on a comparable basis). While price pressure in industrial chemicals was mainly responsible for the decline in operating profit, the pharmaceuticals business suffered from the shrinking Japanese market and collapse of business in Russia, there were increased restructuring charges at Hoechst Marion Roussel, and bad weather in North and Latin America pushed AgrEvo into decline.
Claudio Sonder moves from the Hoechst board to become chairman of Celanese, and Ernst Schadow moves across as director of personnel. Other Celanese board appointments are Perry Premdas, chief financial officer, and Knut Zeptner, chief executive of Celanese chemicals and acetates. As reported last week Edward Munoz becomes chief executive responsible for Ticona engineering polymers.
Nordell expands November 18, 1998
The Nordell plastics group, which incorporates Component Moulders, PB Extrusions and Business Data Supplies, has moved to larger premises at 4 & 5 Teville Industrials, Dominion Way, Worthing, West Sussex, BN14 8NW. The telephone number is 01903 235765, fax 01903 212751.
Hanna links with Italian compounder November 17, 1998
M A Hanna has taken another step in its penetration of Europe by planning a cooperation with an Italian compounder. Subject to government approvals it will set up a joint venture with Bifan, which controls So.F.te.R, one of the largest independent plastics compounders in Europe and a specialist in thermoplastic elastomers. The deal is expected to go ahead at the end of the year. Hanna will hold the majority share in the joint venture.
New chief at Braitrim November 17, 1998
John Coleman has joined Braitrim as chief executive. He has been a consultant with McKinsey & Co, and more recently managing director at Scoot, a business information company, and Brinks, a specialist logistics business.
Plan for Canadian ethylene complex November 17 1998
A $607 million ethylene/polyethylene plant is being scheduled for Nova Scotia in Canada for the end of 2002. The plant will be built by Sable Petrochemical - a consortium led by Mobil Oil Canada - and will have a capacity of 225,000 tonnes of ethylene. No site has yet been confirmed, but the plant will use gas from the Sable offshore energy project, due to start pumping in 1999.
Columbian to expand German carbon black production November 13, 1998
Columbian Chemicals is planning a DM 36 million modernisation of its carbon black plant in Hannover, Germany. Over the next three years the company will add more than 10,000 tonnes of capacity and improve its production technology to meet the demand for high quality carbon blacks.
Gel coat has reduced VOC emissions November 13, 1998
A polyester gel coat with reduced monomer emission during spraying has been developed by Neste Polyester. The new Maxguard NP gel coat has less than 30 per cent total styrene monomer content, and the rheology of the thixotropic system has been improved to make it easily sprayable. The reduced styrene content also improves colour retention and gloss, says Neste.
Uniroyal switches nitrile production from the USA to Mexico November 13, 1998
Uniroyal Chemical is combining with Mexican synthetic rubber producer GIRSA to build 'the world's largest and most advanced' nitrile rubber plant. The 40,000 tonnes plant at Altamira in Mexico will make Uniroyal's Paracril products, which since 1996 have been made at Altamira by GIRSA's Negromex subsidiary. Uniroyal's own production plant at Painesville, Ohio, will close by the middle of next year with the loss of 125 jobs.
On the board at Compounding Ingredients November 11, 1998
Two new board appointments have been made at Compounding Ingredients. Aissa Benarous has joined the company from Henkel (UK) to become sales director. Barrie Simmonds, factory manager, has been appointed works director.
Britton puts two eggs in one basket November 10, 1998
The Britton Group is moving its Britton Security Products subsidiary in Louth to the nearby site of Britton Merlin in the spring of next year. The company says the Merlin site is better placed as a major production facility as it impacts less on the local environment, and the move will enable new systems to be installed to meet tightening legislation on fume emission. In the short term 25 jobs will be lost across both companies through natural wastage.
New MD at Dunlop Precision Rubber November 10, 1998
Peter Smith has been appointed managing director of Dunlop Precision Rubber in Shepshed, Leicestershire, following the retirement of Gordon Midgeley. He joins from Dunlop Equipment, where he has been director and general manager since 1994.
US die maker plans European production November 9, 1998
US flat film die maker Extrusion Dies is planning to set up a manufacturing plant in Europe. Initially the company is servicing European customers through EDI Europe, which it set up recently by buying its German agent Dr-Ing H Müller. Managing director J Peter Müller becomes EDI Europe's vice president and general manager.
Dyneon rebrands Hostaflon November 9, 1998
Hoechst materials that were taken over by Dyneon when Hoechst and 3M formed the company two years ago from their fluoropolymers businesses are now being rebranded as Dyneon materials. Hostaflon PTFE becomes Dyneon PTFE and Hostaflon TFM PTFE becomes Dyneon TFM PTFE.
Top changes at AlliedSignal Europe November 9, 1998
The new man at the head of AlliedSignal's European operations is Paul Conroy, who joins the company from GE Capital where he was vice president for healthcare sales, and before that spent more than 10 years with GE Plastics. Jim Morelli, AlliedSignal's director of sales and marketing in Europe, leaves the company at the end of the year.
GE to double Lexan capacity in Spain November 9, 1998
A second phase is to be added to GE Plastics' Lexan polycarbonate plant at Cartagena in Spain, doubling its capacity to 260,000 tonnes. The first phase, which began in 1996, is due to be completed in January. The second phase is scheduled for completion by 2002.
The new plant will focus on optical grades with improved colour consistency, purity and enhanced melt flow for applications in the automotive, optical media and opthalmic markets.
Sassenrath to leave Ticona November 9, 1998
Bernd Sassenrath, managing director of Ticona, is leaving to head another Hoechst subsidiary, Aventis Research & Technologies. He will be succeeded at Ticona on January 1 by Edward Munoz, who is a member of the management board of Trevira with responsibility for the technical polyester business.
British laboratory claims the lead in phthalate plasticiser migration testing November 9, 1998
A British testing company has developed methods for testing the migration of phthalates from soft PVC toys and childcare items which it regards as more comprehensive than the widely publicised Dutch testing methods. LGC - which before it was privatised two years ago was the Laboratory of the Government Chemist - is making its testing methods available to all the member state laboratories considering this aspect of phthalate migration and to the EU Scientific Committee for Toxicity, Ecotoxity and the Environment.
While LGC says that it does not see the determination of a standardised test method as a competition, and stands to make no direct commercial gain from the selection of its method as the standard, it would be a natural choice for manufacturers to use as a testing house for their products if its testing method was selected.
While the Dutch testing methods have received the most publicity, they are by no means the only methods under consideration. Laboratories in other member states have been working in the field and the EU has yet to assess the options and select the approved method.
One of the points at issue is that while some methods may measure phthalate migration, they do not identify the specific phthalates. This, according to LGC, applies to the Dutch method. The Dutch method uses a tumbling technique for extraction and high performance liquid chromatography for measurement. This will identify the migration of DINP but according to LGC does not provide clear identification of other phthalates, and while DINP is the most commonly used phthalate plasticiser, there are also applications for DIDP, and occasionally DIHP. A further complication is that DIHP may be found as a contaminant in DINP.
LGC has a tumbling method - it says it was the originator of this extraction method which was put into the public domain some four years ago - but favours a horizontal water bath process. It also uses gas chromatography with mass spectrometry in preference to HPLC because this method of identification gives a selection of peaks for different phthalates, enabling a more accurate 'fingerprint' to be determined.
Beyond phthalate migration, LGC says its testing method can be used as the basis for identification of other organic additives, which may become the subject of future legislation.
EU committee meetings are taking place this month with a decision on the next steps to be taken expected around the end of November/beginning of December, and LGC expects trials of testing methods to take place early next year.
US medical/electronics moulder opens in Ireland November 9, 1998
US precision moulder The Tech Group has opened a facility in Ireland at the Damastown Industrial Park in Mulhuddart near Dublin. Tech has 15 plants worldwide with a customer base primarily in the healthcare and electronics sectors.
The new $10 million Irish plant has opened with 40,000 sq ft of production space split into a class 100,000 clean room for medical work and a white room for electronics. A second phase has been pencilled in to extend to 100,000 sq ft.
So far Tech is moulding for five customers (two from the UK and three from Ireland) of which four are in the medical business and one in electronics. It has in place six moulding machines from Netstal and Demag using Hekuma robotics and Piovan materials handling. The schedule is to have 14 machines in place by the first quarter of next year, and the number will then rise to around 30 to fill the first phase.
Tech reckons it will have sold the capacity of its first phase in 12 to 18 months, and expects to make decisions on phase 2 in around 18 months from now. It sees total capacity at the plant as reaching 60 - 70 machines.
EVC/Norsk Hydro merger abandoned November 9, 1998
The PVC merger between EVC and Norsk Hydro's petrochemicals division (July news story) is off. The merger would have created a company in the top four of world PVC suppliers with European capacity of 1·8 million tonnes. But when it came to discussing strategic details the two companies found they could not agree.
Moulding machine sales peak November 9, 1998
Demag Ergotech has revised slightly upwards its prediction of how many injection moulding machines will be sold in Europe this year (July news story), and is forecasting a drop in 1999. The company says that 14,400 machines will be sold in Europe in 1998, but that this figure will fall to 13,400 next year - the same level as in 1997.
While 1998 looks like being a record year for European moulding machine sales, Europe has peaked a year later than elsewhere: in the USA, Canada and Mexico machine sales are predicted at 7,500, down from last year's 8,000 but better than next year's forecast of 6,700. The global figure excluding South America, Africa and the Near East shows a similar trend, with this year's estimated 43,900 down on the 1997 figure of 50,400 but ahead of next year's predicted 42,600 machines. Asia is predicted bucking the trend, but the rise from 22,000 machines this year to next year's 22,500 is still a long way down from the 29,000 machine sales figure of 1997.
Demag's own sales performance has been blossoming (2,250 machines in 1998, representing a 30 per cent increase on 1997, itself 30 per cent up on 1996), but next year is forecast to be 'not as good as 1998'.
Wittmann to cut costs by building in Hungary November 8, 1998
Austrian robot maker Wittmann is transferring some of its robot production to a new plant in Hungary to reduce its labour costs - wages are a third of those in Austria - and make its machines more competitive with Far Eastern imports.
The plan initially is to build its simpler machines - sprue pickers and pneumatic robots - at the factory at Györ together with some components of its CNC robots. Production starts in February.
Wittmann is investing $1·2 million in the plant, plus around half as much again for equipment. It has also added 850 m2 to its Vienna plant, and increased production space in Germany.
Munchy opens in the USA November 8, 1998
Munchy has opened an office in the USA to support its distributor Action Industries in meeting 'exceptional demand' for its reprocessing equipment.
Radley goes as Hanna revamps Victor November 8, 1998
M A Hanna has revamped its Victor International Plastics additives and colorants business to become directly responsible to its European operations, and as a result, managing director Huw Radley left the company on Friday. He has been replaced as managing director by sales and marketing director Michael Freestone, who reports directly to M A Hanna Color Europe.
Victor's compounds business is now headed by Stephen Duckworth, recently appointed European marketing and technology director for the M A Hanna Engineered Materials business. Andrew Donkin, director of colour polymers for Victor, has an expanded role as director of service centre operations, responsible for all Victor activities except finance and sales.
Zwick buys control of British testing equipment group November 8, 1998
The Zwick Roell testing equipment group from Germany has bought a majority shareholding in Highbright Holdings, whose subsidiary companies include Dartec (static and dynamic testing machines and systems), Rosand Precision (flow and impact testers) and Kelsey Instruments (aerospace and automotive testing equipment).
The Highbright companies will continue to operate as separate companies based at their current locations with no changes to their product ranges or personnel, says Highbright. The addition of Highbright to Zwick Roell gives the German company a 'total capability' product range which it says has hitherto only been available from American companies.
Moss goes into Poland November 8, 1998
Bunzl Group moulder Moss Plastic Parts has set up a subsidiary in Poland for both increased sales representation in Europe, and to exploit opportunities from the booming Polish economy. Moss already has wholly owned subsidiaries in France, Benelux, Germany and Spain.
Exotherm expands by acquisition November 8, 1998
Heater and insulation manufacturer Exotherm has bought Saveguard International (SGI) of Windsor, which also makes high temperature insulation products for the plastics and rubber industries.
Colortronic sets up French company November 8, 1998
Materials handling specialist Colortronic has set up a subsidiary company in France. Colortronic sarl is the company's fourth subsidiary outside Germany, following the USA, Singapore and the UK.
Ashland buys German polyester business November 8, 1998
Ashland Chemical has bought (through a German subsidiary) the polyester resin business of Buna Sow Olefinverbund (BSL) of Schkopau, Germany. The deal encompasses patents, formulations, customer lists and the trade name Sconoran. Manufacture of the material will begin at existing Ashland plants in Europe at the end of the year.
New PVC plant planned in Mexico November 8, 1998
A new 100,000 tonnes PVC plant is being planned in Mexico. The plant will be built by Mexichem - formed recently from the merger of Quimica Pennwalt and Polimeros de Mexico - at its plant in Veracruz, near to the Pemex VCM plant.
Montell strengthens Japanese polypropylene links - as sluggish demand is forecast in Japanese market November 8, 1998
The co-operation between Montell and Japan Polyolefins Co has taken a further step with the plan to set up a joint venture to produce and supply polypropylene in Japan.
Japan Polyolefins was set up in 1995 when Showa Denko and Nippon Petrochemicals pooled their polyolefins businesses. Montell became involved in 1996 with the creation of Montell-JPO, a 50:50 joint venture to exploit advanced polyolefin processes such as Montell's Catalloy process and high melt strength polypropylene.
In 1997 Montell-JPO and its two parent organisations set up MBJ Advanced Polymers in Thailand to make and market polypropylene compounds.
The latest co-operation is intended to produce a Japanese-based globally oriented company combining Montell's technology with JPO's strength in the Japanese polyolefins market. The new business is due to start operations on May 1 with an initial production capacity of more than 282,000 tonnes.
According to US market research group Freedonia the Japanese market is going to show the least growth in polypropylene demand of any major developed country over the next three years. Worldwide the company is forecasting a 5·9 per cent annual expansion in PP demand to nearly 30 million tonnes by 2002.
In its report World Polypropylene (priced at $3,900) Freedonia predicts an overall deceleration in Far East demand due to the region's financial crisis.The Japanese market will remain sluggish, but the excess capacity in Japan and in South Korea will be partly offset by sales to China which, despite its own capacity expansion, will remain the world's leading importer of PP.
Elsewhere the company sees long term growth in Latin America, mainly due to the packaging and durable goods markets in Argentina and Brazil. The Czech Republic and Hungary will become significant exporters while the Russian market will remain quite weak.
In North America and Western Europe demand will increase through the introduction of new generation materials which will open up new markets.
World polypropylene demand (thousand metric tonnes) - source The Freedonia Group
Joint venture to promote slush moulding to automotive companies November 8, 1998
US moulder Newcor Inc and Plastics Mouldings of Scotland have set up a joint venture at Plastic Mouldings' Irvine plant to supply the automotive industry with alternative moulding technologies.
Plastic Mouldings, a member of the Plastic Industries Group, says it is the largest custom dip moulder in Europe, and is a tier one supplier in the UK to Jaguar, Aston Martin, Lotus, Rolls Royce, and major commercial vehicle manufacturers. Newcor is a tier one supplier in the US to Chrysler, Ford, General Motors and commercial vehicle manufacturers.
The new company, Newcor Plastic Mouldings, will emphasise the use of slush moulding for products such as gear lever/handbrake gaiters, steering column seals and under-seat bellows. The company will also offer dip moulding, rotational moulding, casting and vacuum forming.
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