August 2005
envisaged including electronic devices, cosmet-
ic packaging, small appliances, and sports and
leisure components.
Contact: GE Advanced Materials, Pittsfield,
MA, USA; tel: +1-413-448-6926; URL:
www.geadvancedmaterials.com
COMPANY STRATEGIES
Crompton, Great Lakes merge
to become Chemtura
The merger of Crompton Corp and Great Lakes
Chemical Corp has been completed. The com-
bined company becomes Chemtura Corp, the
fourth-largest publicly traded US speciality
chemicals company and the world’s largest plas-
tics additives company. The requisite approvals
from the European competition authorities were
granted in mid June and the shareholders of both
companies voted in favour of the proposed all-
stock merger on 1 July. Chemtura has combined
pro forma 2004 revenues of US$3.7 billion and
a market capitalization of approximately $3.3
billion, and trades on the New York Stock
Exchange under the ticker symbol CEM.
Chemtura is a unique new company with a port-
folio of global businesses holding leading posi-
tions in several high-value speciality chemical
niche businesses, including plastics additives,
petroleum additives, flame retardants and pool
chemicals, according to Chemtura chairman,
president and CEO Robert L. Wood. In addition,
the company has strong positions in castable
urethanes and crop protection chemicals. “Since
we announced our agreement to merge [ADPO,
April 2005], integration teams have been work-
ing intensely to create a new company with a
new organizational design and new work
processes. We are building a world-class organ-
ization and adopting best business practices in
everything we do”, says Wood.
The synergy savings estimate from the integra-
tion has been raised from the original target of
$90–$100 million to $150 million by 2007.
Approximately 30% of the total synergies are
expected to come from organizational redesign
and 60% from savings in supply chain
Additives for Polymers
operations. By combining workforces, stream-
lining work processes and utilizing more effi-
cient systems, the company expects to reduce its
total number of employees by about 600 world-
wide, or approximately 8%, over the next year
from its current level of approximately 7300.
Contact: Chemtura, 199 Benson Rd,
Middlebury, CT 06749, USA; tel: +1-203-573-
2220; fax: +1-203-573-2800; URL: www.
chemtura.com
Huber acquires AluChem’s ATH
business
US-based J.M. Huber Corp has acquired the
alumina trihydrate (ATH) business of AluChem,
Inc. AluChem, located in Cincinnati, OH, is a
manufacturer of various forms of chemical
grade of alumina products.
Huber says that its acquisition represents an
excellent strategic fit with its existing ATH busi-
ness, which is a part of the Huber Engineered
Materials (HEM) division. It strengthens
HEM’s position in ATH in North America,
improves its cost structure and adds significant
capacity to HEM’s existing ATH manufacturing
facilities. Equipment and other AluChem
resources will be incorporated into HEM loca-
tions in Quincy, IL, as well as the Fairmount and
Kennesaw plants in Georgia.
Contact: Huber Engineered Materials, 1000
Parkwood Circle, Suite 1000, Atlanta, GA
30339, USA; tel: +1-678-247-7300; fax: +1-
678-247-2797; URL: www.hubermaterials.com
Cabot’s Chinese carbon black
JV to build second plant
Cabot Performance Products (Tianjin) Co, Ltd,
Cabot Corp’s Chinese JV with Shanghai Coking
Chemical Co, is to invest nearly US$30 million
to build a speciality carbon black unit at its plant
in the Tianjin Economic and Technological
Development Area (TEDA). The world-class
special blacks unit will have an annual name-
plate capacity of approximately 20 000 tonnes.
The unit is scheduled to begin production in the
second half of 2006 and will use the most
advanced energy recovery and environmental
technologies available, says Cabot.
5
Additives for Polymers
The partners are already building a 50 000
tonnes/y capacity carbon black plant at the site,
which is due to come on line in early 2006
[ADPO, December 2004 & January 2005]. The
second-phase expansion at the Tianjin site was
planned from the start of the joint venture con-
struction project, albeit initially for an addition-
al 50 000 tonnes/y, subject to receiving the
requisite governmental approvals in China.
Cabot Performance Products (Tianjin) is 70%
owned by Cabot China and 30% by Shanghai
Coking.
Contact: Cabot Corp, Two Seaport Lane, Suite
1300, Boston, MA 02210-2019, USA; tel: +1-
617-345-0100; fax: +1-617-342-6103; URL:
www.cabot-corp.com
PolyOne opens new production
plant in China
PolyOne has officially opened a new production
facility in Shenzhen, southern China, to manu-
facture a range of products, including colour
and additive masterbatches. The new 65 000 ft2
(c. 6000 m2) plant will have an annual capacity
of approximately 10 000 tons, making it one of
the company’s largest plants worldwide.
The new facility, which started production at the
end of May 2005, is one of the first plants with-
in PolyOne to manufacture a broad range of
products at one location, including engineered
materials and polymer coatings in addition to
masterbatches. PVC compounds may be added
at a later stage.
Strategically located in Shenzhen, the facility
will also allow PolyOne to serve the South
China region more efficiently. With sales grow-
ing steadily in this area, the company says it
decided to take an important step to develop a
production site, providing shorter lead times and
better accessibility to technical service for local
customers. In addition, a new advanced techni-
cal centre for Asia will be located at Shenzhen.
The laboratory will also specialize in the devel-
opment of new products to meet specific local
demands, PolyOne says.
Currently 4% of PolyOne’s total revenue comes
from Asia, but the company is confident that this
August 2005
figure will grow considerably in the coming
years, according to Bernard Baert, VP of
PolyOne’s international operations. “With an
increasing number of our global customers
implanting in China, and with a plastics market
growth of 10–15%, China will continue to be a
growth engine for PolyOne,” Baert says.
In related news, PolyOne has appointed Dr
Willie Chien as general manager for Asia,
reporting to Baert. Chien will be responsible
for developing the long-term strategy in Asia,
and managing PolyOne’s Asian business prof-
itability and the company’s key account man-
agement programme. Additionally, he will be
responsible for ensuring commercial and tech-
nical ties to PolyOne’s European and US
organizations.
Chien joins PolyOne from Huntsman Chemicals
where he served as managing director, business
director and corporate purchasing director for
the Asia Pacific region.
Contact: PolyOne Corp, 33587 Walker Rd,
PolyOne Center, Avon Lake, OH 44012, USA;
tel: +1-440-930-1000; fax: +1-440-930-3064;
URL: www.polyone.com
BASF plans changes to
European plasticizers business
BASF is to discontinue the production of the
plasticizer diethylhexylphthalate (DEHP) and
the associated alcohol 2-ethylhexanol (2-EH) in
Europe in the third quarter of 2005. The 2-EH
plant in Ludwigshafen, which has an annual
capacity of 200 000 tonnes, will be shut down
and dismantled beginning in October 2005.
European producers and customers have
increasingly been replacing DEHP with alterna-
tive products, in particular with C9 and C10
phthalates, BASF says. This has caused the
European DEHP market to decrease by 50%
since 2000. As alternatives, BASF offers its cus-
tomers Palatinol® N (DINP) for standard appli-
cations and, as sole supplier, the C10 plasticizer
Palatinol 10P (DPHP). For sensitive human-
contact applications such as toys, medical
devices and food contact BASF offers
Hexamoll® DINCH.