Russian polyolefins producer Lukoil is rumored to be the potential suitor for Basell Polyolefins
Russian polyolefins producer Lukoil could bid for Basell. Shell and BASF announced their plans to review strategic options regarding their 50-50 joint venture, Basell. Rumors are that Lukoil was understood to have expressed an interest in Basell.
It was also reported that private equity firm Blackstone, which acquired German chemical firm Celanese earlier in 2004, was keen to bid for Basell.
Comments: As we discussed in our last PO&E analysis, the chances for Basell to issue an IPO are less probable. Basell’s probable suitors will have to cover regions outside Europe and North America.
Lukoil is one of the largest oil producers in Russia. The company has several petrochemicals divisions including (1) Stavrolen (city of Budenovsk), (2) Saratovorgsintez, (3) ZAO LUKOR (Ukraine, city of Kalush), (4) AO “LUKOIL NEFTOKHIM BURGAS”, (5) AD (Bulgaria), and (6) AO “Petrotel-Lukoil” (Romania). The company’s petrochemicals products include (1) polymers & monomers (polyethylene, fibers, vinyl acetate, and vinyl chloride), (2) organic products (benzene, phenol, acetone, methyl acrylate, acrylonitrile, and ammonium sulfate), and (3) pyrolysis & fuel fraction products.
The combination of Eastern Europe and the Soviet Union became the lesser-known, higher potential markets for the future. The old developments behind the iron curtain, though slowly becoming open to the world are still kept under the wrap. Recently, Basell was successful in selling the PE technology HDPE. Please see this month’s New Generation Polyolefins for a review of the Soviet and Eastern European polyolefins industry.
ExxonMobil & PDVSA subsidiary Pequiven to develop Venezuelan petrochemical project
ExxonMobil Chemical and Pequiven, the petrochemical subsidiary of Venezuelan state oil firm Petroleos de Venezuela SA (PDVSA) have agreed to jointly develop a world-scale project to produce olefins and derivates at the Jose petrochemical complex, in Anzoategui state, eastern Venezuela.
A team of specialists from both firms will begin work next month to complete feasibility studies and define other important aspects of the project. According to Pequiven, the complex would include a cracking plant that would produce 1 million MT /year of ethylene and its derivatives. The complex would produce polyethylene, ethylene, and ethylene glycol and probably would cost about $2.5 billion.
Comments: Pequiven (Petroquímica de Venezuela, S.A.) was created in 1977 and became a part of PDVSA in 1978. The company is in charge of the production and marketing of petrochemical products for the domestic and international markets.
The company had announced its plans to expand its petrochemicals capacity to 19 million metric tons by 2009 at the cost of $8.7 billion. There have been constant ongoing talks between ExxonMobil and Pequiven for the last 3 years. ExxonMobil has shown a repeated strategy in recent years of going where the feedstock is low-cost and plentiful. This Venezuelan project is a natural extension of this strategy. Venezuela has about 60 Billion Barrels of Crude Oil reserves and 30 TCF of Natural Gas. Natural gas is increasingly being used internally to free up crude oil reserves for reserve life extension and other high-value-added prospects.
This project is to be located in Eastern Venezuela, in the middle of most of the country’s refining and existing petrochemical operations. ExxonMobil has a great deal of experience in operating heavy feed olefins crackers and this 1 million metric ton ethylene unit is world scale state of the art along with heavy yields of other valuable co-products such as propylene, BTX, and BD/C4’s. Pequiven has expressed in recent announcements that the cracker alone will cost $2-3 Billion (ethylene cracker and some key primary derivatives) and the balance of capital spending to $8.7 Billion will undoubtedly be other downstream derivative plants to add a bounty of value to added cash flow vs. heavy fuel yield alternate values for the unit’s feedstock. This is a great strategic joint venture and is the seed of major petrochemical growth to come in Venezuela – from ExxonMobil’s viewpoint, there are plenty of reserves at the right price we are sure.
ExxonMobil Chemical to focus commitment on Southern African markets – appoints Polysaf to facilitate sales activities
ExxonMobil Chemical Middle East & Africa (EMCMA) has confirmed its commitment to the Southern African market with the appointment of POLYSAF Chemical (Pty) Ltd (Polysaf) as its agent. Polysaf will facilitate sales activities on behalf of EMCMA in the Republic of South Africa, Botswana, Lesotho, Namibia, Madagascar, Mozambique, Swaziland, Zambia, and Zimbabwe.
EMCMA’s commitment to the region will be discussed during the Exceed™ Polyethylene Roadshow in the Republic of South Africa, 2-6 August 2004. ExxonMobil Chemical’s latest technological developments in flexible packaging will also be discussed. Among them, ExxonMobil Chemical has developed two new low-gel grades of Exceed™ linear low-density polyethylene (LLDPE) resin for high-quality lamination and co-extrusion applications, and an advanced, custom-designed, co-extrusion packaging solution, Nexxstar™ resin formulations (structure), which can present considerable benefits for converters and end-users.
Comments: ExxonMobil’s participation in Africa primarily includes upstream operations in exploration and oil production. The downstream operations are limited to (1) Fuels, (2) Lubricants, (3) Aviation, (4) Chemicals, and (5) Marine. In the Chemical segment, ExxonMobil supplies a variety of materials ranging from synthetic rubbers to polyolefins. Although it does not have polyolefins production centers in Africa, ExxonMobil is able to effectively leverage its assets in Al-Jubail and Yanbu, Saudi Arabia. To facilitate product sales & distribution ExxonMobil has sales offices in Egypt, Kenya, Morocco, and South Africa.
The recent Exceed Polyethylene Roadshow exposed the domestic South African end-users to ExxonMobil’s technology advances in metallocene lamination and extrusion technology as well as its Nexxstar line of resins for packaging applications. ExxonMobil has been working diligently over the past few months to promote these products in North America and Europe. More details on these products can be found in CMR’s New Generation Polyolefins Bimonthly Review and past issues of PO&E SNA.
Westlake Chemical announces pricing of Initial Public Offering of stock
Westlake Chemical Corporation announced that the price of its initial public offering of 11.8 million shares of its common stock was set at $14.50 per share. The shares were listed on the New York Stock Exchange under the symbol “WLK” and began trading on August 11, 2004.
All of the shares are being offered by Westlake Chemical Corporation, and are expected to provide net proceeds of $159.1 million, which will be used to redeem the $133 million principal amount of the company’s 8-3/4% Senior Notes due 2011 and to repay other debt.
In addition, Westlake Chemical granted the underwriters a 30-day option to purchase up to an additional 1.8 million shares of its common stock to cover over-allotments, if any. Credit Suisse First Boston, JPMorgan, and Deutsche Bank Securities are serving as co-managers of this offering.
Malaysian polyolefins producer, Titan Group to expand olefins & polyolefins capacity
The Titan Group, part of Westlake Group in Malaysia, announced its plans to expand the capacity of its petrochemical complex at Johor Bharu, Malaysia. The company will debottleneck its two ethylene plants, and expand its polyethylene (PE) and polypropylene (PP) units.
Titan has awarded an engineering, procurement, and construction contract for the project to JGC. The company plans to increase ethylene capacity from 630,000 MT/year to 700,000 MT/year, and propylene capacity from 334,000 MT/year, to 400,000 MT/year.
The company is also expanding the capacity of its Spheripol-process PP plant from 370,000 MT/year to 450,000 MT/year, and adding 50,000 MT/year of capacity at its Mitsui Chemicals-process high-density PE unit, which has a capacity for 105,000 MT/year. The expansion is scheduled for completion by the end of next year or early 2006.
Comments: Titan Group currently operates HDPE units having a total capacity of 150 KT based on Unipol & Mitsui technology, LDPE units having 220 KT using ExxonMobil technology, and PP units having a total capacity of 370 KT based on Spheripol technology.
Petroleum Authority of Thailand, PTT & Thai Olefins to invest $82 million in Bangkok Polyethylene
PTT PCL, Thailand’s state-owned oil & gas conglomerate announced its plans to join its unit Thai Olefins PCL (TOC.TH) to buy out shares in Bangkok Polyethylene PCL, or BPE, at an estimated cost of up to 3.4 billion baht ($1=THB41.483).
PTT and Thai Olefins will each invest THB1.7 billion to buy BPE’s shares from its shareholders, including Bangkok Bank PCL and Japan’s Mitsui Group.
The transaction is in line with PTT’s long-term strategy to expand its petrochemical business. After acquiring the BPE shares, PTT’s direct and indirect holding in Thai Olefins will increase to 53.06% as BPE holds a 7.11% stake in Thai Olefins, while PTT and its unit National Petrochemical PCL hold a combined 45.95% stake.
Comments: PTT and its affiliate Thai Olefins have been negotiating to acquire a stake in Bangkok Polyethylene for the last few months.
Bangkok Polyethylene was formed in 1989 as a joint venture between Bangkok Bank (40%), Mitsui Group (35%), Transpec (14%), Hua Kee (7%), & others (4%). PTT will buy BPE’s stake from Bangkok Bank.
Bangkok Polyethylene is the largest producer of HDPE in Thailand. The company uses Mitsui’s slurry CX process suitable for the production of bi-modal resins. For more information, please refer to “Global Polyolefins – Strategic News Analysis”, Volume 2 – Issue 5. The PTT group attracted more attention globally for all the management complications than anything else!
Iranian President launches construction of the petrochemical complex in Sanandaj
President Mohammad Khatami launched construction operations on a petrochemical complex in the city of Sanandaj in Iran’s western province of Kurdestan. The complex will have an expected annual production capacity of 300,000 MT/year of polyethylene and will be constructed within a budget of 300 million dollars and is expected to be completed in four years.
The final product of the complex will not only meet domestic needs but also those of foreign countries, particularly Turkey and Iraq.
Comments: Iran considers its abundant supply of oil and gas to be a major source of competitive advantage to the petrochemical segment. Consequently, Iran has started to take appropriate measures to build its downstream petrochemical industry. The planned projects in Kurdestan include an ethylene pipeline, the West Iran Petrochemical project, and the Kurdestan Petrochemical project.
West ethylene pipeline is planned to carry ethylene produced at Pars Special Economic Energy Zone to Mahabad, serving as the raw material source for the polyethylene complexes. The line is 1,500 km long and initial capacity has also been estimated at 1.2 million tons per year. West Iran petrochemical project includes the Kohgylouyeh-Boir Ahmad petrochemical project (an ethylene glycol production unit with an annual capacity of 450,000 tons and an ethylene oxide production unit with an annual capacity of 50,000 tons per annum); Lorestan province petrochemical project (a light and heavy linear polyethylene production unit with the annual capacity of 300,000 tons per year and a butane 1000 production unit with the annual capacity of 30,000 tons per year); Kermanshah province petrochemical project (a heavy polyethylene production unit with an annual capacity of 300,000 tons per year); West Azarbaijan province petrochemical project (light and heavy linear polyethylene production unit with the annual capacity of 300,000 tons per year); a butane 1000 production unit with the annual capacity of 30,000 tons as well as Kurdestan petrochemical project and the 11th olefin project.
BASF to launch new TPE grade, Oppanol IBS®
BASF announced its plans to introduce Oppanol® IBS, a new type of thermoplastic elastomer (TPE) at K 04, plastics fair to be held, in Düsseldorf, Germany, from 20 to 27 October. Oppanol IBS is manufactured using a process known as “living cationic polymerization”. The new type of TPE is based on styrene and isobutene, applicable in several markets ranging from adhesives and sealants to compounds for consumer goods and the manufacture of films.
Oppanol®, BASF’s brand name for medium- and high-molecular polyisobutene (PIB), prevents water vapor and other gases like argon from diffusing through a barrier layer, such as sealants used in double glazing. Oppanol® IBS offers even more. It has the additional advantages of a thermoplastic elastomer. This means the product has no “cold flow” and is available in pellet form. It, therefore, allows optimum metering in plastics processing machines such as extruders and injection-molding machines. According to the company, by offering tailor-made variations in molecular weight and styrene content, the rheological–flow properties of the melt – and mechanical properties of Oppanol® IBS can be adapted to the individual requirements of a wide range of different customers. Another benefit is that depending on the end-product requirements Oppanol® IBS can be blended with other polymers.
Comments: The introduction of Oppanol IBS will allow BASF to participate in a wider range of applications. Presently BASF participates in thermoplastic elastomers markets with their styrenic grades, Styroflex® and Oppano®. The applications include film for packaging applications and in toys and sports applications.
Thermoplastic elastomers have been preferred over thermoset rubbers because of their faster molding cycles, lower energy consumption, closer tolerances on fabricated parts, and lighter weight and scrap generated during processing and fabrication is recycled and reused.
Sasol to strengthen its global polymers capacity
Sasol announced its plans to boost its global polymers capacity to 1.545 million MT/year from a current 690,000 MT/year by 2006 with the construction of new plants in South Africa and Iran as well as capacity expansions.
Polymer production in South Africa will rise by 555,000 metric tons per year to 1.145 million metric tons by 2006, based on two new facilities incorporating licensed process technology from BP and ExxonMobil.
The first of these plants will be a second 300,000 metric ton polypropylene (PP) plant at Secunda, South Africa, based on BP’s Innovene gas-phase technology, which is due on stream before the second quarter of 2006. The PP plant will produce homopolymers, random copolymers, and impact co-polymers for both local and export customers.
Sasol’s second project is the construction of a 220,000 MT Sasolburg Midland polyethylene (PE) plant based on ExxonMobil’s high-pressure tubular technology. The unit is scheduled to come on stream in January 2006. Once this low-density polyethylene (LDPE) plant is on stream, Sasol will downscale its Poly 1 LDPE plant at Sasolburg from 100,000 to 40,000 MT/year by decommissioning two of its four autoclaves.
The new PP and PE plants represent a capital investment of R7.6 billion ($1.215 billion). Also included in this investment is an uprating of Sasol’s Poly 2 plant at the Sasolburg Midland site to produce 150,000 metric tons per year of linear low-density polyethylene, an increase of 50,000 metric tons. The ethylene cracker at the oil-from-coal operation at Secunda is also being upgraded to process additional feedstock to be produced by the Sasol Synfuels catalytic cracker for these expansions.
In a separate project, Sasol Polymers Vinyls is uprating its polyvinyl chloride plant at the Sasolburg Midland site to increase production by 35,000 metric tons per year to 200,000 metric tons by this December.
The new capacity will also be brought on stream toward the end of 2005 at two polymer plants, which are part of an Iranian joint venture, Arya-Sasol. These are an LDPE and a high-density polyethylene plant, both 300,000 metric tons and situated at Bandar Assaluyeh.
Comments: Sasol is expanding its polyethylene and polypropylene capacities to serve its export needs fueled by high growth in China, South America, and other Asian countries. Sasol is the supplier of LDPE in South Africa. Its existing facility is based on the ICI process with a total capacity of 130 KT. The new facility will be based on ExxonMobil’s tubular technology. Current large-scale tubular plants are cost-competitive and offer significant economies of scale. The new plant should help Sasol reduce its cost of production for LDPE.
Sasol is the only producer of polypropylene in South Africa. Currently, the company has a total polypropylene capacity of 380 KT based on the BASF process and Himont technology. The proposed new plant based on BP’s Innovene technology will almost double the polypropylene capacity for both Sasol and South Africa.
Both polypropylene and polyethylene have seen robust growth in Asian countries. There is an imbalance between supply and demand in Asia resulting in imports of polyolefins. As Sasol is planning to export part of its production it should help meet the needs of Asian countries.
Carlisle SynTec to construct single-ply roofing plant in Tooele, Utah
Carlisle SynTec Incorporated, a leading manufacturer of single-ply roofing systems and products announced its plans to construct and open two new manufacturing facilities in 2005.
A new thermoplastic roofing manufacturing facility is to be built in Tooele, Utah (Salt Lake City region). The plant will produce Carlisle’s Sure-Weld® TPO single-ply roofing membranes and related accessories.
In response to the growing demand for its environmentally friendly Polyisocyanurate insulation products, Carlisle’s Hunter Panels division will open its fourth plant in Terrell, Texas. This plant will complement Hunter’s existing plants in Chicago, Illinois, Kingston, New York, and Lake City, Florida. As a result, Hunter will be able to supply insulation on a wider basis to its national and regional distribution customers and to Carlisle SynTec’s roofing customers.
Comments: Carlisle SynTec is one of the largest producers of TPO-based single-ply roofing in North America. Single-ply roofing membranes are attached to the top of a structure through one of three methods: (1) ballasted systems, wherein the membrane is laid over a substrate and then covered with a layer of ballast to secure it, (2) fully adhered systems, wherein the membrane is cemented to a rigid substrate, and (3) mechanically attached systems. TPO competes with EPDM and PVC in this application. The major advantages of EPDM include (1) higher durability, (2) elasticity, (3) ease of application, (4) weather ability, and (5) others. The major disadvantage includes its poor resistance to hydrocarbons, animal fat, oil and petroleum products, and grease.
In addition to its insulation plants and its TPO production facility in Senatobia, Mississippi, Carlisle SynTec also manufactures EPDM membranes and accessories. The Tooele facility will be the company’s second manufacturing plant for TPO products, enhancing its service capabilities to the Western market. The new facility will position Carlisle as the first major roofing manufacturer with a TPO plant in the Western U.S.
BASF extends its range of light stabilizers for plastics
BASF extended its range of light stabilizers by the introduction of 6 new products in its Uvinul® range of light stabilizers for plastics. They are 5 products from the benzotriazole class and 1 monomeric HALS (hindered amine light stabilizer). These standard grades extend the existing range of specialties and can be used for both polyolefins and engineering plastics.
Without light stabilizers, the use of plastics in outdoor applications would be greatly reduced. The ultra-violet part of daylight induces degradation reactions in the polymer that lead to the deterioration of mechanical and optical properties.
Comments: Polymers contain chemical groups often referred to as chromophores which absorb UV radiation that leads to polymer discoloration and embitterment. To prevent or in most cases prolong the polymer usage life in materials used for outdoor applications, various light stabilizing additives are incorporated into the polymer.
The factors that influence the type of light stabilizers used in a polymer include (1) compatibility, (2) heat stability, (3) toxicity, and (4) cost. The commonly used light stabilizers include: (1) hindered amine light stabilizers, (2) benzotriazoles, and (3) benzophenones. Organ nickels, metal phosphates, and inorganic pigments are other light stabilizers that are employed in smaller volumes. Pigments and carbon black are capable of absorbing UV radiation and can provide good protection for plastics. However, pigments cannot be used when transparency is desired.
The concentration of UV stabilizers typically is less than 2% weight composition of the resin. The percentage composition is influenced by the type of polymer, end-use application, and other additive packages contained in the polymer.
Ciba is the largest producer of HALS and benzotriazoles, followed by Cytec, which is also the leading producer of benzophenones. BASF and Clariant are also suppliers to this market from production facilities in Europe.
BASF currently supplies light stabilizers under the trade name Uninul® and offers four different series of light stabilizers. The 2000 series is targeted at thermoplastics & elastomers, the 3000 series is targeted at plastics & paints, the 4000 series is targeted at styrenics and the 5000 series is targeted for polyolefins. The introduction of 5 new benzotriazoles light stabilizers and 1 new HALS from BASF will allow it to compete with Ciba which currently accounts for the largest market share in the above-mentioned light stabilizers.
Shell Chemicals plans to improve its global reach
Shell Chemicals is continuing its transformation into a top-tier global bulk chemicals supplier. The company has several major projects in the pipeline to improve North American and European efficiency, while on track to become a global player with facilities in Asia and the Middle East. While Shell is maintaining its strategy of being a low-cost bulk petrochemical producer serving large industrial customers, the company aims to spread its wings globally.
Shell Chemicals is on track and under budget for a successful start-up of its $4.3 billion Nanhai petrochemicals and polymers joint venture in Guangdong Province, China, by the end of 2005. Of the $4.3 billion capital, 80% has already been committed to the project. The Nanhai project is 65 % complete, and Shell expects 90% completion by the end of 2004.
Shell Chemicals is also looking for another anchor in Asia. Sumitomo Chemicals has pulled out of the potential $1 billion joint venture cracker in Singapore with Shell, and Shell is now re-evaluating that project with the possibility of going forward on its own.
Shell is also emphasizing its “cracker plus one” strategy of producing chemicals close to the oil barrel. The company and its 50 percent partner BASF have put polypropylene and polyethylene giant Basell on the selling block, retaining CS First Boston and Lazard to evaluate all options for the 6 billion ($7.2 billion) business.
Along with the planned sale of Basell and expansion plans in Asia and the Middle East, Shell Chemicals is involved in executing its “Americas Master Plan,” a five-year plan with a budget of $570 million. The company is evaluating its North American asset base to bring all its crackers up to the first quartile. Shell started up its OP2 cracker in Deer Park, Tex., in April, completing a $400 million expansion and adding 500,000 MT/year of olefins capacity.
Shell Chemicals plans to develop a “European Master Plan” by the end of 2004. The plan will include evaluating its various sites and assessing where the company can add value—either by engaging in capital projects or realigning assets.
Comments: In the last few years global reach has become increasingly important as the Middle East has cheaper feedstock, China has cheaper labor, and high demand. The majority of chemical companies are trying to establish themselves in the Middle East or China to take advantage of lower costs and higher demand. Shell Chemicals is using the same strategy and attempting to become a global cost-competitive player with facilities in Asia and the Middle East along with North America and Europe.
Süd-Chemie establishes a joint venture in Qatar to produce GTL catalysts
Süd-Chemie AG and two local partners announced their plans to establish a Joint Venture under the name of Süd-Chemie Qatar W.L.L. in Qatar to produce catalysts. Initially, these catalysts will be primarily used for ‘gas to liquid’ (GTL) projects currently under development in Qatar. Süd-Chemie will hold the majority share in the venture. It is expected that all state approvals needed for the venture will be granted within 2004. The first phase of the production facility will require an investment of about EUR 10 million.
By forming this venture, Süd-Chemie proactively enters the investment arena within the petrochemical industry which has been – and will be for the years to come – predominantly in the Middle East. GTL processes have a high demand for catalysts to convert gas into high-performance fuels or petrochemical intermediates.
With the entire product slate needed for GTL plants, Süd-Chemie holds a leading position in this segment of the catalyst industry. Next to Russia and Iran, Qatar holds the third biggest gas reserves worldwide.
Comments: Süd-Chemie AG is one of the oldest and most respected catalyst houses with roots in syngas SMR and ATR technologies. The ATRs are crucial for GTL. Most designs for the mega GTL facilities use proprietary burner guns for vendors like Aldor Topsoe and look for catalysts (workhorses are nickel-iron) from other vendors like Süd-Chemie.
Haldor has its catalysts but with Süd-Chemie building capability in the epicenter of so many GTL projects in the Middle East region, they will have a more cost-effective position for catalyst tech service and recharge inventory than just about anyone else. This market advantage is a good model to follow. Much of Süd-Chemie’s overall expertise is from their core business and also from their acquisition of United Catalyst in the US.
W. R. Grace acquires Alltech International Holdings, a chromatography firm
W.R. Grace Subsidiary Separations Group has acquired Alltech International Holdings (Deerfield, IL), a producer of chromatography products. Alltech will be integrated into the separations business of Grace Davison Specialty Materials.
Alltech’s products are used in high-performance liquid, gas, and ion chromatography, as well as solid-phase extraction technologies for drug discovery and production. Alltech has manufacturing facilities in Belgium, the U.K., and the U.S., as well as 21 distribution sites worldwide.
Comments: W. R. Grace has acquired several other companies recently including (1) Grom Analytik+HPLC (Rottenburg-Halfingen, Germany), a producer of high-performance liquid chromatography (HPLC) column packing technology; (2) Modcol (Morgan Hill, CA), a preparative chromatography column and custom column packing firm; and (3) Argonaut Technologies’ (Foster City, CA) Jones Chromatography HPLC business. Grace’s Separations Group is a producer of columns and media for analytical, preparative, and process applications, as well as chromatographic media.
The recent acquisition of Alltech is in-line with its strategy to strengthen its position in chromatographic products.
Rohm and Haas invests in venture capital firm, Innovation Ventures, LP
Rohm and Haas Company announced an investment of $5 million in Innovation Ventures, L.P. (IVLP), a newly established venture capital firm.
Innovation Ventures targets investments in emerging technology companies that have a focus on specialty chemicals and materials, electronic materials and devices, nanotechnology, industrial biotechnology, and information technology, among other investment areas. The Wilmington, Delaware-based firm intends to make investments in companies located throughout the United States, with an emphasis on companies located on the East Coast. Rohm and Haas will have a representative on IVLP’s Advisory Board. The company also will serve as the Fund’s strategic partner and will provide input in technology evaluation, global market analysis, deal sourcing, and exit strategies.
Comments: Rohm and Haas is a company based on one molecule – acrylic. Rohm and Haas attempted for the last ten years to develop more ventures for the future in biotechnology, catalysts, paper, etc., However, most of them, are somehow based on the acrylic molecule.
Dow Chemical Company sued for $100 million over asbestos remnants of old UCC
Hamilton Materials Inc, a California-based company has sued Union Carbide Corp. and parent Dow Chemical Co. for $100 million claiming they conspired to hide the dangers of asbestos supplied to the company for use in its products. According to the company, it was exposed to personal injury and wrongful death lawsuits by a Union Carbide asbestos product called Calidria. Hamilton used it in wallboard joint taping and texturing materials from 1965 to 1977. The cost of litigating and settling the cases has nearly bankrupted the California company, which claims the liability “should be Union Carbide’s to pay,” according to its lawsuit.
Union Carbide, which has been named as a co-defendant with Hamilton in some of the lawsuits, went to court in June to assert that it does not have a duty to indemnify Hamilton against the claims, a Union Carbide spokesman said. The company has not yet received a ruling on the matter.
The suit also accuses Union Carbide and other defendants of trying to suppress legislation that would have protected Hamilton, its customers, and those exposed to asbestos from injury.
Comments: Several companies have been affected because of the asbestos claims. In 2003, ABB subsidiary Combustion Engineering and Halliburton subsidiary, DII Industries filed for Chapter 11 bankruptcy protection as a part of their attempts to resolve asbestos claims. In 2001, W. R. Grace filed for Chapter 11 bankruptcy due to the losses related to asbestos litigation.
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