DATE : 2014-04-18
Philadelphia-based Chemtura Corp. has agreed to sell its agricultural-chemicals division for about $1 billion to Platform Specialty Products Corp., which is backed by hedge-fund manager Bill Ackman.
The deal, for $950 million in cash and two million Platform shares, is the latest in a U.S. chemical industry pressured by hedge-fund managers and activist shareholders to streamline businesses and boost shareholder returns.
Wilmington-based DuPont plans to separate its legacy chemical portfolio from its faster-growing seed businesses. Dow Chemical, which owns the former Rohm & Haas Co., has rejected a proposal to break apart its businesses.
FMC Corp., a Philadelphia specialty-chemical manufacturer, announced in March that it would separate into two businesses, chemicals and minerals, both publicly traded and based here. FMC had been rumored to be a possible acquirer of Chemtura's agricultural-chemicals division but, according to one published report, did not look at the unit.
The $1 billion deal for Chemtura AgroSolutions is more than 10 times the division's $88 million operating income for 2013 - a healthy multiple. AgroSolutions generated $449 million in sales in 2013, or one-fifth of Chemtura's corporate revenues. The division's products include seed treatments, insecticides, miticides, herbicides, fungicides, and plant-growth regulators.
"The sale of Chemtura AgroSolutions accelerates our ability to deliver significant value to shareholders and furthers Chemtura's transformation into a focused, pure-play industrial special chemical company," Craig A. Rogerson, Chemtura's chief executive officer and chairman, said in a statement.
Rogerson added that the deal "gives us added financial flexibility, which will allow us to maintain our conservative balance sheet through the additional reduction of debt and, as previously stated, return substantial value to shareholders."
Chemtura, with headquarters on the 1800 block of Market Street, filed for bankruptcy protection during the financial crisis in 2009, emerging from it in late 2010.
After the unit's divestiture to Platform, Chemtura will retain petroleum-additives and flame-retardants businesses. The company's stock fell $2.05, or 8.13 percent, Thursday, closing at $23.16.
Platform Specialty Products transferred its stock listing to New York from London in January. Corporate filings say Ackman's Pershing Square Capital Management owns 28 percent of the company. A second big investor is Nicolas Berggruen, whom Forbes has listed as a billionaire.
Platform's stock rose 32 cents, or 1.63 percent, to $19.98 Thursday as it is expected to seek more deals.
Dan Leever, Platform's chief executive officer, said Thursday: "This is only just the beginning for us. There are many . . . businesses with strong management teams that would be a great fit within Platform, and we're excited to pursue these opportunities."
SOURCE The Philadelphia Inquirer
DATE :2014-04-18
China-based Huizhou MMA plans to shut its 90,000 tonne/year methyl methacrylate (MMA) unit in Guangdong province around mid-May for a turnaround, a company source said on Friday.
The plant is expected to be offline for 40 days, the source added.
Huizhou MMA is a subsidiary of Japan’s Mitsubishi Rayon Co (MRC).
SOURCE Icis News
DATE : 2014-04-18
Japan’s Mitsubishi Rayon Co (MRC) has restarted its 55,000 tonne/year No 2 butane-based methyl methacrylate (MMA) lines in Otake earlier this week after a turnaround, a company source said on Friday.
The plant was taken offline earlier in mid-March for a scheduled maintenance, the source added.
MRC’s currently has another 55,000 tonne/year butane-based No 1 MMA line as well as a 107,000 tonne/year acetone cyanohydrin-based MMA line at the same site.
SOURCE Icis News
DATE : 2014-04-18
South Korea's producer LG MMA has shut its No 1 and No 3 methyl methacrylate (MMA) lines at Yeosu earlier this week for scheduled maintenance, a company source said on Friday.
The shutdowns for both the lines will last around a week, the source added.
The No 1 line has a nameplate capacity of 50,000 tonne/year while the No 3 line at the same site has a nameplate capacity of 76,000 tonne/year.
SOURCE Icis News
DATE : 2014-04-18
American Acryl is scheduled to begin a turnaround on or about 1 May at its acrylic acid plant in Bayport near Houston, a plant source confirmed on Thursday, as have several customers.
The outage, which is scheduled to last for about six weeks, is not expected to have any adverse effect on the well-supplied acrylates market, sources said.
American Acryl is a 50:50 joint venture between Arkema and Nippon Shokubai subsidiary NA Industries. Neither of those companies responded to questions about the nature of the planned maintenance.
The plant was last in turnaround about two years ago for a catalyst exchange.
April acrylates contracts appear likely to settle flat on some improved demand, sources said, despite slightly weaker March propylene.
March glacial acrylic acid (GAA) prices are in a range of $1.09-1.13/lb ($2,403-2,491/tonne), as assessed by ICIS.
Other major US acrylates producers include Dow Chemical and BASF.
SOURCE Icis News
DATE : 2014-04-16
US producer TPC Group has declared force majeure on butadiene (BD) because of production issues at ones of its facilities in Texas, market sources said on Wednesday.
TPC could not be reached for immediate comment on the force majeure, but a company source said earlier that it had experienced production issues and that impacts had already been communicated to customers.
Market sources said the force majeure was declared around 4 April and that the company expects allocation to be at 100% by May if not earlier.
SOURCE Icis News
Date: 2015, April 16
Deutsch Bank-Market Research Analysists comment the strategic update that Dow made recently during its Sadara Investor meeting in Saudi Arabia on March 19, 2014 and consider that a divestiture from agrochemicals business would be a realistic possibility driven by Value Creation for Share holders.
On Wednesday, March 19 Dow CEO Andrew Liveris provided a company-wide strategic update on Day 1 of its Sadara Investor Meeting in Saudi Arabia.
Dow’s strategic update did not disappoint with CEO Andrew Liveris, for the first time, highlighting a path to the separation of Agro once it validates its target
of doubling EBITDA from $1B in ’13 to $2B in ‘17. With hybrid Agro businesses valued at 11-12x EBITDA vs Dow’s current 7.5x EBITDA multiple, a tax free
spin of Agro (the most likely option) would be, in our view, a value creating event for shareholders. We believe a tax free spin of Agro could occur in ‘17. Mr.
Liveris also increased the y/e ’15 divestiture target by an additional $1.5-$2.0B (to $4.5-$6.0B) as Dow continues to shed non-core businesses.
Strategic update: Key take aways (Extracts)
1) Q1 has been negatively impacted by severe winter weather which reduced earnings in Ag and disrupted transportation and logistics.
2) Mr. Liveris outlined a path for the separation of the $7B in sales Ag business. We believe this is due to the attractive valuations of 11-12x EBITDA being afforded hybrid crop chemical and seed businesses such as Dow’s. However, a separation will not occur until Agro is tracking towards its target of doubling EBITDA from $1B in 2013 (with 14% EBITDA margins) to $2B in 2017-2019 (with 25% margins) as at this point, adequate value would be attributed to it in a separation. Of The $1B increase in EBITDA, $300-$400MM will come from crop chemicals and $600- $700MM from Seeds (currently negative EBITDA). A tax free spin is the most likely option as a sale would result in a large tax bill.
3) Dow increased its y/e’2015 divestiture target from $3-$4B (primarily from the sale of chlorine-related commodity businesses) to $4.5-$6.0B. The $1.5-$2.0B increase is from the further shedding of non-core assets with EBITDA of ~$300MM as Dow continues its decade long journey to become a higher growth, higher margin, more focused and less cyclical company.
Positioning of Agricultural Sciences Segment
Agricultural Sciences is one of the 7 busines segments of DOW with Electronic and Functional Materials, Coatings and Infrastructure Solution,Performance Materials, Performance Plastics , Feedstocks & Energy and Others. With 7.2 Bn Us $ sales, it accounts for 12% of Dow 2013 sales.
The Agricultural Sciences segment is forecasted to reach the highest sales growth for 2014 and 2015 with 7-8% yoy vs 2-5% for other segments
The Agricultural Sciences segment generated a 13% EBITDA adjusted margin in 2013, lower than Performance Plastics (28%) and Electronic and Functional Materials (23%) but higher than Coatings and Infrastructure Solution (13%) , Performance Materials (11%) , Feedstock and Energy (8%).
Agricultural Sciences Commercialize powerful R&D pipeline
- 300-400 bps of near-term EBITDA margin opportunity
- In Crop Protection, new products deliver faster top-line growth than industry at above-average segment margins
- Acceleration of SmartStax® platform in North America and Latin America
- Achieve scale efficiencies in Seeds, Traits and Oils
- Ramp-up Enlist™ corn, soybeans and cotton
Source: Deutsche Bank Market Research - March 20, 2014
Complete docuemnt available on Performance Solution e-room
DATE : 2014-04-01
Trifluoroacetic acid (TFA) has been attracting increasing attention worldwide because of its increased environmental concentrations and high aquatic toxicity. Atmospheric deposition is the major source of aquatic TFA, but only a few studies have reported either air concentrations or deposition fluxes for TFA. This is the first study to report the atmospheric concentrations of TFA in China, where an annular denuder and filter pack collection system were deployed at a highly urbanized site in Beijing. In total, 144 air samples were collected over the course of 1 year (from May 2012 to April 2013) and analyzed directly using high-performance liquid chromatography-tandem mass spectrometry (HPLC-MS/MS) or following derivatization by gas chromatography-mass spectrometry (GC-MS). The annual mean atmospheric concentration of TFA was 1580 ± 558 pg/m..., higher than the previously reported annual mean levels in Germany and Canada.
For the first time, it was demonstrated that maximum concentrations of TFA were frequently observed in the afternoon, following a diurnal cycle and suggesting that a major source of airborne TFA is likely degradation of volatile precursors. Using a deposition model, the annual TFA deposition flux was estimated to be 619 ± 264 ...g m... year.... Nevertheless, a box model estimated that the TFA deposition flux from the degradation of HFC-134a contributed only 14% (6-33%) to the total TFA deposition flux in Beijing. Source analysis is quite important for future TFA risk predictions; therefore, future research should focus on identifying additional sources.
SOURCE : Environmental Science & Technology
DATE : 2014-04-14
INEOS’ G4 naphtha cracker and Butadiene (BD) extraction unit at its site in Grangemouth, the UK, are in the process of shutting down, company spokesman, Richard Longden, said on Monday.
Market sources said last week that the units were expected to close permanently from this week.
The company announced last month that it had brought forward the closure of the 320,000 tonnes/year G4 cracker because of the lack of feedstocks. The BD extraction plant has a capacity of 71,000 tonnes/year.
Closure had been slated to take place by the second quarter of 2015.
No information was made avaiable on the other downstream units at the site set to be shutdown.
SOURCE Icis News
DATE : 2014-04-14
Japan’s Nippon Steel Chemical restarted its 230,000 tonne/year No 3 styrene monomer (SM) facility on 13 April after maintenance, a company source said on Monday.
The unit, located in Oita, was shut in end February for a scheduled turnaround.
The company also operates a 190,000 tonne/year No 2 SM plant at the same location. The unit was shut for maintenance in mid-March and will be restarted next week.
The units were not affected by the 6.3 magnitude earthquake on 14 March at Japan’s southern Island of Kyushu near the city of Oita.
Other SM producers in Japan include Idemitsu Kosan Co, Asahi Kasei Chemical, Denka and Nihon Oxirane.
SOURCE Icis News
DATE : 2014-04-14
South Korea’s LG Chem is ramping up output at its 160,000 tonne/year styrene monomer (SM) unit to full capacity after a recent restart, a company source said on Tuesday.
The unit, located in Daesan, was restarted on 10 April after it was shut on 22-23 March for a scheduled turnaround.
“The unit should reach 100% output at the end of this week”, the source added.
The company operates another 200,000 tonne/year No1 and 300,000 tonne/year No2 SM facility in Yeosu. There are no maintenance plans for these units this year.
Other south Korean makers include Samsung Total Petrochemical and SK Global Chemicals.
SOURCE Icis News
DATE : 2014-04-10
Tokyo-based Sumitomo Corporation announced the acquisition of agricultural crop protection fungicide Metominostrobin from Bayer CropScience Japan. The deal was made through Summit Agro International (hereinafter referred as "Sumisho Agro"), a subsidiary of Sumitomo Corporation (SC).
Metominostrobin is a broad-spectrum, systemic fungicide with preventative and curative activity. It is especially potent on soybean rust, which can seriously damage soybeans.
Global cereal crop production has almost doubled from 1970 because of factors such as population growth and diet changes due to increased incomes. Worldwide, it is said that there is a need to double cereal crop production to meet the estimated food demand projected by 2050. To ensure this level of crop production in the future, farm land acreage needs to increase but most importantly, higher yields are essential. Fungicides like Metominostrobin will be instrumental in helping farmers meet this increased demand.
Metominostrobin has already been registered as a Crop Protection product in Argentina, one of the world's largest soybean producers as well as other Latin American countries including Columbia, Ecuador, Peru and Bolivia. Additionally, it has been registered for crop protection usage in Asia, including Vietnam, the Philippines, Malaysia and Indonesia, and in Israel, where demand for fruits and cereal crops is significantly increasing. Metominostrobin is in the process of being registered in Brazil, the world's second largest soybean producer, through Iharabras, which Sumitomo Corporation has equity participation.
Sumisho Agro's acquisition of this fungicide includes distribution and marketing rights for all markets with the exception of sales and development of Metominostrobin as well as its dossier for risk assessment in Japan, which will be retained by Bayer CropScience Japan. Sumisho Agro aims to sell several billion yen globally of the product by 2020 through increased global promotion of Metominostrobin. In addition, Sumisho Agro will proactively engage in the development of the mixture of new compounds to expand the application of the product.
Sumitomo Corporation Group (SCG) started to grow their crop protection business in the 1970s by exporting Crop Protection products manufactured by Japanese companies. Presently, SCG is developing the business of importing and selling these types of agricultural chemicals in 30 countries, mainly in Europe. SCG's strategy is to expand the value chain downstream through the acquisition of agricultural wholesalers and others. Sumitomo Corporation Group aims to further enhance its revenue base through diversified measures such as upgrading and expanding their portfolios and increasing their business base.
SOURCE SeedQuest
DATE : 2014-04-10
Thai MMA is expected to resume its 90,000 tonne/year No 1 methyl methacrylate (MMA) line in Map Ta Phut over the weekend after a scheduled maintenance, a source close to the company said on Friday.
The plant was taken off line earlier in mid-March.
Thai MMA runs another 90,000 tonne/year line at the same site.
The company is a joint venture between Japan's Mitsubishi Rayon Corp (MRC) and Thailand's Siam Cement Group.
SOURCE Icis News
DATE : 2014-04-10
China-based acrylonitrile (ACN) producer Anqing Petrochemical is running its 130,000 tonne/year ACN plant in Anhui, central China, at full capacity after it was restarted early in the week from a scheduled turnaround, a company source said on Thursday.
The plant was restarted on 8 April after a maintenance shutdown in mid-March, the company source added.
Meanwhile, the company’s separate ACN plant with a capacity of 80,000 tonnes/year at the same site is also running at 100%.
SOURCE Icis News
DATE : 2014-04-10
Half a billion pounds of taxpayers’ money was wasted on a flu drug that is no better than paracetamol after the swine flu outbreak, according to researchers.
Tamiflu does not prevent complications or stop people passing on the flu virus and could not prevent a pandemic, Cochrane Collaboration researchers concluded after a five-year battle to see the full results of all trials of the drug.
Regulators said that they had seen the same data and come to different conclusions, while Roche, which makes Tamiflu, reacted furiously, saying that the researchers had failed to understand the data and had made “basic mistakes”.
Other scientists said that it was too soon to conclude that the antiviral drug did not work, pointing to evidence suggesting that it saved lives during the 2009 swine flu pandemic, and claiming that the researchers were “editorialising”.
The government has spent £473 million stockpiling Tamiflu, plus £136 million on a related drug, Relenza. It is committed to spending a further £50 million to top up supplies. The US spent $1.3 billion (£776 million).
Only a handful of studies have been made public and researchers at Cochrane spent five years fighting to see 170,000 pages of data on dozens of further studies held by Roche and GSK, the makers of Relenza.
After the companies relented last year, the independent scientists say that there is no good evidence to back up two key claims that Tamiflu is considered an “essential medicine” by the World Health Organisation because of research suggesting that it could prevent hospital visits with conditions such as pneumonia and delay transmission of the virus. Conclusions about pneumonia, for example, were largely based on patients’ assessments rather than medical diagnoses, they write in a study in the Cochrane Library journal.
Tamiflu can shorten flu symptoms by about half a day to 6.3 days, similar to the relief given by over the counter medication, researchers said. Yet there was a worryingly high number of kidney problems and mood disorders among people taking the drug.
“There’s no credible way this drug could prevent a pandemic,” said Carl Heneghan, professor of evidence-based medicine at the University of Oxford, one of the Cochrane researchers. Money had been “thrown down the drain”, he said.
Fiona Godlee, editor of the British Medical Journal, said that Cochrane had endured “a lengthy, cat-and-mouse, Alice in Wonderland attempt to get the data”. Their findings “should lead to some serious soul-searching among policymakers” about how drugs were recommended for routine use on the basis of incomplete data.
“There was a political imperative to have something to offer [during the 2009 pandemic] but in clinical public health terms this isn’t value for money,” she said. “When you think what half a billion could be spent on in the NHS we have to be pretty scathing about this.”
Professor Peter Openshaw, of Imperial College London, said that it would be “dangerous” to ditch the pandemic stockpile. “Since data from the 2009 pandemic clearly shows that antivirals do save lives, it seems very sensible to have an adequate supply of these medicines,” he said.
Professor Kevin McConway, of the Open University, said that the review was convincing, but added that it sometimes seemed as if the researchers were “editorialising in a way that is not completely justified by the data and analyses presented”, perhaps because of their campaign on access to trial data.
Barry Clinch, principal Tamiflu scientist at Roche, said that the company stood by its data which had been made available to regulators who were more experienced at handling it and should retain their role of interpreting it for the public.
“We share all the data we have with regulatory agencies, and that is reflected on the label to patients,” he said. “Information is one thing, knowledge is another. What people want is knowledge and understanding, not to be drowned in figures that mean nothing or have been partially understood.”
The Department of Health said: “Tamiflu is licensed around the world for the treatment of seasonal flu and is a licensed product with a proven record of safety, quality and efficacy. We regularly review all published data and will consider the Cochrane review closely.”
SOURCE The Times