Unit Sold

Acquisition

Praxair Distribution, a division of Praxair Canada, acquired Blue Rhino’s Canadian propane tank-exchange business.  The acquisition included more than 900 propane tank-exchange display cages at retail locations throughout Canada.

Chemical Regulation

Canada’s government has unveiled a Chemicals Management Plan to take immediate action to regulate chemicals that are harmful to human health and the environment.  The plan is part of a comprehensive environmental agenda which includes a Clean Air Act, support for public transit and action on renewable fuels.  Canada will invest C$300 million during the next four years to implement the plan.  The plan includes a number of measures to make sure that chemical substances are managed properly.

Up For Sale

Solutia is considering two options to reorganizing and emerging from bankruptcy: the potential sale of its equity to a third party or granting bondholders shares in the company.  Likely bidders would be private equity firms, according to investment bankers.  The company does not have a preference for either option – the only focus is to maximize the value of the estate for its creditors.

Air Products has increased its research and development (R&D) capabilities in Asia to meet rising demand there.  The company has added state-of-the-art equipment in Taiwan and South Korea to support the development of the advanced integrated circuit industry.  The recent expansion in Taiwan includes a new general chemical lab to conduct chemical screening and process tubing as well as extra office space for additional staff.

MDI Capacity Expansion

BASF will expand the capacity of its methyl di-p-phenylene isocyanate (MDI) in Antwerp, Belgium to keep up with global demand.  The facility will be expanded from 450,000 tons/year to 560,000 tons/year in the second quarter of 2007.  In addition, the company will build two plants for the MDI precursors aniline (180,000 tons/year) and mononitrobenzene (280,000 tons/year) to go on stream with the MDI expansion.  Growing global demand is largely driven by MDI-based insulating materials as well as sandwich plate systems and binders to reinforce dikes.

Oil Production

Reliance Industries Ltd. will begin crude oil production at its offshore D-6 block in the Bay of Bengal by the first quarter of 2008.  The company has filed a development plan for the MA-1 and MA-2 oil finds, envisaging production of about 40,000 barrels/day of oil by February 2008.  Further plans include a floating production, storage and offloading vessel to be installed by October 2008 to help boost output to 50,000 barrels/day.  According to the current estimates, the block may hold around 50 trillion cubic feet of gas reserves.

Acquisition

Punjab Chemicals & Crop Protection Ltd. will acquire Argentina’s Sintesis Quimica SA for $10 million.  The acquisition will be done by SD Agchem (Europe) NV, a 100% subsidiary of the company based in Belgium.  As a result, Sintesis Quimica will become the subsidiary of SD Agchem (Europe).  Sintesis Quimica has two manufacturing facilities on the outskirts of Buenos Aires engaged in agro chemicals, formulations and industrial products.

LNG Plant Recovery

Sonatrach and Delair Navarra have received the contract to demolish and recover the remains of Skikda’s petrochemical complex’s three gas liquefaction plants in Algeria.  The three plants were blown out by an explosion in January 2004 that left 26 people dead and 74 wounded.  The plants were used to liquefy natural gas that was then exported to Europe.  As a result of the blast, LNG production at the plants declined 76% during 2004.

Targeting Global Specialty Automotive Sector

Dubai Aluminum Company (DUBAL), one of the world’s largest producers of premium quality aluminum, is focused on the $34-billion global specialty automotive sector as part of its strategy to seek out niche markets in order to achieve growth in diversified sectors.  At the recently held Specialty Equipment Manufacturer’s Association (SEMA) show in Las Vegas, company officials gauged the requirements of the clientele and the market.  As part of its continuing expansion program, DUBAL recently expanded facilities at its two potlines – Potline 7 and 9 B, increasing the production capacity by 100,000 tons/year to a total of 861,000 tons/year at a cost of $280 million.

Chemical Spill

BASF’s largest UK plant, Teesside, had a major leak of 4.5 tons of hexamethylenediamine, known as HMD, that injured 37 workers, two of whom were injured seriously.  Hospital officials have said that the condition of the two men is improving, so state officials say the spill caused little harm.  The investigation to the cause of the spill continues with the Health and Safety Executive and the plant is remaining closed to allow investigators access to the accident site.  HMD is used in the manufacture of a range of plastics and is corrosive and can be hazardous in high concentrations.

Partnership Expanded

Innospec has signed two agreements with Petron to expand the scope of the companies’ strategic partnership and create new opportunities for Innospec to better serve the Asia-Pacific region.  Petron will construct and operate a new blending plant in Subic Bay Freeport to serve the fuel additives requirements of Innospec’s regional customers, with Petron serving as Innospec’s exclusive toll blender in the region.  Innospec will also continue supplying Petron with customized fuel additives for the domestic market.

Sale Completed

Huntsman Chemical Company Australia (HCCA) has sold its polyester resins (composites) business assets to Nuplex Industries for A$9.6 million in cash plus the value of inventory and other stock in trade at the completion date, for a total transaction of A$20.3 million.  The assets include HCAA’s polyesters, vinylesters and gelcoats manufacturing.  Annual sales from the business are approximately A$53 million.