8Additives for Polymers December 2009

to manufacture products ‘with a higher degree of purity than could previously be achieved’. Elkem reports ‘great interest’ in the new products, with the plant having already received its first orders.

Now that the facility has reached full production, Elkem Salten ranks as the largest global supplier of special silica to the ‘demanding’ plastics and rubber markets, the company says. ‘Completing the new plant for special microsilicas is the first phase in our commitment to developing new products here at Salten’, comments plant manager Arve Ulriksen. ‘Innovation and new facilities occupy a key place if our future is to be secured. We must develop products that incorporate new technology to distinguish us from our competitors’, he concludes.

Contact:Elkem Materials, Kristiansand, Norway.

Tel: +47 38 017500, Web: www.materials.elkem.com

or www.sidistar.com

Milliken acquires Rebus to expand thermosets offering

Polymer colorants and additives producer Milliken & Company has completed the

acquisition of the assets of Rebus, Inc, a North American manufacturer of pigment and additive dispersions for the thermoset plastics and high-performance industrial coatings markets. The transaction occurred through one of Milliken’s wholly-owned subsidiaries.

The acquisition will enable Milliken to broaden its port-folio and offer customers a convenient source for differenti-ated colorants. In particular, the move will allow thermoset and coatings manufacturers in fast-growing markets such as the Asia-Pacific to leverage Milliken’s global presence, technological expertise and supply chain efficiencies, the company says. ‘This acquisition reinforces Milliken’s com-mitment to our expanding thermoset plastics customer base around the world’, says Russ Rudolph, global business man-ager of the Performance Colorants and Additives business at Milliken Chemical.

Located in Aston, PA, Rebus has been in business for 17 years producing custom-blended colour dispersions and additives. It occupies a 40 000 ft2 (c. 3700 m2) facility, which Milliken will continue to operate. Milliken says it will

work diligently to ensure a smooth transition and to prevent any interruption to the supply of products to the market. Rebus company founder Jim Steever will continue with the new organization in a business development role.

The high-quality pigment dispersions from Rebus are an excellent complement to Milliken’s Reactint® polymeric colorants, offering customers a wide selection combined with applications expertise and global service capability, says Rudolph. The addition of Rebus’ products will also provide a platform for the development of innovative new products, he adds. Milliken also now has the opportunity to introduce its polymeric colorants to new sectors of the ther-mosets market. ‘Our combined organizations will deliver unmatched resources and new solutions for colour and addi-tive products to customers worldwide’, Rudolph continues.

Contact: Milliken Chemical, Spartanburg, SC, USA.

Tel: +1 864 503 2200, Web: www.millikenchemical.com

Latest pricing changes affecting polymer additives

Once again titanium dioxide (TiO2) pigments and plasticizer raw materials are the prod-

ucts most affected by recent price increases. All listed changes are subject to existing contracts.

DuPont Titanium Technologies (www.titanium.dupont.com; DTT) raised the prices on all of its Ti-Pure® TiO2 grades from 1 October 2009. Prices increased by US$0.05/lb in the USA and Canada. In Latin America and the US dollar markets of Eastern Europe, the Middle East and Sub-Saharan Africa the increase is US$150/tonne, and in the euro markets of Western and Central Europe and North Africa €100/tonne. Cristal Global (www.cristalglobal.com), currently DTT’s largest rival in TiO2 pigments, announced identical price increases from the same date in the Middle East, Latin America, the USA and Canada. In Australia the increase is A$150/tonne. Huntsman Pigments (www.huntsman.com) also matched DTT’s pricing changes in Latin America, Europe, the Middle East and Africa. In North America the increase is US$0.05/lb in the USA and C$0.05/lb in Canada.

Also from 1 October, fellow TiO2 producer Kronos Worldwide, Inc (www.kronostio2.com) introduced a €100/tonne increase in Europe and Eastern Europe, a

STRATEGIES

December 2009 Additives for Polymers9

FINANCIALS

US$0.05/lb increase in North America, and an increase of US$150/tonne for all other regions. From 1 November, Tronox Inc (www.tronox.com) raised the prices for all its TiO2 grades in Europe, the Middle East and Africa by €100 or US$150 per tonne in the euro and US dollar markets, respectively.

Eastman Chemical (www.eastman.com) has increased prices on a range of its oxo alcohol products, including plasticizer intermediates 2-ethylhexanol and 2-ethylhexa-noic acid, from 1 October. In North and Latin America the list price increases are US$0.09/lb and $0.08/lb, respectively, while the off-list increase for both is $0.03/lb. In the Asia Pacific region the off-list price for 2-ethylhexa-noic acid has been raised by $0.06/kg ($0.03/lb).

From the same date, Oxea (www.oxea-chemicals.com) increased list and off-list prices for 2-ethylhexanoic acid and neopentylglycol (NPG) by US$0.15/lb ($300/tonne) in Asia and the Americas. In Europe the increase was €150/tonne for 2-ethylhexanoic acid and €200/tonne for NPG. And BASF (www.basf.com) raised NPG prices by €0.14/kg in Europe, Africa and the Middle East, US$0.10/lb in the Americas and $0.20/kg in the Asia Pacific. From 1 September, BASF also increased North American off-list prices for plasticizer alcohols 2-ethylhexa-nol and 2-propyl heptanol by $0.06/lb.

Finally, Arkema (www.arkema.com) has brought in a €50/tonne price increase in Europe for its entire Evatane® range from November 2009. Applications for these EVA products include technical polymer modification. The

company says that price increases will also be implemented in other regions of the world.

FINANCIALS

Ferro returns to profit in 3Q 2009, streamlines business structure

For the third quarter of 2009, Ferro Corp reported income from continuing opera-

tions of US$2.8 million compared with income from continuing operations of $3.9 million in 3Q 2008. However, the 3Q 2009 result is a $13.9 million improvement from a loss of $11.1 mil-lion in this year’s second quarter. The company also posted a loss of $19.7 million in 1Q 2009.

Net sales for 3Q 2009 were $442 million, a decline of 25% from 3Q 2008 but an 11% sequential improve-ment from 2Q 2009, with all geographical regions show-ing growth. While the global economic slowdown that accelerated during 4Q 2008 continues to affect sales, demand from customers serving economically cyclical markets including construction, automobiles and appli-ances continued to gradually improve from a low point in 1Q 2009, Ferro says. ‘Our positive momentum accelerated in the third quarter resulting in improved gross margins and higher segment income margins compared with the third quarter of 2008, despite lower sales’, says CEO James Kirsch. The improved margins show that efforts to lower the sales breakeven level, reduce cost and expense, and restructure the company are achieving results, he com-ments; however, efforts to streamline the business, reduce cost structure and improve productivity are continuing. Worldwide staffing levels have been reduced by about 9% so far in 2009 and additional cost and expense reduction projects were initiated in early October.

Third-quarter 2009 sales in Polymer Additives declined to $67.7 million from $93.1 million for the same quarter in 2008. Despite the lower sales, segment income was nearly flat at $4.386 million ($4.385 million in 3Q 2008), with the negative effects of lower manufacturing volumes offset by lower manufacturing costs and reduced SG&A expense. For the nine months to the end of September 2009, seg-ment income was $7.86 million ($11.70 million in 2008) on sales of $190.1 million ($284.1 million).

In related news, Ferro has reorganized its plastics busi-nesses and other segments into two new operating units in a move to ‘drive product development, customer engagement and growth’. Polymer additives and speciality plastics, which together account for about 25% of the company’s sales, are combined with the performance coatings and pharmaceu-ticals units in the new Polymer and Ceramic Engineered Materials Group. The group will be managed by operating VP Peter Thomas and will ‘leverage high-volume manufac-turing capabilities to drive a world-class cost structure and enhanced cash flow while maintaining leading market posi-tions’. The second group combines Ferro’s electronic materi-als and colour and glass performance materials businesses. The company will continue to provide financial results based on the current six reporting segments.

Contact:Ferro Corp, Cleveland, OH, USA. Tel: +1 216 641 8580,

Web: www.ferro.com