US Momentive Specialty working to optimise base epoxy business - CEO

14 May 2014 18:36 Source:ICIS News

HOUSTON (ICIS)--Momentive Specialty Chemicals is working to optimise its base epoxy resins business amid tough market conditions and industry surplus capacity in Asia, the CEO of the US-based producer said on Wednesday.

"We continue to look at opportunities to optimise that business," Craig Morrison told analysts during Momentive’s first-quarter earnings call.

"We will make adjustments where appropriate. Sometimes those things take a bit longer," he said in response to an analyst who suggested that Momentive may be lagging Huntsman and other competitors in restructuring and rationalising the epoxy business.

Morrison added that in 2012 Momentive already closed an epoxy plant in Germany.

Oversupply in liquid epoxy resins, particularly in Asia, is one of the biggest problems the industry currently faces, he said.

Earlier on Wednesday, Momentive reported a 12% year-over-year earnings increase in its epoxy, phenolic and coating resins segment in the first quarter.

However, cyclicality in base epoxy partly offset the improvement. Near-term, Momentive does not see a significant improvement in base epoxy, Morrison added.

By Stefan Baumgarten