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Dear Member,
Hello and welcome to your late week international coatings industry update, brought to you by SpecialChem. It's busy, busy, busy out there in the industry, and a lot of the news is coming from Europe, which is starting to sizzle with activity, but apparently has not experienced the type of economic recovery that the USA is starting to see.
As we mentioned in our continuation last issue, Eastman Chemical Company and Solutia Inc. announced that they have entered into a definitive agreement, under which Eastman will acquire Solutia. Under the terms of the agreement, Solutia stockholders will receive USD 22.00 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock. That tops out the total deal value to approximately USD 4.7 Bn, including the assumption of Solutia's debt.
"The acquisition of Solutia is a significant step in our growth strategy and one that I am confident will strengthen Eastman as a top-tier specialty chemical company with strong, stable margins," said Jim Rogers, Chairman and CEO of Eastman. "The addition of Solutia will broaden our geographic reach into emerging geographies, particularly Asia Pacific, establish a powerful combined platform with extensive organic growth opportunities, and expand our portfolio of sustainable products, all of which are consistent with our growth strategy...more
Cytec Industries announced this week net earnings for the fourth quarter 2011 of USD 41.6 Mn on net sales of USD 731 Mn. Included in the quarter are several special items that total USD 1.3 Mn of net income after-tax. Net earnings for the fourth quarter 2010 were USD 48.0 Mn on net sales of USD 700 Mn.
More importantly to paint folks, the company also announced that it has retained J.P. Morgan to assist in an analysis of alternatives available to Cytec to effect a separation of its entire Coating Resins business. Cytec's intention to review all options for the Coatings Resins business was previously disclosed on the Company's third quarter 2011 earnings conference call. The Company expects to complete its review and make a decision regarding the separation of the Coating Resins business no later than the second quarter of 2012...more
In bio-route news, Genomatica and Novamont announced they have signed a definitive agreement establishing a JV for the first industrial plant in Europe producing butanediol (BDO) directly from renewable feedstocks. This follows the announcement on August 18, 2011 of a letter of intent between the companies. Novamont will have a majority of the equity in the JV, and Genomatica a minority interest. Novamont, a leading producer of biodegradable bioplastics, will consume the BDO for its own internal use to meet the growing demand for its biopolymer products that incorporate BDO as a key monomer.
Under the agreement, Novamont is converting an existing facility in Adria, Italy to use Genomatica's BDO process. Novamont is financing the plant conversion and will operate the plant, which is expected to have a production capacity of approximately 40 Mn pounds per year. Initial production is expected in 2013...more
Where we continue, we have research updates on two nanotechnology coatings topics in the smart coatings and corrosion resistance markets and news that paints recycling may no longer be available in some areas of Ontario, Canada. We also have news of a fire-resistant product hatched by NIST and Texas A&M. To continue with us, please follow this link...more
In other news on the site, Bayer MaterialScience has introduced a line of waterborne PU's specifically for healthcare facilities and Mitsui Chemicals is expanding production of hydroquinone at one of its plants. Biobased Technologies and Palmer International have rafted-up to develop cashew nut shell polyols and International Paint had two products pass IMO PSPC COT. To go directly to these and other news items, please follow this link...click
here
Thank you for reading the Industry Letter!
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