Ltd. Mr Rama Prasad Goenka died on14 April 2013, at the age of 83.

Original Source: European Rubber Journal, 7 & 14May 2013, (Website: http://www.european-rubber-journal.com) © Crain Communications Ltd 2013

Mexico: Cabot – carbon black

Cabot Corp will take 100% control ofNhumo SA de CV (of Mexico), buyingout its joint venture partner. Cabot willpay Grupo Kuo $105 M for its 60%shareholding. Of this total, $80 M willbe paid upon closing the transaction,probably during 3Q 2013. Cabot’s40% shareholding dates back to1990. Nhumo’s plant at Altamira nowhas a capacity of 140,000 tonnes/y.The company reported adjustedearnings before interest, tax, depre-ciation and amortisation (EBITDA) of$41 M last year.

Mr Patrick Prevost (CEO of CabotCorp) said: “This acquisition not onlyincreases Cabot’s footprint in NorthAmerica, it also solidifies our globalleadership position in the carbon blackindustry. This gives us expandedaccess to an important growth marketin Mexico and to immediate additionalcapacity so as to support the expansionof our customers in the US.” Cabotproduces carbon black at 18 plantsthroughout the world, with a totalcapacity in excess of 2 M tonnes/y.

Cabot Corp, 2 Seaport Lane (Suite 1300), Boston, MA02210, USA, website: http://www.cabot-corp.com (17Jun 2013)

Poland: Solvay – precipitated silica

Solvay has begun construction workon a new precipitated silica plant at anew 8 hectares site in Wloclawek(160 km northwest of Warsaw),abutting PKN Orlen Anwil’s oil refinerycomplex and close to the newlycompleted Warsaw-Gdanskmotorway. Solvay will invest €75 M inthis project, with the creation of morethan 50 jobs. The plant will bedesigned to produce up to 85,000tonnes/y of highly dispersible silica(HDS), a special type of precipitatedsilica. Towards the end of last year,Solvay commissioned a smaller HDSunit at Collonges Mont d’Or (10 kmnorth of Lyon city-centre) and earlierprojects involved new capacity in theUS and China. (See ‘Focus onPigments’, Jan 2013, 5). Solvayinherited the HDS business with its

€3.4 bn takeover of Rhodia in August2011.

Solvay SA, Rue de Ransbeek 310, B-1120 Brussels,Belgium, tel: +32 2 264 2111, website:http://www.solvay.com (22 May 2013)

COMPANIESKingfa buys Hydro S & S

Kingfa Scientific & Technological Co(of Guangzhou, China) has acquired a67% stake in Hydro S & S Industries(of Chennai, India), paying $18 M.This is the company’s first foreignacquisition. Kingfa is the world’slargest plastics compounder, withplants in Guangzhou, Jiangsu,Shanghai, Sichuan and Tianjin, givingan overall capacity of more than 1 Mtonnes/y. Hydro S & S operates threeplants, each with a capacity of about10,000 tonnes/y at Pudukottai (TamilNadu), Jejuri (Pune) and Puducherry/Pondicherry (150 km south of Chennai).

Original Source: Compounding World, Jun 2013, 11(Website: http://www.amiplastics.com/mags) © Applied Market Information Ltd 2013

Schulman drops bid to buy Ferro

A proposed takeover bid, which wouldhave been one of the largesttransactions in the history of theplastics masterbatch industry has beenabandoned. On 2 July 2013, ASchulman Inc (of Copley, OH) reportedthat it would no longer pursue itsunsolicited offer to acquire the entirebusiness and assets of Ferro Corp (ofCleveland, OH). Schulman had formallydeclared its bid on 4 March, but its firstapproach to the Ferro Board ofDirectors dated back to November2012. Schulman was offering $6.50 perFerro share. Earlier reports indicatedthat this bid valued Ferro at $855 M,but more recent reports indicate thatthe valuation was actually $563 M.(See also ‘Focus on Pigments’, May2013, 7).

Mr Joseph Gingo (CEO ofSchulman) said: “We have givenFerro’s board ample time to comeback to us to initiate a discussion.This has not happened, so we havedecided to look elsewhere foracquisition opportunities.” Over thepast four years, Schulman has madefive successful acquisitions andestablished two joint ventures. At the

end of May, the company announcedthat it had reached agreement inprinciple to pay $50 M to buy NetworkPolymers Inc (of Akron, OH), whichoperates a plant at Akron, OH,producing a broad spectrum ofcustom-made resins and alloys.Network Polymers reported salesrevenues of $65.3 M for last year.

Also at the end of May 2013,Schulman confirmed that it would takefurther measures to cut its costs andreduce its headcount in Europe, theMiddle East and Africa. Theanticipated savings of $4 M per yearwill be additional to the $6 M per yearsavings achieved in this region since2010. Schulman also announced thatit intends to sell its Australianrotational compounding business,based in Brisbane (Australia). Thisbusiness generated sales revenue ofaround $25 M last year.

Meanwhile, Ferro Corp reported apost-tax loss of $1.46 M on sales of$853 M in the first six months of 2013,compared against $6.18 M on $936 Min the first six months of 2012.Pigments, powders and oxidescontributed only $108 M to 1H 2013sales revenue, compared against$154 M in 1H 2012. Performancecolorants contributed $205 M this yearand $210 M last year. On 8 May,Ferro announced that it had concededtwo seats on the Board to nomineesfrom investors who have criticisedFerro’s financial results. Mr DavidLorber (of FrontFour Capital) and MrJeffrey Quinn (of Quinpario Partners)joined the Board, with a commitmentto enhance shareholder value.

Original Source: Plastics News, 4 Jul 2013, (Website:http://www.plasticsnews.com) © Crain CommunicationsInc 2012. Original Source: A Schulman Inc, 3637Ridgewood Road, Copley, OH 44321-1678, USA,website: http://www.aschulman.com (28 May 2013) ©Schulman 2013. Original Source: Ferro Corp, 4150 East56th Street, Cleveland, OH 44105, USA, website:http://www.ferro.com (8 May & 31 Jul 2013) © Ferro2013

AUGUST 2013 7

F O C U S O N P I G M E N T S

Schulman: Sales Revenue, by Segment

FY 2007 FY 2012Total Revenue $1.8 bn $2.1 bn

Masterbatch 32% 35%Custom colours <1% 7%Engineered plastics 26% 26%Speciality powders 7% 16%Distribution 34% 16%

Source: Schulman, July 2013