Altana acquires Dutch polymer additive maker Addcomp

MOSCOW (MRC) -- Specialty chemicals group Altana has acquired the Dutch enterprise Addcomp Holland BV, a developer and manufacturer of unique polymer additive solutions, said Business-Standard.

Addcomp will be integrated into the plastic additives business line of Altana’s largest division BYK Additives & Instruments.

Additives from Addcomp enhance functional performance of nearly every type of thermoplastic material for various applications like automotive, construction, packaging, etc. "The acquisition is an ideal fit for BYK. The combination of BYK’s chemical and product expertise together with Addcomp’s unique process technology will enable us to develop and manufacture new and differentiating additives for the thermoplastic market. Through this acquisition we are systematically expanding our product portfolio and our application spectrum in the field of plastic additives," stated Dr Stephan Glander, president of BYK Additives & Instruments.

The acquisition adds a broad range of additive solutions with different functionalities, such as antifogging, improved processing, flame retardancy, heat stabilisation and UV stabilisation to BYK’s portfolio. Addcomp is one of the leading players in applying masterbatch technology to achieve superior dispersion, to simplify handling of such difficult additives as liquids and viscous materials, and to provide the highest additive concentrations. The company employs 45 persons and operates production facilities and sales offices in Nijverdal (Netherlands) and in Rochester Hills (Michigan, USA). In 2015, Addcomp’s sales amounted to a double digit million Euro figure.

As MRC informed earlier, in 2014, Altana acquired two companies in Brazil. As a result, Altana’s Actega division - which produces specialty coatings, sealants, printing inks, and adhesives for the rigid and flexible packaging industry – will now have its own sites in South America's largest country. Both of the acquired companies are owner-operated and headquartered in the federal state of Sao Paulo.

Altana develops and produces high-quality, innovative products in the specialty chemicals business. The Altana Group has four divisions: BYK Additives & Instruments, ECKART Effect Pigments, ELANTAS Electrical Insulation, and ACTEGA Coatings & Sealants. All of these divisions occupy a leading position in their target markets with respect to quality, product solution expertise, innovation and service.
MRC

Global automotive elastomers market expected to register 6% CAGR uptil 2022

MOSCOW (MRC) -- The global automotive elastomers market was valued at USD9,238.4 mln in 2015, and it is expected to grow at a CAGR of 5.9% from 2016 to 2022, as per Plastemart with reference to P&S Market Research.

The factors driving the growth of the global market include stringent emission regulations, increasing demand for high-efficiency vehicles, high emphasis on lightweight materials and growth in automotive industry. The growth of the global automotive elastomers market is largely driven by high demand for elastomers for interior automotive applications. In addition, the increasing automotive industry in Asia-Pacific is fueling the demand for automotive elastomers in the region.

Between the two types of automotive elastomers, the thermoplastic elastomer segment held the larger share in the global market in 2015. Automotive parts manufactured using thermoplastic elastomers are comparatively lighter, than those created using conventional materials. Among the various applications, the interior segment is anticipated to witness the highest growth during 2016-2022. The stringent regulations leading to the increasing usage of air bags are fuelling the demand for automotive elastomers in interior applications.

In 2015, Asia-Pacific held the largest share in the global automotive elastomers market. The region is also anticipated to be the fastest growing market for automotive elastomers, owing to high growth in automotive industry and increasing compliance for lightweight materials. China dominated the automotive elastomers market in 2015. The automotive elastomers market in North America and Europe is anticipated to witness considerable growth, owing to the well-established automotive industry, stringent emission norms and consumer's preference for high performance vehicles. The U.S. held the largest share in the North American automotive elastomers market in 2015 and it is expected to retain its dominance during the forecast period.

As MRC reported earlier, the last year's analysis of the global elastomers market from Frost & Sullivan finds that the total market was worth USD 21.52 billion in 2014 and is expected to grow to USD 34.73 billion in 2021. Compared to synthetic elastomers (SE), the thermoplastic elastomers (TPE) segment is expected to grow faster.
MRC

Idemitsu passed over concerns of founder son to Showa Shell merger

MOSCOW (MRC) -- Idemitsu Kosan Co passed over concerns that the son of its founder raised privately about plans for Japan's second-biggest refiner to merge with smaller rival Showa Shell, said Hydrocarbonprocessing.

Shosuke Idemitsu, 88, the son of founder Sazo Idemitsu, publicly broke with the company's plans for the merger at a meeting last week, shaking up Japan's staid corporate world. This may be the beginning of drawn-out battle. The family has said it sees no chance of a compromise on the issue, the family's lawyer, Takujiro Hamada.

The former president and now honorary chairman Shosuke Idemitsu is leading the family against the merger with Showa Shell, including the purchase of Royal Dutch Shell's 33.3% stake. Its opposition to re-election of the company board came close to removing Idemitsu president Takashi Tsukioka, along with other board members, in a vote at the shareholder's meeting.

Shosuke wrote to Idemitsu opposing the merger in December and again in May after the company did not heed his advice, said Hamada. After at least two discussions with Idemitsu, Shosuke felt compelled to make the matter public through comments Hamada made at last week's meeting, Hamada said. "During the talks, Idemitsu touted various merits of the merger, like good locations of refineries," Hamada said.

An Idemitsu spokesman said on Monday that its talks with the family may have been inadequate from their point of view, and added it would try to deepen communication with them from now on. The founding family's 33.92% stake is large enough to veto the merger plan when it comes up for consideration at a special meeting expected later this year.

Shosuke "does not want to fight and until the last moment wanted to calm things down via talks," said Hamada. He declined to comment on any future legal action the family would take. The merger is one of two big combinations backed by Japan's powerful industry ministry in the country's struggling refining industry. But, it was recently delayed because anti-competition authorities are still reviewing the plans.

The increasing rivalry between Iran and Saudi Arabia makes the merger inappropriate, the Idemitsu family has said. Saudi Aramco owns 15% of Showa Shell and Idemitsu has a close relationship with Iran spanning decades.

Corporate cultures may also be difficult to reconcile. Sazo Idemitsu built the company into a self-described challenger to the dominance of the global oil majors.

As MRC informed earlier, Japanese refiner Idemitsu Kosan Co. and smaller rival Showa Shell Sekiyu will merge on April 1 next year. Japan's No.2 and No.5 refiners by revenue agreed last November in a deal worth approximately USD4 B to create the nation's second-biggest refiner sometime between October 2016 and April 2017.
MRC

UK industry association writes open letter, outlining Brexit priorities, to candidates for UK prime minister

MOSCOW (MRC) -- The Chemical Industries Association (CIA; London) has sent an open letter to all of the candidates to become the United Kingdom's next prime minister, outlining the UK chemical industry's priorities following the country's decision in a referendum to leave the European Union.

UK prime minister David Cameron resigned following the vote for Britain to exit the European Union, a process commonly known as Brexit, triggering a leadership contest within Cameron's Conservative Party.

As mRC informed earlier, the public voted in the referendum last week 52% to 48% for Britain to exit the European Union, a process commonly known as Brexit. A survey earlier this year by the United Kingdom’s Chemical Industries Association (CIA) showed almost unanimous support among CIA members for the country to remain a member of the European Union. Brexit will likely be a much tougher call for small and medium-size enterprises (SMEs) operating in the UK chemical industry despite the short-term boost to competitiveness from the value of the pound sterling, which fell to its lowest against the dollar since 1985 in the aftermath of the referendum.

The United Kingdom will not formally exit for at least two years after the country notifies the European Union of its intention by triggering Article 50 of the Lisbon Treaty, the constitutional basis of the European Union. Chemical companies are planning to use the intervening period to prepare themselves as effectively as possible for Brexit. Tom Bowtell, chief executive of the British Coatings Federation (BCF; Leatherhead, United Kingdom) says BCF "will be working closely with our European federation CEPE and our members to ensure the best possible outcome for the coatings industry, both in the UK and in Europe." The United Kingdom is a net exporter of coatings, paints, and inks, and Europe accounts for 60% of BCF members’ combined exports, Bowtell says.

IHS slashed its economic growth forecasts for the United Kingdom immediately after the referendum result. It has also cut its estimates for the energy sector on the expected weaker economic activity. A preliminary IHS analysis of France, Germany, Italy, the Netherlands, Spain, and the United Kingdom shows that the combined demand for refined products in these countries is likely to be lower by more than 100,000 barrels per day (b/d), or roughly 1%, through 2018 compared with prereferendum forecasts. The United Kingdom's forecast demand for refined products has been reduced the most severely, about 2%, or 30,000 b/d. IHS also expects electricity and gas demand in the European Union will be 0.5% lower in 2017 than earlier forecasts.


MRC

Sasol mulling bid for assets of Chevron in South Africa

MOSCOW (MRC) -- Petrochemicals firm Sasol said it was considering buying a majority stake in Chevron's South African assets, including a 110 Mbpd oil refinery and retail stations, reported Hydrocarbonprocessing.

Chevron, which has had a presence in South Africa for more than a century, said in January it would sell its 75% stake in its business in the country after making similar sales in Nigeria due to weak oil prices.

"Sasol is working with Chevron and its advisers in this regard," spokesman Alex Anderson said in an email to Reuters.

The company, which is the world's biggest maker of fuel from coal, is slashing costs due to the plunge in oil prices by shelving major projects and cutting jobs.

Sasol owns coal mines, refineries and service stations in South Africa and exports oil to several regional countries.

"It's a strategic fit as Sasol has been trying to develop its retail footprint in South Africa to get a higher margin for its fuel," Sanlam Private Wealth equity analyst Shiraaz Abdullah said.

As MRC informed previously, in March 2015, Sasol started construction work on its USD8.1bn ethane cracker and derivatives complex in Westlake, Louisiana, US. Said to triple Sasol's chemical production in the US, the petrochemical complex will benefit from domestic ethane supplies, to produce various speciality chemicals for global markets.

Sasol Limited is an integrated energy and chemical company based in Johannesburg, South Africa. It develops and commercialises technologies, including synthetic fuels technologies, and produces different liquid fuels, chemicals and electricity.
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