NEWS OF THE WEEK ACQUISITION
CHEMTURA DEBUTS NEW TICKER Chemtura CEO Wood (center) on July 5 at the New York Stock Exchange, where Chemtura now trades under the symbol CEM.
Crompton completes purchase of Great Lakes and moves to cut 600 jobs tura is the third largest publicly traded U.S. specialty chemicals company after Rohm and Haas and Engelhard. "Chemtura is a unique new company with a portfolio of global businesses that have achieved leading positions in high-value market niches," CEO Robert L. Wood says. The company holds strong positions in markets such as plastics and petroleum additives, castable urethane prepolymers, flame-retardants, and pool chemicals. But the merger won't come without some cost to the comCEM bined firm's workforce. To contSEBsn trol costs, Chemtura will slash NYSE 600 jobs—equivalent to 8% of current employment of 7,300 — Chemtura. With total annual rev- over the next year. The company enue of some $37 billion, Chem- says it is undertaking the job cuts
C
ROMPTON CONSUMMATED
the $2 billion acquisition of Great Lakes Chemical on July 1 toformthe newly dubbed
Chemtura
AIR
POLLUTION
PLANS PULLED EPA proposal would shield firms' upset plans from public scrutiny
F
DOCUMENTED Refineries and chemical plants must have written plans to hold down emissions during operational malfunctions.
10
C & E N / JULY 1 1 , 2 0 0 5
ACILITIES WOULD NO LONG-
er have to follow their written plans when they try to minimize emissions ofhazardous air pollutants during operational upsets, under an EPA proposal announced onJune 30. The proposed change, hailed by the chemical industry, would also make it harder for the public to obtain copies ofthese plans. The Clean Air Act requires companies to have written plans for curtailing toxic emissions during a start-up, shutdown, or malfunction (SSM). Environmental groups for years have argued for access to
SSM plans so they can check on facilities' compliance with the Clean Air Act. Chemical makers and refiners, meanwhile, want to keep the documents out of the public's hands, citing concerns about terrorism and industrial espionage (C&EN, Sept. 22,2003, page 26). EPA is proposing to retract a current regulatory provision requiring companies to abide by their SSM plans during an upset. The agency points out that the air act says facilities must minimize upset emissions "to the greatest extent which is consistent with safety and good
in an effort to "streamline work processes and to utilize more efficient systems." By 2006, Chemtura predicts that annual cost savings from the merger will be $150 million, up from the original estimate of $90 million to $100 million. "Organization redesign" will account for 30% of savings; supply-chain operations,for60%; and other areas, for the balance of savings. As a result, Chemtura will take charges against earnings totaling nearly $240 million, including $20 million to $25 million for severance expenses, $125 million to $135 million for change-in-control agreements, and $50 million to $55 million for closing costs. To get into fighting trim before the merger, Crompton sold its refined products business, along with 470 employees, to Sun Capital Partners in June, and it placed its Davis Standard polymer equipment business, with 660 employees, in a joint venture with private equity firm Hamilton Robinson in April.— MARC REISCH
air pollution control practices." Under the proposed change, a company deviatingfroman SSM plan wouldn't violate the Clean Air Act. This would mean an SSM document is not a "compliance plan," EPA says. This technical change has big implications, because Clean Air Act compliance plans are publicly available. Thus, the proposal would block public access to SSM documents. T Ted Cromwell, managing director of environmental programs at the American Chemistry Council, says following a prescriptive SSM plan may not be the best way for a facility to minimize its releases during an unanticipated upset. Environmental groups oppose EPA's proposal and vow to continue a federal court case seeking public access to SSM plans.-CHERYL H0GUE WWW.CEN-0NLINE.ORG
