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January 2009
  Feature Article

A Long Winter Ahead for Most and an Unclear Future for Many

While analysts have reflected that specialty chemical producers like Rohm & Haas and Albemarle are better insulated against the economic downturn, those that make commodity chemicals, like Dow Chemical Co.  do not have the same cushion.

The future remains unclear for many companies.  Dow, the largest U.S. chemical company, recently announced that it will close 20 facilities, divest several businesses and cut several thousand jobs as it throttles back operations to deal with the global slump. DuPont has also cut jobs and delayed an expansion in China while Eastman Chemical Co, Chemtura Corp and A. Schulman are among other chemical companies slashing payrolls.

The downturn has also taken a toll on corporate deals. Only within the last few months, Kuwait sank a proposed joint venture with Dow while Hexion walked away from a $6.5 billion takeover of specialty chemicals firm Huntsman Corp. In an environment where profits were scarce and refinancing difficult, the merger that formed LyondellBasell left the new company saddled with a large debt load that may prove to be disastrous for both companies.

The thorny credit market mixed with occurrences in the global marketplace has increased the pressure placed on highly leveraged companies.  In an attempt to weather the challenging forecast of the coming year, many chemical companies are “hunkering down” and taking quick measures to protect their existing liquidity. 

  Famous Quotes
Famous Quotes of the Month

"Truth is its own reward." (Plato)

"The road to success is lined with many tempting parking spaces" (Anon)

" We don't receive wisdom, we must discover it for ourselves after a journey that no one can take for us or spare us." (Marcel Proust)

"No man is wise enough by himself." (Titus Maccius Plantus)

"Appreciation is a wonderful thing. It makes what is excellent in others belong to us as well." (Voltaire)

"A wise man can see more from the bottom of a well than a fool can from a mountain top." (Anon)

"Some people feel the rain. Others just get wet." (Bob Dylan)

"A ship in the harbor is safe but that's not what ships are built for." (William Thayer Shedd)

"The significant problems we face cannot be solved at the same level of thinking with which we created them." (Albert Einstein)

"To do for the world more than the world does for you - that is success." (Henry Ford)

 



 Imponderables
What makes bubble gum blow better bubbles than regular chewing gum?

All chewing gums consist of gum base, some form of sugar (or sorbitol in sugarless varieties), softeners and flavoring.  The key to producing good bubbles is the proper gum base.  Most manufacturers use polyvinyl acetate, a synthetic resin, as the gum base. 

To produce a substantial bubble, the gum must be strong enough to withstand the pressure of the tongue and the formation of an air pocket but also flexible enough to stretch evenly as it expands.  Bubble gum's secret ingredient is a class of ingredients called "plasticizers", a synthetic gum base that stretches farther than plain resin.  Plasticizers guarantee sufficient elasticity to insure that little kids can pop bubbles big enough to plaster pink gook all over their faces.
 


 Companies
Chemical Information Services Encourages User Updates

To encourage companies included in its databases to update their information, Chemical Information Services offers various prizes in a series of drawings. Listees were sent an e-mail requesting that the company update its information.Quarterly incentive drawings are scheduled with prizes that have included cash, Travel Alarm Clocks, IPod Nanos, and IPod Shuffles. To update information, companies log in to the Source2Source (S2S) section of the DWCP site with the User ID and Password provided. Both contact information and product listings must be updated or verified for a company to be eligible for the drawing.

Chemical Information Services is proud to announce the latest winners:

DWCP:
Dr. Juan A. López ( Kinsy, S.L.), Ashutosh Dewal ( Rupa Organics Pvt. Ltd), Mr. Bhisham Gurnani (Viva Corporation), Mr. Hoo(Shanghai Trico) and Thomas Li (Shandong Keyuan Pharmaceutical Co., Ltd.)

WBDU:
Konrad Marinkowski (Medana Pharma S.A.), Dr. B. Behjati (Medical Biomaterial Products BmbH), Mr. K. Fujita (Daito Pharmaceutical Co., Ltd.), Mr. Yao Jianyong (Shandong Xinhua Pharmaceutical Company Limited) and Tom List (West Agro, Inc.).

Thank you to everyone who updated their information!
 

Eastman, SK Chemicals Sign Joint Venture Agreement for Cellulose Acetate Tow Production
Eastman Chemical Company and SK Chemicals Co., Ltd. recently signed a joint venture agreement to form a company that will construct a cellulose acetate tow manufacturing facility in Korea. The company will be named Eastman Fibers Korea Limited. Under the agreement terms, Eastman will have 80% ownership and will operate the facility. SK Chemicals will own the remaining 20% and will construct the facility adjacent to an existing SK Chemicals manufacturing site in Ulsan, Korea. Construction is expected to begin in first quarter 2009 and should be completed during the second quarter 2010. Annual capacity at the site is expected to be approximately 27,000 metric tons (MT).

This strategic joint venture will enable them to maintain their market growth and meet customer demands for cellulose acetate tow in this rapidly growing region. SK Chemicals will close its existing acetate fibers plant located in Suwon, Korea within the first half of 2009.. Also as part of the agreement, SK will transfer its acetate fibers technology to Eastman.  Eastman also manufactures cellulose acetate tow at its facilities in the US and England. Completion of the new site will bring Eastman's total worldwide capacity for acetate tow will exceed 200,000 MT.
 

Axens’ ParamaX Technnology To Be Used at Petrochemical Plant in Kazakhstan

Axens (Rueil-Malmaison, France) announced that the company’s ParamaX technology will be used at the petrochemical plant being planned for the Atyrau Refinery in Kazakhstan. The facility, which will go online around 2012, will produce 496,000 m.t./year of para-xylene and 133,000 m.t./year of benzene. It will be operated by KazMunaiGaz (Almaty), which owns an existing oil refinery on the site.

ParamaX is a suite of proprietary technologies that aid in the production of paraxylene and benzene from naphtha. The technologies used at the Kazakhstan facility will help with aromatics production, aromatics extraction and para-xylene purification, among other functions. ExxonMobil Chemical and Uhde also have technologies that are a part of the suite.
 


Ube and Boeing to Develop New Materials Technology
Ube Industries and Boeing have entered into an agreement and will work together to develop new materials technology for aerospace applications. The initial focus of the collaboration will be on maturing high-temperature polymer matrix composites for Boeing’s commercial airplanes that is intended to reduce the weight and cost of airframe structures in close proximity to the engines,  According to the agreement, the two companies will also try to identify other areas of mutual interest for joint development. The agreement involves an initial two-year collaboration period, which can be later extended.  The new agreement is the first step for Ube in leveraging its expertise in chemistry and opening the door to a broader supply of aerospace products.
 



 Personnel

Ross Mixing Appoints New Vice President

Ross Mixing, Inc. has announced the promotion of John Paterson to the position of Vice President. Mr. Paterson joined Ross as Product Manager – Coatings Equipment in 1995. He was promoted in 1996 to General Manager of Ross Mixing Inc. Mr. Paterson holds a Bachelors degree from Rutgers University. Prior to joining Ross, Mr. Paterson was employed by Hockmeyer Equipment. He holds two design patents covering a Basket mill and the PreMax high-speed mixer. Mr. Paterson's time will be handle varied general management duties at the Pt. St. Lucie plant, as well as oversee the company's continuing development of specialty mixing and dispersion equipment for the coatings industry.


BioEnergy Announces Specialty Chemicals Leadership Team

Science and technology leader BioEnergy International, LLC (BioEnergy recently announced the addition of Dr.'s Cenan Ozmeral and Cary Veith to its leadership team and the establishment of a formal Specialty Chemicals Division. With their vast experience from premier chemical companies, the addition of these proven leaders positions the company’s renewable specialty chemicals business with particular emphasis on its succinic acid platform for rapid implementation.  In November of 2008, Dr. Ozmeral was appointed Sr. Vice President and General Manager, Specialty Chemicals. He brings specific experience gained from 29 years in the chemical polymer industry, developing and growing specialty chemicals and polymers businesses for the world's largest chemical company, BASF, where he most recently served as Vice President Acrylic Dispersions and XSB Latex Business, NAFTA Region. Dr. Cary Veith was appointed Vice President, Research and Development in December.  He is a broadly experienced chemical industrial product professional with over 25 years of success, most recently as a Vice President/General Manager at DuPont.  With these new additions, Dr. Joseph Glas assumes the role of Executive Vice President to further drive BioEnergy as a foremost leader in biobased specialty chemical and the bioplastics industry.


Toray Plastics Names CEO

Toray Plastics America it has appointed Richard Schloesser as CEO. Schloesser, formerly president and COO, succeeds Kojiro Maeda, who will become deputy general manager/films at parent company Toray Industries. Schloesser will continue to oversee Toray’s packaging-film business expansion in Europe and will act as an adviser to Toray Industries’ board of directors.


GSK Biologicals Selects VP of HR
 

Luc Vanden Broeck recently joined GSK Biologicals as its Vice President of Human Resources.  He will be based at the company's HQ in Belgium and report to president and general manager the company's vaccine business, Jean Stephenne, He will build on existing HR practices for 9,000 staff across 18 locations in 14 countries. Vanden Broeck held a number of HR leadership positions and spent four years working with business groups in the UK. He was previously HRD for North and Central Europe at Healthcare Europe for Kimberly-Clark, based in Belgium.


PPG Appoints Danowski Vice President, Performance Glazings

  PPG Industries has appointed Gary Danowski, director, global operations, aerospace, vice president, performance glazings.  He will be based at the Harmar, Pa., glass business and discovery center and will report to the company’s Senior Vice President Victoria M. Holt.  Danowski joined PPG in 1982 as a production engineer at the former Crestline, Ohio, automotive glass fabrication plant, which is now part of Pittsburgh Glass Works LLC (PGW).


AMVAC Chemical Corporation Names CEO and Executive Vice President

  Trevor Thorley has been named as Chief Operating Officer and Executive Vice President of American Vanguard’s principal operating subsidiary, AMVAC Chemical Corporation. In this newly created role, Mr. Thorley will be responsible for the sales, marketing, regulatory, research and development, manufacturing operations and administrative functions of AMVAC. Mr. Thorley possesses an extensive background in agricultural chemicals He came to the company from Valent USA Corporation where he served as President and Chief Operating Officer.
 

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 Business/Finance
Mosaic Beats Estimates; Plans Further Production Cuts

Mosaic reported net earnings of $960 million ($2.15/share) for its fiscal second quarter ended November 30, a 140% increase from the same year-ago period. Earnings per share were $1.53, beating First Call consensus of $1.43/share. Sales increased 37%, to $3 billion.President and CEO Jim Prokopanko said that earnings for the second quarter were up from the prior year as the company benefited from higher realized selling prices in their potash business unit.  Higher diammonium phosphate (DAP) and muriate of potash (MOP) and the gain on its sale of Saskferco offset the impact of lower sales volumes and inventory write-down. While phosphate operating earnings fell 25%, to $258 million on a 46% drop in sales volumes, the company’s potash operating earnings more than tripled, to $547.5 million, on higher selling prices. Potash sales are expected to remain weak at least through the third quarter. Due to softening market conditions, the company has already cut phosphate production by 1 million m.t. It plans to cut another 1 million m.t. of phosphate and up to 1 million tons of potash production in the coming fiscal year.
 


Dow Faces Lower Credit Rating

In response to Kuwait’s decision to back out of the K-Dow joint venture, Moody’s and Standard & Poor's (S&P) have each lowered Dow Chemical’s senior unsecured rating. Moody’s lowered Dow’s rating to Baa1 from A3, and S&P lowered the rating to BBB from A-.  Both agencies are also casting watchful eyes on Rohm and Haas’s credit. Cancellation of the K-Dow joint venture could also jeopardize the bid to purchase Rohm and Haas, as proceeds from the jv were to be used to fund the acquisition. 

Americas Styrenics to Curb Polystyrene Production at Ohio Facility

Texas-based Americas Styrenics announced earlier this month that it will reduce polystyrene production capacity at its facility at Marietta, OH, by 350 million lbs/year due to the economic downturn. As a part of the restructuring, approximately 60 jobs will be eliminated. “Our operations must reflect the current business environment. This move is designed to ensure the future success of the Marietta facility and of our business as a whole. We still have a very strong base of strategic assets and experienced employees,” said Tim Roberts, president and CEO.
 


Westlake Chemical Idles Ethylene Plant

Houston-based petrochemical and fabricated products company, Westlake Chemical Corporation, announced that it is idling one of its ethylene plants in Lake Charles, Louisiana.  The move is due to significant customer inventory destocking and resulting weakened demand of the company's derivative products. A maintenance turnaround scheduled for this plant for the first half of 2009 will be brought forward to be performed during this down time. The company's plants have been operating at reduced rates since the third quarter of this year due to the general weakened demand as a result of the continued deterioration in the U.S. and global economies and as a reaction to the concurrent sharp product price declines due to the recent collapse in energy and feedstock prices.  While lower production, weakened product demand and inventory write downs due to sharp drop in product prices will have a negative impact on the company's fourth quarter and full year 2008 results, the company does not anticipate further significant inventory write downs unless there are further material decreases in energy, feedstock and product prices.
 


Cereplast Signs Distribution Agreement with A. Schulman

Cereplast, Inc. recently signed a distribution agreement with A. Schulman, a leading international supplier of high-performance plastic compounds and resins used as raw materials in a variety of markets. With Cereplast’s families of bioplastic resins, A. Schulman will be able to launch a new offering of bio-based material to its customers interested in more environmentally-friendly solutions. Under the agreement, A. Schulman will distribute Cereplast Compostables® and Hybrids Resins® to converters and manufacturers in France, Benelux and Spain. Notably, in France, A. Schulman is the leading supplier of plastics and additives to plastic molders and converters.  
 


Spectrum Chemicals & Laboratory Products Provides Incentive for Employees Buying American Hybrids

Spectrum Chemicals & Laboratory Products (a unit of Spectrum Laboratory Products, Inc.), recently announced its $1,000 cash back reward for any employee who purchases a new American-made (GM, Ford or Chrysler) hybrid automobile, between now and March 31, 2009. This incentive is being offered immediately by Spectrum senior management.
 



 Fine &  Specialty Chemicals
Albemarle Completes Sale of French Site


Albemarle has completed the previously announced sale of its Port-de-Bouc, France site to Azur Chimie, a wholly owned affiliate of International Chemical Investors Group (ICIG; Frankfurt).  All land, equipment, buildings and certain other assets previously held at Port-de-Bouc have been transferred to Azur Chimie where they will toll manufacture certain products for Albermarle.  The company expects to incur a pretax charge of $25 million-$30 million in the fourth quarter of 2008, related to the deal and hopes this strategic divesture will position them to better focus on core business objectives and interests.
 


Dow Performance Fluids Selects European Distributor

Dow Performance Fluids, a business unit of The Dow Chemical Company (“Dow”), has extended its marketing relationship with specialty and fine chemical e-distributor ChemPoint.com for High Temperature Heat Transfer Fluids (DOWTHERM TM, SYLTHERM TM ).  ChemPoint.com will provide marketing, sales, customer service and order fulfillment for customers in Norway, Sweden, Denmark, United Kingdom, France, Belgium, the Netherlands, Luxembourg, Spain, Portugal and Italy.  To swiftly implement an enhanced customer service approach, Dow selected ChemPoint.com to closely monitor the status of synthetic fluid and customer needs. ChemPoint’s model for marketing, telesales and customer relationship management offers the means to deal with diverse geographies for Synthetic Fluid Life Management and to effectively service High Temperature Heat Transfer Fluid users.
 

 

  Pharma

Reckitt Benckiser Encourages Customers to Reduce Environmental Footprint

Reckitt Benckiser recently launched its “Our Home Our Planet” campaign.  The program is aimed at encouraging its customers to reduce the environmental footprint associated with the use of its products.

The campaign is designed to reduce the carbon footprint generated from the firm’s products by 20% by 2020. The company sells approximately 15 million products every day.  Between 60% and 70% of the GHG emissions from its products occur during consumer use. Reckitt Benckiser is providing guidelines by encouraging its customers to reduce GHG emissions associated with the use of its products The hope is that this educational campaign make a significant impact to help tackle the problem of climate change.


The company plans to roll out the campaign across its brands such as Finish, Harpic, Dettol, and Vanish during 2009.
 


Evonik Industries AG to Produce Catalysts in China In 2009

   Evonik Industries AG has commenced building a catalyst manufacturing plant, producing precious metal powder catalysts, in Shanghai (China). The plant will start operation in the fourth quarter of 2009. Evonik currently has manufacturing locations in Germany, Japan, Brazil and the United States.  The new plant in Shanghai will further enhance its global initiatives.  The pharmaceutical and fine chemical industries are growing at an annual rate of more than 15 percent in China. The Shanghai location is located near the Jiangsu and Zhejiang provinces, where numerous pharmaceutical and fine chemical companies are located and will enable Evonik to supply its customers directly in China.
 


FDA Opens Offices in India

U.S. FDA opened offices in Mumbai and New Delhi, India, with the aim to ensure quality and safety of food and medical products exported to the U.S.  Ten experienced FDA officials will be posted in these offices.   They will work closely with industries that ship food and medical products to the U.S., to improve safety and quality.  Along with the office director, the local office will have four inspectors and five senior technical experts who will cover food, medical devices and medicines.  India is the fourth-largest exporter by volume of drugs and biologics, especially generic pharmaceuticals, as well as a significant exporter of food products.  FDA personnel will provide technical advice, conduct inspections of facilities that export to the U.S., and work with Indian government agencies and the private sector to develop certification programs to allow the efficient flow of safe FDA-regulated goods between India and the U.S.   If called upon, they are also prepared to work with the Indian government as it strengthens its own regulatory institutions. FDA now has an in-country presence in China, Central America, Europe and India and has plans to post personnel in Mexico, Middle East, and South America in 2009.

U.S. Patent and Trademark Office Accepts Pfizer’s Reissue Application on Lipitor Enantiomer Patent

The U.S. Patent & Trademark Office has issued a “Notice of Allowance” to Pfizer Inc., accepting the company’s application to correct the technical defect in the ‘995 enantiomer patent for atorvastatin calcium, the salt form of atorvastatin sold as Lipitor. The company noted that certain formalities must be completed before the reissue patent will be granted. The reissued patent will have the same force and effect as the original ‘995 patent and the same June 2011 expiration date (including the six-month pediatric exclusivity period).


BioReliance Corporation and Barr Pharmaceuticals to Supply Bulk Virus for the Manufacture of Adenovirus Vaccine for the U.S. Department of Defense



BioReliance Corporation has been contracted by Barr Pharmaceuticals, Inc. to supply bulk adenovirus for the manufacture of Duramed Pharmaceuticals, Inc.’s Adenovirus Types 4 and 7 Live Oral Vaccines. Duramed, a subsidiary of Barr Pharmaceuticals, recently announced that the U.S. Food and Drug Administration has accepted for review Duramed’s Biologics License Application for the vaccines. The vaccines will be used by the U.S. Department of Defense for administration to military personnel.



 Agrochemicals
Nitrogen Fertilizer Producer May Halt Output

Poland's number two fertilizer producer, Police, may halt the production of nitrogen fertilizers if to limit gas usage due to lower supplies from the Ukraine.  Nitrogen fertilizers account for one fifth of Police's total fertilizer output.
 



 Commodity  Chemicals

U.S. Glycerine Prices Could Bounce on Asian Crunch

After months of declining, U.S. glycerine prices may have hit bottom and could actually have a bit of a rebound thanks to higher Asia prices.  Expected price increases for glycerine manufactured in Asia - where supplies of crude glycerine have been tightened - could stem the flood of imports to the U.S.  As a result, U.S. glycerine producers may raise their own prices. In the past six months, the fall in commodity prices and steady stream of less expensive imports from Europe and Asia brought U.S. glycerine prices lower. As exports from Asia decrease, the U.S. market may finally have hit bottom and could begin to rise by a few cents per pound in the near future.
 



   Paints & Coatings

Haruna Licenses Self-Cleaning Coating

Singapore speciality paints and building chemicals maker Haruna has obtained the licence to a photo-catalytic self-cleaning coating developed by the Singapore Institute of Manufacturing Technology (SIMTech) forSingapore's A*STAR Agency for Science, Technology and Research. The coating consists of nano-sized titanium dioxide particles, which catalyze oxidation and decomposition of organic dirt and microbes on the paint surface, upon exposure to UV light. The material allows decomposed dirt to be easily washed away since it is hydrophilic. One of the commercial buildings in which the material is used is the Pacific Plaza in Singapore. Initial results show that the coating significantly lessens the need to clean the exteriors of buildings.


Muralo Launches NanoKote Ceramic Paint

The Muralo Company has launched its new NanoKote waterborne ceramic paint.  The paint has been formulated to provide a mold and mildew resistant coating to interior surfaces. With its ceramic and nano built-in technologies, the paint delivers a smooth film that is easy to wash and resistance to water marks and streaking. NanoKote can be customized to a variety of pastel and medium-tone colors and is offered in eggshell, satin and semi-gloss finishes. 

 



 Plastics

DSM’s Xantar LDS PC/ABS Used in Mobile Antenna

Manufacturer of performance materials, DSM Engineering Plastics, has introduced a new grade of Xantar LDS PC/ABS suitable for Laser Direct Structuring (LDS) applications. Xantar LDS 3710 was developed for antennas in mobile telecom products such as telephones, PDAs and other applications where integrated circuitry is used to replace traditional printed circuit boards. GSM antennas for mobile telephones are a key application for Xantar LDS 3710. Produced by Molex, a leading supplier of interconnect products, this is the first time DSM's PC/ABS based LDS technology is used for the production of a mobile phone antenna. The antenna function is made by means of Laser Direct Structuring on a molded part. The part is subsequently fixed in the housing of the mobile phone. LDS offers real 3D shaped circuitry on a plastic molded part, design flexibility and freedom.
 


Idemitsu Kosan to Boost SPS Resin Production

Idemitsu Kosan Co, has decided to expand production of high-performance plastics targeted to the auto parts industry. The Japanese petrochemical company will increase production capacity of syndiotactic polystyrene (SPS) resin, which is sold under the Xarec brand name. Production equipment will be added at its plant in Chiba, Japan, when the facility is shut down for regular maintenance in June, with capacity up 40% and reaching 7,000 tons per year.  The whole investment is reported to be worth more than 1 billion Yens. The company is currently building a plant in China for SPS and other functional resins.  That location is slated to open in October of this year. 



     Flavorings
DSM Produces Innovative Chicken Flavour

DSM Food Specialties’ Maxavor Chicken YE(1) is an innovative new range of chicken flavours that can be simply labelled 'yeast extract'. This 100% natural ingredient, Maxavor Chicken YE is the first ingredient of its kind to deliver an authentic chicken taste direction to a diverse range of savoury foods. It will enable manufacturers to respond to growing consumer demand for clean labelling. It is easy to use, guarantees a high impact, authentic flavour delivery and generates real mouth feel and specific aroma
to a range of savoury applications. Produced using DSM's proprietary technology, and is free from GMO, MSG, allergens and E-numbers and also suitable for vegans. Moreover, the range meets Kosher and Halal requirements. It is available as Roast and Boiled, depending on the desired flavour profile.
 



 General
2011 - International Year of Chemistry

It’s official.  The year 2011 will be the 'International Year of Chemistry'.  The resolution adopted by the United Nations will celebrate the achievements of chemistry and its contribution to mankind. National and international activities carried out during 2011 will emphasize the importance of chemistry in sustaining natural resources. 

UNESCO and the International Union of Pure and Applied Chemistry (IUPAC) will manage actions to for the promotion.  “The International Year of Chemistry will give a global boost to chemical science in which our life and our future are grounded,” says Jung-Il Jin, preside of IUPAC. “We hope to increase the public appreciation and understanding of chemistry, increase young people’s interest in science, and generate enthusiasm for the creative future of chemistry.”  

The Year will also draw attention to the UN Decade of Education for Sustainable Development 2005-2014.
 



In This Issue

Featured Article
 
Famous Quotes
 
Imponderables
 
Companies
 
Personnel
 
Business/Finance
 
Fine & Specialty Chemicals
 
Pharma
 
Agrochemicals
 
Commodity Chemicals
 
Paints & Coatings
 
Plastics
 
Flavorings
 
General
 

  






 
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