March 2009 Additives for Polymers7

In other developments, Bayer MaterialScience in Germany is reacting to the effects of the financial crisis by temporarily lowering working hours by 6.7%, with corresponding reductions in salaries for non-managerial employees. The measures took effect on 9 February, and will initially apply for nine months. However, the agreed 3.3% pay rise sched-uled for April 2009 will be implemented as planned. Managerial employees of Bayer MaterialScience will also be affected by the cuts, which in their case will include temporary postponement of pay rises. According to the company, similar measures have already been taken or are planned for Bayer MaterialScience sites outside Germany.

Contact: Bayer MaterialScience AG, Leverkusen, Germany. Tel: +49 214

301, Web: www.bayer.com

Chemtura realigns businesses to better resolve challenges

Chemtura is realigning its businesses into two groups – Performance Products and

Engineered Products. Led by group president David Dickey, Performance Products comprises the Consumer Products, Petroleum Additives, Urethanes and Antioxidant/UV plastic addi-tives businesses. Engineered Products consists of the Flame Retardants, Crop Protection, Organometallics and PVC businesses. Company CEO Craig Rogerson will lead Engineered Products until a group president is appointed.

The new business alignment will ‘facilitate resolution of the specific challenges’ that face component parts of the former Polymer Additives business, and it will allow Petroleum Additives and Urethanes to pursue ‘best-available busi-ness options’ for maximum success, according to Rogerson. In addition, the new alignment should ‘place emphasis on rationalization of the distinctive manufacturing footprints of the respective busi-nesses’, he says. At each level, business leaders will have profit and loss accountability.

The company has also established an Executive Committee reporting to the CEO. It includes CFO

Stephen Forsyth, David Dickey, Alan Swiech, sen-ior VP of human resources, and Billie Flaherty, senior VP, general counsel and corporate secretary. According to Rogerson, the realignment of the prod-uct businesses is targeted on ‘driving improved opera-tional performance despite the difficult economic conditions confronting the global economy and our industry’. It positions the company’s ‘best leaders’ to work on the specific needs of each of the product businesses and will provide a foundation for growth as demand recovers, he comments. In the near term, Chemtura remains focused on implementing its previously announced initiatives to reduce cash fixed costs and generate cash, says Rogerson.

Contact: Chemtura Corp, Middlebury, CT, USA. Tel: +1 203 573 2000,

Web: www.chemtura.com

Columbian Chemicals closes UK carbon black plant, announces ownership change

To better align its carbon black capacity in Europe with market demand, Columbian

Chemicals has closed its Sevalco Ltd production and laboratory facilities in Avonmouth, Bristol, UK, with the loss of 88 jobs. Demand has been affected particularly by difficult trading condi-tions in Europe’s car industry. The site had been in operation for more than 50 years.

According to company president and CEO Kevin Boyle, continued overcapacity coupled with an uncertain business outlook has forced Columbian to re-evaluate its assets across Europe. ‘We are optimizing our resources during this difficult eco-nomic period while at the same time maintaining our focus on our customers. Our remaining plants in Europe are well positioned to supply this critical market with high-quality products and excellent service,’ he says. With the shift in demand away from Western Europe, the Sevalco plant has been operating ‘in a very competitive environment’ for the past few years.

The closure removes about 68 000 t of annual capacity; however, Columbian says it is committed

STRATEGIES

8Additives for Polymers March 2009

to maintain market share and to minimize disrup-tion to its valued customers. ‘We are very focused on aligning our assets with the demand of our customers, which is continuously moving more to the developing economies of the world’, Boyle explains. With the recent announcement of the closure of the Marshall, WV, USA plant [ADPO, January 2009], this rationalization in Europe, along with recent and ongoing expansions in Brazil, Central Europe and China, is critical to this strategic initiative, says Boyle.

Columbian has also announced that agreement has been reached for minority shareholder One Equity Partners to purchase the 66.75% stake in the company held by DC Chemical Co, Ltd, of Seoul, Korea. One Equity Partners is an invest-ment banking group owned by JPMorgan Chase & Co, and has been a minority shareholder of Columbian since 2006. Subject to customary clos-ing conditions, including regulatory approval, One Equity will become Columbian’s sole owner during the first quarter of 2009.

Contact: Columbian Chemicals Co, Marietta, GA, USA. Tel: +1 770 792

9400, Web: www.columbianchemicals.com

Clariant cuts production and reduces headcount

Swiss-headquartered Clariant has reacted to the ‘unfavourable demand development’

in 4Q 2008 by reducing production in impacted businesses and announcing a further round of job cuts. The textile, leather, automotive and construction markets experienced the largest declines in demand.

Clariant has slowed or shut down production in the businesses that have been most impacted by deteriorating market conditions by releasing temporary workforce, reducing overtime and intro-ducing compulsory holiday periods and short-time work. The company says it is now adapting its structures to the economic downturn by ‘decisively downsizing’ and reducing expenditure, in particu-lar SG&A (selling, general and administration)

costs. Clariant plans to lose a further 1000 job positions – or about 5% of its current workforce – mainly in the SG&A area as a ‘first step’ to sub-stantially decreasing personnel costs. These cuts are in addition to the approximately 2200 headcount reduction announced in 2006 and almost com-pleted by the end of 2008 [ADPO, January 2007]. ‘The clear focus in 2009 will be on cash genera-tion’, the company says. In line with this focus, the board is also proposing not to pay dividends, grants and other shareholder payouts for 2008.

Elsewhere, Clariant Masterbatches has confirmed that the three US liquid-colour plants acquired last year [ADPO, October 2008] will continue in operation as the Rite Systems Business Unit. Ricon Colors, the granular masterbatch firm purchased at the same time as Rite, will be absorbed into the existing Clariant Masterbatches organization.

Contact: Clariant International Ltd, Muttenz, Switzerland. Tel: +41 61

469 6969, Web: www.clariant.com

FINANCIALS

Global economic crisis hits Albemarle’s polymer additives business in 4Q 2008

Albemarle Corp posted record annual net sales of US$2.5 billion in 2008, up 6% compared

to 2007. However, 4Q net sales of $517.7 million were down 14% compared to $599.2 million for the same period a year earlier, with the polymer additives segment showing a particularly sharp decline in both sales and operating profit.

Quarterly net income of $13.1 million includes special items totalling $25.0 million after tax relating to the completed sale of the Port de Bouc facility in France to Azur Chimie SAS [ADPO, December 2008], restructuring costs and a one-off tax settlement. Net income for 4Q 2007 was $58.6 million. For the full year the company’s net income was $194.2 million, down 15% from the 2007 figure of $229.7 million.

FINANCIALS