Dow Chemical to pay USD400 million in price-fixing case

MOSCOW (MRC) -- A federal jury has ordered Dow Chemical Co to pay USD400 million in a price-fixing case involving chemicals used to make foam products in cars, furniture and packaging, according Reuters with reference to court documents.

Dow was one of several chemical company defendants named in a class action lawsuit alleging a conspiracy to fix urethane chemical prices, but it was the only defendant not to settle.

Last month, it went to trial in a federal court in Kansas City. The plaintiffs, purchasers of urethane chemicals, had sought more than USD1 billion in damages from Dow.

If the USD400 million verdict is approved by the judge overseeing the case, it could be tripled under federal antitrust law.

David Bernick, an attorney for Dow, said that the company would seek to dismiss the lawsuit in a post-trial motion.

Separately, Dow said in a statement late on Wednesday that it was disappointed the jury found price fixing conduct during part of the time frame at issue, and that it continues to deny those allegations. The plaintiffs had sought damages for a five-year conspiracy, but the jury did not find Dow liable for the full five years, he said.

Other defendants in the case have settled. In 2006 Bayer AG agreed to pay USD55 million. In 2011 Huntsman International LLC agreed to pay USD33 million and BASF Corp agreed to pay USD51 million. In settling, none of the companies admitted any wrongdoing.

The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
MRC

MOSCOW (MRC) -- Elementis PLC (ELM.L) said it agreed, through its wholly owned subsidiary Elementis Specialties to purchase the assets of Hi-Mar Specialty Chemicals, LLC or "Hi-Mar" a US coatings additives company, for a cash consideration of USD33 million, said Rttnews.

The transaction is expected to be earnings enhancing in the current year.

Hi-Mar is a supplier of defoamers to the coatings, construction and oilfield drilling industries, with manufacturing and technical facilities based in Milwaukee, Wisconsin. The acquisition of Hi-Mar would further expand Elementis' product and technical service offering in these high value segments.

For the year ended 31 December 2012, the acquired business reported, on an unaudited basis, sales of USD14.5 million and EBITDA of USD3.5 million.

As MRC wrote earlier, Elementis Plc (ELM), the world’s largest maker of hectorite-clay additives used in cosmetics, plans to increase investment and pump USD15 million into U.S. expansion over the next two years, Finance Director Brian Taylorson said.

Elementis plc is one of the UK's largest speciality chemicals business. The Company comprises three businesses: Specialty Products, Surfactants and Chromium. Both Specialty Products and Chromium hold leading market positions in their chosen sectors. Elementis employs over 1,200 people at more than 30 locations worldwide.

MRC

MOSCOW (MRC) -- Sekisui Chemical and Lubrizol will initialise a joint venture (JV) company in Thailand, in order to produce chlorinated polyvinyl chloride (CPVC), which is used as a raw material in pipes for supplying hot water, industry and sprinklers, said Chemicals-technology.

"The proposed plant will attract an investment of USD50m and will have a manufacturing capcity of 30,000mtpa."
The move follows the decision of both companies to set up new overseas production bases to strengthen their CPVC production capacity.

Set up in the latter half of 2013, the JV facility is expected to help both companies to meet expanding demand in Asia and global customer needs.

The proposed plant will attract an investment of USD50m and will have a manufacturing capcity of 30,000 metric tonnes per annum (mtpa). The facility, which is expected to be upgraded to 60,000mtpa by the end of 2016, is scheduled to commence production by the end of 2014.

Sekisui Chemical will hold a 51% stake in the proposed JV company, while wholly-owned subsidiary of Lubrizol, Lubrizol Advanced Materials, will have 49%. Lubrizol Advanced Materials president Eric Schnur said this is a significant step in expanding Lubrizol's CPVC business.

"And with the construction of this new manufacturing facility, we are better positioned to support their future business growth," Schnur added.

Sekisui Chemical and Lubrizol to create CPVC JV in Thailand

As MRC wrote earlier Lubrizol plans to spend USD125 million to build a Texas plant to supply resins and other materials to polyvinyl chlorine producers. The company said it expects the PVC market to grow in the coming years, especially in India and other developing countries. It added that the plant in Deer Park, near Houston, is the first step to a wider expansion in PVC.

Headquartered in Wickliffe, Ohio, United States, Lubrizol Corporation is a specialty chemical company that produces and supplies technologies.

Sekisui Specialty Chemicals is an industry leader in research and development of polyvinyl alcohol (PVOH) products.
MRC

MOSCOW (MRC) -- C3 Petrochemicals plans to build a propane dehydrogenation (PDH) plant near Alvin, Texas, to produce polymer-grade propylene (PGP) and chemical-grade propylene (CGP), according to an air quality permit application that the company filed this month with the US Environmental Protection Agency (EPA), said Plastemart.

Should the permit be approved, construction of the PDH plant will begin in January 2014, with start-up scheduled for Q4 2015, according to the permit application.

The PDH unit will use propane as its feedstock, the permit said. The produced PGP and CGP will be distributed to customers via pipeline.The unit will dehydrogenate the propane feedstock in two parallel reaction trains, the permit said. As part of the PDH process, ethane, ethylene and methane also will be produced. No information on production capacity of the petrochemicals was listed in the permit. The plant will be built on the grounds of Ascend Performance Materials’ Chocolate Bayou Chemical Manufacturing Complex.

Ascend Performance Materials is a global leader in the production of Nylon 6,6. We have a long history in the manufacture of Nylon 6,6. On June 1, 2009, SK Capital Partners, a private investment firm, purchased Solutia’s Integrated Nylon business and established Ascend Performance Materials Operations LLC. SK Capital Partners has assembled a strong executive team with deep industry roots, and a commitment to the Nylon 6,6 market.
MRC

MOSCOW (MRC) -- Belgian-based Solvay is considering divesting its assets in the Argentine petrochemical producer Indupa, as part of a major restructuring and portfolio optimisation at Solvay, said Chemicals-technology.

The company owns a 69.9% interest in Indupa, while the rest is traded on the Buenos Aires Stock Exchange.
Indupa, with a manufacturing capacity of more than 500,000mtpa of polyvinyl chloride (PVC), runs facilities at Santo Andre, Brazil, and Bahia Blanca, Argentina.

Vertically integrated, the Santo Andre and Bahia Blanca facilities account for 60% and 40% of PVC production respectively.

Solvay's CEO Jean-Pierre Clamadieu was reported by Chemical Week as saying that the nylon and PVC businesses are the most challenged in the company's portfolio and the PVC business in Europe is in need of consolidation and rebalancing, as it is suffering from overcapacity.

According to the sources, the chemical company Mexichem could be interested in purchasing the Latin American PVC business.

As MRC wrote earlier, Solvay announced that it has signed an agreement to acquire a controlling interest in Sunshield Chemicals, an Indian company specializing in surfactants. This acquisition will enable Solvay's Novecare business to accelerate growth plans in India for the home and personal care, agrochemicals, coatings and industrial applications markets.

Indupa, which generated sales of EUR545m in 2011, had recurring earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR45m.

Solvay, with a market share 27%, is the second largest PVC manufacturer in Europe, after Kerling with 29% of the market.
MRC