Clariant Q4 net profit flat on forex, higher spending

MOSCOW (MRC) - Swiss speciality chemicals maker Clariant said its fourth-quarter net profit was virtually unchanged from a year earlier, held back by currency swings and higher spending, said the producer in its press release.

The Basel-based company reported on Wednesday a net profit of 85 million Swiss francs (USD96 million) for the quarter. It plans to pay 0.36 francs per share as a dividend.

Hit by the devaluation of a handful of emerging market currencies, Clariant said it was seeking to hike prices, for example in Latin America, to offset the foreign exchange impact.

Clariant is disposing of various businesses as part of a restructuring designed to focus on products that are more profitable and reduce its exposure to areas of the market vulnerable to swings in the global economy.

The company has reorganised itself into four business units - care chemicals, plastics and coatings, natural resources and catalysis and energy.

Chief Executive Hariolf Kottmann said Clariant may make smaller, so-called bolt-on purchases, and also offload smaller businesses which no longer fit its four business units, but that the bulk of its revamp was over.

That means Clariant can now turn to growth and a mid-term target of recording an EBITDA margin of 16 to 19% from 2015, a goal it reiterated on Wednesday.

As MRC reported earlier, the company has strengthened its position in the Asian market by entering into strategic agreements with DKSH and Wacker. The company also showed good progress in portfolio management and the integration of Sud-Chemie.

Clariant is an internationally active specialty chemical company, based in Muttenz near Basel. The group owns over 100 companies worldwide. Clariant is divided into eleven business units: Additives; Catalysis & Energy; Emulsions, Detergents & Intermediates; Functional Materials; Industrial & Consumer Specialties; Leather Services; Masterbatches; Oil & Mining Services; Paper Specialties; Pigments; Textile Chemicals.
MRC

MOSCOW (MRC) -- Dow Building Solutions joint-venture Dow Kakoh has produced the first STYROFOAM extruded polystyrene (XPS) foam with the new polymeric flame retardant (PolyFR) technology in Japan, said Chemicals-technology.

Dow Chemical Company subsidiary Dow Building Solutions has converted three Japan-based STYROFOAM XPS foam plants to PolyFR as part of a phased approach, which will see the conversion all of its plants in North America, Europe and the Middle East to the new technology.

Dow Kakoh president Takahiro Sugiyama said: "The new product has been extensively tested and has proven to maintain its flame retardant performance while having a more sustainable profile".

Dow Building Solutions Europe R&D director and new PolyFR project leader Inken Beulich said: "This allows for a controlled conversion process that meets our quality requirements in every region and at the same time ensures product availability meeting global regulatory demands."

Dow introduced the PolyFR technology in 2011, which is said to be a stable, high-molecular weight, non- persistent, bioaccumulative, toxic (non-PBT) additive offering a fire-safety solution for XPS and EPS foams.
The technology was released to the global XPS and expanded polystyrene (EPS) foam insulation industry through three manufacturing and marketing licensees, including Chemtura as Emerald Innovation 3000, ICL as FR-122P and Albemarle as GreenCrest.

The licensees have built commercial production capacity for the new retardant amounting to more than 14,000MT at the end of 2013, which is expected to be expanded to more than 25,000MT by the end of 2014.

In a draft report from September 2013, the US Environmental Protection Agency (EPA) claimed that the butadiene styrene brominated copolymer (new PolyFR) was safer than hexabromocyclododecane (HBCD). EPA presented the report to HBCD manufacturers to help them find safer alternatives to the use of HBCD in polystyrene building insulation.

Earlier last year, Grace had completed the acquisition of the assets of the Polypropylene Licensing and Catalysts business of The Dow Chemical Company for a cash purchase price of USD500 mln. The acquisition includes UNIPOL Polypropylene Process Technology and makes Grace the second largest polypropylene licensor in the world based on installed capacity, advancing Grace's leadership in the broader polyolefin sector.

The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene (PS), polyurethane, polyethylene (PE), polypropylene (PP), and synthetic rubber. In 2012, Dow had annual sales of approximately USD57 billion. The Company's more than 5,000 products are manufactured at 188 sites in 36 countries across the globe.
MRC

MOSCOW (MRC) -- The Lubrizol Corporation, an innovative specialty chemical company, announces its CPVC Piping Systems Division has become a member of the Affiliate Sponsorship Program of the American Society of Plumbing Engineers (ASPE) for 2014, reported the company on its site.

As the world leader in chlorinated polyvinyl chloride (CPVC) resins and compounds used in the production of plumbing pipe and fittings, fire sprinkler systems and industrial piping, Lubrizol welcomes the opportunity to connect directly with the 6,000 ASPE members who make specifying decisions about plumbing and piping systems.

The Affiliate Sponsorship will allow Lubrizol to speak directly to ASPE members through the Society's various print and digital outlets as well as schedule events.

"We're looking forward to strengthening our partnership with such a well-established and highly respected organization as ASPE through its Affiliated Sponsorship Program," says John Nunnari, general manager, Lubrizol CPVC. "One of Lubrizol's key initiatives is to provide quality education about piping and fitting systems to the industry. Teaming up with ASPE helps us to achieve this goal."

As MRC wrote previously, in March 2013, Lubrizol unveiled a four-year plan of USD400 million global expansion of its chlorinated polyvinyl chloride (CPVC) resin and compounding manufacturing sites. With continued strong global demand for the company's CPVC compounds, Lubrizol's expansion efforts will be divided into two phases.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that apart from its production develops and supplies technologies to customers in the global transportation, industrial and consumer markets. Lubrizol's advanced polymer technology delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications.
MRC

MOSCOW (MRC) - Imports of polystyrene (PS) and styrene plastics to Ukraine fell by 2% to 3,100 tonnes in January, compared to January 2013, according to MRC Monthly Report.

Total imports of high-impact polystyrene (HIPS) and general purpose polystyrene (GPSS) in January was 1,300 tonnes, down 7% from January 2013.

Imports of expandable polystyrene (EPS), on the contrary, increased by 81% to 1,100 tonnes, compared to the same period in the previous year. Such a surge in EPS imports resulted from the shortage of Ukrainian material.

Buying activity in ABS market declined in January. January imports of ABS to Ukraine decreased by 33% to 240 tonnes.

There were not export deliveries of Ukrainian PS in January. MRC analysts reported Stirol (Gorlovka) resumed its PS operation in January.
The company produces only GPPS at the factory. Because of strong demand for the domestic market producer mostly sold PS in Ukraine.

MRC