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$1.7 billion deal breaks up explosives maker Dyno Nobel
Industri Kapital is selling global explosives giant Dyno Nobel to a consortium led by Australia's Macquarie Bank for $1.7 billion. In a separate deal, Australian explosives and chemical maker Orica will buy the European, Middle Eastern, African, Asian, and Latin American businesses of Dyno Nobel for $685 million. "The acquisition of the Dyno Nobel businesses in these regions complements our global footprint and extends our access into growing regions," Orica CEO Graeme Liebelt says. Macquarie will be left primarily with the American and Australian businesses, where Dyno is the number one and number two explosives company, respectively. Macquarie may float the company on the Australian Stock Exchange early next year. Dyno Nobel makes ammonium nitrate-based explosives and offers explosives systems and services. It has 5,800 employees and generates about $1.4 billion in sales annually.
Lyondell sets TDI closure ...
Lyondell Chemical will indefinitely suspend production of the polyurethane intermediate toluene diisocyanate (TDI) at its plant in Lake Charles, La. The business has been considered for divestiture almost since Lyondell bought it as part of its 1998 Arco Chemical acquisition. Now the company says it makes sense to shut down the plant because the North American TDI business has not improved with the economic recovery. In July, Huntsman Corp. sold its TDI business to BASF and closed its Geismar, La., TDI operations.
... while Sterling exits acrylonitrile
Sterling Chemicals is exiting its acrylonitrile and derivatives business. As a result, it will close its 740 million-lb-per-year acrylonitrile plant in Texas City, Texas, which has been idle since February owing to a lack of propylene feedstock. At the time, the company said it might revamp the plant and reopen it. The company will lay off about 20 employees and take a pretax charge of up to $17 million. Sterling says its acrylonitrile unit had losses of $36 million, $28 million, and $7 million in 2003, 2004, and the first half of 2005, respectively.
North Carolina slates new biotech center
Dole Food owner David H. Murdock and University of North Carolina officials are planning a 350-acre biotechnology center in Kannapolis, N.C., where the now-bankrupt Pillowtex factory once employed thousands of textile workers. Plans call for the North Carolina Research Campus in Kannapolis to have a contract manufacturing biogenic facility, the Dole Research Institute, and space for more than 100 biotechnology firms. According to UNC President Molly C. Broad, the project "underscores our commitment to foster statewide economic development and technology transfer." Research Triangle Park outside of Durham, N.C., is already home to many pharmaceutical and biotech companies.
Adesis acquires CB Research
A new company, Adesis, has been formed to acquire CB Research & Development, a provider of chemistry-based services to life sciences companies, for an undisclosed sum. Adesis says it will remain based in New Castle, Del., with the same staff of 25, most of whom are chemists. The company says it will continue to provide its traditional chemistry services while entering new areas such as early-stage lead optimization.
Degussa buys patent package
Degussa has acquired patents and know-how to manufacture the high-performance polymer polyaryl ether ketone from the Ticona division of Celanese. Hoechst originally developed the patents but assigned them to the Celanese business in 1999. Degussa plans to combine the patents with its own knowledge of high-performance polymers and those of Jilin University, in China, to aid the JIDA Degussa High Performance Polymers Changchun Co. venture it formed in June with the university to manufacture polyether ether ketones (PEEK). Degussa says the patents will "ensure" its successful entry into demanding markets that require PEEK's extreme thermal, mechanical, and chemical properties.
Specialties firms merge
Syrgis Performance Products and H&S Chemical are merging in a deal in which H&S becomes part of the Syrgis group. H&S makes chemicals such as chloramine-T and hydroiodic acid used in antiseptic products. Syrgis owns PChem, a maker of corrosion and scale inhibitors and chemical scavengers, and Lycus, a producer of benzophenone and diphenylacrylate UV absorbers. Separately, Philip E. Rakita has been named CEO of Syrgis. Rakita earlier spent 20 years with Elf Atochem.
Merck in deal to study plaque
Merck is forming a pharmacogenomics collaboration with FoxHollow Technologies, marketer of arterial plaque excision devices. Under the deal, FoxHollow will provide atherosclerotic plaque samples collected from heart patents. Merck will analyze the plaque to identify biomarkers and profiling compounds. It will pay FoxHollow $9 million up front and up to $31 million more in the following two years.
Sanofi, Glaxo win contracts on flu relief
Sanofi Pasteur, the vaccines business of Sanofi-Aventis, has received a $100 million contract from the Department of Health & Human Services to produce a vaccine to help protect against the particularly pathogenic strain of avian flu called H5N1. This strain has scientists fearing a global influenza pandemic. The contract calls for Sanofi to manufacture the vaccine in bulk concentrate form at its U.S. headquarters in Swiftwater, Pa., from early September through late October. GlaxoSmithKline, meanwhile, will supply HHS with $2.8 million worth of the antiviral drug Relenza, described as effective in reducing flu symptoms.
Cybersecurity consolidation
The Chemical Industry Data Exchange (CIDX), a 20-year-old electronic data exchange and e-business standards body, has consolidated its information technology security efforts with the Chemical Sector Cybersecurity Program, a three-year-old industry initiative drafting protocols for information technology and manufacturing control security. CIDX is staffed by several of the same volunteer IT executives as the industry group, according to Christine Adams, who heads the latter. This overlap, she says, has created some confusion regarding resource allocation and industry leadership on cybersecurity.
Clinical Data to buy Icoria
Clinical Data Inc. has agreed to acquire Icoria Inc., a biomarker diagnostics company, in a stock transaction valued at $12.5 million. Clinical Data, a services and consulting firm specializing in laboratory diagnostics, is also in the process of acquiring Genaissance Pharmaceuticals, a pharmocogenomics firm, for $56 million. "Icoria's biomarker discovery platform is an excellent fit with our molecular diagnostics business model," Clinical Data CEO Israel M. Stein says. Icoria's capabilities in metabolics and genomics capabilities are also a fit with Genaissance's technology, he adds.
Clariant eyes nanoceramics
Clariant and ceramic maker Starfire Systems are joining to develop new technology and applications in nanostructured ceramic materials and coatings. Targeted industries include automotive, aerospace, and microelectronics. As part of the deal, Clariant has taken a financial stake in Starfire. Clariant will contribute its marketing reach, process expertise, and production capacity to the partnership. It expects to uncover new opportunities by combining its polysilazane chemistry with Starfire's polycarbosilane-based ceramics.
Curis, P&G in hair growth pact
Curis Inc. has entered an R&D pact with Procter & Gamble Pharmaceuticals to develop treatments for hair growth using Curis' Hedgehog agonist technology. P&G has agreed to pay Curis $500,000 up front and up to $2.8 million in preclinical milestones. Curis licensed other parts of its Hedgehog program to Wyeth last year. The company says its scientists have demonstrated that small-molecule Hedgehog agonists can induce hair growth in preclinical models.
Chemical output falls again
U.S. chemical production declined in August both from the previous month and from August of last year, according to seasonally adjusted data from the Federal Reserve Board. The August chemical production index dropped 1.2% from July and 0.7% from the comparable month in 2004 to 111.5 (1997= 100). For basic chemicals, the decline was even sharper, falling 3.0% from the prior month and 6.1% from August 2004 to 88.8. The government's estimate of chemical capacity utilization dropped to a seasonally adjusted 76.0% from 76.9% in July. In August a year ago capacity use was 76.4%.
AMRI and Sanofi seek injunction
Albany Molecular Research Inc. (AMRI) and Sanofi-Aventis have filed a motion for a preliminary injunction enjoining Barr Pharmaceuticals and Teva Pharmaceutical Industries from marketing a generic form of Sanofi's Allegra allergy drug (C&EN, Sept. 12, page 14). The injunction also seeks to enjoin Ranbaxy Laboratories and Amino Chemicals from producing the drug's active ingredient, fexofenadine. AMRI developed fexofenadine production technology and earns royalties on its sales.
Akzo buys Chinese firm
Akzo Nobel has agreed to buy Guangzhou Toide Paint Manufacturing, a paint producer based in Guangzhou in southern China. Akzo says Toide, with annual sales of $12 million, is one of China's largest private producers of emulsion paint as well as a supplier of wood varnish. Toide controls 200 distributors and outlets, particularly in southern China, but also further north in Shanghai and Beijing.
BUSINESS ROUNDUP
DuPont has inaugurated two plants in Shenzhen, a Chinese city near Hong Kong. One produces optically bonded glass used to make liquid-crystal displays for portable computers. The other makes aseptic bags used for preserving and transporting processed fruit.
Cabot Corp. is buying out its partner Showa Denko in their 50-50 Japanese carbon-black joint venture. Cabot says the deal will strengthen its ties with Japanese tire and rubber makers.
Chemtura is warning that third-quarter earnings will be "significantly" below analysts' estimates. The firm attributes more than 60% of the shortfall to recently acquired Great Lakes Chemical businesses and 15% to the impact of Hurricane Katrina.
Petrobras and Braskem are forming Petroquímica Paulínia, a 300,000-metric-ton-per-year polypropylene joint venture in São Paulo state, Brazil, slated to open in 2007. Braskem will have a 60% stake in the $240 million project; Petrobras will have a 40% stake.
Lubrizol has sold its U.S. and U.K. Lubrizol Performance Systems operations, with annual sales of $20 million, to Delft Instruments. It's the first divestment since Lubrizol in July announced plans to sell assets with combined sales of $500 million.
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