Industry News (Week of 7/16/07)
July 12, 2007
COGNIS CARVES OUT PROCESS CHEMICALS STRATEGIC BUSINESS UNITCognis’ Process Chemicals strategic business unit will trade as an independent company under the new name of Pulcra Chemicals GmbH. The carve-out represents a decisive step towards ensuring long-term competitiveness and further enhancing product and service quality. Pulcra Chemicals will manufacture a wide range of chemicals for the fiber, textile and leather industries.
The new company will be run according to a more cost-effective business model that better reflects the needs of its customers. Pulcra Chemicals will develop, produce and market tailored products at competitive prices, backed with comprehensive customer service, including advice on applications. It will operate sites and service centers in Germany, Turkey, Italy, Spain, Mexico, Brazil, China, India, Indonesia, and the U.S.
For customers in the fiber industry, Pulcra Chemicals offers additives for the manufacturing and processing of man-made fibers. For the textile industry, it provides products and technical services for every stage of the production process, from the manufacture of yarns and fabrics, through dyeing and printing, right up to the final treatment. Its leather products are used in beamhouse, tanning, and finishing processes.
To enable the company to better meet the needs of its customers - especially in the fast-growing markets of China and other Asian countries - approximately 3.8 million euros was invested last year in the expansion and modernization of its site at Jinshan, near Shanghai, China.
For the full press release, visit www.cognis.com/framescout.html?/Press/PressReleases2007/Pulcra_Chemicals_eng.html .
DOW ACQUIRES WOLFF WALSRODE FROM BAYERThe Dow ChemicalCompany and the Bayer Group have announced the closing of Dow’s acquisition of Wolff Walsrode. The purchase price of EUR 540 million (approximately USD 725 million) includes a cash component and the assumption of financial debt and pension commitments. Following regulatory clearance from various authorities around the world, payment and share transfers, Dow assumed full ownership of the Wolff Walsrode group of companies on June 30, 2007.
The acquisition will deliver considerable top-line synergies for Dow, driven by application expertise and worldwide growth in demand for cellulosics. The acquisition is expected to be financially accretive by the end of the first year of ownership.
“The Wolff transaction marks another important milestone in our company’s drive to expand and enhance our performance business portfolio,” said Andrew Liveris, chairman and CEO of The Dow Chemical Company. “The acquisition of Wolff Walsrode is our latest example of how Dow is delivering on a transformational growth strategy. Wolff is a strategically aligned acquisition that brings new expertise and customer focus to accelerate Dow’s growth in key specialty markets.”
For Bayer, the transaction fits with its objectives of securing a recognized buyer committed to further develop the Wolff Walsrode business. “With The Dow Chemical Company we found a buyer that offers promising perspectives for the future of Wolff,” said Bayer management board chairman Werner Wenning. The cash influx of approximately EUR 440 million (~USD 590 million) is intended to be used to reduce Bayer’s net debt.
Dow plans to combine Wolff with its Water Soluble Polymers business to create a new specialty business driven to become the preferred development partner and premier application expert in the cellulosics industry. Cellulosics and derivatives are widely used in formulations for food, personal care, pharmaceuticals, construction, paint and a variety of specialty industrial applications. The business will cater to formulators and brand owners whose end-product label claims are underpinned by advanced cellulosics.
For more information, visit www.dow.com or www.bayer.com.
DYNEA NORTH AMERICA ACQUIRED BY CANADIAN INVESTMENT FIRMTeachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan (OTPP), has completed the purchase of specialty resins and paper overlays producer Dynea North America from Dynea Chemicals Oy of Finland. Terms of the sale were not disclosed.
Effective immediately, Dynea North America is now an independently managed company and will be renamed Arclin, a leading provider of bonding and surfacing solutions. With annual sales of more than $650 million and more than 750 employees employed across 15 facilities in the United States, Canada and Mexico, Arclin is a leading specialty resins and paper overlay supplier to a variety of markets, including engineered wood and panels, building materials, and specialty industrial applications.
Arclin will retain its executive management team (which boasts more than 60 years of experience in the engineered materials industry) led by Garry McClean, president and CEO.
For more information, visit www.arclin.com.
NYCO ACQUIRED BY RESOURCE CAPITAL FUNDSLast month, NYCO and its subsidiaries and affiliated companies were acquired by Resource Capital Funds (RCF) IV LP.
RCF invests exclusively in mining companies across a range of commodities and geographic regions. Its combined funds represent over $800 million in committed capital.
Under the new ownership, Jay Moroney returns to NYCO as president and CEO, a position he held from 1990 to 1998. “Our immediate focus will be to assure our customers that NYCO will continue operating as the world’s leading wollastonite supplier,” Moroney said. “In addition, our attention will be directed toward developing new products and next-generation surface modification, plant capitalization products that will improve quality and yields, as well as strategic logistic options to allow re-entry into a number of worldwide markets.”
The NYCO companies will continue to operate as they did prior to the acquisition, with no interruptions in production or service. RCF has retained all current employees of NYCO and plans to expand NYCO’s professional staffing, particularly in finance, technology and sales.
For more information, visit www.nycominerals.com or www.resourcecapitalfunds.com.
SARTOMER MAKES NEW APPOINTMENTSGlobal specialty chemicals manufacturer Sartomer Company today named Earl Emerson as its new market development manager, Photocure. In the newly created position, Emerson is responsible for identifying and developing new business areas and markets in the United States for Sartomer’s photocure products. He reports to Bruce Farina, vice president, Photocure.
Emerson joined Sartomer in 1981 and served as eastern regional sales manager starting in 1995. While working in the sales force, Emerson earned Salesman-of-the-Year honors multiple times for the company. Emerson earned a bachelor’s degree in chemistry from Saint Joseph’s University (Philadelphia).
In other personnel news, Sartomer named Kevin Rice to replace Emerson as eastern regional sales manager. Rice is responsible for managing the region’s sales for all Sartomer products. Rice joined Sartomer in 1996 and most recently worked as agent/distributor relations manager. He will report to Al Tuccio, vice president, Americas. He earned a bachelor’s degree in communications from Bethany College (Bethany, WV).
For more information, visit www.sartomer.com.