It could be argued that, in the longterm, cartels inevitably fall victim tocompetition from low-cost producerswhich decline to join them. Thecurrent example of a low-costproducer is of course China which isexploiting low-wage Chinese workersand doing minimal innovation (but seethe abstract from Sinopec below).

How does all this relate tocatalysts? Most industrial chemicalsare made by catalytic processesdeveloped by multi-disciplinary teamsin industrial R&D laboratories. Butinnovation in industrial chemistry hasalmost ceased in the West becauseso many R&D laboratories have beenclosed. There have been threereasons for these closures: short-termism of shareholders, competitionfrom China, and legal action againstcartels. The relative contributionswhich these three pressures make tothe current malaise of the chemicalindustry are hard to quantify. The firsttwo are intractable, but the third couldbe resolved. If the legal pressures oncartels were to be relaxed, by repealof national and international anti-trustlegislation, innovation could startagain and ultimately we would all bethe richer.

I am grateful to Dr Chris Drew(SORIS) and Mr Derek Heathcote(formerly of Laporte Fluorides) forconstructive suggestions andadditions to this Editorial.

Alan E. Comyns

* The Daily Telegraph (London), 11 May 2005, 31

MARKETS ANDBUSINESS

Metallocenes to rise

According to a report by theFreedonia group, the demand formetallocene and single site polymersis expected to rise by 20%/y to reach2.31 M tonne/y in 2009. The demandwill be driven by the performance andprocessing advantages of thesematerials, although more rapid growthwill be limited by the high costs of thecatalysts. LLDPE will continue to bethe polymer most in demand, withdemand growing by 17%/y from612,000 tonne/y in 2004 to 1.34 M

tonne/y in 2009. US demand formetallocene grades of polypropyleneare expected to rise by 30%/y from70,000 tonne/y in 2004 to 261,000tonne/y in 2009.

Plastics and Rubber Weekly, 15 Apr 2005, 16

Spanish HDS projects

The majority of projects currentlyunderway in the refining sector are forhydrodesulfurization (HDS) units thatproduce fuel with very low sulfurlevels. These fuels meet new EUenvironmental standards that arelisted in a table. HDS processesbasically comprise mixing streams offuel and hydrogen in the presence ofa catalyst that enables fueldesulfurization to occur. A tablecontains a list of companies thatlicence HDS technology. They includeABB Lummus, Axens, ExxonMobil,Haldor Topsoe, Howe-Baker, Linde,and UOP. Cepsa is currently investing€169 M in HDS units for its refineriesin Algeciras, Huelva, and Tenerife.Technology is being licensed fromAxens, UOP, and Haldor Topsoe.Repsol is investing €260 M in HDSprojects at its Bilbao and Petronorrefineries. A table containsinformation about HDS projects inSouth America involving theparticipation of Spanish companies.

Ingenieria Quimica, Dec 2004, (419), 75-77 (inSpanish)

Sinopec 2004: production andoperation: R&D

In 2004, Sinopec proactivelydeveloped core technology andproprietary technology for its principaloperations and achieved fruitfulresults with 639 domestic patents and48 foreign patents being granted.Breakthrough was achieved inexploration in marine phasesedimentary structure in southernChina. Additionally, the companysuccessfully developed technologiesto improve the recovery rate inoilfields having complex faultage,flexible and diversified FCCtechnology (FDFCC), sulfur removaland olefin content reductiontechnology through selectivehydrofining of catalytic gasoline(RIDOS), and 150,000 tonne/y three-reactor PET technology. Progresswas made in the construction of

information systems. ERP systemwas deployed at 23 entities and itsintegrated advantage became moreprominent. The comprehensive oilfieldmanagement system and the Ningbo-Shanghai-Nanjing crude oil pipelinetransportation and distributionmanagement system were completedand put into operation.

Sinopec Profits for FY 2004, 29 Mar 2005, 12(Sinopec Corp, Beijing, China, Website:http://www.sinopec.com.cn)

Biotechnology community watch:collaborations and acquisitions

During Jan-Feb 2005, fourteencollaborations and four acquisitionsinvolving North Carolinabiotechnology companies wereannounced.

BT Catalyst, Mar-Apr 2005, 19 (2), 4 (Website:http://www.ncbiotech.org/ncindustry/news/btcat/btcat.cfm)

COMPANYNEWS

Albemarle announces record 1Q 2005results

Albemarle Corp reported 1Q 2005 netincome, excluding special items, of$25.2 M, which was 53% higher than1Q 2004, due to strong performancein each of the company’s threebusiness segments. The companyreported record net sales of $510 Mfor 1Q 2005, up $188 M compared to1Q 2004, due in large part to the Jul2004 acquisition of the Akzo Nobelrefinery catalysts business. Catalystssegment net sales were $172.8 M, up$149.9 M versus 1Q 2004, due mainlyto the addition of the refinery catalystbusiness and strong sales ofhydroprocessing catalysts. R&Dexpenses were $10.98 M for 1Q 2005($4.579 M in 1Q 2004).

Albemarle 1Q 2005 results, 26 Apr 2005 (AlbemarleCorp, 330, South Fourth Street, PO Box 1335,Richmond, VA 23210, USA. Tel: +1 804 788 6000.Fax: +1 804 388 7686. Website:http://www.albemarle.com)

Basell raises the bar for gas-phase PEcatalysts

Basell Polyolefins has introducedAvant Z 230, a new generation ofZiegler titanium catalysts for use in

2 JUNE 2005

F O C U S O N C A T A L Y S T S