Market research analysts Ceresana say the global market for polypropylene (PP) will reach £100bn by 2019, boosted by especially strong growth in emerging markets, European Plastics News recently reported.

Countries in Asia Pacific already account for more than half of sales, making the region the most important sales market, ahead of Western Europe and North America. And moving forward, the Asia Pacific area will take up an even greater chunk at the expense of industrialized countries, said Ceresana.

Global PP capacity is likely to increase by more than 23.5m tonnes by 2019 and 57 percent of these new capacities will be built in Asia Pacific.

Currently, the major consumers of PP are producers of flexible and rigid packaging, who account for an aggregated demand of 50 percent. Fibres made of PP and consumer goods accounted for a 12 percent each.

The sectors of electrics and electronics, as well as transportation and construction, accounted for 6 percent each.

The largest increase in demand over the next eight years will be for the transportation industry – 5.8 percent.

COMPANY FINANCIALS

Praxair Q2 2012 Net Income Up Slightly, Strong Backlog of $2.5b

· Sales of $2.8 billion, down two percent from prior-year quarter; up six percent excluding negative currency translation and cost pass-through

· Record operating cash flow of $725 million; capex of $564 million

Praxair, Inc. (NYSE: PX) reported second-quarter net income of $429 million, one percent above the prior-year quarter.

Sales in the second quarter were $2,811 million, two percent below the prior-year quarter. Sales growth was six percent, excluding negative foreign currency translation and cost pass-through effects. Underlying sales growth was driven by strong volumes and higher pricing in North America in most end markets, including energy, manufacturing and metals. Sales in Asia reflect slower growth offset by new plant start-ups for chemicals and metals customers. Europe and South America sales continued to be impacted by overall weak macro-economic conditions and significant foreign currency headwinds.

Operating profit in the second quarter was $636 million, compared to $627 million in the prior-year quarter. The increase was driven by higher overall volumes, higher pricing and productivity, partially offset by currency translation effects. Operating profit in North America grew by 11 percent, but was partially offset by lower operating profit in the other geographic segments.

Commenting on the financial results and business outlook, chairman, president and chief executive officer Steve Angel said, “North America, our largest region, experienced solid growth and improved operating leverage. Europe and South America were negatively impacted by weaker currencies and macro-economic conditions. Asia sales benefited from new project start-ups to supply customers under long-term contracts.”

“Our backlog of large projects with customer contracts remains strong at $2.5 billion and new customer proposal activity remains at healthy levels.”

For the full year of 2012, Praxair expects sales in the range of $11.2 to $11.5 billion, which on a year-over-year comparison basis reflects negative cost pass-through and currency effects. Full-year capital expenditures are expected to be in the range of $2.1 to $2.4 billion.

Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings.

Dupont 2Q Earnings Down, Narrows Annual Forecast

The DuPont Co.’s net income fell 3 percent in the second quarter as sales volumes fell in several business units, including performance chemicals, electronics, and safety and protection, and it absorbed charges for claims over a weed killer and a legal settlement. Revenue rose 7 percent for the same period.

The company said it expects its earnings for the year to be at the low end of its current outlook in part because of uncertainty about the macroeconomic outlook.

The Wilmington, Del.-based company said net income totaled $1.18 billion for the three months ending June 30, down from $1.22 billion for the same period last year.

The company took a pretax charge of $265 million in the quarter related to claims involving the use of its Imprelis weed killer, and a $137 million pretax charge related to the settlement of a lawsuit with Invista, a privately held company that bought much of DuPont’s textiles and interiors business several years ago.

Revenue totaled $11 billion, up from $10.26 billion for the second quarter of 2011. The increase was attributed to 6 percent higher local prices and a 5 percent increase from portfolio changes, partially offset by a 3 percent currency headwind and 1 percent lower volume.

Volume declines in certain business segments were offset by continued strong performance in agriculture, where sales increased 13 percent to $3.4 billion, reflecting 7 percent price and 6 percent volume gains. Sales were up 12 percent in the Pioneer seed unit, with strong performance in North America corn and soybeans. Crop protection sales increased 15 percent.

DuPont also saw big gains in the industrial biosciences and nutrition and health units related to its acquisition of the enzyme and specialty food ingredients businesses of Danisco.

“Our agriculture, food and bioscience businesses are performing exceptionally well globally, and our advanced materials businesses are achieving solid results despite slower growth in some key markets and continued weakness in Europe,” said DuPont CEO and chairwoman Ellen Kullman.

Sales were down 2 percent in Europe, Middle East and Africa, as volume in the region dropped 8 percent.

Volume was down 10 percent in the second quarter in the performance chemicals unit, reflecting continued softness in demand for titanium dioxide, or TiO2, a whitening pigment used in wide range of products, from automotive and house paints to toothpaste.

Sales in the electronics and communications unit were down 11 percent on 6 percent lower volume and 5 percent lower selling prices as DuPont saw continued soft demand for photovoltaic materials. Volume decline in photovoltaics was partially offset by increased demand for smartphones and tablets, the company said.

DuPont’s safety and protection unit saw a 4 percent drop in sales, with 5 percent lower volume partially offset by 1 percent higher selling prices. The company said volume declined because of lower public sector demand for products such as Kevlar body armor and continued softness in industrial markets.

DuPont maintained its earnings outlook for the year of $4.20 to $4.40 per share, excluding unusual items. But the company said that it expects full-year earnings to be near the lower end of that range because of uncertainties regarding macroeconomic conditions and a higher tax rate related to its earnings mix.

Air Products Reports Fiscal Q3 Financial Results

•Operating margin of 17%* up 130 basis points versus prior year on lower costs

•Acquired majority position in South America’s largest independent industrial gas company

•New Tonnage Hydrogen win in the U.S. Gulf Coast and Electronics wins in China

Air Products (NYSE:APD) reported net income of $303 million on a non-GAAP, continuing operations basis for its fiscal third quarter ended June 30, 2012.

Third quarter revenues of $2,340 million decreased five percent versus prior year, primarily on lower energy pass-through and a stronger dollar. Underlying sales were up one percent, largely due to higher pricing in the Merchant Gases segment. Operating income of $397 million was up two percent on improved cost performance, partially offset by a stronger dollar. Operating margin of 17 percent increased 130 basis points versus prior year.

Sequentially, while overall sales were unchanged, underlying sales grew one percent due to higher volumes. Better cost performance drove operating income up six percent and operating margin increased 100 basis points sequentially.

Commenting on the quarter, John McGlade, chairman, president and chief executive officer, said, “Economic growth this quarter was below what we expected in Asia, Europe and Electronics. Despite headwinds from the economy and a stronger dollar, we were able to deliver earnings within expectations due to excellent cost performance. In addition, we recently executed several key strategic activities, including the purchase of our majority position in Indura, taking full ownership of our DA NanoMaterials joint venture and the sale of our Continental Europe Homecare business.”

RPM Reports Strong Q4 2012 with Net Income up 18%

- Fourth-quarter sales increase 12.2% over prior year

- Net income for the quarter up 17.7% over prior year

- Record fiscal 2012 full-year sales; increase 11.7% over prior year

- Record fiscal 2012 full-year net income; up 14.2% over prior year

RPM International Inc. (NYSE: RPM) reported sharp gains in net sales, net income and diluted earnings per share for its fiscal 2012 fourth quarter and year ended May 31, 2012.

Fourth-Quarter Results

Net sales, net income and diluted earnings per share for the fourth quarter were all up significantly over prior-year results. Net sales grew 12.2% to a record $1.1 billion from $981.8 million in fiscal 2011. Consolidated earnings before interest and taxes (EBIT) increased 16.5% to $139.5 million from $119.8 million a year ago. Net income was up 17.7% to $82.6 million from $70.2 million a year ago.

Industrial segment sales grew 15.8% to $724.8 million in the fiscal 2012 fourth quarter from

$625.9 million a year ago. Organic sales improved 10.2%, despite 3.3% in foreign exchange translation losses, while acquisition growth added 5.6%. Industrial segment EBIT increased 28.7% to $90.4 million from $70.3 million in the fiscal 2011 fourth quarter.

"Nearly all of our industrial businesses delivered improved sales and earnings for the quarter. Areas of particular strength included industrial maintenance coatings and corrosion control coatings, which have benefited from increasing demand in energy markets, as well as industrial capital spending and infrastructure investment. The slowly recovering commercial construction markets in North America also led to increased sales in sealants, waterproofing, roofing materials, concrete admixtures and other construction chemical product lines," stated Frank C. Sullivan, chairman and chief executive officer.

Net sales for RPM's consumer segment grew 5.9% to $377.0 million from $355.9 million in the fiscal 2011 fourth quarter. Organic sales were up 4.8%, including foreign exchange translation losses of 0.8%, while acquisition growth added 1.1%. Consumer segment EBIT increased 12.5% to $60.3 million from $53.6 million a year ago.

Fiscal 2012 Consolidated Sales and Earnings

Fiscal 2012 consolidated net sales, net income and earnings per share saw double-digit increases. Net sales were up 11.7% to a record $3.8 billion from $3.4 billion in fiscal 2011. Consolidated EBIT increased 14.9% to $396.1 million from $344.8 million in fiscal 2011. Net income improved 14.2% to a record $215.9 million from $189.1 million in fiscal 2011. Diluted earnings per share grew 13.8% to a record $1.65 from $1.45 a year ago.

Acquisitions Expand Global Footprint

During the fourth quarter, RPM announced the acquisition of HiChem Paint Technologies Pty. Ltd., a producer of protective coatings for automotive, home and industrial markets, based in Hallam, Australia. Acquired by RPM's Rust-Oleum Group on March 30, 2012, HiChem has annual sales of approximately $23 million.

On June 19, 2012, subsequent to year-end, RPM's Building Solutions Group acquired Viapol Ltda., a producer of building materials and construction products based in Cacapava, Brazil, near Sao Paulo. Viapol's annual sales are approximately $85 million.

Business Outlook

"While we are planning for another year of continued improvement in sales and earnings, we anticipate growth will be at a more moderate pace in our 2013 fiscal year. In our core North American markets, we see consumers returning to more normal spending patterns for home maintenance, repair and redecorating. We also expect continuing modest momentum in residential and commercial construction spending. We are experiencing some slowdown in the pace of growth and investment for the industrial markets we serve, due in part to the uncertainty that exists around the November U.S. Presidential election. We are beginning to see declines in sales and earnings across some of our European operations. This is compounded by the continuing deterioration of the Euro versus the U.S. dollar. On the plus side, we are seeing stabilization in raw material costs for the first time in many years and are hopeful that we will be able to maintain or improve our gross margin profitability for the year," Sullivan stated.

"Based on these factors, we expect consumer segment growth to be in the range of 5% to 7% and that our industrial segment will grow 6% to 10%, driving RPM consolidated sales and earnings up year over year in a range of 5% to 10% for our fiscal year ending May 31, 2013."

"From an acquisition perspective, Viapol will add about $85 million of sales for the full year and is expected to be dilutive to earnings in the first quarter related to inventory step-up and acquisition transaction costs. This transaction should be accretive to earnings for the balance of the year. We also remain hopeful that we are able to complete a couple other acquisitions in fiscal 2013," Sullivan stated.

RPM International Inc., a holding company, owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services serving both industrial and consumer markets. RPM's industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. Industrial brands include Stonhard, Tremco, illbruck, Carboline, Flowcrete, Universal Sealants, Fibergrate and Euco. RPM's consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement and by hobbyists. Consumer brands include Zinsser, Rust-Oleum, DAP, Varathane and Testors.

COMPANY NEWS

Sinopec, BASF Sign Preliminary Agreement to Build Chemical Plant

China Petroleum & Chemical Corp., also known as Sinopec Corp. (SNP), and BASF SE (BASFY), the world's largest chemical company by sales, signed a preliminary agreement recently to build a "world-scale" iso-nonanol plant in southeastern Guangdong province.

The move will likely help China reduce its reliance on imports of iso-nonanol, a chemical used primarily used in plastics manufacturing. Iso-nonanol ultimately ends up in products such as wires, cables and flooring, and in the automotive, building and construction sectors, Sinopec said in a statement, without specifying the proposed plant's capacity.

In 2009, BASF said it planned to invest 2 billion euros ($2.45 billion) over four years to reach a target of producing 70% of its sales from within the Asia-Pacific region. This amount included the $1.4-billion expansion of an existing chemical plant it jointly owned and operated with Sinopec in the eastern city of Nanjing.

BASF, which started selling textile dyes to China in 1885, made its largest single investment in history in 2000 when it built the Nanjing plant with Sinopec for $2.9 billion, according to a company website.

Earlier this year, BASF signed an agreement with Malaysia's state-owned oil and gas firm Petroliam Nasional Bhd., or Petronas, to develop a new refinery project in Malaysia that included the production of iso-nonanol. Under the agreement, BASF would take a 60% stake in the project, with Petronas owning the rest.

At the moment, China relies exclusively on imports of iso-nonanol, mainly from Germany and Singapore, Sinopec said, adding that China imported 318,600 metric tons of the chemical in 2011.

Under the memorandum of understanding between Sinopec and BASF, the companies will each take a 50% stake in the joint venture and jointly operate the facility, which will be located in the Maoming Hi-Tech Industrial Development Zone, the statement said.

"The final scope of the investment will be determined following the outcome of the joint feasibility study, which is expected by the end of 2012," Sinopec said.

TOYO Awarded Chemical Production Complex in India

Toyo Engineering India Limited (Toyo-India), an Indian subsidiary of Toyo Engineering Corporation (TOYO, President and CEO Katsumoto Ishibashi), has been awarded an Engineering, Procurement and Construction Contract (EPC) to build a new multi-business chemical production site for BASF India Limited part of BASF, the world’s leading chemical company, at the Dahej Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), located in Dahej, on the west coast of India in Gujarat Province. The new site will be an integrated hub for polyurethane manufacturing and will also house production facilities for care chemicals and polymer dispersions for coatings and paper. Toyo-India will execute the project under an EPC turnkey contract at lump sum price (EPC-LSTK). The plant is expected to commence operations in 2014.

The new production site at Dahej will ensure local supply of products and solutions for India’s growing markets and will cater to industries such as appliances, footwear, automotive, building materials, adhesives, architectural coatings, paper and personal care, thereby contributing to BASF’s business expansion in the northern and western regions of India. The polyurethane facility will produce thermoplastic polyurethane, microcellular polyurethane elastomers for automotive NVH (noise, vibration and harshness) parts and polyurethane systems. The care chemicals facility will produce surfactants for home and personal care. The polymer dispersions facility will produce products for architectural coatings, construction materials and paper coating.

Last year, Toyo-India was awarded a contract for the first large-scale synthetic rubber plant with annual production of 120,000 tons per annum in India for Indian Synthetic Rubber Limited as well as a synthetic rubber plant with annual production of 40,000 tons per annum for Reliance Industries Ltd. TOYO will actively develop business in India where vigorous investment continues to be expected.

Air Liquide Secures Long-term Agreement to Supply Hydrogen in China

Company secures long-term agreement with Zhejiang Huafon Spandex to supply hydrogen for its 120,000 tonnes per year cyclohexanone project.

Air Liquide has laid the “first stone” of a new hydrogen plant following the signature of a long-term agreement with Zhejiang Huafon Spandex Co. Ltd (Huafon) to supply hydrogen for its 120,000 tonnes per year cyclohexanone project located in Liaoyang Aromatics and Fine Chemical Park, Liaoyang city, Liaoning province, China. Cyclohexanone is a key ingredient in the creation of nylon.

Under the terms of the agreement, Air Liquide will invest in a new Steam Methane Reformer (SMR) unit that will supply 13,000 Nm3/hour of hydrogen as well as steam to Huafon via pipelines. This new unit, which is expected to be commissioned by the end of 2013, uses Lurgi’s latest technologies providing high reliability, world-class safety and energy efficiency and will be designed and manufactured by the Air Liquide Engineering and Construction team based in Shanghai.

This hydrogen plant will be the third largest operated by Air Liquide and its subsidiaries in China. In January this year, a large hydrogen unit was started mainly to supply Bayer MaterialScience in Shanghai.

Hydrogen is a steadily growing market. It is used today in many industrial sectors, from refining for the treatment of heavy crude oil to produce sulphurfree fuels that comply with environmental regulations to chemicals and petrochemicals for the production of a variety of everyday products, including polyurethanes (foams) for construction materials, polycarbonates for DVDs, and nylons for textiles.

Zhejiang Huafon Spandex Co., Ltd is a listed company of the Huafon Group. Founded in 1991, the Huafon Group is a privately owned company with over 6,000 employees and more than 12 billion RMB total assets. It has become the world’s largest manufacturer of polyurethanes resins for shoes and leather and the largest domestic manufacturer of spandex.

EXPANSIONS/ ACQUISITIONS/ JOINT VENTURES

Eastman Expands Capacity 50% for Regalite Hydrogenated Hydrocarbon Resins in China JV

Eastman Chemical Company, Kingsport, TN, is increasing capacity of its Regalite hydrogenated hydrocarbon resins in a joint venture with Sinopec Yangzi Petrochemical Company, and will add a world-scale manufacturing plant in Nanjing, China. The new facility will be equally owned between the two companies and will produce 50,000 metric tons of Regalite resins upon completion. The facility is expected to be online by the end of 2014 and will increase Eastman’s total capacity for hydrogenated hydrocarbon resins by 50 percent. As a part of the expansion and Eastman’s commitment to the adhesives industry, technical resources will also be added in the region.

“This joint venture uniquely positions Eastman to meet the needs of customers by serving the expanding Asian market and reaffirms our commitment to building the hydrogenated hydrocarbon resins business,” says Phil Byers, director of the adhesive’s business in Eastman’s Adhesives and Plasticizers segment. “Eastman is dedicated to growing with our customers and helping them to meet demand in China and all of Asia by providing a reliable supply of Regalite for years to come.”

Eastman and Sinopec Yangzi Petrochemical Company (YPC) have an existing joint venture for the manufacture of Eastman Eastotac resins in Nanjing, China. The manufacturing site will be expanded for the new facility. The joint venture leverages the proximity of YPC’s integrated petroleum complex with Eastman’s technology and market positions.

Regalite hydrogenated hydrocarbon resins are used extensively in a wide variety of hot-melt adhesives, polymer compounds and plastic modifications. Regalite resins can be formulated with a wide range of polymers, and offer excellent color, stability and adhesion. These advantages are essential in such markets as personal hygiene (including disposable diapers) and packaging.

Eastman is a global specialty chemicals company that produces a broad range of advanced materials, additives and functional products, specialty chemicals, and fibers. Eastman had 2011 pro forma revenues, giving effect to the Solutia acquisition, of approximately $9.3 billion. With the completion of the Solutia acquisition, Eastman employs approximately 13,500 people around the world.

Sabic Expanding Capacity for Stamax PP Composite Resins

Sabic Innovative Plastics is working on a new production line that will increase capacity for Stamax-brand polypropylene composite resins at its plant in Genk, Belgium, PlasticsNews recently reported.

The new capacity is needed because of increased demand from the automotive market, officials with Pittsfield, Mass.-based Sabic IP said in a July 24 news release. The new line is expected to be operational in the second half of 2013.

Stamax is a long glass fiber-filled PP that allows for lightweight parts that can allow designers to improve fuel efficiency and reduce emissions, officials added. Existing auto applications include front-end modules, door modules, seating structures and tailgate structures. It’s also making inroads in under-hood applications where heat is non-critical, they said.

The Genk plant “was proactively built in scalability in anticipation of customers’ future needs,” Sabic IP European automotive leader Leon Jacobs said in the release. The plant is the largest greenfield PP compounding plant ever built in Europe, according to Sabic IP.

The firm also produces Stamax at a plant in Bay St. Louis, Miss. That plant was modeled on the design and technology of the Genk plant.

BASF to Boost Vinylformamide Production to Meet Growing Demand

BASF said recently it is increasing production of vinylformamide (VFA) at its German and Chinese sites in an attempt to meet growing global demand in the paper industry.

Under the plan, BASF will increase the capacity of existing VFA and polymerization plants in Ludwigshafen, Germany. It will also build a new polymerization plant in China that will further process the feedstock from Ludwigshafen.

These projects will require investments in the "three-digit million euro" range, the company said, adding production is expected to start by end-2014.

BASF did not disclose other details, including existing and expected production.

VFA is feedstock for water soluble polymers which are widely used in the paper industry to increase the efficiency of the production process.

"Growth [in demand] is expected in Europe and the Americas, where paper makers are under enormous pressure to reduce their cost of operations as well as in Asia, which we consider the growth engine of paper production and demand," said Uwe Liebelt, president of BASF's Paper Chemicals division.

Lanxess Building $15 million Engineering Resin Compounding Plant in N Carolina

The robust comeback of the North American automotive market is a big reason why Lanxess Corp. is building an engineering resin compounding plant in Gastonia, N.C.

The new plant is set to begin commercial production in September, with a little more than one-third of its output slated for automotive applications, marketing communications Vice President Terri Fitzpatrick said in a recent interview at Lanxess’ North American headquarters in Pittsburgh.

North American auto builds were around 15 million in 2007, but the impact of the global economic recession sent those totals down below 9 million by 2009. They quickly bounced back to 13.4 million in 2011 and are on track to approach 15 million this year.

When Lanxess officials announced plans for the plant in early 2011, they said materials made there would allow auto engineers to design lighter-weight plastic parts to replace metal. Those plastic parts in turn would contribute to fuel efficiency and reduced emissions.

Lanxess is investing $15 million in the plant, which will make compounds based on Durethan-brand nylon 6/6 and Pocan-brand polybutylene terephthalate. Previously, Lanxess had imported those products from its plants in Europe. Fitzpatrick said the plant will employ 55 and start operations with one extrusion line.

Outside of automotive, the plant is expected to generate almost 15 percent of its sales from the electrical/electronics market and almost 10 percent from textiles.

The new plant is one of several compounding and resin initiatives announced in the last year by parent firm Lanxess AG of Leverkusen, Germany. In January, Lanxess opened a plant compounding similar materials in Jhagadia, India. The firm spent about $14 million on the Jhagadia plant, which has annual capacity of about 44 million pounds. Another compounding plant is being built in Porto Feliz, Brazil.

Lanxess also plans to open a massive nylon resin plant with almost 200 million pounds of annual capacity in Antwerp, Belgium, by 2014. The firm will invest more than $90 million in that project.

In the last year, Lanxess also has been active in the plasticizer market, buying phthalate-free plasticizer maker Unitex Chemical Corp. of Greensboro, N.C., and investing $10 million in a minority stake in bioplasticizer maker BioAmber Inc. of Minneapolis. The Unitex deal was Lanxess’ first U.S. acquisition.

Evonik to Build Nylon 12 Plant in Singapore

Evonik Industries AG has chosen Singapore as the location for its new nylon 12 resin plant.

The plant is expected to begin production in 2014 with almost 45 million pounds of annual capacity. Officials with Essen, Germany-based Evonik said in a July 4 news release that the new plant will bring the firm closer to its customers in Asia’s fast-growing markets.

They added that the plant is needed to handle rising demand for nylon 12 in the automotive, electrical/electronic, household equipment, sports equipment and manufacturing markets. New nylon 12 applications have targeted markets for solar power and oil and gas production.

Evonik has annual sales of almost $19 billion. The firm employs more than 33,000 worldwide.

Dow Chemical Forms New Carbon Fiber Joint Venture

Dow Chemical is moving forward on a joint venture with a Turkish acrylic fiber company to manufacture and commercialize carbon fiber and derivatives.

Dow and Aksa Akrilik Kimya Sanayii A.S. had initially agreed to form the joint venture, DowAksa Advanced Composites Holdings BV, in December. The financial terms were not disclosed.

DowAksa will focus on products that reduce costs in the industrial markets for energy, transportation and infrastructure globally. The company said that the carbon fiber composites industry is estimated at $10 billion globally and is expected to reach $40 billion by 2022.The joint venture aims to build on Aksa's existing carbon fiber production assets in Turkey.

Aksa and Dow, through its subsidiary Dow Europe Holding BV, each hold a 50 percent stake in the joint venture.

Mitsubishi Establishes Polyolefin Films Subsidiary in China for Greenhouses

Mitsubishi Plastics, Inc. (head office: Chiyoda-ku, Tokyo; President: Takumi Ubagai) announces the establishment of a wholly-owned subsidiary located in Wuxi, Jiangsu, China, to develop the highly functional film business for agricultural greenhouses in China. Construction of the company facilities will start in fall 2012, aiming to start the production and sales of film products in summer 2013.

The Japanese agricultural materials market is in the state of saturation due to the decline in the total population combined with the aging agricultural population and the lack of younger people to take over the agricultural business. Meanwhile, in China, greenhouse farming (farming using agricultural greenhouses) is increasingly modernized and growing in scale as the need for safe and reliable vegetable supply surges in tandem with the recent rapid economic development. The area devoted to greenhouse farming in China is 3.6 million hectares, which is 70 times as much as the corresponding area in Japan. Mitsubishi Plastics has been developing the agricultural materials business including plant factories utilizing solar light (“solar-powered plant factories”) mainly through a group company, MKV Dream Co., Ltd. However, for further business development given the circumstances mentioned above, it is essential to expand into overseas markets.

The newly established subsidiary will engage in the local production and sales of highly functional polyolefin films with special coating, which are used as external films for agricultural greenhouses (“agricultural PO films”). The films for the use of agricultural greenhouses that are currently used in China are mostly single-layer films whose useful life is only about a year. On the other hand, our agricultural PO films are multi-layer films, and can be used for a period of three to five years as they are more resistant to the deterioration of transparency and durability due to the effect of special coating on the surface. This type of highly functional films for the use of agricultural greenhouses are not yet widely used in China, but their market is expected to grow rapidly in the future as greenhouse farming is increasingly modernized and growing in scale. In addition, given that the use of this type of highly functional films will also be necessary in solar-powered plant factories, which are strategically promoted by MKV Dream Co., Ltd. as a new business, we reached a conclusion that for the promotion of solar-powered plant factories in China, local capability to manufacture and supply highly functional films was essential. The total investment related to this matter is expected to be approximately 1.8 billion yen.

The Mitsubishi Plastics Group will further promote the expansion of the solar-powered plant factories business, which is recognized by Mitsubishi Chemical Holdings Corporation as the “next generation agribusiness,” and related materials businesses not only in China, but also across the Asian region including Japan, South Korea, Vietnam, and Oceania, using the newly established subsidiary as a pivotal force.

Cabot to Acquire Activated Carbon Leader Norit N.V.

Cabot Corporation (NYSE: CBT) entered into an agreement to purchase Norit N.V., the global leader in activated carbon from affiliates of Doughty Hanson & Co. Managers Limited and Euroland Investments B.V. for $1.1 billion. The acquisition strengthens Cabot’s specialty chemicals portfolio with a non-cyclical, high growth and high margin business.

“Norit’s leading market position, unique technology and strong financial performance is an excellent fit with Cabot’s portfolio. This acquisition supports the ongoing transformation of our portfolio to a higher margin, less cyclical, specialty chemicals focused company,” said Cabot President and Chief Executive Officer, Patrick Prevost . “The acquisition of Norit is a natural extension of our core R&D and applications development competencies. Norit is the leader in purification and we are looking forward to the Norit team joining Cabot.”

Activated carbons are performance materials used in multiple high-end applications including environmental protection, air and water purification, food and beverages, pharmaceuticals and catalysts. Norit operates 10 manufacturing facilities throughout the Americas and Europe. It employs 760 people and provides the widest and most differentiated range of activated carbon products of any producer. Norit generated sales of $360 million and adjusted EBITDA of $92 million for the trailing twelve months ended December 31, 2011. The business has grown 12 percent annually since 2007 and will become an important component of Cabot’s growth strategy. Norit’s current chief executive officer, Ronald Thompson, will continue to lead the business.

“Norit’s differentiated products for high-end applications drive substantially higher margins relative to competition. Norit’s fundamental business performance generates EBITDA margins in excess of 25 percent and we expect annual revenue growth in the range of 10 percent to 12 percent,” said Cabot Chief Financial Officer, Eduardo Cordeiro. “We remain confident in our adjusted EPS target of $4.50 in 2014 from our base business, and the Norit acquisition will be incremental to that target.”

Cabot expects the acquisition to be financed with a combination of approximately $200 million of cash and $300 million of borrowings under its existing revolver. In addition, the company plans to issue approximately $600 million of long-term debt prior to closing. The transaction is expected to close within calendar year 2012 and is conditional upon Dutch works council consultation and advice and approval of the competition authorities in the U.S. and Germany.

J.P. Morgan is Cabot’s financial advisor for the transaction. Wachtell, Lipton, Rosen & Katz is Cabot’s legal advisor for the transaction, with De Brauw Blackstone Westbroek and Slaughter & May serving as Dutch and English counsel, respectively.

McIlvaine Company

Northfield, IL 60093-2743

Tel: 847-784-0012; Fax: 847-784-0061

E-mail: editor@mcilvainecompany.com

Website: www.mcilvainecompany.com