17 November 2010 22:10 [Source: ICIS news]
HOUSTON (ICIS)--Chemtura's organometallics could see more demand from several end markets, such as light-emitting diodes (LEDs), photovoltaics and polyolefins, the chief executive of the US producer said on Wednesday.
"We are investing significant capital in this business as we grow our capacity to supply products," said Craig Rogerson, chief executive.
Rogerson made his comments at the Bank of America Merrill Lynch Credit Conference.
For example, the company's diethylzinc is used to make solar cells, Rogerson said.
Also, LEDs are a high-growth and high-margin market for other types of organometallics, Rogerson said.
Earlier this year, Chemtura signed a memorandum of understanding with Korean producer UP Chemical.
Under the arrangement, the companies would create a joint venture that would make and sell organometallics used to make LEDs.
LEDs have also attracted Dow Chemical. It has broken ground on a plant in South Korea, part of a plan to expand its trimethylgallium (TMG) capacity.
In addition to LEDs, organometallics are also used to produce polyolefins, as they start polymerisation reactions.
As a result, the recovery of the polyolefins industry should also increase demand for organometallics, Rogerson said.
Rogerson did not discuss on some of the long-term trends facing US polyolefin producers.
Longer term, Dow Chemical CEO Andrew Liveris has said the nation's shale gas could provide US producers with relatively low-cost ethylene and propylene. That, in turn, could improve margins for polyethylene (PE) and polypropylene (PP).
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