South East Asian Chemical News

REGIONAL 

BASF, the world's largest manufacturer of neopentadiene, and Jilin Chemistry Co Ltd have opened China's largest neopentadiene plant in the northeastern province of Jilin.  The plant has a production capacity of 15,000 tpa.  Neopentadiene is used to produce resin powder for use in the production of furniture, computer cases, farm machinery and auto parts.  (July 10^th 1998) 

The Bayer Group plans to invest over DM250m (US$139m) in existing acrylonitrile-butadiene- styrene (ABS) polymer plants in Germany, Spain, Italy, US, Brazil and India to increase total capacity to 850,000 tpa.  (July 10^th 1998) 

Berger Paints India Ltd (BPIL) plans to increase its presence in Southern India in the decorative paints segment where it will compete with Asian Paints.  BPIL recently opened a new production center in Pondicherry, South India, which will lower distribution costs.  Its distribution network consists of 46 branches and over 10,000 dealers.  (June 30^th 1998) 

Chongqing Synthetic Chemical Industrial Plant has merged with the Mao Shi Group Company.  This is the first merger between a private and state-owned company in Chongqing, one of the largest municipalities in China. Chongqing Synthetic Chemical Industrial Plant’s total asset value is estimated at RMB150m (US$18m).  The Mao Shi Group is engaged in manufacturing, real estate and trade.  Mao Shi Group will assume all debts after the merger.  (July 31^st 1998) 

Ciba Specialty Chemicals India Ltd has acquired three epoxy-based adhesive brands from Mahindra Engineering & Chemical Products Ltd (MECP), a subsidiary of the Indian car manufacturer, Mahindra & Mahindra.  The brands acquired are M-Seal, Fixit and Bond-All.  M-Seal currently has a 70% share of the sealant market in India.  (July 10^th 1998) 

Ciba Specialty Chemicals has signed a contract for its second pigment JV with Xiangtan Chemical Industry Research and Design Institute in China, at Xiangtan, Hunan Province, to supply the Chinese and export markets.  Ciba will hold a 49% stake and Xiangtan will hold the remaining 51%.  The total investment will be US$7.5m.  The new entity, Xiangtan Chemicals and Pigments Co Ltd, will produce 200 tpa of quinacridone pigments.  The first JV opened in October 1997 in Qingdao, Shandong Province, for the production and sale of organic pigments.  (July 8^th 1998) 

Courtaulds is building a paint factory in Suzhou, China.  The new factory will cost US$4m initially and is funded by Courtaulds' International Protective Coatings.  The factory will produce 20 million liters of protective paint per year.  Courtaulds already has three paint ventures in China.  Two are in Suzhou to produce packaging and powder paints and the third is in Pudong to manufacture marine paint.  (July 15^th 1998) 

Elementis Shenzhen, an Elementis JV, is to open a new iron oxide pigments plant in China by the end of 1998 at a cost of US$15m.  Elementis is a UK manufacturer of performance chemicals.  (July 10^th 1998) 

Exxon Chemical Eastern has formed a US$29m, 60:40 JV with Shanghai Petrochemical Co (SPC) to manufacture hydrocarbon resins in China.  The resins will be manufactured under the name Shanghai Jinsen Hydrocarbon Resins Co.  The JV includes the construction of a 25,000 tpa plant equipped with Exxon technology in Jinshan, near Shanghai.  (July 12^th 1998) 

Sweden’s Fule Co has entered the Chinese market with its Xingmei brand emulsion paint.  Fule manufactures construction paint for inner and outer walls, waterproof paint for wooden surfaces and water-soluble paint for furniture.  Beijing Kaipu Industrial Co with the Sweden Xinghua Trade Center imports Fule paint to China.  (July 29^th 1998) 

Great Wall Lubricating Oil Group Co was formed through the merger of Great Wall Premium-Grade Oil Co and Yanshan Lubricants Co.  The newly formed company is now the largest producer of lubricants in China.  Great Wall’s management plans to list on the domestic stock market.  (July 3^rd  1998) 

ICI unit ICI India Ltd has sold its 40% stake in Nalco Chemical India Ltd to Nalco Chemical Co for Rup299 (US$7) a share.  Nalco now holds 80% of Nalco Chemicals India, while the public holds the rest.  Nalco Chemical India has no immediate plans to delist or to acquire the remaining stake held by the public.  (July 22^nd 1998) 

ICI India Ltd may invest between Rup5bn (US$119m) and Rup10bn (US$238m) over the next ten years in three areas.  The areas targeted for growth are: selected paints, specialty chemicals and specialty products in the food, home care, personal care, paper, electronics, construction and automotive sectors.  ICI, the UK parent company, signed a JV with the Anglo-Dutch personal products company Unilever, to manufacture specialty chemicals for products such as detergents and shampoos. Unilever has a 51% stake in Hindustan Lever.  (July 28^th 1998) 

ICI India Ltd and Swire Pacific opened a 35 million liters per year waterborne decorative paint plant in the Songjiang Industrial Zone, Shanghai, China at a cost of US$40m.  ICI India owns 70% of the plant and Swire Pacific owns the remaining 30%.  (July 10^th 1998) 

Orica Ltd, an Australian chemicals group, has bought an Ecolab unit, Maxwell Chemicals, in Australia for an undisclosed sum.  Maxwell was a unit of Gibson Chemical Industries Ltd, which Ecolab acquired in January 1998.  Maxwell sells and distributes wood finishes and paint products.  Orica also acquired New Zealand’s Peterson Chemicals.   (July 15^th 1998) 

The Rosin Plant of Fusui County, in China’s Guangxi Zhuang autonomous region, is seeking foreign investors for an expansion of current production capabilities.  The plant currently produces 3,000 tpa of rosin and is looking to double its annual capacity.  The company also intends to begin producing resin dispersoid in the next year.  (July 1^st 1998) 

Vanavil Dyes and Pigments of India posted a 23% increase in net profit to Rup34.1m (US$812,000) for 1997-1998.  The company, a 52% subsidiary of the Indian dye producer Colour Chemicals Ltd, manufactures pigments, specialty chemicals and dyes.  (July 3^rd 1998