business concentrates
Chemical employment ends year higher than in 1996 Although chemical employment in De cember was unchanged from the previous month, it was up slightly from year's end 1996, according to the latest seasonally ad justed data from the Labor Department. The government figures show total chem icals and allied product employment at 1,030,000 in December, up 2,000 from the year-earlier level. On a month-tomonth basis, U.S. chemical employment was unchanged from an upward-revised November. However, although total chemical employment was Millions 1.0301 up, the chemi cal workweek, a leading indi cator for em 1,025 l·ployment and production, de clined. The La bor Department 1.0201 ι ,ι ι ι ι ,ι ι ι ι ι ι I reports the av DJ F M A M J J A S O N D i 1997- • • i erage weekly hours of pro duction for chemicals and allied products at 42.9 in December, down from 43.4 in November and from 43.5 in December 1996. The government's index of aggre gate weekly hours of production, which is a measure taking into consideration both total production workers and hours of production, also declined from 102.0 in November to 101.3 (1982 = 100). However, it was up slightly from 101.0 for December 1996.^4
Goodrich to buy Freedom Chemical In a move that will further expand its specialty chemicals business, BF Goodrich has agreed to acquire Radnor, Pa.-based Freedom Chemical for about $375 mil lion in cash. A privately held company, Freedom is primarily owned by Joseph Littlejohn & Levy, a private investment firm based in New York City. The deal is expected to be concluded during firstquarter 1998. Freedom produces chemi cal intermediates and additives for spe cialty chemicals used in personal care, food and beverage, pharmaceutical, tex tile, graphic arts, paints, colorants, and coatings applications. The company had 14 JANUARY 19, 1998 C&EN
sales of about $300 million in 1997. About 40% of its sales are derived outside the U.S. Freedom employs about 1,100 work ers and has four plants in the U.S., two plants in both Germany and India, and a single plant in the U.K. "This key acquisi tion will increase our specialty chemicals businesses by [about] 30%," says David B. Price, president and chief operating officer of BF Goodrich Specialty Chemi cals, a subsidiary of Richfield, Ohio-based Goodrich. In 1996, Goodrich had total sales of $2.24 billion, nearly 37% of which came from its specialty chemicals seg ment. Goodrich also provides aircraft sys tems and services.^
Smith as CEO. The two apparent candi dates are Rob Margetts, a longtime ICI employee who is currently an executive vice president and slated to become vice chairman in May; and Brendan O'Neill, who will join the ICI board in May as chief operating officer. Speculation is heavy among the London financial press and securities analysts that O'Neill will succeed Miller Smith. O'Neill is being brought in from consumer products company Guinness, of which he is cur rently CEO. James A. Kennedy, chairman and CEO of National Starch, a subsidiary of ICI, and Alan Spall, Id's chief financial officer, will continue as the other mem bers of the executive board. M
UP rail problems disrupt competitive service, says rival
Praxair has new chief operating officer
The Burlington Northern & Santa Fe Rail road (BNSF) has challenged the competi tive effectiveness of the merger between Union Pacific (UP) and Southern Pacific (SP) railroads. In its quarterly statement on the merger, filed with the Surface Transportation Board (STB) earlier this month, BNSF claims that the Gulf Coast congestion of recent months has "raised serious questions as to whether BNSF will be able to provide to rail customers viable long-term competitive service." As a condition of the September 1996 UP/ SP merger, STB assigned trackage rights to BNSF in south Texas, allowing BNSF to re place the former SP as UP's competitor in the area. However, BNSF must still rely on UP for dispatching in Houston, a process that BNSF says has caused many delays in recent months. Citing "UP's continuing service failures and problems," BNSF says these delays are increasing its costs and hindering its ability to provide competitive service. Rail service in the Gulf Coast re gion is currently under an STB-imposed Emergency Service Order set to expire on March 15 (C&EN, Dec. 22, 1997, page
ICI readies new management team U.K. chemical firm ICI has announced upcoming changes in its management team. Chairman Sir Ronald Hampel is to retire in April 1999, and he will be re placed by Charles Miller Smith, currently chief executive officer. The company has not specified who will succeed Miller
The board of directors of Praxair Inc., Danbury, Conn., has elected Edgar G. Hotard as president and chief operating officer. Hotard, 54, has been president and direc tor of Praxair since 1992, when the com pany was formed from the industrial gas division of Union Carbide. His new re sponsibilities include the day-to-day opera tion of the worldwide industrial gases business. Praxair also is expanding its vice president ranks, which report to Hotard, to include a vice president for safety and production excellence and vice presidents for key market segments.^
Eastman workforce down 8.5% in 1997 Eastman Chemical says retirements and attrition during 1997 cut its net work force by about 1,500 employees, or 8.5%. About 2,100 employees left the company, while approximately 600 new employees were added, primarily to staff new plants in Argentina, the Nether lands, Malaysia, and Singapore. Eastman says it will take a fourth-quarter 1997 pretax charge of about $62 million to ac count for the partial settlement of pen sion benefit costs. The company says the decline is in line with plans to reduce costs by $500 million by 2000. "Since be coming a public company in 1994, sales volumes have risen 27%, while employ ment has decreased 11%," says Earnest W. Deavenport Jr., Eastman chairman and chief executive officer. "We have not had to suffer the painful and disrup tive massive layoffs that some companies have experienced to get costs in line."^
Monsanto may dispose of lawn-and-garden chemicals operations
together in future trials because even these cases involved too many dissimilar claims. Talks with the judge are under way on how the eight original claims will proceed. Dow Chemical never produced silicone implants, but its joint venture with Corning, Dow Corning (now in bankruptcy reorganization), did produce implants.^
Monsanto President Hendrik A. Verfaillie says the company might divest, seek partners for, or restructure its Solaris lawn-andgarden chemicals operations. "Solaris has been a strong performer with solid sales growth in the last four years," he says. But Exxon confirms Thai he adds that "Monsanto has generated nu- aromatics project merous growth opportunities through its creation of a life sciences business and Exxon's subsidiary Esso (Thailand) pic will needs to focus on those opportunities go ahead with the construction of a previwith the greatest long-term potential and ously announced aromatics unit. The strategic fit." Monsanto created Solaris project, valued at $375 million, involves through the combination of its own resi- the setup by the end of 1999 of an aromatdential products division and Chevron ics unit next to Exxon's Sriracha refinery Chemical's Ortho consumer products divi- on the east coast of Thailand. The plant sion, purchased for $416 million in 1993. will have an annual capacity of 350,000 Solaris has more than 400 employees and metric tons per year of/^xylene. In addition, operates major manufacturing facilities in Tuntex Petrochemical currently is conductFort Madison, Iowa, and Corwen, Wales. ing a feasibility study on an 800,000-metricThe company declined to release sales ton-per-year ^-xylene unit in Thailand. In data for Solaris, whose products include June of last year, Chevron announced a Ortho brand lawn-and-garden products project to build a $1 billion aromatics unit and Roundup herbicide for residential use. (C&EN, June 23, 1997, page 16).^ Monsanto is considering the same options for its Orcolite and Diamonex optical products and Diamonex performance Rhone-Poulenc starts products divisions, which together employ about 700 people. Orcolite is based up hydrocyanic acid in Azusa, Calif., and Diamonex operations unit. . . are based in Allentown, Pa.^ The animal nutrition unit of France's Rhone-Poulenc has started up a new facility in Roussillon, France, to make hyDow could face drocyanic acid, a key intermediate in the renewed implant synthesis of methionine. The new plant, lawsuits which cost roughly $36 million, will supply the company's methionine plants in Although a Louisiana judge decertified a Roussillon and Commentry, France. class-action lawsuit against Dow Chemical Rhone-Poulenc says the new unit gives it that had involved about 1,800 women a secure, independent hydrocyanic acid with silicone gel breast implants, she ruled supply, and it reduces transportation and last week that a verdict against Dow storage risks of the acid. The French Chemical before decertification would company claims to hold a 30% share of stand. As a result, any of the 1,800 women the worldwide market for the animal may individually bring suit against Dow in feed additive methionine, now worth state court and apply the earlier jury find- roughly $1.1 billion worldwide and douing that Dow concealed research data bling in volume every 10 years. A about the safety of silicone in the human body (C&EN, Aug. 25, 1997, page 9). A Dow spokesman says the company plans . . . and joins to appeal the ruling because it is "highly inconsistent with decertification." New partnerships in Africa Orleans Parish Civil District Court Judge for agriculture Yada T. Magee decertified the class action because cases involved too many dissimi- Separately, the plant and animal health dilar claims. She also agreed last week that vision of Rhone-Poulenc has signed partthe eight original cases on which the class nership agreements with the Ministries of action was based should not go forward Agriculture in Cameroon and Senegal to
improve productivity and raise income of farmers in those countries. The agreements enable the setting up of a private distribution network for agrochemicals and promotion of new agronomic practices. Rhone-Poulenc will train farm workers in weed and insect control techniques and the optimum use of products, and it also will supervise demonstrations to farmers in the two countries. Later this year, a pilot program will be set up in southwest Cameroon for cocoa, coffee, and market garden crops, and in the region around the Senegal River for rice and market garden crops.^
Roche, Progenies in HIV research pact Roche, the Swiss pharmaceuticals and chemicals producer, has entered a collaboration with Progenies Pharmaceuticals, of Tarrytown, N.Y., on therapeutics for the human immunodeficiency virus. The collaboration will concentrate on discovery and development of novel HIV therapeutics that target the fusion coreceptors of the virus, which are required for viral fusion and subsequent infection of human immune system cells. Under the terms of the collaboration, Progenies will provide Roche with an exclusive worldwide license to its HIV coreceptor technology; in return, Roche will provide Progenies with up-front and milestone payments, research funding for up to three years, and royalty payments on the sale of any products commercialized.^
Business Roundup • GenCorp, Fairlawn, Ohio, says it will purchase Goodyear Tire & Rubber's Calhoun, Ga., latex plant, which produces latex for carpet backing and fabric treatment. Terms were not disclosed. • Celgene has sold its Chiral Intermediate Business to Cambrex Corp. for about $15 million. Celgene, Warren, N.J., will receive $7.5 million plus future royalties up to $7.5 million. Cambrex, East Rutherford, N.J., gains rights to Celgene's enzymatic technology for the production of chirally pure products for the pharmaceutical industry. • Air Products & Chemicals has doubled tungsten hexafluoride capacity at its Hometown, Pa., electronic specialty gas manufacturing facility to about 140,000 lb per year. Double-digit demand growth is expected over the next several years. A JANUARY 19, 1998 C&EN 15
