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HONEYWELL BUYING DOW SHARE OF UOP Purchase caps chemicals restructuring program at Honeywell
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ONEYWELL IS BUYING OUT
Dow Chemical's 50% stake in UOP, a Des Plaines, Illbased petrochemical and refining technology joint venture, for $825 million, giving it full ownership. UOP employs about 3,000 people and generated $1.2 billion in revenues in 2004. UOP calls itself the world's largest provider of process technology and services to the refining and petrochemical sector and the largest manufacturer of molecular sieve adsorbents. It also makes more than 300 different catalysts. Nance K. Dicciani, president of Honeywell's specialty materials business, which will assume UOP, says buying out the joint venture is an attractive option in an age when
GOVERNMENT
chemical and energy companies are increasingly trying to get the most out of hydrocarbon resources. "We are very optimistic about our forward-looking prognosis for this business," she says. Dicciani says the acquisition alsofitswith Honeywell Specialty Materials' strategy to improve its global reach, acquire technology, meet ongoing and looming trends, and focus on growth. UOP "meets all of those criteria," she notes, adding that Honeywell can also leverage UOP's expertise in other technologies. The purchase is Dicciani's first big growth step after spending several years trimming down Honeywell Specialty Materials through the sale of fine chemicals,
engineering polymers, and other operations. The business is now in the process of selling its U.S. carpet nylon operation to Shaw Industries. "We are finished with the heavy lifting in our portfolio," Dicciani notes. Dow says its 50% stake in the business, which it received through its 2001 acquisition of Union Carbide Corp., is not strategic. "We believe that our goal of maximizing the value of the business to Dow is best realized through this sale to our joint-venture partner," CEO Andrew N. Liveris says.—
NIGHT LIGHTS A UOP-designed benzene-toluenexylene complex in Map Ta Phut, Thailand, owned by Aromatics Thailand Co.
ALEXTULL0
which claimed that Crawford's unintentional failure to disclose certain financial interests during the corifirmation process had prompted his resignation. In the meantime, Andrew C. von Eschenbach, the acting FDA commissioner, announced on determine whether he was in com- Sept. 30 that he will take a leave pliance and whether he was forth- from his position as director of coming in his attestations to the the National Cancer Institute. White House Counsel, the De- HHS Secretary Michael O. Leavitt partment ofHealth & Human Ser- has named John Niederhuber as vices, the Office of Government chief operating officer of NCI; he Ethics, and the Committee." will direct day-to-day operations. Maurice D. Hinchey (D-N.Y.) Niederhuber, a clinical oncologist, andfiveother Democratic House is a former chair of the National members wrote a similar letter to Cancer Advisory Board. Before the HHS Inspector General. It Niederhuber was appointed, memsaid, "Dr. Crawford's resignation, bers of Congress had complained a mere two months after confirma- that if von Eschenbach tried to head tion to his position, raises signifi- bothFDAandNCI, itwould create conflicts of interest because NCI cant questions." The requests were prompted by studies some ofthe drugs that FDA a Sept. 28 New York Times article, later approves.—BETTE HILEMAN
CRAWFORD PROBE
Congress has asked HHS to investigate resignation of FDA chief
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EMBERS OF CONGRESS FROM
both the House and Senate have asked the Inspector General for the Department of Health & Human Services to investigate the reasons surrounding the sudden resignation on Sept. 23 of former FDA commissioner Lester M. Crawford. In a letter to HHS Inspector General Daniel R. Levinson, Sens. Edward M. Kennedy (D-Mass.) and Michael B. Enzi (R-Wyo.) wrote, "We would appreciate if you would examine [Crawford's] financial reporting in accordance with the various ethics laws to WWW.CEN-0NLINE.ORG
C&EN
Crawford
Niederhuber / OCTOBER
10,
2005
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