2004-06

LEADING DISTRIBUTORS IN EUROPE

European Chemical News: June 2004

In the current economic climate, the strong supply-chain cost reduction efforts amongst chemical producers have had a knock-on effect on chemical distributors. They in turn have been under pressure to upgrade their facilities and to expand their product offerings and geographical spread.

The process has been accompanied by a lively M&A activity, culminating in the Euro 1.4BN sale of Brenntag to private equity group Bain Capital in 2003. As a result, the line-up of Europe’s top chemical distributors is now as follows:-

Top European Chemical Distributors by Sales, 2003 EURO Million

COMPANY

SALES IN EURO MILLION

Brenntag

2,530

Univar

1,623

Penta Group

1,102

Helm

   639 (2002 Sales)

Biesterfeld

   537

Azelia

   469

MG Solvadis

   462

IMCD

   435

Quimidraga

   403

Caldic

   402

Albion

   251

 Only three companies have sales exceeding Euro 1BN with  Brenntag and Univar claiming a pan-European reach. Most other companies operate on a regional basis. Only one company among the top twelve - Univar - is publicly quoted; Brenntag, Azelis and Albion are owned by private equity groups. Solvadis is still owned by a chemical producer but up for sale and the rest are private concerns.

 

FORMALDEHYDE TRADE GROUP LAUNCHED

Chemical Week: June 2004

Producers and users of formaldehyde including Borden Chemical, Celanese, Cytec Industries, Dupont, Dynea and Georgia Pacific have formed a trade group, the formaldehyde council (FCI: McLean, VA). The group says it will promote the responsible use  and benefits of formaldehyde and work to ensure its accurate scientific evaluation. Formaldehyde is under regulatory pressure because of concerns about potential health effects.

SOLVAY DEVELOPS NEW BIOCIDE ACTIVE

Press Release: June 2004

Solvay is a leading worldwide supplier of Peracetic Acid for biocidal applications under the PROXITANE(r) and OXYSTRONG(r) trade names. A new additional biocide product, PERESTANE(r), has been developed which compliments the range. This biocide has similar efficacy but without the characteristic odours of peracetic acid.

PERESTANE(r) is a completely new active substance which is a low odour, non-persistent, environmentally friendly peroxygen biocide with a broad spectrum biocidal activity. PERESTANE is an active of choice for any application where the end-consumers can be in close contact with the finished  product.  PERESTANE  offers benefits over existing biocides used in a range of materials including  household products, industrial and institutional products, coatings industry, water treatment.

For more information, contact Solvay at This email address is being protected from spambots. You need JavaScript enabled to view it.

ROHM & HAAS PLANS CHINA R&D CENTER

Chemical Week: May 2004

Rohm and Haas say it plans to build a research and technical center at Shanghai to support all its business lines. The facility is scheduled to open by end of 2005.

US WOOD PROTECTION COATINGS AND PRESERVATIVES AT $ 3 BN

Paint & Powder Coatings: June 2004

The demand for US wood coatings and preservatives is forecast to increase more than  2%/y  to $3 bn in 2007, despite a challenging environment according to Freedonia The following table segments the US Wood Protection Coatings and Preservatives Market in $ Millions:

 

Wood Protection

1997

$ M

2002

$ M

2007

$ M

97/02/

% Growth

02/07

% Growth

Decking

790

859

929

1.7

1.6

Siding

847

714

681

-3.1

-0.9

Furniture

228

240

305

1.0

4.9

Cabinets

156

200

270

5.1

6.2

Other

613

697

824

2.6

3.4

TOTAL

2635

2710

3010

0.6

2.1

 

Demand for products for decking grew only 1.7% in 1997-2002, and the low growth is expected to continue to 2007. By contrast, growth in demand for products for cabinets rose by 5.1% and is forecast to rise by 6.2% in 2002-2007, while growth in demand for products for furniture is likely to rise by 4.9% in 2002-2007. This means increased demand for repair and improvement products. Environmental concern is causing a change to higher value added products, such as water based, powder and radiation cure coatings, away from those emitting VOCs. The high maintenance requirements of wood sidings on houses is causing a move to other materials for this purpose, but this should not affect demand for wood preservatives, as those houses already built with wood sidings need frequent maintenance.

Continued weakness in large-siding and decking applications is prompting coating and preservative manufacturers to place greater emphasis on growing applications, such as flooring and furniture. Demand will benefit from a shift in product mix and solid levels of construction-related repair and improvement spending, according to Freedonia.