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Are Carrots Really Good for the Eyes?
Yes, they are, along with all other foods rich in vitamin A.
The body uses vitamin A to support nerve cells in the retinas
that help maintain normal vision. People who are deficient in
vitamin A are susceptible to a host of vision problems, such
as night blindness. Many red, yellow, orange, and leafy green
vegetables - including sweet potatoes, kale, mangoes, and
papayas - contain vitamin A, as do eggs and liver.
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Restructuring at Chemtura
Chemtura is reorganizing in order to address performance
problems associated with its plastics additives business,
according to chairman and CEO Robert Wood. The performance
chemicals segment will report directly to Wood in order to
"improve customer focus and create better communication,
accountability and delivery of results." The executive vice
president of performance chemicals, Myles Odaniell, and
executive vice president of supply chain operations, Robert
Weiner, are both leaving Chemtura. Odaniell's position has
been eliminated, but a replacement for Weiner will be named in
the near future.
In other changes, the global R&D group under John Lacadie will
report to newly promoted executive vice president of strategy,
new business development and technology Gregory McDaniel.
Marcus Meadows-Smith, executive vice president of crop
protection and consumer products will also be responsible for
Chemtura's global customer care and logistics. Executive vice
president of human resources Gary Yeaw will also have
responsibility for communications and EH&S, while executive
vice president and CFO Karen Osar will add responsibility for
investor relations to her job description.
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Custom manufacturing in India has moved to the next level, with
many highly sophisticated Indian firms acquiring leading U.S. and
European based API manufacturers. Jubilant Organosys, Dr. Reddys
Laboratories, Nicholas Piramal India Ltd., and Shasun Chemicals
and Drugs have gained access to high-tech API manufacturing and
service capabilities through such purchases. According to a recent
report by investment broker Motilal Oswal Securities, India's
contact manufacturing sector will increase its sales from $100
million in 2005 to $1 billion in 2010. Many major pharma companies
will be turning to lower cost contract manufacturers as they work
to significantly lower production costs. By gaining access to
manufacturing plants located in the West, Indian firms can address
the concerns of big pharma over proximity and intellectual
property protection. They can produce basic and intermediate
chemicals in their low-cost facilities in India, and then transfer
the final steps of the API synthesis to their plants in the West.
Other proactive steps that Indian companies are taking include
sourcing of lower cost raw materials from China, and the early
adoption of novel technologies through licensing agreements,
particularly in the area of biocatalysis.
DSM announced that it is looking for a way out of its U.S.
Melamine production joint venture with Cytec Industries and
plans to supply the U.S. market from plants in Europe and
Asia. The company also hopes to sell off its fertilizer
business based in Geleen and Ijmuiden in the Netherlands since
DSM does not have a strong global position in this industry.
Because the fertilizer manufacturing operations are highly
integrated with DSM's other assets, the sale will not be
straightforward and the right partner must be found. For the
future, DSM will focus on its nutritional products and
performance materials businesses.
Royal Dutch Shell will establish an R&D center at Bangalore,
Karnataka State in India to provide services in chemicals,
refining and exploration, and production, according to the
company. An initial office will open in the second half of
2006, with a full campus established by 2009. The operation
will be the third global R&D center for Shell, which has other
facilities in the Netherlands and U.S. Shell partly chose
Bangalore because of the access the city provides to highly
trained technical professionals. The company hopes to employ
around 1000 people when the center is fully operational.
According to the European statistical office Eurostat, in the
12-member eurozone for the period January to October 2005,
chemical import revenues rose 10 percent and export sales
increased by 7% as compared to the same period in 2004. In the
25-member European Union (EU), both import and export revenues
from chemicals rose 7%. The EU surplus from chemicals trade
increased from Euro 54 billion to Euro 57 billion, while the
trade balance in the eurozone increased from Euro 58.0 billion
to Euro 59.2 billion for the first 10 months of 2005 as
compared to that period in 2004.
Russia experienced both increased and decreased production
levels for different chemicals in 2005. The production of the
aromatics Benzene, Styrene, and Phenol were up, as was the
production of the polymers Polypropylene, Polystryene,
Polyvinyl chloride, and synthetic Rubber. On the negative
side, production of Ethylene, Polyethylene, and Methanol
declined.
Despite higher earnings, two leading chemical companies in
South Korea saw profits dramatically decline in 2005 as the
result of higher raw material costs. SK Corp's chemical-based
operating profit dropped 32 percent as a result of high
Naphtha and Reformate costs and poor performance in its
Ethylene and derivatives businesses. LG Petrochemical
announced a profit decline of 16 percent in 2005 as compared
to 2004, which the company attributed to high Naphtha costs.
According to Greg Babe, president and CEO of Bayer
MaterialScience, the rising cost of natural gas in North
America has cost U.S. chemical companies nearly $10 billion
(Euro 8.4 billion) in the last two years. The American
Chemistry Council (ACC) is hoping to get Congress to adopt
legislation that will ease the burden on the U.S. chemical
industry. The ACC is also working to form an alliance with
other industrial consumers, small businesses, and homeowners
to present a united front to Congress.
High energy prices are leading chemical manufacturers to shift
production to other parts of the world. This shift is helping
to reduce the size of the portion the U.S. contributes to
global manufacturing, which has dropped from 13% to 10% since
the 1990s. Underutilization of capacity combined with high
fuel costs is leading to reduced investment in new plants and
equipment, according to the National Association of
Manufacturers. Access to skilled labor is also limited. All of
these conditions together could result in reduced innovation
and further erosion of America's manufacturing base.
BASF announced that it has won US antitrust approval for its
$4.9 billion (Euro 4.1 billion) hostile bid for Engelhard
following passage of the waiting period under the Hart-Scott-Rodino
Antitrust Improvement Act of 1976. The European Commission
also granted unconditional approval for the transaction. BASF
has extended its bid for Engelhard until March 3, 2006. The
company has already nominated two candidates for election to
the Engelhard board at the company's 2006 annual stockholders'
meeting. Engelhard's board continues to recommend that
shareholders reject the offer.
Cargill plans to open a new 30 million lb./year Glycerin
refinery in June 2006 in Iowa that will be located next to the
company's 37.5 million gallon biodiesel facility, which will
begin operations in April or May. The plant will produce
several grades of Glycerin from soybean oil. According to the
company, Cargill will be the first in North America to be
backward integrated in soybean crushing, biodiesel production
and USP Glycerin production at one site
Dow agreed to sell its superabsorbent business, including its
facility in Rheinmuenster/Baden-Baden, Germany and a toll
manufacturing arrangement with Dow's superabsorbent facility
in Midland, Michigan, for an undisclosed amount. Dow will
supply Glacial acrylic acid to Degussa as part of the deal,
providing Degussa with upstream integration and better
positioning the company in this growing market. Degussa is
also expanding its global suberabsorbent capacity through
debottlenecking activities at facilities in Louisiana and
North Carolina and capital investments in a new plant in
Rheinmuenster, Germany.
Proctor & Gamble (P&G) announced that its Gillette business
unit has agreed to sell a range of deodorant brands including
Right Guard, Soft & Dri and Dry Idea to Dial Corporation, the
U.S. Division of Henkel, for approximately $420 million (Euro
352 million). The deal is subject to regulatory approval and
is expected to close by the end of March 2006. For Henkel, the
brands fit well with the company's body care business and will
increase sales and profitability for Dial. P&G was required to
divest the deodorant brands in order to gain approval from the
U.S. Federal Trade Commission for its merger with Gillette.
Akzo Nobel will spin off its pharma business in the second
half of 2006 with an initial IPO for a minority stake (25
percent). Organon Biosciences, which will include the human
health business Organon and the animal healthcare and products
division Intervet, will be fully divested within two to three
years of the initial IPO. Akzo will first create two
independent companies - one focused on coatings and chemicals,
and the other on pharmaceuticals - to increase management and
strategic focus. Akzo has worked to fill its pharma pipeline,
which now has five products in phase III clinical trials in
reproductive health, psychiatry, and anesthesia. With regard
to coatings, Akzo is the leader in industrial coatings and is
looking to grow this business further through selective
acquisitions. Further divestments in the chemicals group,
however, are anticipated by analysts.
The closure of Dow's synthetic Glycerine production line, the
only one in the Americas, is affecting pharmaceutical
customers in the region. Because adherence to FDA guidelines
is required in pharma applications, switching to natural
sources of Glycerine can be complicated if synthetic material
was specified in the initial filing. Re-certification would
likely be required. Dow stopped U.S. production of synthetic
Glycerine in response to weak demand and high operating costs,
according to the company. The company does still produce the
material in Stade, Germany. Major producers of natural
Glycerine in the U.S. include Cognis, The Dial Corporation,
and Proctor & Gamble.
South Korean chemical plant construction companies received a
total of $3.16 billion (Euro 2.6 billion) in orders in the
first part of 2006. According to the Ministry of Commerce,
Industry and Energy (MoCIE), Nigeria ordered $875 million and
Angola $242 million worth of oil and gas production
facilities. Petrochemical Industries Co (PIC) signed an
agreement with a consortium between South Korea's SK
Engineering & Construction Co (SKEC) and Italy's Tecnimont for
construction of a $1.23 billion aromatics plant in Shuaiba,
Kuwait. Additional orders from the Middle East include $330
million from Iran and $86 million from Lebanon. The ministry
predicts that total orders for construction services from
South Korea will reach $18 billion in 2006.
Despite a reduction in supply, spot Ethylene prices in the
U.S. have fallen more than 45 percent in three months as a
result of weak demand and a switch to natural gas-based Ethane
as a feedstock. In addition, by the end of April, Nova, Dow,
ExxonMobil, Formosa, and Innovene all have crackers coming
back on stream after planned shutdowns. This additional
production, combined with the continued use of natural-gas
based feedstocks, could drive Ethylene prices even lower.
Yara announced plans to invest $600 million to $1 billion
(Euro 503 million to Euro 839 million) to expand Ammonia
capacity and add a downstream industrial complex on the
Caribbean island of Trinidad. The downstream facility will
produce Urea, Ammonium nitrate (AN) and Urea ammonium nitrate
(UAN). The company expects to work with local partners for the
project. Yara already owns 100 percent of Yara Trinidad Ltd.
and a 49 percent stake in Trinidad Nitrogen Co, Ltd. (Tringen).
