BASF will open a new Research and Development Laboratory and an Application Technology Center for Battery Materials in Amagasaki, Japan. The facilities will be fully operational by the end of 2013. The laboratory will focus on researching electrolytes and electrode materials for high-performance batteries as part of BASF’s global R&D network. The Application Technology Center will aim to enhance service and to develop tailor-made solutions for the battery industry in Japan.

“The new Amagasaki Battery Materials Lab will enable us to extend our successful R&D network with research institutes and the industry into Japan,” said Dr. Andreas Fischer, Vice President Battery Research and Electrochemistry at BASF. “Our aim is to develop innovative materials for high-performance batteries that will significantly improve battery performance for electric cars and consumer applications.” In addition, the company will benefit from synergies with existing BASF research platforms in Amagasaki. “By extending our local R&D infrastructure we can successfully involve the competences of our researchers from other BASF divisions,” explained Fischer.

Amagasaki, in the Kansai area, is the ideal location for the new Application Technology Center for Battery Materials. “Japan is one of the leading countries for battery manufacturing and development,” said Dr. Joerg-Christian Steck, Representative Director and President of BASF Japan . “Being present in Japan brings us closer to our customers and helps us better serve their needs.”

“The Amagasaki Battery Materials Lab will allow us to provide customized solutions to highly developed battery companies in the region and throughout Japan,” said Dr. Adrian Steinmetz, Vice President Battery Materials at BASF. “This includes battery materials solutions for both consumer electronics like smartphones and tablet computers as well as electromobility.”

The first researchers will start their work at the new laboratory in April 2013. Until the end of 2013 new offices and labs located on a 600 square meter site will be utilized, with the option of growing further in the future. The total investment amount for the new Amagasaki facility is several million euros.

Dow Chemical Buys Solar Start-up Nuvosun

Dow Chemical recently announced it has bought solar startup NuvoSun, which developed a thin film technology that Dow will use for its solar roof.

Dow, which made equity investments in NuvoSun over a 3-year period, closed the purchase of the startup on Feb. 28, said Dow spokeswoman Kate Nigro. She declined to disclose the purchase price.

Dow took an interest in NuvoSun’s technology because Dow had been planning to roll out shingles embedded with solar cells for many years. After some delays, Dow began selling the solar shingles in 2011, first in Colorado and later in California and Texas. The company has since expanded the sales of the solar shingles to the East Coast and lined up NEXUS EnergyHomes, a home builder, as a customer.

Founded in 2008, NuvoSun’s technology uses copper, indium, gallium and selenium to convert sunlight into electricity. The compound and the manufacturing process involved make it possible to create ultra thin and flexible solar cells. Silicon solar cells are thicker and prone to breakage if they are not protected by glass.

Lubrizol Continues CPVC Expansion with Addition of Global CPVC Resin Capacity

• New facility in Thailand

• Aligns with increasing global CPVC growth and demand

•Ensures global customer access to quality CPVC products

•Plant operational by end of 2014

The Lubrizol Corporation recently announced its plans to increase its chlorinated polyvinyl chloride (CPVC) resin capacity through a joint investment in a manufacturing facility with Sekisui Chemical Company, Ltd. The new facility, which is part of the company’s Phase I capacity expansion, will be located in Thailand and will enable Lubrizol to meet its global customer demands, particularly in Asia Pacific. Initial resin capacity during this first phase will be 30,000 metric tons with a total investment of approximately $50 million over a two-year period and with full operation planned by the end of 2014, subject to regulatory approvals.

Phase I will be designed to allow for a future expansion as part of Phase II that will double the size of the plant to 60,000 metric tons with an additional investment of $50 million. The Phase II expansion is expected be operational by the end of 2016.

Lubrizol recognizes the global growth potential for CPVC products and is committed to ensuring product availability. CPVC resin manufactured at this site will be designed to meet Lubrizol’s and Sekisui’s required performance specifications and quality standards. Both companies will continue to independently market and sell CPVC resins and manufacture their own CPVC compounds for their respective customers.

“This is a significant step in expanding our CPVC business and we are pleased to be partnering with Sekisui on this effort,” notes Eric Schnur, president of Lubrizol Advanced Materials. “We are committed to providing our customers with high quality CPVC products to support the global building and construction market. And with the construction of this new manufacturing facility, we are better positioned to support their future business growth.”

Lubrizol is recognized as a global leader in reliability, quality and providing innovative solutions for its customers’ high-performance application needs and remains committed to ongoing investment in its CPVC capabilities that support future growth. Lubrizol’s advanced CPVC technology, sold under the FlowGuard®, BlazeMaster®, Corzan® and TempRite® brands, delivers exceptional performance for the plumbing, fire sprinkler, industrial and other building and construction related applications.

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that produces and supplies technologies to customers in the global transportation, industrial and consumer markets. These technologies include lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals; specialty materials, including plastics technology and performance coatings in the form of specialty resins and additives. Lubrizol’s industry-leading technologies in additives, ingredients and compounds enhance the quality, performance and value of customers’ products, while reducing their environmental impact.

With headquarters in Wickliffe, Ohio, The Lubrizol Corporation owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 7,000 employees worldwide. Revenues for 2011 were $6.1 billion. For more information, visit http://www.lubrizol.com/

Clopay Plastics Announces Restructuring of Its European Division

Clopay Plastic Products Company, a wholly owned subsidiary of Griffon Corporation, announced that Clopay Europe will exit certain less profitable product categories in 2013 in order to focus on operating and growing its more profitable business lines as a result of the region’s challenging macroeconomic climate. As part of the action, Clopay Plastics says it will be investing in several new capital projects in order to improve both operating and material efficiencies. The company says it remains committed to its European business. The restructuring is expected to lead to improved performance and future growth potential.

Clopay Plastics produces and develops specialty plastic films and laminates for a variety of hygienic, health care and industrial uses in the United States and certain international markets. Products include thin gauge embossed and printed films, elastomeric films and laminates of film and non-woven fabrics. These products are used primarily as moisture barriers in disposable infant diapers, adult incontinence products and feminine hygiene products, as protective barriers in single-use surgical and industrial gowns, drapes and equipment covers, as packaging for hygienic products, house wrap and other products.

Akzonobel Chemical Island Starts Supply to World’s Biggest Single Line Pulp Mill

AkzoNobel’s new €90 million Jupiá Chemical Island in Brazil is now operational and has started supplying the Eldorado Brasil Celulose pulp mill, which is the biggest in the world.

Operated by the company’s Pulp and Performance Chemicals business, the state-of-the-art Jupiá facility represents one of AkzoNobel’s largest investments in Latin America. It will supply, store and handle all chemicals for the 1.5 million tons per year Eldorado mill under an agreement which runs for the next 15 years.

“We are very proud to be involved in such a prestigious project which marks a significant step in AkzoNobel accelerating growth in one of its core markets,” said Werner Fuhrmann, member of AkzoNobel’s Executive Committee, responsible for Specialty Chemicals. “The plant’s official opening also emphasizes our commitment to expanding our activities in one of the world’s most rapidly growing regions”, added Ruud Joosten, Managing Director of Pulp and Performance Chemicals.

As well as providing long-term employment for around 60 people, the Jupiá plant will play an important role in ensuring a sustainable eucalyptus pulp supply to the global marketplace.

Jose Carlos Grubisich, CEO of Eldorado Brasil Celulose commented: “We are pleased to be working with AkzoNobel and we look forward to further developing our strategic partnership. I am sure that our cooperation will be mutually beneficial.”

AkzoNobel has a well-established pulp and paper chemicals operation in Brazil, where the company already operates the Chemical Island concept at several pulp mills, as well as running production units in Jacareí, Eunápolis, Três Lagoas, Rio de Janeiro and Jundiaí.

FINANCIALS

BASF Increases Sales and Income from Operations in 2012

Full year 2012:
- Sales €78.7 billion (plus 7%)
- EBIT before special items €8.9 billion (plus 5%)
- Record year in Agricultural Solutions and Oil & Gas; earnings in the chemicals business below prior year
4th quarter 2012:
- Sales €19.6 billion (plus 9%)
- EBIT before special items €1.8 billion (plus 18%)
Dividend proposal €2.60 (2011: €2.50)
Outlook 2013: Increase in sales and earnings targeted

BASF maintained its good performance in 2012. The company exceeded the 2011 record levels in sales and income from operations (EBIT) and once again earned a substantial premium on the cost of capital. Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE, said at the Annual Press Conference: “The Oil & Gas and Agricultural Solutions segments achieved new records, while development in our chemicals business was weaker than in 2011.”

Sales in the fourth quarter of 2012 were €19.6 billion, 9% higher than in the same quarter of the previous year. This increase was mainly due to higher volumes in almost all segments as well as price and currency effects. At €1.8 billion, EBIT before special items was 18% above the level of the previous fourth quarter, mainly due to significantly higher volumes in Oil & Gas as well as improved earnings in Polyurethanes and Construction Chemicals.

For the full year, BASF increased sales to €78.7 billion, up 7% compared with 2011. EBIT before special items improved by 5% to €8.9 billion and EBIT by almost 5% to around €9 billion. Net income fell by €1.3 billion to €4.9 billion, due in part to the higher earnings contribution from Oil & Gas and thus the significantly higher taxes. Furthermore, gains from the sale of BASF’s shares in K+S Aktiengesellschaft in 2011 were predominantly tax-free.

Outlook for 2013

BASF’s outlook for 2013 is based on the following economic conditions (previous year figures in parentheses):

World economic growth: +2.4% (+2.2%)
Growth in global chemical production: +3.6% (+2.6%)
An average euro/dollar exchange rate of $1.30 per euro
($1.28 per euro)
An average oil price of $110/barrel ($112/barrel)

“We aim to grow again in 2013 and exceed the 2012 levels in sales and EBIT before special items,” said Bock. The company strives to increase sales and earnings in all operating segments. The expected increase in demand, together with measures to improve operational excellence and raise efficiency, will contribute to this. BASF aims to earn a high premium on its cost of capital once again in 2013.

Bock said: “Innovations are the basis for future profitable growth and thus lie at the core of our competitiveness.” Therefore, BASF will once again increase its research and development spending in 2013, after expenditures of €1.7 billion in the past year – around 9% more than in 2011.

Air Products Reports Fiscal Q1 Financial Results

First Quarter Summary

Sales of $2.6 billion up 10 percent versus prior year

EPS up three* percent to $1.30 versus prior year

Good volumes in Tonnage Gases and new wins from Gulf Coast Connection Pipeline

$462 million share repurchase

Air Products (NYSE:APD) recently reported net income of $277 million for its fiscal first quarter ended December 31, 2012, up three percent versus the prior year.

First quarter revenues of $2,562 million increased 10 percent versus prior year, with underlying sales up four percent on improved volumes in Tonnage Gases. Acquisitions contributed six percent. Operating income of $372 million was up five percent versus prior year. Operating margin of 14.5 percent was down 70 basis points versus prior year, driven by an inventory accounting revaluation and the Indura acquisition.

Sequential sales declined two percent, with underlying sales down four percent and seasonally lower volumes in the Merchant Gases, and Electronics and Performance Materials segments. Operating income decreased nine percent sequentially.

Commenting on the first quarter, John McGlade, chairman, president and chief executive officer, said, “Globally, economic growth underperformed our expectations for the quarter. We delivered higher volumes in Tonnage Gases, and Equipment and Energy. However, both Merchant Gases and Electronics volumes declined. Our operating performance was encouraging and we are seeing improvements from our cost and restructuring actions. It’s a positive start that we expect to improve upon through the year. We also repurchased 5.7 million shares during the quarter.”

Outlook

Looking ahead, McGlade said, “Global economic growth is expected to be modest at best so we will continue to take actions to improve our performance. Solid execution, cost control, price improvement and volume growth are our priorities. Our strong project backlog and our significant leverage in existing assets position us well for the future.”

Air Products (NYSE:APD) provides atmospheric, process and specialty gases; performance materials; equipment; and technology. For over 70 years, the company has enabled customers to become more productive, energy efficient and sustainable. More than 20,000 employees in over 50 countries supply innovative solutions to the energy, environment and emerging markets. These include semiconductor materials, refinery hydrogen, coal gasification, natural gas liquefaction, and advanced coatings and adhesives. In fiscal 2012, Air Products had sales approaching $10 billion. www.airproducts.com.

FMC Corporation Announces Fourth Quarter and Full-Year 2012 Results

· Fourth quarter 2012 revenue up 10 percent to $1.0 billion, with adjusted operating profit up 19 percent, driven by record performance in Agricultural Products

· Fourth quarter 2012 adjusted earnings of $0.81 per diluted share, up 2 percent with year-on-year growth reflecting a change in the effective tax rate versus the prior-year quarter

· Full-year 2012 revenue up 11 percent to $3.7 billion, adjusted operating profit up 16 percent to $719 million

· Full-year 2012 adjusted earnings of $3.48 per diluted share, up 16 percent versus 2011

FMC Corporation (NYSE: FMC) recently reported fourth quarter revenue of $1.0 billion, a 10 percent increase over the same period in 2011. The company reported net income of $102.2 million in the fourth quarter of 2012, versus net income of $77.9 million in the fourth quarter of 2011.

Full-year 2012 revenue of $3.7 billion increased 11 percent over 2011. Revenue was higher in all segments with particular strength in the Agricultural Products segment. The company reported net income of $416.2 million versus net income of $365.9 million.

Pierre Brondeau, FMC president, CEO and chairman, said, "We ended 2012 with a solid fourth quarter, led by the strong performance of the Agricultural Products segment, which more than offset lower results in Specialty and Industrial Chemicals segments. Our adjusted operating earnings increased by 19 percent in the quarter on a revenue increase of 10 percent. For the full year, we delivered a 16 percent increase in adjusted operating profit despite a slightly higher tax rate. We continue to deliver strong performance and are making excellent progress towards our Vision 2015 goals."

Segment Results

Agricultural Products' fourth-quarter segment revenues of $492.4 million increased 20 percent versus the prior-year quarter driven principally by continued strength in Latin America. Fourth-quarter segment earnings of $109.9 million increased 51 percent versus the year-ago quarter driven by volume gains in Latin America, contributions from acquired fungicides in Asia, and early season demand in North America. Full-year segment revenues of $1.76 billion were up 20 percent compared to 2011. For the full year, segment earnings were $450.7 million, an increase of 29 percent, resulting from volume gains in all regions.

Specialty Chemicals' fourth-quarter segment revenues were $236.2 million, up 6 percent versus the year-ago quarter on higher volumes and pricing across the segment. Fourth-quarter segment earnings decreased 5 percent to $48.5 million primarily due to higher operating costs in Lithium, which despite posting its best quarterly performance of the year was still below prior-year profitability. Full-year segment revenues of $913.8 million increased 4 percent over 2011. For the full year, segment earnings of $189.5 million decreased 5 percent as higher selling prices across the segment were offset by higher operating costs in the Lithium business; higher raw material costs across the segment; and the unfavorable exchange rate impact of the weaker Euro and targeted investments in growth initiatives in BioPolymer.

Industrial Chemicals' fourth-quarter segment revenues of $272.2 million decreased 2 percent from the year-ago quarter. Fourth-quarter segment earnings of $38.0 million were down 10 percent, as a result of lower export pricing in soda ash, which was partially offset by higher domestic soda ash pricing and higher volumes across the segment. Full-year segment revenues of $1.076 billion increased 4 percent over 2011. For the full year, segment earnings of $165.4 million increased 7 percent, as higher selling prices and higher volumes were partially offset by operating cost increases and the poor performance of the zeolites product line, which the company exited in the third quarter of 2012.

Corporate and Other

In the fourth quarter, corporate expense was $19.4 million versus $17.3 million in the prior-year quarter. Interest expense, net, was $11.5 million as compared to $9.9 million in the year-ago quarter. Full-year corporate expense was $63.6 million versus $62.5 million in 2011. For the full year 2012 versus 2011, interest expense increased $5.9 million to $45.3 million. On December 31, 2012, gross consolidated debt was $965.1 million, and debt, net of cash, was $888.0 million. For the quarter, depreciation and amortization was $37.4 million and capital additions were $97.4 million. For the year, depreciation and amortization was $137.8 million and capital additions were $225.4 million.

Outlook

Regarding the outlook for 2013, Brondeau said, "For the full year 2013, FMC will build on 2012's record results. We expect to deliver full-year adjusted earnings of $3.81 to $4.01 per diluted share, a 12 percent increase at the midpoint of this range. Our Agricultural Products segment expects to achieve its 10th consecutive year of record earnings, with pronounced strength in the early and later parts of the year. In Specialty Chemicals, our BioPolymer business will benefit from recently completed capacity increases, while we will continue to focus on improving operating performance in Lithium. In Industrial Chemicals, we expect export soda ash pricing to begin recovering in the second half of 2013, which will result in positive contributions to earnings growth for this segment. We also expect to begin seeing the benefits of our Manufacturing Excellence initiatives during 2013, especially within Industrial Chemicals. For 2013, we are taking a careful, prudent approach in viewing the company's potential performance, recognizing that several variables could impact our results — the timing of recovery in soda ash export pricing, the speed at which we continue to improve the performance of our Lithium business, and just how strong Latin America agricultural markets will be in the latter portions of the year."

NEW PRODUCTS

Cabot New Products for Battery Market

Cabot has rolled out two new additives for its lithium-ion battery applications including its first graphene-based additive for high energy density battery apps for use in electric vehicles

Lithium-ion battery maker Cabot Corp. (NYSE: CBT) plans to tap into what is expected to be an $18 billion market by 2020, according to research firm Avicenne, with two new products.

Cabot has rolled out two new additives for its lithium-ion battery applications. The Boston-based company recently launched its LITX G700, its first graphene-based additive for high energy density battery apps for use in electric vehicles and consumer electronics.

Graphene is a thin sheet of carbon atoms that has high electrical and thermal conductivity, and is mechanically strong. The additive helps battery manufactures improve cell performance, according to Cabot.

Cabot said it is bringing a new material to the market because battery developers who produce applications in electronics and electric vehicles are resorting to carbon nanotubes which adds to the cost of development and increased manufacturing challenges. With the new additive, there is less loading and more volume available for energy storage materials.

“We recognize that graphenes have the potential to improve performance in a number of applications from advanced batteries to conductive plastics and tires. We see it also leading to new, stronger composite materials,” said Cabot CTO Yakov Kutsovsky. “Cabot has made and continues to make investments in graphene technology. This enables us to have a robust platform capability in which to test and further develop graphene materials.”

The company also recently released its LITX-200 additive, which was designed to get the most power from a lithium-ion battery without compromising energy density or increasing cost. The additive was designed for use in tablets, smartphones, hybrid electric vehicles and power tool batteries.

The release of Cabot’s new products comes on the heels of restructuring plans at the company.

For the first quarter of fiscal 2013, Cabot’s net income was $20 million.

During its first quarter fiscal 2013 earnings call Cabot CEO Patrick Prevost said the company “remained cautious about the near-term” as it was seeing mixed results across its businesses. Prevost said tire demand would remain weak through the second fiscal quarter and the U.S. coal-fired utilities market would also continue to be impacted by the low cost of natural gas.”

Its performance materials business is expected to recover through 2013 and Prevost said the company is “well positioned through 2013”.

“Over the last three years, we have improved our margin structure through our pricing initiatives, investment in operational excellence and the introduction of new products, which will continue to drive earnings growth,” he said.

Asahi Kasei Introduces Long Glass Fiber Reinforced Polypropylene

Asahi Kasei Plastics announces a new long glass fiber reinforced polypropylene for improved impact performance and 20 Percent cost savings compared to traditional long glass fiber reinforced polypropylene.

Key applications are automotive including front-end modules, instrument panel retainers, battery trays, luggage racks and accelerator brake clutch modules. It is also ideal for a wide variety of other structural, functional and appearance parts as the glass content can be tailored to the specification for best performance.

Key non-automotive applications include water filtration reverse osmosis units and office furniture.

Thermylene® I provides a proven balance of stiffness and toughness over a broad range of temperatures positioning it to replace metal, long glass and many other engineering resin applications. "Automakers will find Thermylene® I especially appealing as it offers excellent mechanical and cost performance compared to traditional long glass fiber reinforced polypropylene," said Ramesh Iyer , vice president of commercial operations at Asahi Kasei Plastics.

"Applications that currently use long glass polypropylene will benefit from a cost savings and improved impact resistance, knit line strength, and better flow," said Iyer. "Thermylene® I also provides high strength and stiffness at elevated temperatures, isotropic mechanical and dimensional properties and improved fatigue and creep resistance."

Polyone Targets PVC as a Polycarbonate Replacement for Medical Devices

PolyOne, a plastics supplier with $3 billion in sales last year, is boosting its focus on the medical market, and one specific target is replacement of polycarbonate alloys with PVC in housings for medical devices.

PVC's superior chemical resistance to polycarbonate is becoming more important as efforts escalate to disinfect medical equipment, said Charles Kutchin, global industry director-healthcare at PolyOne in an interview with PlasticsToday.

It's an important issue because hospital-acquired infections (HAIs) have increased approximately 36 percent in the last 20 years, and Medicare will no longer reimburse the costs associated with HAIs. According to a new Application Bulletin developed by PolyOne, the cost is estimated at $14,000 per incident.

The Bulletin contains results of PolyOne research showing that Geon HC PVC retains mechanical properties better than polycarbonate alloyed with ABS or polyesters after treatment with three commonly used hospital disinfectants.

Target applications include housings for infusion pumps, blood pressure monitors, defibrillators, ventilators, and barcode scanners.

McIlvaine Company

Northfield, IL 60093-2743

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

E-mail: editor@mcilvainecompany.com

Website: www.mcilvainecompany.com