Some major chemical suppliers reported good start in 2012

(canplastics) -- Despite the odd bump, some of the major global chemical suppliers are reporting promising starts to 2012.

LyondellBasell's net income for the first quarter dropped 9.2% year on year to USD599 million on weak European and Asian sales of olefins and polymers (O&P), the company said in a press release.

But O&P earnings in the Americas were up 23.6% year on year at USD598 million and up strongly on the USD407 million reported for the 2011 fourth quarter.

BASF is also reporting a solid start to 2012. According to the company, first quarter 2012 sales rose 6% to 20.6 billion euro, but income before special items decreased to 2.5 billion euro, down 7% compared to the same period in 2011.

In the company's plastics segment, sales were slightly reduced compared with the first quarter of 2011. ⌠Higher prices and currency effects made a positive contribution to sales development; sales volumes were weaker. Lower margins led to a significant decline in earnings, the Germany-based company said in a press release.
MRC

(balkans) -- Romania will privatize chemical producer Oltchim Ramnicu Valcea in September and resume the sale of copper producer Cupru Min, the country's economy minister-designate, Daniel Chitoiu, told IMF and European Commission officials.

Chitoiu said Cupru Min is to be reevaluated and requires an environmental permit before the auction to sell it can be resumed.

Roman Copper won an auction to buy 100% in Cupru Min for EUR200.77m. The purchase contract was due for signing on April 6, but the Romanian government said the deal was cancelled because the two parties could not reach a satisfying agreement on the terms of the deal.

Chitoiu also said Oltchim is to have private management by June and will be privatized by end-September this year. Under its agreement with the IMF, EC, and World Bank, Romania was supposed to sell off Oltchim and Cupru Min by the end of April.

MRC

(plasteurope) -- Arsenal Capital Partners (New York / USA) has announced plans to acquire pigments and dispersions supplier Plasticolors (Ashtabula, Ohio / USA) and merge it with Evonik Industries' (Essen / Germany) Colortrend global colourants business. Arsenal completed the purchase of Colortrend last month.

Plasticolors and Colortrend will be merged to create a new company, Chromaflo Technologies (Ashtabula), which Arsenal said will be the world's largest independent global pigment dispersion platform.

Chromaflo Technologies will have production facilities in the USA, Canada, The Netherlands and Australia, plus sales and technical operations in North and South America, Europe, Australia, China, Malaysia and India.

MRC

(hydrocarbonprocessing) -- Houston-based Westlake Chemical said Friday that it withdrew its proposal to acquire US-based vinyls and aromatics company Georgia Gulf after failing to strike an agreeable deal.

The company said that following talks with Georgia Gulf's management under the terms of a confidentiality agreement, it notified Georgia Gulf that it had withdrawn its proposal and does not intend to continue to pursue a deal.

Westlake, a manufacturer and supplier of petrochemicals, polymers and building products, also said it plans to liquidate its holdings of Georgia Gulf common stock as market conditions permit.

"We are disappointed in this result but we continue to work on our previously announced important strategic initiatives as well as to look for other opportunities to grow our business, said Albert Chao, CEO of Westlake.

⌠We believe that we are well-positioned for future success." Westlake made its first bid to acquire Georgia Gulf in January. Once rejected, it raised the offer in early February.

MRC

(chemeurope) -- Lanxess is strengthening its ties with automotive customers in the growing Asia-Pacific region. The specialty chemicals company will open a new application development center in the Hong Kong Science and Technology Park in the second half of 2012.

The new center will have computer aided development and engineering facilities, as well as a parts testing center, focusing on the company's high-tech plastics Durethan and Pocan.

Lanxess is already established in the Asian region through its flagship brands for high-tech plastics Durethan (polyamide) and Pocan (polybutylene terephthalate), which represent a lighter-weight plastic alternative to metals such as steel or aluminum.

In addition, they enable carmakers and car parts suppliers to realize considerable savings by providing less costly production methods and easier assembly. They can be found, for example, in engine bearings, door structures, front ends and seat cross-members.

MRC