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Overt lack of trust is no way to start any relationship, but that is exactly how international markets are coming to view traditional letters of credit (LC). Once the sine [...]

Chemical industry observers predict that the 1998 market will not repeat the boom year of 1997, but see some downturns along with modest growth of about 6%. The Asian economic crisis is one factor limiting growth, particularly in agricultural chemicals, plastics and specialties. Segments expecting growth include chlor-alkali, inorganics, and biotech therapeutics. Forecasts for global communities including Asia, Europe and Latin America also are examined.

Producers of styrene mono-mer (SM) heard the distress signals early last year. The market--with fundamentally sound demand prospects--would soon be eclipsed by a swell of expansions and new projects that [...]

Gridlock was not in the minds of chemical shippers in the Gulf Coast and the West when they contemplated the railroad mergers of the past two years that have reduced [...]

Petrochemical companies operating in western Canada are planning to boost their industrial capacity to stay competitive and increase their profitability. Union Carbide and Nova Chemicals are planning to build linear low-density polyethylene plants and Shell Chemicals Canada is planning an alpha-olefins plant in western Canada. Less favorable economic conditions in eastern Canada are affecting further development and expansion of the petrochemical sector.

Canadian chemical companies operating in Alberta are planning to boost their manufacturing capacity to better compete with overseas manufacturers and meet international demand for specialty chemicals. Companies such as Union Carbide, Nova Chemicals, Dow Chemical Canada and Shell Chemicals Canada are planning to build new plants to produce specialty chemicals such as ethylene glycol and linear low-density polyethylene. They have strong cash flows and plan stock buyback programs to further boost their share prices.

The US chemical industry's responsible care program has a voluntary program with six codes of management practice. The first five codes must be fully implemented by 1998 and the final code will be implemented by 1999. The implementation targets are expected to be reached by 90% of the 190 members of the Chemical Manufacturers Assn.

Two types of chemical industry leaders are emerging: firms which are globalizing operations through expansion or joint ventures, and firms which are concentrating on dominance in a few regions. Consolidation is redefining the chemical industry, but low-cost production and technical innovations remain the pillars of success. Operations at Union Carbide, Amoco, Petrofina, Fina Oil and Chemical, Dow Chemical, Phillips, Nova, Lyondell, Aristech Chemical, Bayer, Borealis, DSM and other firms are discussed.

The petrochemicals industry is expected to be weaker starting in 1997 but an increase in prices could return in 2001 while an increase in profitability could return in 2002. Cost reduction measures, alliances and reengineering techniques will test the efficacy of petrochemical companies during this period. Petrochemical executives are used to the business cycles intrinsic in their industry.

The acquisition of Tokyo Marine by Mitsui and Company Ltd is challenging the Norwegian hegemony in the deep-sea parcel tanker lines. This will have an impact on chemical carrier demand which is expected to increase at least by 5.5% per year from 1995 to 1999. Environmental and safety issues are also having an impact on chemical transportation, as well. One result is a change in the sophistication and quality of ocean parcel tanker ships., 'Just as the dutch dominate the terminal business, the Norwegians control the parcel tanker business,' says one chemical trade executive. 'They do a good job, and I don't see anything [...]

Because hydrogen peroxide (h2o2) is a difficult material to ship most producers, including DuPont and FMC, serve local and regional markets from several plants. Degussa has spent nearly $10.5 million [...]

With the first unified board meeting earlier this month in Rotterdam, Royal Pakhoed's ownership of Univar (Kirkland, WA) became a reality. The acquisition marks a major change in the competitive [...]

The pace of announcements of new chemical joint ventures in China may be gradually slowing, but the scale of ventures is increasing. There have been several world-scale projects approved this [...]

Only the yellow fields of wheat and canola are growing faster than Canadian basic petrochemical production these days. On top of the existing 3.2 million m.t.(7.04 billion lbs)/year of ethylene [...]

DESPITE ITS APPEARANCE AS A performance business, the bulk of the $2.4-billion/year worldwide refinery-petrochemical catalyst market has been sliding toward commodity status for some time. The largest segment, fluid catalytic [...]

'As it is now, the japanese chemical industry is destined to be weak,' says Goro Watanabe, senior executive managing director of Mitsui & Co. That pronouncement is not news but [...]

Canadian petrochemical producers have done well in an integrated North American economy. Now, at the top of the economic cycle, the outlook is anything but clear. Most of the major [...]

Led by extensive refinery expansions and greenfield projects in the Pacific Rim, the markets for refinery catalysts are enjoying strong demand and improved pricing. The past few years were rough, [...]

We have a unique ability to put drums on the highway,' says one chemical distribution executive of his industry's highest challenge. 'We do not hire the low bidder; we hire [...]

Big oil firms are big hitters in the chemical industry, and the Royal Dutch/Shell Group is the biggest of all. Reflecting its status, Shell has ridden the petrochemicals profits roller [...]

Louisiana goes from bashing to boosting From the grounds of the executive mansion in Baton Rouge, LA, a copse of process towers is clearly visible not too far up the [...]

When the petrochemical industry suffers, the petrochemical trading industry suffers, and the current downturn has been no exception. Traders' volumes and margins shrank dramatically during the past two years. At [...]

Shippers continue to place heavy demands on their chemical carriers, and the carriers continue to try to meet those requirements and turn a bit of a profit. In the era [...]

The chemical industry appears to be satisfied with the Responsible Care initiative's distribution code for chemicals. Communication between distributors and suppliers has improved. Few firms expect to have major problems in implementing the provisions of the product stewardship code. The first round of self-evaluations for chemical firms was conducted in May 1991, and the second round is scheduled for Jun 1992., By the end of this month, the second round of companies' self-evaluations is due under the Responsible Care distribution code of management practice. The code was published about a year [...]

Development is downstream Chemicals are up, down on the bayou. Some would argue that they are up again following a change in the state capital; others suggest they were never [...]

The article discusses the current state of the representation and warranties insurance (RWI) market in the context of slower M&A activity. The lull in dealflow has led to a soft market with lower premiums and less restrictive terms and conditions for RWI. The coverage is particularly valuable in private equity transactions and strategic deals. However, there are certain segments, such as healthcare, life sciences, and deals involving heavy environmental or cyber risk, where insurance companies are less comfortable writing RWI. The article also highlights the importance of speed in claims processing and the role of RWI in facilitating deals. [Extracted from the article]

Aristech Chemical chairman-elect Masatake Bando will be responsible for carrying out the growth plans initiated by current chairman Jiro Kamimura since 1995. Aristech, comprising most of U.S. Steel's former chemical division, became a Mitsubishi unit in 1990. Since its acquisition, Aristech has attempted to transcend the appearance that it is a nonintegrated company.

Ashland Inc. (Ashland, KY) released its fiscal-1997 results last week, and the numbers confirm that Ashland Chemical (Columbus, OH) has completed its metamorphosis from a refinery-driven producer and distributor of [...]

Growth in the chemical distribution business has varied widely by company and region. Many medium-size firms have achieved the strongest percentage-basis sales gains, but large firms' dollar-basis gains have been even more impressive. The increasing tendency of chemical makers to contract distribution out to independent sales agents has been driving distributors' gains. An overview of the chemical distribution business is presented., Players in the North American and European chemical distribution businesses say there has been little change in the competitive balance in the industry, despite the entry last year of Dutch [...]

Every state has a waste minimization program and some form of technological outreach; many states also have a formal 'pollution prevention' program, and several also have a formal 'technical assistance [...]

Canadian specialty chemicals manufacturers need to concentrate their efforts on increasing their domestic production and decrease their focus on exports. Some firms are considering structural reorganizations to boost their share in the highly competitive chemical market. Canadian companies generated $12 bil in shipments of specialty chemicals which represents 43% of total domestic chemical production and $6.7 bil in specialty chemical imports which represents 40% of total chemical imports in 1996.

The company acquisition activity in the engineering and construction segment of the chemical industry has slowed during the early stages of 1997, as companies seek to integrate newly expanded operations and forge new technological alliances. Industry analysts forecast strong growth throughout the industry, with certain large companies in the process sector receiving the majority of new chemical projects. The technology alliances into which companies are entering are designed to provide independent support for engineering and construction services.

Stolt Tankers and Terminals (Holdings) S.A.'s intention to build a chemicals terminal in Asia signals an increasing trend among sea-based storage, distribution and transportation companies to consolidate their logistics. Companies offering distribution services to chemical manufacturers are attempting to integrate numerous facets of their operations in order to provide customers a more unified service. The number of acquisitions throughout the industry has increased as distributors attempt to quickly offer services they have theretofore been incapable of providing.

Global chemical trading is going through its biggest realignment in many years. Large Japanese, other Asian, and U.S. traders say they are moving away from pure trading into more regular [...]

Just two weeks ago, the 19th-century dream of a transcontinental railroad came one step closer to reality with the Union Pacific's (UP; Omaha) purchase of the Southern Pacific (SP; San [...]

Lucien Bouchard has turned his attention to business, says David Goffin, v.p./business development at the Canadian Chemical Producers Association (CCPA; Ottawa). It does not have quite the same ring as [...]

After almost a year and a half of good performance, most companies in waterborne transport and storage of chemicals are expanding operations. Several are in the midst of capital programs [...]

Consolidation is in full flower in the $100-billion/year international process engineering and construction (E&C) sector. The past year has seen the start of two major acquisitions in Europe, a flurry [...]

Sixteen years after railroads in the U.S. were deregulated and thirteen decades after the Union Pacific Railroad (UP; Omaha) and the Central Pacific met at Promontory, UT to close the [...]

Private capital is playing a significant role in the growth of mid-sized green energy projects through acquisitions and greenfield investments. Examples include Cresta Fund Management's biodiesel production at an oil refinery in Atlantic Canada and their joint venture with ABO Wind to build a wind farm for green hydrogen production. Tailwater Capital has established a re-refinery for used motor oil in Texas and is building a carbon-sequestration hub in Wyoming. Energy Capital Partners acquired wind-power developer Triple Oak Power, and First Reserve is focusing on investing in LNG export, carbon capture, and hydrogen. These investments offer growth potential and equity returns without high risk. [Extracted from the article]

The article discusses the growing activity and opportunities in the lithium sector, particularly among private capital players. The demand for lithium is driven by its use in batteries for electric vehicles and renewable power storage. The article highlights the recent merger between Livent and Alkem, which created the third largest lithium producer in the world. It also mentions the involvement of private equity firms and strategic agreements in the sector. The article emphasizes the importance of lithium in reducing greenhouse gas emissions and the need for diversifying supply and processing capacity. It notes the volatility of lithium pricing and the impact on publicly traded lithium companies. The article concludes by stating that the lithium sector is attracting private investment and dealmaking opportunities, particularly in the middle market. [Extracted from the article]

Chevron corp. (san francisco), with total revenues in 1994 of almost $36 billion, is the largest refiner and marketer of motor fuels in the U.S., and through its 50-50 joint [...]

Geared for Productivity In just a few weeks Novacor Chemicals, the downstream part of natural gas giant Nova Corp. (Calgary), will start up a C$20-million, 12,000-m.t./year pilot plant at its [...]

Underlying currents of national pride as well as labor union unrest appear to have delayed the sale of Pemex Petroquimica. It is now unlikely that official rules for the sale [...]

While the pemex petroquimica reorganization and privatization creeps slowly along, the realignment of Ferrocarriles Nacionales de Mexico (FNM) is on the fast track and is picking up steam--to the surprise [...]

Mexican chemical producers are running counter-cyclic to the rest of the world. They were booming on the strength of domestic consumer markets earlier this decade, while producers in the rest [...]

After several years of meager bookings in the process sector, engineering & construction (E&C) firms around the world are now flush with new business. But unlike the chemical producers they [...]

'Jet fuel today, diesel tomorrow, and naphtha next week.' That is what Carroll Moore, director of marketing for UOP's (Des Plaines, IL) catalysts, says refiners expect from catalysis. To accomplish [...]