in this issue
Specialty Chemical Round Up: Sept. 9-Sept. 15
8:16 AM MDT | September 15, 2011 | By KERRI WALSH
Chemtura's performance during July and August points to year-on-year earnings improvement during the third-quarter, the company says. However, the company cannot provide clear guidance for the fourth quarter. "In this period of economic uncertainty, it is difficult to provide a clear view of the fourth quarter but we continue to closely monitor both macroeconomic developments and our customers' activity," says Chemtura CEO Craig Rogerson. This is in contrast to other specialty chemical producers, or chemical makers with specialty operations, who announced earnings warnings, including Clariant and Solutia.
Several specialty chemical deals are close to closing. Solvay says it will implement a squeeze-out procedure for the Rhodia shares and the bonds convertible into and/or exchangeable for newly issued or existing shares (OCEANE) that had not been tendered by August 24. The squeeze-out will be implemented on September 16, according to the French financial markets authority AMF (Paris). Lonza has further extended the expiration date for its previously announced tender offer for all outstanding shares of biocides maker Arch Chemicals (Norwalk, CT), to September 30, 2011. Lonza announced in July 2011 that it will acquire Arch in a deal valued at $1.4 billion. The tender offer was first scheduled to expire on August 11, and it was then extended to September 12.
Specialty chemical capex projects continue to be announced. Huntsman says it is planning a significant expansion of epoxy resin capacity at its McIntosh, AL facility, targeting rapid growth in aerospace material applications. The investment, estimated at approximately $50 million, would double capacity at the site, a Huntsman spokesperson says.
Songwon Industrial (Ulsan, Korea) says it has completed the previously announced expansion of antioxidant production capacity from 55,000 m.t./year to 70,000 m.t./year at the company’s plant at Maeam, Korea. The Maeam plant is now the biggest in the world producing polymer antioxidants, Songwon says.
Albemarle says it will increase global prices for generic active pharmaceutical ingredients (APIs) by 8%-12% depending on the specific product. The price increases will take effect starting October 15, 2011, or as contracts allow, Albemarle says. “The price increase will ensure that through a challenging economic environment, we are able to maintain the superior quality, regulatory status and services,” Albemarle says.