Sept 07 Chemical Update

Specialty chemical manufacturer Syrgis Performance Products LLC has acquired the organic peroxides business of Norac Inc., increasing its annual revenue base by more than $50 million.

The business will be operated under the name Syrgis Performance Initiators. It has manufacturing and distribution facilities in Sweden and Helena, Ark. Financial terms were not disclosed.

Syrgis is the parent of H&S Chemical Co. in Covington, Texas-based P Chem Inc., and Lycus Ltd. in El Dorado, Ark.

Andy Harris, CEO of Syrgis Performance Products and of its H&S Chemical affiliate, said the acquisition won't have any impact on local employment but will contribute to the company's overall growth. The deal gives Syrgis a foothold in Europe, which it lacked before, and also provides synergies in sales and marketing, R&D, and administrative functions, he said.

And more acquisitions could be coming over the next few years. "There could be more as we continue to build out our chemical group," said Harris, who was named CEO of the group earlier this year.

Syrgis said the acquisition of the Norac business is consistent with its strategy of pursuing niche market leaders in the specialty and performance chemical segments. Norac's organic peroxides are used in the manufacture of a wide range of consumer and industrial products such as showers, boats, plastic pipes, wind-energy turbine blades, and truck bed liners. The chemicals help plastics set at room temperature and enhances their durability, it said.

Syrgis, based in Covington, is affiliated with Edgewater Capital Partners, a Cleveland-based private equity firm.

Sterling Chemicals Announces Long-Term Styrene Supply Agreement

Sterling Chemicals, Inc. has announced that on September 17, 2007, it entered into a long-term exclusive styrene supply agreement and a rail car purchase and sales agreement with NOVA Chemicals Inc. ("Nova"). The effectiveness of these agreements is conditioned on the approval of the supply agreement by the Federal Trade Commission (the "FTC"). If the supply agreement becomes effective, it will have an initial term extending until December 31, 2017, subject to some limited earlier termination rights held by Sterling. Under these agreements, Nova will have the exclusive right to the entire production capacity of Sterling's Texas City, Texas styrene plant, the amount of any styrene supplied being at Nova's option based on a full-cost formula, and will purchase Sterling's styrene monomer rail car fleet. In exchange, Nova has agreed to pay Sterling $60 million within ten business days after the agreements become effective. Alternatively, if the FTC does not approve the supply agreement, Nova will be required to pay Sterling a break-up fee of $6 million.

Sterling Chemicals, Inc. is a leading North American producer of selected petrochemicals used to manufacture a wide array of consumer goods and industrial products throughout the world. Its primary products are acetic acid, styrene and plasticizers.

PPG to Sell Fine Chemicals Business

PPG Industries Inc., a maker of paints, coatings and other specialty products, said Monday it has agreed to sell its fine chemicals business to a subsidiary of Italy's Zambon Co. S.p.A. for $65 million.

Zambon subsidiary ZaCh System S.p.A. will purchase PPG's fine chemicals business, which employs 360 people and includes a facility in Texas and one in France.

PPG will record a charge of less than 15 cents per share in relation to the deal, the company said.

The deal is expected to close in the fourth quarter, pending customary closing conditions and regulatory approval.

Midwest Chlor-Alkali Building $68 million Chemical Plant in Eddyville, Iowa

Midwest Chlor-Alkali is building a $68 million chemical plant at the Iowa Bioprocessing Center in Eddyville. Midwest Chlor-Alkali will produce liquid caustic soda, hydrochloric acid and sodium hypochlorite (bleach) at the new plant near the Cargill grain milling operation.

Tax benefits from the High Quality Jobs Creation program were awarded for the creation of 13 jobs paying an average wage of $29.59 per hour. Cargill is a significant customer for the liquid caustic soda and hydrochloric acid.

The bleach will be sold as a water treatment product.

Eastman Chemical Announces $1.3 Billion Expansion of its Facility in Kingsport, Tennessee

Eastman Chemical Co. recently announced its decision to invest more than $1.3 billion dollars over the next five years to upgrade technology, infrastructure and production capabilities at the company’s Kingsport, Tenn., manufacturing facility. The plan, called “Project Reinvest” calls for the company to spend an average of $265 million dollars annually and will potentially lay the groundwork for future capital investments.

The project will also initiate a unique partnership between Eastman and Northeast State Technical Community College to develop curricula and implement training programs for a new generation of mechanics, lab analysts and chemical operators.

Eastman officials said the announcement means the company will remain an important driver of economic growth in the region.

“This initiative is one of the most sweeping capital reinvestments in the history of our company,” said Brian Ferguson, chairman and chief executive officer of Eastman Chemical Company. “It is a major recommitment, not just to our operations but to the broader community and especially to our employees and customers.”

Tennessee Gov. Phil Bredesen told Eastman employees that as the job training partnership between Eastman and Northeast gets up and running, he will ask the General Assembly to approve additional dollars to expand the program in other areas, such as providing scholarships for non-traditional students who are beyond college age, but are interested in upgrading their skills to get a better job.

Eastman manufactures and markets chemicals, fibers and plastics around the world. The company produces differentiated coatings, adhesives and specialty plastics and is the world’s largest producer of PET polymers as well as a major supplier of cellulose acetate fibers.

Founded in 1920 and headquartered in Kingsport, Tenn., Eastman is a Fortune 500 company with 2006 sales of $7.5 billion dollars and a worldwide work force of approximately 11,000 employees.

Norphlet Chemical Opens New Manufacturing Facility in Norphlet, Arkansas

Norphlet Chemical recently began production at its chemical manufacturing facility in Norphlet, Ark., outside of El Dorado. The company invested $14 million in the new facility, which will employ 44 people at an average hourly wage of $22.

The chemical produced at the Norphlet facility is a refrigerant used in automobiles. Norphlet Chemical will be located in the former Macmillan Oil Refinery Building on 92 acres.

“We appreciate the Arkansas Economic Development Commission working with us to bring this project to fruition,” said John Garrison, CEO of Norphlet Chemical. “We look forward to adding 44 jobs in Norphlet and have full confidence in the local work force.”

Norphlet Chemical’s main client is Tulstar Products, Inc., headquartered in Tulsa, Oklahoma. Tulstar is a global sourcing and distribution company, focusing on the trading of oils and chemicals.

ExxonMobil Chemical Announces Expansion At Its Rotterdam Aromatics Plant

ExxonMobil Chemical recently announced it will invest in an expansion of its Rotterdam Aromatics Plant. The expansion will make this world-scale plant ExxonMobil’s largest paraxylene production facility, increasing its paraxylene production capacity by 25 percent and benzene production capacity by 20 percent.

“This investment demonstrates ExxonMobil’s ongoing commitment to meet growing customer demand for these products and is part of the company’s strategy to develop world-scale, highly integrated chemical facilities with globally competitive cost structures,” said Matt Aguiar, Basic Chemicals Global Business vice president, ExxonMobil Chemical Company. “The new unit will benefit from integration with existing facilities and capture a number of synergies with the base plant.”

In addition, the new unit will employ ExxonMobil’s proprietary PxMax technology to produce paraxylene and benzene. The PxMax process improves selectivity, generates less waste and reduces energy requirements versus existing technologies.

This expansion project, which will be owned and operated by ExxonMobil Chemical Holland B.V., is targeted to help meet growing European demand for paraxylene and benzene. Construction for the expansion project will commence this year.

Fujifilm To Acquire Specialty Chemical Business From Air Products

Fujifilm Electronic Materials, a leading global supplier of photoresists, developers, cleaners & removers, polyimides and thin film chemicals and equipment for the semiconductor industry, announced recently that it has acquired the OptiYield Positive Photoresist developer business of Air Products and Chemicals Inc. FUJIFILM Electronic Materials is a subsidiary of FUJIFILM Corporation, a leader in providing products and services based on the vast Fujifilm portfolio of proprietary digital, optical, fine chemical and thin film coating technologies.

The addition of the OptiYield photoresist developer business will expand Fujifilm’s existing broad portfolio of developer products, which are used in the photolithography patterning process within the semiconductor and flat panel display manufacturing industries. During this process, the developer completes the imaging within the photoresist and enables the formation of nanometer scale features in the photoresist-coated substrate.

“In certain applications, the OptiYield chemistry may provide significant performance and productivity gains compared to conventional developer chemistries,” said Dr. Brian E. O’Donnelly, Business Director, Formulated Products & Thin Film Systems, FUJIFILM Electronic Materials. “This acquisition is a complementary addition to our ancillaries product portfolio and will reinforce Fujifilm’s ability to serve our global customers and the semiconductor industry by offering a wider variety of products and solutions.”

FUJIFILM Electronic Materials will work closely with Air Products and customers to transfer supply and support functions from the Air Products’ facility in Tempe, Arizona to Fujifilm’s state-of- the-art manufacturing and research operations in Mesa, Arizona. Transfer of all operations is expected to be completed in first quarter of 2008.

Rohm and Haas Expands in India

Rohm and Haas Company celebrated the inauguration of its second, state-of-the-art acrylic emulsions facility in India to meet growing demand for its environmentally advanced products and technology in this important region.

The Chennai facility, located in the Sriperambudur industrial area of Tamil Nadu in South India, is opening with the capacity to make 30,000 to 40,000 metric tons a year of specialty materials used in the manufacture of paints and coatings, adhesives, textiles, paper and leather. The plant, which cost U.S. $12 million to build, is a "zero discharge" facility that meets very stringent environmental standards set by the state of Tamil Nadu. The Chennai facility will also operate under the company's "21st Century" program which strives for reliable, cost-effective manufacturing facilities and a competent, motivated workforce continually focused on improvement.

The company also is doubling the capacity of its 35,000 metric ton facility in Taloja, which is located near Mumbai in the state of Maharashtra. The combined capacity of Taloja and Chennai (100,000 to 110,000 metric tons per year) makes Rohm and Haas India's largest and fastest-growing producer of environmentally advanced emulsions and additives for paints and coatings and other waterbased polymer industries. The company also has the leading position for solventless and water-based adhesives used by India's packaging & converting industry. "Put quite simply, our goal is to be the best specialty materials supplier in India," says Harish Badami, President and Managing Director for Rohm and Haas India.

"India is a critical component of our company's overall growth strategy," said Rohm and Haas Chairman and CEO Raj L. Gupta, who is visiting customers, government officials and employees throughout India as part of the celebration of the new plant. "In fact, we believe more than 80 percent of our sales growth between now and 2010 will take place in the fastest-growing markets of the world - India, China, Southeast Asia, Central and Eastern Europe."

Rohm and Haas has been an increasingly important participant in the Indian market since 1995, when the company opened its first sales offices in Delhi and Mumbai. The company expects to report U.S. $100 million in sales revenue for India in 2007, and targets to more than double sales to $250 million here over the next five years.

Mark Douglas, Vice President of Rohm and Haas and Director of the Asia Pacific Region, says the company is building a lasting infrastructure to support this growth, including plans for a process engineering and technical center in addition to the two manufacturing facilities. "For example, Chennai and Taloja are not our largest facilities," he says, "but they have been built to incorporate the leading-edge environmental, management and operating practices that the company has developed elsewhere within its global manufacturing network, and at the same time can manufacture products customized for local markets. In India today, we have the capability to serve both large and smaller customers who can expect reliable, quality products to be delivered to their door time after time."

Pierre Brondeau, Executive Vice President of the company, says the growth and development of the Indian market is a good fit for the growth of Rohm and Haas. "We are recording sales growth in excess of 30 percent per year for our products, within a market that is seeing nine percent GDP growth overall," he says. "The underlying factors that support this growth - a strong housing and construction market, increasing consumerism and a retail boom and an increasing demand for products that are safer and better for the environment than existing technology - are expected to remain strong. This should enable us to continue to record sales growth of twice that growth of GDP in India - or greater - for several years to come."

Brondeau also noted that the company is seeing good growth prospects for products that are imported into the Indian market as well, particularly ion exchange resins, biocides, and SMARTFRESH(TM) products which help extend the freshness of fruits and vegetables.

Quick Facts about the Chennai Facility:

-- Initial capacity of 30,000 to 40,000 metric tons of materials used in

paints and coatings and other emulsion polymer applications like

adhesives, textile chemicals, paper and leather;

-- "Zero discharge" facility, in full compliance with stringent local

guidelines as well as Rohm and Haas's global standards;

-- Strategically situated to serve customer needs in fast growing southern

Indian markets;

-- First new Rohm and Haas plant to come on-stream with '21st Century

Manufacturing' and other best practices in place;

-- Located on a 16-acre site at the Sriperumbudur industrial area near

Chennai, on the Bangalore highway, and 85 km. from the international

seaport at Chennai.

Sasol Launches China Chemical Solvents Outlet

South African petrochemicals group Sasol said it had opened an office in Shanghai to market its diverse range of chemical solvents in China.

Sasol, Africa's top chemicals maker, said in a statement Sasol Chemicals Shanghai Co Ltd (SCS) would initially market products from the global Sasol Solvents business. Sasol Solvents operates in South Africa and Germany.

"The Chinese market is extensive and forms part of our vigorous pursuit of global growth opportunities in the chemicals sector," Reiner Groh, Sasol's group general manager for the chemicals unit said.

The Sasol Chemical unit supplies a wide range of products for use in aerosol, agricultural, cosmetic, fragrance, mining, packaging, paint, adhesive, pharmaceutical, polish, printing and other applications.

Chinese Commerce Minister Bo Xilai said last week that Sasol, the world's largest maker of oil from coal, is in talks with Chinese oil major Sinopec on coal liquefaction projects.

China, the world's top coal producer and consumer, is encouraging coal-to-liquid (CTL) projects to reduce its dependence on imported oil. Sasol has previously said its CTL plans in China are at a preliminary stage.

New Segment Structure at Lanxess

Leverkusen will now position itself as a specialty chemicals group following the divestment of its Lustran Polymers business unit. “Our place is as a specialty chemicals group at the core of the chemical industry,” declared Management Board Chairman Axel C. Heitmann.

“This is where we have the best expertise, already occupy leading market positions, have an excellent customer base, operate close to the final markets and can exploit the advantages of our global asset network,” he stressed.

As part of a systematic market orientation, LANXESS will organize its 13 business units into three segments starting in October 2007 following the divestment of the commodity plastics activities. The new segments are named Performance Polymers, Advanced Intermediates and Performance Chemicals.

The new Performance Polymers segment comprises the Butyl Rubber, Polybutadiene Rubber, Semi-Crystalline Products and Technical Rubber Products business units. All the polymer-based businesses – in other words, the former Performance Rubber segment and the Semi-Crystalline Products (SCP) business unit – are grouped together here. The Engineering Plastics segment, which previously belonged to SCP, ceases to exist.

The former Chemical Intermediates segment is to be renamed Advanced Intermediates in order to emphasize the premium quality of its products. This new segment includes the Basic Chemicals and Saltigo business units. The Inorganic Pigments business unit, which was previously incorporated in this segment, will be integrated into the Performance Chemicals segment.

This segment will focus on specialty products. Performance Chemicals incorporates the Functional Chemicals, Inorganic Pigments, Ion Exchange Resins, Leather, Material Protection Products, Rhein Chemie and Rubber Chemicals business units.

Sinopec and DuPont Set Up Chemicals Joint Venture

Chinese energy giant Sinopec set up a chemicals joint venture with U.S. based DuPont that is due to start operations in late 2008.

The tie-up with a unit of the U.S. firm will produce resins widely used in the production of packaging, adhesives, shoes and clothes.

The joint venture, located at an existing Sinopec plant in Beijing, will have an annual capacity of around 60,000 tonnes, the Chinese firm said in a statement on its website.

Sinopec will have a 55 percent stake in the new company while DuPont Packaging and Industrial Polymers will hold the remainder, the statement said, without providing the size of investment.

Sinopec said the new company was intended to "meet the fast-growing demand on the Chinese market."

IG Petro in Advanced Stages of Negotiations to Form Polyol JV with US Based Stepan Chemicals

IG Petro in Negotiations to Form Polyol JV with U.S. Based Stepan Chemicals

IG Petrochemicals Ltd. is in advanced stages of negotiations plans to form a joint venture company with USA based Stepan Chemicals to manufacture polyols. Polyol, made from phthalic anhydride, is a foam used in beds and other applications.

After discussions, the JV will be ready for launching in six months - post agreement. It is proposed that the JV will initially set up a 25,000 tpa polyol plant at IG Petrochem's plant at Taloja with an investment of over Rs.100 crores. Stepan Chemicals is the only company in the world with the technology to make polyol from PA.

Altana Plans Large Acquisition to Enter New Chemicals Market

Altana AG, the German maker of coatings and plastic additives, plans to make a large acquisition to enter a new market for specialty chemicals.

Altana added a fourth division when it bought pigment maker Eckart GmbH & Co. for 630 million euros ($873 million) two years ago and the company can take on debt to help finance a move into another area, Chief Financial Officer Martin Babilas said. Other businesses include plastic insulation for electrical goods.

"We are working on a potential acquisition in a completely new field that still fits with our existing divisions,'' Babilas said in an interview in New York. "Our balance sheet is solid. We certainly have more leeway to take on further debt.''

Management has a budget of as much as 1 billion euros for potential targets, Chief Executive Officer Matthias Wolfgruber said in June. Altana and its European rivals are expanding in markets that offer higher margins than basic chemicals and other products that are sold in bulk.

Altana, whose origins date back to 1873, has advanced 37 percent in Frankfurt trading this year, valuing the company at 2.4 billion euros. Akzo Nobel NV, the world's largest coatings maker, has added 18 percent.

The German company, controlled by the billionaire Quandt family, is rebuilding around chemicals after selling its drugs unit to Nycomed Holding A/S for 4.6 billion euros. Existing units include ELANTAS Electrical Insulation, ACTEGA Coatings & Sealants, which supplies the packaging and graphic arts industry, and BYK Additives & Instruments, used for quality control.

Second-quarter profit jumped 78 percent, bolstered by the drugs disposal as well as higher sales in Europe and Asia.

Demand is continuing to develop in the third quarter and Babilas is optimistic Altana will reach its full-year goals. Earnings before interest, tax, depreciation and amortization are forecast to rise to 220 to 240 million euros, up from 186 million euros. Sales may amount to 1.39 billion euros this year, up from 1.29 billion euros.

SP Chemicals Moves Into Production of Styrene Monomer

SP Chemicals is planning to produce styrene monomer to meet strong demand for the raw chemical.

The chemical is used to make polystyrene plastics, protective coatings, polyesters and resins. It can also be used in a wide range of consumer and industrial applications.

SP Chemicals plans to invest 1.1 billion renminbi or U.S.$220 million on production facilities in China. The investment will be financed by internal cash flow and bank borrowings.

SP Chemicals is targeting to produce 320,000 tonnes of styrene monomer a year.

It says construction of the new styrene monomer production facilities is expected to start in the third quarter of Financial Year 2008, and completed by the fourth quarter of FY2009.

Trial production is targeted to take place by the first quarter of FY2010.

According to China's Styrene Monomer Association, the global supply for the chemical last year was 25 million tonnes compared to the demand of 25.5 million tonnes.

By 2010, the total global supply is estimated to be 28.5 million tonnes and demand at 33.5 million tonnes.

GE, Mitsui Chemicals and Nagase in Japan Joint Ventures

GE, Mitsui Chemicals, Inc. (MCI) and Nagase & Co., Ltd. (Nagase) announced that they have reached the following agreement regarding their two Japanese joint ventures - GE Plastics Japan Ltd. (GEPJ) and GEM PC Ltd. (GEMPC). GE Plastics Japan Ltd.

GE has increased its stake in GEPJ by acquiring the entire equity interests of MCI and Nagase in GEPJ, thereby increasing its equity to 100%. Except for the closing of GEPJ's Chiba Facility located within MCI's Ichihara Works, there will be no change in GEPJ's operations and GEPJ will continue to serve the GE Plastics' Japan customer base as it has in the past.

Nagase will continue to serve the GE Plastics' customers in Greater China and SEA as a sales representative and distributor. GEM PC Ltd.

GE has acquired the entire equity interests of Nagase in GEMPC thereby increasing its equity to 58 percent. GEMPC will continue to produce Lexan* resins as a joint venture between GE and MCI until March 31, 2008. GEMPC will then cease business operations and will be liquidated. GEPJ will supply Lexan polycarbonate from other GE Plastics' polycarbonate manufacturing facilities located globally.

Toshikazu Tanaka, Executive Vice President of MCI commented, "Considering the longstanding amicable relationship with GE, we seriously considered GE's proposal for the termination of the alliance. We accepted GE's proposal and believed that the arrangement is consistent with MCI's business strategy and will contribute to respective future growth."

Hiroshi Nagase, president of Nagase, commented, "We jointly operated GEPJ with GE since 1971. We would like to express our appreciation for the customers who have given valuable patronage to GEPJ's products for a long time. Although we have agreed to terminate joint ventures in Japan with GE, Nagase will keep the longstanding business relationship with GE Plastics and will continue to serve their customers in Greater China and SEA as a sales representative and distributor. In order to develop and grow our business, we will continue to provide our customers with the goods and services needed."

"We are pleased to reach a mutual agreement with our partners in Japan that creates a win-win situation for all of us. As we look to simplify our global business and fully leverage our leading global polycarbonate asset base, this transaction makes a lot of sense for us," noted Brian Gladden, CEO, GE Plastics. "This move will improve our global cost position for the Lexan business. We have built a great team in Japan with outstanding customer relationships, and this will ensure our strong position in the marketplace."

Takashi Hata, president of GE Plastics Japan, said, "We feel that this move will help us in the important Japan market, and we are committed to make the customer transition activities smooth and efficient."

Venezuela to Expand Petrochemicals Production

Venezuela, the fourth-biggest supplier of crude oil to the United States, will expand its petrochemicals industry during the next five years, lifting annual revenue to $100 billion, President Hugo Chavez said.

By 2013, the industry will have created 700,000 jobs, ten times the number employed at state oil company Petroleos de Venezuela SA, requiring $20 billion in investment, Chavez said today during his Sunday television program ``Alo Presidente.''

"Venezuela is going to be a global petrochemicals power,'' Chavez said, according to an e-mailed statement.

The president began today a so-called petrochemical revolution, which will require 87 plants across the country to produce primary materials and petrochemicals-based products like fertilizers, plastics and cosmetics.

"This is going to generate several industries,'' Energy and Oil Minister Rafael Ramirez said in comments broadcast by the Globovision television station.

Royalties to the government from the petrochemicals industry will probably rise to $20 billion by 2013, from $340 million this year, Chavez said.

The government will begin operating a polyethylene plant in December that will have the capacity to produce 60,000 metric tons a year, according to the statement. In 2010, it will inaugurate another, larger plant with the capacity to process a million metric tons a year.

Mitsui, Mitsubishi Eye Stakes in New Indian Unit

Japanese trading houses Mitsui & Co and Mitsubishi Corp may take stakes in a aromatic unit planned by India's Mangalore Refinery and Petrochemicals Ltd, a senior MRPL official said recently.

The proposed 48.52 billion rupee ($1.22 billion) complex is to be built by a new venture, ONGC Mangalore Petrochemicals Ltd, and aims to meet demand for paraxylene.

State refiner MRPL (MRPL.BO: Quote, Profile, Research) will own three percent of the new firm, while its parent company, explorer Oil and Natural Gas Corp (ONGC.BO: Quote, Profile, Research), will invest a bulk of the funds for a 46 percent stake.

"We are talking to both Mitsui and Mitsubishi for participation in the project. They have said they will come back to us after talking to their management," MRPL Managing Director R. Rajamani said.

Paraxylene is used to make polyester and plastics.

A final decision on including further partners is expected to be taken within six months, said Rajamani, adding the two Japanese firms had expressed an interest in buying the proposed plant's entire paraxylene output.

The unit will produce about 900,000 tonnes of paraxylene a year from 2010 using naphtha produced at MRPL's 193,800 barrels a day refinery in southern India.

"Our naphtha exports will substantially reduce once the new project comes on stream," Rajamani said. MRPL averages naphtha exports of 720,000 tonnes a year at the moment.

It plans to expand capacity of its refinery to 300,000 bpd by end-2010.

Total to Build PLA Pilot Plant

Total Petrochemicals has taken its first step in the bioplastics arena with the announcement of a joint venture to develop production processes and a pilot plant for polylactic acid (PLA).

The agreement has been signed with Galactic, a Belgian biotechnology company that produces lactic acid and which is a subsidiary of sugar producer Finasucre.

The partners will build a pilot plant at Galactic’s Escanaffles site, near Tournai in Belgium. This will be capable of producing 1,500 tpa of PLA using what the partners call “a clean, innovative and competitive technology” that they will jointly develop.

The research and development phase will start at the same time as construction of the pilot plant. The partners aim to complete the plant in 2009, when it will be brought on stream, but R&D work will continue and will last four to five years in total.

A Total spokeswoman said: “This is really a research programme.”

The plant will be used to optimise the production process developed by the partners. “According to the results, it will be decided whether to go to industrial production or not,” she said.

The joint venture company will be called Futerro and will be supported by the Total Petrochemicals Research Centre in Feluy. Finance for the project has been made available under a support programme from the Walloon Region, where the Galactic plant is located.

Lactic acid for the project will be supplied by Galactic. In the R&D work, there will be no differentiation in the crop source, with the lactic acid derived from the fermentation of sugar (beet or cane) or starch (corn, wheat, potato or manioc).

The Total spokeswoman said the objective for the polymer group is to fulfil growing demand from its customers for plastics derived from renewable resources. PLA was thought to offer the best potential, having a wide number of applications in packaging and other sectors, she said.

DuPont Expanding Manufacturing In India

DuPont announced it is expanding its manufacturing capabilities in India. It will establish a local contract manufacturing plant here in Himachal Pradesh to produce biosecurity program products and solutions to help prevent and control viruses in the livestock industry, as well as provide a healthy environment for animals.

“At DuPont, we believe biosecurity will be the cornerstone of the Indian livestock industry, enabling Indian farmers to compete successfully in both the domestic and the international markets with safe and healthy food products,” said Dipal Parikh, regional marketing manager for DuPont Animal Health Solutions, Asia Pacific. “A step-change in biosecurity approach and practices is a must to help prevent the spread of viruses within the animal population, as well as help prevent diseases from mutating from animals to humans.”

At the Baddi facility, which will start operations later this month, DuPont will manufacture a broad range of sustainable chemistries that include disinfectants, cleaners and sanitizers for animal health that help prevent pathogens from establishing themselves and also help prevent the spread of infection on the farm.

Sumitomo Chemical Company Completes Acquisition Of Cambridge Display Technology

Sumitomo Chemical Company Completes Acquisition of Cambridge Display Technology

Sumitomo Chemical Company and Cambridge Display Technology Inc., a developer of technologies based on polymer organic light emitting diodes (P-OLEDs), today jointly announced that Sumitomo Chemical has completed its $285 million acquisition of CDT, by means of a merger between CDT and a wholly owned subsidiary of Sumitomo Chemical. The merger consideration represents a 107 percent premium over CDT's 90-day average closing share price and a 95 percent premium over CDT's closing share price of $6.15 on July 30, the last trading day prior to first public announcement of the acquisition.

Holders of over 73 percent of CDT's outstanding common shares approved the merger earlier today, and all customary closing conditions have now been satisfied. As a result of the merger, CDT's common stock will no longer be publicly traded and will be converted into the right to receive $12 per share in cash.

CDT has appointed Mellon Investor Services LLC to act as paying agent for this transaction. Mellon Investor Services LLC will contact CDT shareholders shortly to arrange for payment.

Nikko Citigroup Limited, Citigroup Global Markets Inc. and Pillsbury Winthrop Shaw Pittman LLP advised Sumitomo Chemical in the transaction. Cowen and Company, LLC and Cadwalader, Wickersham & Taft LLP advised CDT.

Shaw Awarded Technology And EPC Contract For Exxon

Shaw Awarded Technology/ EPC Contract for Exxonmobil’s Olefins Recovery Facility and Power Cogeneration Unit In Singapore

The Shaw Group Inc. announced recently that its Energy & Chemicals Group has been awarded a contract to provide technology, engineering, procurement and construction (EPC) services for a 1,000,000 tons-per-year olefins recovery facility and a 220 megawatt power cogeneration unit at Jurong Island, Singapore, for ExxonMobil Chemical. The project is part of ExxonMobil Chemical’s second world-scale steam cracker and associated derivative units being constructed at the site. The value of Shaw's contract, already included in the company's previously announced backlog, was undisclosed.

“This award further establishes Shaw as a major EPC player in Asia,” said J.M. Bernhard Jr., chairman, president and chief executive officer of Shaw. “We will draw upon our 66 years of global olefins experience and expertise in power generation to successfully deliver a world-scale plant that will help ExxonMobil Chemical meet the increasing global demand for petrochemicals.”

An established leader in ethylene technology, Shaw has provided technology, design, engineering and/or construction for more than 120 plants with a worldwide reputation for exceptionally high operational reliability, rapid start-up and superior performance. Since 1990, Shaw technology has been selected for 35 percent of the world's ethylene capacity increases. Currently, Shaw is providing technology and EPC services for several other major olefins projects worldwide.

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