Honeywell and DuPont get EU antitrust complaint on car-coolant chemical

MOSCOW (MRC) -- Honeywell International Inc. and DuPont Co. were sent objections by European Union regulators for violating antitrust rules over the only car-coolant chemical that currently meets new EU standards on greenhouse-gas emissions, reported Hydrocarbonprocessing.

As the only two suppliers of the R-1234yf chemical, cooperation between Honeywell and DuPont may have limited supplies of the coolant sold to carmakers and limited technical development, the European Commision said in an e-mailed statement.

"The commission has concerns that a series of agreements concluded between Honeywell and DuPont in 2010 may have hindered competition," regulators said in the statement.

The refrigerant for car air-conditioning systems was expected to be a cash cow for DuPont and Honeywell as it replaces ozone-depleting alternatives in new vehicles sold in the 28-nation bloc. EU industry officials have clashed with Germany after Daimler refused to use the product for safety reasons.

The antitrust complaint escalates a probe opened in 2011 that targeted Honeywell and DuPont’s pact to develop the chemical. The investigation, triggered by French company Arkema, also examined Honeywell’s alleged "deceptive conduct" when the product was endorsed by a car-industry trade group, and whether it charges "fair and reasonable" license fees to rivals who want to produce the product.

Honeywell said the EU’s allegations were "baseless and conflict with the EU’s own laws that encourage collaboration on development," according to an e-mailed statement.

"By collaborating on expensive and risky development, Honeywell and DuPont were able to develop" the coolant "in time" to meet a 2017 deadline for new EU climate rules, the company said. The product is already used in almost 2 million cars around the world, it said.

Honeywell, based in Morris Township, New Jersey, said in 2013 it was targeting USD1.5 billion of revenue from the chemical over five years.

The EU investigation, which may lead to fines of as much as 10% of a company’s yearly sales, coincides with EU demands for Germany to apply EU environmental rules that mandate lower greenhouse-gas emissions for cars. Germany has backed Daimler’s refusal to use the chemical.

We remind that, as MRC wrote before, in August 2014, Borealis AG announced that it was buying out DuPont Co.’s two-thirds share in their Specialty Polymers Antwerp NV joint venture. No purchase price was disclosed. Wilmington, Del.-based DuPont will continue to sell ethylene vinyl acetate (EVA) and acrylate compolymers made at the JV’s plant, which is in Zwijndrecht, Belgium.

DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
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MOSCOW (MRC) -- Arkema, a France-based chemical manufacturer, has finalized the first stage of its acrylics assets acquisition project in Taixing, China, and now has access to a modern and competitive 160,000 t/year acrylic acid production capacity in Asia for the sum of USD 240 million, as per the company's statement.

This investment will enable the group to serve its customers in China and in Asia in growing markets such as superabsorbents, paints, adhesives and water treatment.

Arkema has finalized the creation of Sunke, a joint venture with Jurong Chemical, in which Arkema has a majority interest, and which consists in particular of two acrylic acid production lines each amounting to 160,000 t/year located on the Taixing site in China. With the closing of this first stage, Arkema has access to half of the site’s installed production.

"This new site will enable us to meet our customers’ growing demand for acrylic acid and esters in China and in Asia, and to support the growth of our Coating Solutions segment in this region of the world. The successful integration of these new assets will be a priority for the Group and its personnel over the next few months", stated Marc Schuller, member of Arkema’s Executive Committee.

As MRC wrote before, in April 2014, Arkema announced that it had developed two new grades - Luperox organic peroxides and Kynar Flex PVDF resins -specifically designed for electric and electronic wires and cables applications.

Jurong Chemical is the world’s 5th largest producer of acrylic acid and the acrylics leader in China.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. Arkema operates 11 organic peroxide plants on the three continents. With operations in more than 40 countries, some 14,000 employees and 10 research centers, Arkema generates annual revenue of some EUR6.1 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.
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MOSCOW (MRC) -- Clariant, a world leader in specialty chemicals, has introduced its latest innovation to offer long-term performance to the heating, ventilation and airconditioning industry (HVAC) at Chillventa 2014, as per the company's press release.

Protectogen C aqua corrosion inhibitor will make its show debut alongside Clariant’s Antifrogen heat transfer fluids, valued by customers for providing the "all-round carefree package".

Protectogen C aqua is a glycol-free corrosion inhibitor concentrate for closed heating and cooling systems without frost protection. For the aqueous solution of inorganic salts and biodegradable organic salts a classification as eco-toxicologically hazardous is not required. It provides long-lasting corrosion protection to installations, showing excellent protection performance even after aggravated test conditions. Protectogen C aqua is designed for a permanent usage temperature between +5 to +95 C and can be used at low concentrations of 1.5% v/v in water.

Clariant’s versatile Antifrogen heat transfer fluids offer an "all-round carefree package" of long-term system performance and service advantages. Featured products at Chillventa - Antifrogen L, Antifrogen N, and Antifrogen SOL HT- provide freezing protection and thermal stability, and reliably protect cooling and heating systems against corrosion. Customers using Clariant’s heat transfer fluids can rely on support which includes performance checks, sample analysis, and technical consulting at no charge.

"Clariant is committed to contributing to the overall sustainability of the HVAC industry through innovative services and solutions that offer long-term improvements to installation performance," comments Ralf Zerrer, Global Head of Strategic Marketing, Industrial and Consumer Specialties at Clariant. "This level of support means our customers can focus on being competitive in their markets without having to worry about their system fluids."

As MRC informed before, in June 2014, CB&I and Clariant announced that their new Ziegler-Natta (ZN) polypropylene catalyst plant in Louisville, Kentucky, is on schedule to begin production in 2015. The plant is part of a long-term strategic partnership between Clariant’s catalysts business and CB&I’s Lummus Novolen Technology business. Based at Clariant’s largest US production hub, the new facility will combine innovative catalysts jointly developed by both companies with high-capacity output.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
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MOSCOW (MRC) -- Akzo Nobel NV on Tuesday said third-quarter profit rose 32% driven by cost savings and lower restructuring and financing costs, adding that it was on track to meet its 2015 targets despite a fragile economy, said the company in its press release.

The Dutch paint and chemicals company said net profit for the quarter came in at EUR205 million (USD262.4 million), compared with EUR155 in the same period last year. Operating income rose 11%.

Revenue for the quarter fell 2% to EUR3.69 billion, from EUR3.78 billion in the third quarter of 2013. While volumes grew 1%, the gain was more than offset by a higher share of lower-margin products, currency effects and divestments.

"Akzo Nobel delivered a solid Q3 performance, despite continued economic uncertainty," Chief Executive Ton Buchner said.

As MRC wrote before, AkzoNobel announced that it will establish a new organization for its Performance Coatings Business Area in order to drive leading performance.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
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МOSCOW (MRC) -- PPG Industries Inc. PPG said its third-quarter earnings rose 64% amid broad sales growth across its main business segments, said The Wall Street Journal.

The Pittsburgh company has turned to acquisitions as part of its efforts to transform itself into a company focused more on paints and coatings.

On Monday, PPG said Mexican regulators extended their review of the company’s pending USD2.3 billion deal for Consorcio Comex SA. The extension had been expected owing to the complexity of the deal, which is expected to close in the fourth quarter.

Rival Sherwin-Williams Co. previously had abandoned its efforts to acquire the Mexican paint maker amid regulatory issues, but PPG expects its acquisition will be approved as it doesn’t have a large a presence in Mexico’s building-paint market.

During the quarter, the company completed the sale of a North American flat glass manufacturing facility, and an automotive glass equity affiliate sold one of its business lines.

PPG’s results remained uneven across its geographic markets, Chairman and Chief Executive Charles E. Bunch said.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Performance Coatings, Industrial Coatings and Architectural Coatings- EMEA segments supply protective and decorative finishes for customers in a range of end use markets, including industrial equipment, appliances and packaging; factory-finished aluminum extrusions and steel and aluminum coils; marine and aircraft equipment; automotive original equipment; and other industrial and consumer products. The Optical and Specialty Materials segment consist of the optical products and silicas businesses. PPG is a producer and supplier of basic chemicals. Glass segment produces flat glass and continuous-strand fiber glass. In July 2014, PPG acquired Masterwork Paint Co. In July 2014, the Company announced that its North American architectural coatings business has completed acquisition of The Homax Group, Inc., supplier of decorative wall and ceiling texture repair products, from Olympus Partners.

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