06 December 1999 00:00 [Source: ICB Americas]ExxonMobil New Structure
The new ExxonMobil has reorganized its operations into 11 separate global businesses. By mid-December, the company will release an updated synergy benefits plan. Preliminary studies over the past 10 months suggest that the near-term benefits are likely to be higher than the $2.8 billion per year announced last December.
The corporation's global headquarters are officially up and running in Irving, Tex. Functional business line headquarters in Houston and Fairfax are also in operation. The company's $15-billion-per-year chemical operations, based in Houston, will report to Rene Dahan, who served with Exxon as a senior vice-president. Mr. Dahan will also head the coal and mineral business, also located in Houston.
ExxonMobil has moved quickly to satisfy divestiture commitments to the US government, announcing the sale of Exxon's service stations in the Northeast and Mobil's service stations in the Mid-Atlantic to Tosco. The sale involves 1,740 stations from Virginia north to Maine.
FTC Rejects BP Amoco-Arco
The Federal Trade Commission formally recommended the rejection of BP Amoco PLC's proposed $27 billion purchase of Atlantic Richfield Corp. If the FTC votes to reject the deal and the companies attempt to merge, the commission could take BP Amoco and Arco to court to challenge the transaction. In the past, such challenged mergers have been successfully blocked.
The FTC considers the transaction "difficult to impossible" to fix. The commission has been reviewing the deal for months out of concern that it may raise gasoline prices in California, which already pays some of the nation's highest prices. The major problem, according to the FTC, is that BP Amoco would increase its already substantial holdings in Alaska, which supplies much of the oil for the West Coast.
Cabot Expands Capacity
Cabot Corp.'s microelectronics materials division (MMD), a global supplier of chemical mechanical planarization (CMP) slurries, is expanding the slurry manufacturing capacity at its Asia-Pacific headquarters in Japan by 150 percent. To support this expansion, Cabot MMD will also increase its manufacturing workforce there by 200 percent to meet the increasing demand from its customers in the region.
Construction will be completed in January 2000, just one year after the company opened a 4,000-square-meter facility in the Oaza-Kitakoyama Industrial Park. According to Hiro Nishiya, Cabot MMD Japan business manager, the Geino facility expansion is the largest move in the company's continuous efforts to expand its global infrastructure and product offerings to provide total CMP polishing process solutions to customers in Japan and around the world.
In September, Cabot MMD completed its new headquarters in Aurora, Ill., which increased the division's R&D capacity in the US by 60 percent.
BASF Foil Coatings to N.A.
BASF Corp.'s industrial coatings group will enter the North American foil coatings market, supplying ultraviolet electron beam (UV/EB) and waterborne systems that will be produced in this region. BASF's plan is to incorporate the same process technologies used in the company's European operations into its Morganton, N.C., manufacturing site.
In addition to bringing leading-edge products and environmentally friendly technologies to the North American market, manufacturing those products domestically should improve BASF's lead-time capabilities, responsiveness and inventory management for customers, according to Chris Bradford, product manager for BASF's industrial coatings.
Air Products Gets Korean Gas
Air Products and Chemicals Inc. has acquired the remaining 51.1 percent of the shares of Korea Industrial Gases Ltd. (KIG), the largest industrial gas company in South Korea. Since 1980, Air Products has had a joint-venture agreement with KIG. Financial terms of the transaction were not disclosed.
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