20 January 2004 19:20 [Source: ICIS news]
LAS VEGAS, Nevada (CNI)--Degussa’s head of exclusive synthesis and catalysts business unit Peter Nagler said Tuesday that he does not see an upturn in the fine chemicals sector this year, and it may well be late into 2005 before the market improves.
"There will be no change in the market over the next 12 months, and no big turnaround until late 2005," said Nagler, who addressing journalists here at the Informex 2004* custom chemicals exhibition.
Nagler cited continuing overcapacity at both big pharmaceutical and contract manufacturing companies, as well as the fact that there are too many companies and not enough demand, for the continuing slump. But, he added, there are some signs that an improvement is on the way, as early stage developments are picking up. But these, he explained, take several years to come through to the market.
Degussa has recently reorganised its offering into the fine chemicals sector by creating a Euro400m ($496m) turnover exclusive chemicals and catalysts business unit and a Euro700m building blocks business unit out of two former units: fine chemicals and catalysts and inhibitors. The move is intended to increase customer focus and exploit overlaps between the catalysts and exclusive synthesis businesses, which both deal, said Nagler, in tailor-made chemicals.
Degussa has just appointed George Rightmyer as vice president for sales for building blocks business unit in the US. In addition, he will coordinate the pharma business activities in the US for the exclusive synthesis and catalysts business unit until a new organisation is in place.
*Informex 2004, which is sponsored by the Synthetic Organic Chemical Manufacturers Association (Socma), continues through Thursday (22 January).
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections