In this week's Chemical Market Reporter

08 December 2003 00:10  [Source: ICIS news]

Top Headlines

DuPont launches $900m global restructuring program

In line with its transformation into a smaller, leaner organisation, DuPont will embark on a major restructuring program. The plan features job cuts, product line consolidation and new sourcing strategies, while targeting $900m (Euro743.8m) in annualised cost savings by 2005. In addition, the company will sharpen its focus on emerging markets such as China, Eastern Europe and Brazil to help drive targeted revenue growth of 6%/year.

PS producers announce '04 price increases

The market for polystyrene (PS) is strengthening and producers are looking to start the new year with a wave of price increases. Inventories are tight throughout the chain from producers to consumers and demand is projected to roar back after an off year in 2003. Nevertheless, producers complain that margins are too slim and they remain wary about high costs for energy and raw materials.

General Chemical files for bankruptcy protection

Struggling soda ash and calcium chloride producer General Chemical Industrial Products has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court. The company had been in discussions with its lenders since defaulting on interest payments to bondholders in May but failed to reach an agreement on a financial restructuring.

Producers trim capital expenditures

European chemical companies are finalising 2004 capital expenditure budgets in anticipation of stronger demand for the coming year. But very few chemical producers are expected to increase capital expenditures for 2004 or the following year. Most chemical companies in Europe appear wedded to a policy of curbing or even decreasing capital expenditures for at least several years even if it means keeping capital spending well below depreciation.

Dow sees permanent shift in chem business

It will be survival of the fittest for US chemical producers and distributors as they negotiate a monumental shift in the global chemicals business. Speaking at the National Association of Chemical Distributors annual meeting at the Ritz-Carlton Hotel in Naples, Florida, Lee McMaster, business group president for the Dow Chemical, laid out his company's Darwinian vision of the future for both producers and distributors.

In the News

Cargill advances on bioproducts venture

Cargill is making headway in its effort to develop and soon commercialise industrial products made from renewable agricultural resources. Successive recent announcements on alliances with technology providers and additional partnerships currently under negotiation will further accelerate the company's plans in providing more sustainable and low cost chemicals and materials based on raw materials such as carbohydrates and vegetable oils.

Brazil's Braskem begins metallocene PE output

Brazilian petrochemicals giant Braskem has begun producing metallocene-based polyethylene (PE) and will have a 100 000 tonne/year capacity by the 2004 first quarter.

Natural gas price hike estimated at $111bn

The price of natural gas has increased 83% over the past 3 1/2 years, costing consumers more than $111bn, according to a report sent to Congress and the Bush Administration by the Industrial Energy Consumers of America (IECA).

Merck reaches out to fill early stage pipeline

Merck continues to add discovery and development partners to its roster, announcing alliances with both Branford, Connecticut-based Neurogen and Basel, Switzerland-based Actelion. The company needs to ensure its early stage pipeline is sufficiently packed with drugs in the wake of a disappointing run of late stage product failures.

Hydro Agri prepares for demerger

Hydro Agri says that it will be well positioned to benefit from consolidation in the global fertiliser sector after its demerger from parent Norsk Hydro in March of next year. The fertiliser and industrial gases and nitrogen chemicals operation is being spun off to Hydro shareholders, including the Norwegian state, which will retain a stake of around 34%. A tranche of 20% of shares will be floated on the Oslo stock exchange.

Lenzing mulls fibres expansion in China

Amid signs of a global recovery in demand for viscose, Lenzing Group expects to decide by mid-2004 on the location and timing of a planned 40 000 tonne/year specialty fibres plant in China. As Lenzing is moving into new specialty areas, especially in the nonwoven segment, the Chinese project will be in line with the company's recent strategy of expanding viscose capacity.

Mississippi Chem to sell potash mines to Intrepid Mining

Mississippi Chemical has signed a definitive agreement to sell its potash mine assets for roughly $27m to Intrepid Mining, a privately held Denver, Colorado-based natural resources company. The sale is part of the Yazoo City, Mississippi-based company's ongoing reorganisation efforts under the bankruptcy protection, which it sought last May.

Solutia, Monsanto in asbestos dispute

Solutia is wrangling with Pharmacia and Monsanto over payments in two asbestos settlements that could set the stage to reduce its legacy liabilities. Solutia is refusing to pay $3m to satisfy asbestos litigation settlements in two cases it settled on behalf of Pharmacia.

Major Markets

Butadiene pricing pressured by Euro, energy costs

Pfizer weeds the Pharmacia pipeline of odds and ends

Rubber chemicals remain tied to the economy

Sorbitol market gets healthier as consumers turn to low-carb foods

Prices up for ground calcium carbonate

Praecis gets FDA approval for new prostate cancer therapy

Avastin fails drug trial but remains on track

US agribusiness eyes China's oilseed market potential

Further News

Reichhold shutters Bridgeville plant

Barr to acquire female healthcare products

DuPont joint venture stops making HCFC-22

Diversa licenses enzyme to BASF

SGL Carbon fined for third cartel

Eastman sells unit to Sherwin-Williams

First Analysis boosts price targets on specialties

DoE rolls out guidelines for emissions reporting

Dynea's credit rating lowered

IMCD acquires Rudolf Streuli

Minerals Tech to close plants, cut jobs

Bradford Soap Works acquires Hewitt Soap

Johnson Matthey to sell most of colour, coatings business

Homeland Security set to inspect chemical plants

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