Company News

November 29, 2019

BASF In Talks to Sell Construction Chemicals Unit

Exclusive: Lone Star in exclusive talks to buy BASF construction chemicals unit – sources

 

 

FRANKFURT (Reuters) – Lone Star has entered exclusive negotiations to buy BASF’s (BASFn.DE) construction chemicals business as the German chemicals company seeks to focus on more profitable operations, people close to the matter said.

FILE PHOTO: The chemical company BASF building in Levallois-Perret, near Paris, France, is seen at sunset, November 29, 2018. REUTERS/Christian Hartmann/File Photo

The private equity firm vied with a consortium comprising buyout groups Cinven – which owns peer Chryso – and Bain for the world’s largest maker of chemical additives for concrete, they said.

A BASF spokesman confirmed that the company had proceeded to talk with only one bidder but declined to comment further.

Lone Star declined to comment.

Financial details of the potential deal have not emerged, but sources close to the matter have said in the past that they expect the unit to be valued around 3 billion euros ($3.3 billion).

The sale has been long and drawn out as BASF put the business on the block a year ago.

BASF’s CEO Martin Brudermueller said in October that he expected the signing of a deal before the end of the year.

“We received confirmatory bids and are now progressing with a smaller number of interested parties,” he said at the time.

The chemicals giant had initially hoped to sell the unit to the world’s largest cement maker LafargeHolcim (LHN.S), but was unable to hammer out a deal.

Lone Star had previously walked away from the bidding but was invited back to the negotiating table, sources have said.

BASF’s construction chemicals unit is the world’s largest maker of additives for concrete. It also offers a range of substances including concrete repair fillers, grouts and sealants under a business dubbed Construction Systems, where BASF is the No. 4 player globally.

The business, whose products have been used to build train tunnels in London and the Swiss Alps, competes with GCP Applied Technologies (GCP.N) , Mapei, RPM Inc (RPM.N) and Sika (SIKA.S).

Analysts have said that BASF never managed to reconcile the construction chemicals unit’s dependence on small to mid-size builders with BASF’s focus on large industrial customers.

BASF purchased the construction chemicals business from Degussa in 2006 for 2.7 billion euros including debt.

Lone Star has German building materials maker Xella in its portfolio, while Cinven owns smaller French peer Chryso and Bain owns British building materials distributor MKM.

https://www.reuters.com/article/us-basf-divestiture-exclusive/exclusive-lone-star-in-exclusive-talks-to-buy-basf-construction-chemicals-unit-sources-idUSKBN1Y11ZB

November 27, 2019

Lanxess Sells Organotin Catalysts to PMC

Lanxess sets climate-neutrality target

Is that name really real?

Lanxess has set itself a goal of eliminating its greenhouse gas emissions, currently 3.2 million tonnes/year of CO2 equivalent, by 2040. It already had a target of halving them by 2030. This will involve a three-pronged strategy, the company said:

* Launching major ‘impact projects’ for climate protection: currently planned examples include a nitrous oxide decomposition facility, due onstream at Antwerp next year and switching entirely to solar and biomass power at its Indian sites

* Decoupling emissions from growth, partly by means changes to governance, such that the impact on the company’s carbon footprint will becoming an investment criterion for organic growth and acquisitions

* Strengthening process and technological innovation, in areas like heat exchange between plants and air purification, while focusing research more towards climate-neutral processes

Matthias Zachert, chairman of the management board, said that this make Lanxess “an even more sustainable partner for our customers in the future” but also made business sense by saving costs through more efficient use of resources. However, the right policies need to be in place if the Paris Accord target of keeping average temperature increases to 2ºC or less is to be achieved. In particular, Zachert said, the German government should not jeopardise industry’s competitiveness by imposing a double burden of a national emissions trading scheme on top of the European one, as its ‘climate package’ currently proposes to do.

Separately, Lanxess Organometallics has agreed to sell its organotin specialities product line, comprising organotin catalysts and specialties plus intermediates, to the New Jersey based-PMC Group. Terms were not disclosed and the deal should close by the end of 2019. Lanxess will continue to manufacture certain products for PMC at Bergkamen in Germany under a tolling agreement.

Lanxess has also sold its 74% stake in a chrome ore mine in Rustenburg, South Africa to local firm Clover Alloys for an undisclosed amount. This should be completed by the end of 2020, subject to regulary approvals. The company described this as part of its ongoing focus on speciality chemicals. It had earlier agreed to sell its chrome chemicals business to Brother Enterprises of China.

https://www.specchemonline.com/lanxess-sets-climate-neutrality-target-0

November 27, 2019

Lanxess Sells Organotin Catalysts to PMC

Lanxess sets climate-neutrality target

Is that name really real?

Lanxess has set itself a goal of eliminating its greenhouse gas emissions, currently 3.2 million tonnes/year of CO2 equivalent, by 2040. It already had a target of halving them by 2030. This will involve a three-pronged strategy, the company said:

* Launching major ‘impact projects’ for climate protection: currently planned examples include a nitrous oxide decomposition facility, due onstream at Antwerp next year and switching entirely to solar and biomass power at its Indian sites

* Decoupling emissions from growth, partly by means changes to governance, such that the impact on the company’s carbon footprint will becoming an investment criterion for organic growth and acquisitions

* Strengthening process and technological innovation, in areas like heat exchange between plants and air purification, while focusing research more towards climate-neutral processes

Matthias Zachert, chairman of the management board, said that this make Lanxess “an even more sustainable partner for our customers in the future” but also made business sense by saving costs through more efficient use of resources. However, the right policies need to be in place if the Paris Accord target of keeping average temperature increases to 2ºC or less is to be achieved. In particular, Zachert said, the German government should not jeopardise industry’s competitiveness by imposing a double burden of a national emissions trading scheme on top of the European one, as its ‘climate package’ currently proposes to do.

Separately, Lanxess Organometallics has agreed to sell its organotin specialities product line, comprising organotin catalysts and specialties plus intermediates, to the New Jersey based-PMC Group. Terms were not disclosed and the deal should close by the end of 2019. Lanxess will continue to manufacture certain products for PMC at Bergkamen in Germany under a tolling agreement.

Lanxess has also sold its 74% stake in a chrome ore mine in Rustenburg, South Africa to local firm Clover Alloys for an undisclosed amount. This should be completed by the end of 2020, subject to regulary approvals. The company described this as part of its ongoing focus on speciality chemicals. It had earlier agreed to sell its chrome chemicals business to Brother Enterprises of China.

https://www.specchemonline.com/lanxess-sets-climate-neutrality-target-0

November 27, 2019

TPC Explosion

Evacuations ordered after plant explosion in southeastern Texas

The explosion from the Port Neches plant, which produces chemical and petroleum-based products, blew out windows on homes several miles away.
By Phil Helsel, Colin Sheeley, Suzanne Ciechalski, Shamar Walters and Ben Kesslen

Residents were ordered to evacuate near a southeast Texas refinery after a chemical explosion set off a major fire early Wednesday, injuring workers and shaking homes several miles away, officials said.

A blast just after 1 a.m. ignited the blaze, which moved rapidly throughout the plant in the community of Port Neches, about 90 miles east of Houston, Jefferson County Sheriff’s Office Capt. Crystal Holmes said.

Three workers at the site were injured and are being treated, according to TPC Group, which owns the refinery and provides a range of products to chemical and petroleum-based companies, according to its website.

Jefferson County Judge Jeff Branick said one of the workers was transported by air to Houston with serious burns. A second worker was treated for a broken arm, and the third has already been released.

“We are very, very thankful that, from preliminary reports, there are no fatalities,” Branick said, adding that water canons deployed at the blast site suppressed the flames significantly.

TPC said it had accounted for all of its workers on site and that they had been evacuated. On its website, the company said it employs more than 175 full-time employees and 50 contractors.

“The event is ongoing, but will be brought under control as quickly and safely as possible,” it said in a statement early Wednesday.

Neighbors within a half-mile of the plant were being evacuated. The explosion in Port Neches, with a population of about 13,000, blew out windows on homes several miles away, The Associated Press reported.

Residents began making initial reports of the blast on social media at about 1:20 a.m.

Shawn Dunlap, who lives in Nederland, which is next to Port Neches, told NBC News that there were two explosions, and his friend’s apartment door was blown open and windows were shattered.

“It shook our house twice,” Dunlap said. “It was just like a bomb going off.”

William Joshua Hranicky, 20, of Port Neches, said that he told his brother goodnight and looked out the back window and “saw just orange.”

He said he told his brothers to run as the back doors blew open from the blast.

Macy Malin, 22, who was staying with a friend down the street from the site said the explosion woke her up. Her friend’s family, she said, were yelling and she realized that their home had been severely damaged.

“Their doors were blown open … doorknobs themselves were shot across rooms,” she said.

Malin then hurried home to Mauriceville, Texas, about 34 miles from the explosion, where she said her father was even woken up by the blast.

To drive home, she said, she had to travel in heavy traffic past the plant and was worried about what would happen if there was another explosion.

“We didn’t know what had exploded and what gasses were in the air,” she said. “I’ve never seen the traffic like that ever.”

The refinery had butadiene, one of the constituent ingredients in synthetic rubbers, Branick said, as well as C4, a petrochemical raw material. Branick said the South East Texas Regional Planning Commission is monitoring the air and environmental officials arrived on site.

Omar Hamza, a 22-year-old student at Lamar University in Beaumont, Texas, was at his family’s home in Port Neches with his 19-year-old brother when the explosion happened.

“I was packing my bag in the living room and I heard this pretty loud boom and I looked out and, right after, I saw this really bright flash of light coming towards the window and then everything just kind of exploded,” he said.

“I grabbed my brother and we just kind of got down and waited for all the glass and stuff to stop falling,” Hamza added.

He said he called the police who advised him to stay inside the house, but that he and his brother decided to leave.

“We waited for a little bit and we kind of looked outside and everyone was running around and freaking out,” he said. “So we just grabbed the important stuff we needed — I left a note on the door and we left.”

Branick, who lives less than a mile away from the explosion site, said his wife thought someone was shooting at their home when she heard the blast.

“I ran out with my pistol,” the judge said, before he realized it was a refinery explosion.

Texas has been the site of other major explosions, including a 2013 fertilizer plant blast in the rural town of West that killed 15 people and wiped out hundreds of homes.

https://www.nbcnews.com/news/us-news/explosion-reported-near-plant-southeastern-texas-n1092396

November 27, 2019

TPC Explosion

Evacuations ordered after plant explosion in southeastern Texas

The explosion from the Port Neches plant, which produces chemical and petroleum-based products, blew out windows on homes several miles away.
By Phil Helsel, Colin Sheeley, Suzanne Ciechalski, Shamar Walters and Ben Kesslen

Residents were ordered to evacuate near a southeast Texas refinery after a chemical explosion set off a major fire early Wednesday, injuring workers and shaking homes several miles away, officials said.

A blast just after 1 a.m. ignited the blaze, which moved rapidly throughout the plant in the community of Port Neches, about 90 miles east of Houston, Jefferson County Sheriff’s Office Capt. Crystal Holmes said.

Three workers at the site were injured and are being treated, according to TPC Group, which owns the refinery and provides a range of products to chemical and petroleum-based companies, according to its website.

Jefferson County Judge Jeff Branick said one of the workers was transported by air to Houston with serious burns. A second worker was treated for a broken arm, and the third has already been released.

“We are very, very thankful that, from preliminary reports, there are no fatalities,” Branick said, adding that water canons deployed at the blast site suppressed the flames significantly.

TPC said it had accounted for all of its workers on site and that they had been evacuated. On its website, the company said it employs more than 175 full-time employees and 50 contractors.

“The event is ongoing, but will be brought under control as quickly and safely as possible,” it said in a statement early Wednesday.

Neighbors within a half-mile of the plant were being evacuated. The explosion in Port Neches, with a population of about 13,000, blew out windows on homes several miles away, The Associated Press reported.

Residents began making initial reports of the blast on social media at about 1:20 a.m.

Shawn Dunlap, who lives in Nederland, which is next to Port Neches, told NBC News that there were two explosions, and his friend’s apartment door was blown open and windows were shattered.

“It shook our house twice,” Dunlap said. “It was just like a bomb going off.”

William Joshua Hranicky, 20, of Port Neches, said that he told his brother goodnight and looked out the back window and “saw just orange.”

He said he told his brothers to run as the back doors blew open from the blast.

Macy Malin, 22, who was staying with a friend down the street from the site said the explosion woke her up. Her friend’s family, she said, were yelling and she realized that their home had been severely damaged.

“Their doors were blown open … doorknobs themselves were shot across rooms,” she said.

Malin then hurried home to Mauriceville, Texas, about 34 miles from the explosion, where she said her father was even woken up by the blast.

To drive home, she said, she had to travel in heavy traffic past the plant and was worried about what would happen if there was another explosion.

“We didn’t know what had exploded and what gasses were in the air,” she said. “I’ve never seen the traffic like that ever.”

The refinery had butadiene, one of the constituent ingredients in synthetic rubbers, Branick said, as well as C4, a petrochemical raw material. Branick said the South East Texas Regional Planning Commission is monitoring the air and environmental officials arrived on site.

Omar Hamza, a 22-year-old student at Lamar University in Beaumont, Texas, was at his family’s home in Port Neches with his 19-year-old brother when the explosion happened.

“I was packing my bag in the living room and I heard this pretty loud boom and I looked out and, right after, I saw this really bright flash of light coming towards the window and then everything just kind of exploded,” he said.

“I grabbed my brother and we just kind of got down and waited for all the glass and stuff to stop falling,” Hamza added.

He said he called the police who advised him to stay inside the house, but that he and his brother decided to leave.

“We waited for a little bit and we kind of looked outside and everyone was running around and freaking out,” he said. “So we just grabbed the important stuff we needed — I left a note on the door and we left.”

Branick, who lives less than a mile away from the explosion site, said his wife thought someone was shooting at their home when she heard the blast.

“I ran out with my pistol,” the judge said, before he realized it was a refinery explosion.

Texas has been the site of other major explosions, including a 2013 fertilizer plant blast in the rural town of West that killed 15 people and wiped out hundreds of homes.

https://www.nbcnews.com/news/us-news/explosion-reported-near-plant-southeastern-texas-n1092396