February 2008 Additives for Polymers5

Clariant develops colour/flame retardant ‘combibatch’

Clariant Masterbatches has developed new colour masterbatches within its Renol® range

that offer in-built flame retardance. Designed specifically for polycarbonate/ABS alloys used to produce consumer electronics products, all colours in the range achieve UL 94 V-0 at 1.5 mm, with no appreciable effect on mechanical properties such as impact strength or on process-ing characteristics, the company reports. The required colour and additive effectiveness are achieved at addition rates as low as 3%, it says.

Developed at Clariant’s specialist flame-retardant masterbatch site in Pogliano, Italy, and available glo-bally, the new materials are part of an ongoing effort to create ‘combibatches’ – combining colour with ‘performance effects’ such as flame retardance and UV stability in convenient masterbatch form – for home appliance and consumer electronics applications such as LCD and plasma televisions.

Contact:Clariant Masterbatches, Muttenz, Switzerland. Tel: +41 61 469 6170, Web: www.clariant.masterbatches.com

COMPANY STRATEGIES

Chemtura reviews strategic alternatives

The board of additives major Chemtura Corp has authorized the company’s management

to consider a wide range of strategic alternatives available to the company ‘to enhance sharehold-er value’. Merrill Lynch has been appointed as financial advisor to assist in the process.

Among the alternatives to be considered are divesti-tures of selected businesses, value-creating acquisitions, changes to the group’s capital structure, or a possible sale, merger or other business combination involving the entire company. A special committee of independ-ent directors has been formed to oversee the process.

However, Chemtura stresses that the review may not result in any specific transaction. The company says it does not expect to disclose any further developments with respect to the ongoing exploration unless and until its board has approved a transaction or other strategic alternative. A recent Reuters report in fact suggests that Chemtura put its entire operation up for auction, run by Merrill Lynch, earlier in 2007 but that potential bidders subsequently dropped out.

The Chemtura group was formed in 2005 by the merger of Great Lakes Chemical and Crompton Corp [ADPO, August 2005]. With an annual turnover of US$3.7 billion, it is the world’s largest supplier of polymer additives and flame retardants. However, Chemtura has struggled to live up to expectations at the time of the merger as a result of the challenges of bringing together the assets involved and the subsequent incessant rise in raw material costs. For example, CEO Robert Wood recently revealed that raw material and energy costs for the Polymer Additives business had risen by $22 million in 3Q 2007 compared to the previ-ous year while prices had advanced by only $8 million. Recent moves to streamline the company have included a restructuring of the antioxidant business and a job reduction programme [ibid, June & August 2007].

• In related developments, Chemtura has appointed Robert S. Wedinger as chief business officer, with responsibility for the company’s commercial organi-zation and its four businesses (Polymer Additives, Performance Specialties, Crop and Consumer Products) and established a new Office of the Chairman – designed to increase organizational focus, speed decision making and improve execu-tion. The new office comprises the CEO and three direct reports: Wedinger alongside Stephen Forsyth,who remains in his current position as executive VP, chief financial officer and treasurer, and David Dickey, who has been named chief functional and services officer, responsible for all non-finance func-tions. ‘By providing more direct leadership to the commercial organization and functions, we believe we can speed decision making and better position ourselves to deliver results’, says Wood.

Contact:Chemtura Corp, Middlebury, CT, USA. Tel: +1 203 573 2000, Web: www.chemtura.com

STRATEGIES