For Sale: ICI's Ti0; BASF's PMMA - C&EN Global Enterprise (ACS

Feb 17, 1997 - Britain's ICI and Germany's BASF have decided it's time to get rid of two business units that no longer fit their corporate strategies ...
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In fact, Frist says he hopes his caucus exercise "will forge a new direction for science and technology" for the govern­ ment. "History has shown there is a clear proactive role for government in further­ ing scientific and technological advances." The roundtable was the first event of a caucus Frist has formed with three other senators—Pete V. Domenici (R-N.M.), John D. Gay) Rockefeller IV (D-W.Va.), and Joseph I. Iieberman (D-Conn.). Frist hopes to recruit more senators to his cau­ cus and is planning more events similar to the roundtable. The panel was made up of govern­ ment, academic, and industry leaders, in­ 2 cluding Neal F. Lane, director of the Na­ tional Science Foundation; Mary L. Good, Commerce Department undersecretary for science and technology; Charles M. Britain's ICI and Germany's BASF have Vest, president of Massachusetts Institute decided it's time to get rid of two busi­ of Technology; Robert Martin, chief tech­ ness units that no longer fit their corpo­ nical officer of Lucent Technologies (part rate strategies and goals. of Bell Labs); and Paul M. Horn, senior ICI has decided to launch its Tioxide vice president for research at IBM. subsidiary—the second largest producer The panelists called for a stronger fed­ of titanium dioxide in the world—on the eral role in the face of growing threats to stock market with an initial public offering sometime in the next six to 18 months. As Last Tuesday, Sen. Bill Frist (R-Tenn.), American technological preeminence ICI puts more emphasis on its less cyclical new chairman of the Senate Commerce, from Asia. Vest was especially forceful in specialty products, "we believe we are no Science & Transportation Committee's asserting that the U.S. should not be longer the right strategic owner of Tiox­ Subcommittee on Science, Technology & ashamed of aiming to be number one glo­ ide," says ICI Chief Executive Officer Space, assembled a bipartisan roundtable bally in all important areas of science and Charles Miller Smith. designed to inform his fellow senators of technology. Vest's views drew no dissent Miller Smith also notes that Tioxide the importance of science and technolo­ from any of the four caucus senators, and none called for any dismantling of federal has been finding it difficult to sell titani­ gy to the country's progress. um dioxide pigment to coatings compa­ Frist plans to lead the charge in the Sen­ R&D programs as so many congressional nies that compete directly with ICI, one ate to protect and preserve federal science Republicans did last year. Formation of the caucus, paired with of the world's largest paint makers. Thus, and technology programs as Congress it will relish the competitive freedom it strains to balance the federal budget. He Sen. Phil Gramm's (R-Texas) Jan. 21 intro­ will have following its spin-off. isn't unfriendly to the idea of a strong fed­ duction of a bill (S. 124) to double—to al­ ICI has not broken out sales and profits eral role in setting technological priorities. most $49 billion—the civilian R&D budget by 2002, bodes well for science and tech­ figures on Tioxide since it became a whol­ nology prospects on Capitol Hill this year. ly owned subsidiary in 1990. But accord­ Gramm's target is, according to Congres­ ing to David Ingles, senior chemicals ana­ sional Research Service estimates, some lyst with James Capel & Co., London, the $12 billion more than the Clinton Admin­ business has sales approaching $1.10 bil­ istration plans to spend. So there are lion and a net asset value of $1.15 billion. doubts that money will actually be avail­ "We estimate that [Tioxide] made at least able for such a doubling. $246 million in 1995, when pricing was Observers tell C&EN that Congress' strong, and barely broke even in the sec­ new, more benevolent attitude toward ond half of 1996," he says. technology as well as science can be at­ When it announced the proposed tributed to several factors: the Republi­ launch, ICI said it hoped to raise the can failure to win the presidency; the re­ equivalent of Tioxide's net asset valuecent agreement between the president that is, $1.15 billion. That, however, may and Republican congressional leaders to be easier hoped for than accomplished. cooperate in running the government; "Tioxide is essentially a one-product busi­ and the success of lobbying efforts by ness with highly cyclical profits and will the science and technology community, not be easy tofloatat a sensible price," In­ especially the Science Coalition, which gles points out. consists of several universities and scien­ Meanwhile, BASF is "seeking interested tific societies. parties" for its $80 million-per-year polyWil Lepkowski methyl methacrylate (PMMA) plastics busi­ Frist: protect and preserve science programs

If the Cambridge team can extend their asymmetric methods to enantiomeric cyanohydrins, the way might be paved to a number of interesting products including single-isomer α-hydroxy acids, psychoac­ tive arylethanolamines, pyrethrin insecti­ cides, phenicol-type antibiotics, and liquid crystals. Currendy, enantiomeric cyanohydrins are produced commercially from en­ zyme-catalyzed reactions of aldehydes with hydrogen cyanide or acetone cyanohydrin as the cyanide donor. Stephen Stinson

For Sale: ICI's Ti0 ; BASF's PMMA

ness, which includes production and sale of granules, extruded and cast PMMA sheet, and polycartx>nate sheet. Two BASF affiliates make up the business: Resart in Germany, and Critesa in Spain. The two operations employ about 340 people. BASF is currently restructuring its PMMA production operations. When that is completed later this year, it will have a total PMMA polymerization capacity of about 50 million lb per year, sheet-extru­ sion capacity of 26 million lb per year, and cast PMMA sheet production capaci­ ty of 13 million lb per year. When it hung up the "for sale" sign, BASF said its engineering plastics division "does not see any possibility to expand the PMMA business to a global core opera­ tion." Hence its decision to find a more suitable home for the operations. Patricia Layman

Science finds friends in the Senate

FEBRUARY 17, 1997 C&EN

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