MARKETS ANDBUSINESS

US demand for chemical catalystsforecast to expand 3.3%/y to 2009

Chemical catalyst demand in the USAis projected to grow 3.3%/y to 2009,according to a recent study fromindustrial market research firm TheFreedonia Group Inc. The reportstated that continued robust demandfor olefin-based materials andethylene glycol-based polyesters willresult in near average growth for thepetrochemicals industry. However,demand for inorganic chemicalcatalysts will drop due to the effect ofhigh prices of natural gas onammonia, and accordingly, nitric acidproduction. Alcohols will experiencethe most rapid growth as the ethanolindustry continues to grow rapidly toconform to the standard under theEnergy Policy Act of 2005.

Hydrocarbon Processing, Dec 2005, 84 (12), 7

Catalysts are driving big deals

BASF estimates that the automotivecatalyst market is worth $2.5 bn. Ithas launched a $4.9 bn cash bid forEngelhard Corp. This would allowBASF to expand its automotivecatalysts business as will asstrengthen its position for specialitypigments. Engelhard producescatalysts for automotive, pollutioncontrol, chemical, polyolefin, andpetroleum applications. It had sales of$3.3 bn for Jan-Sep 2005. Its 2004sales of $4.2 bn were split:Environmental Technologies division22% (automotive and non-automotivecatalysts), Process Technologiesdivision 15% and Appearance andPerformance Technologies division17% (mainly pigments) and MaterialsServices (base and precious metalservices for Engelhard’s catalystactivities and external clients) 46%.Catalyst sales are being boosted byincreased environmental legislation inN America, the EU, and Japan as wellas market expansion in India, Russia,China, and S America. Engelhard hasaround 30% of the fluid-crackingcatalyst market.

Chemical Market Reporter, 16 Jan 2006 (Website:http://www.chemicalmarketreporter.com)

French and Danish companies invest inbiotechnology

The French company Spef Venture andthe Danish companies Vecata andIncuba Venture are to contribute to the€6 M capital increase that the Danishbiotechnology company FluxomeSciences has agreed. The investmentis to speed up the R&D of FluxomeSciences. The research is intobiological routes to new chemicalcompounds, and into cheaper and lesspolluting routes to traditional chemicalcompounds. The microorganisms usedinclude moulds, yeasts, and bacteria.Enzymes too are used. The companyaims to improve current bioprocesses.According to the US government, thismarket should rise from the present$50 bn/y to $500 bn in 2020. Theprocesses being developed are for usein the pharmaceutical, nutraceutical,food, and drinks industries.

Chimie Pharma Hebdo, 16 Jan 2006, (325), 13 (inFrench)

Novozymes and Danisco interested inUS energy policy switch

On 1 Feb 2006 the share price ofNovozymes rose by 6.2% to DKR362.5 and that of Danisco by 1.4% toDKR 475.0 against the background ofthe State of the Union address byPresident Bush. In this it was statedthat research into the creation ofbiomass for ethanol production will bestrengthened and that by 2025 75% ofoil imports from the Middle East wouldbe replaced by alternatives, includingethanol. This was interesting news forNovozymes and Danisco both of whichdevelop and manufacture enzymes forthe production of fuel ethanol.

Dagbladet Borsen, 1 Feb 2006 (Website:http://www.borsen.dk) (in Danish)

Synthetic zeolites: presence growingin environment and new energy fields

The unique adsorptive, catalytic, andion-exchange properties of zeolitesare leading to new applicationsincluding resin additives and inenvironmental conservation situationswhere they can be used to removehazardous substances and offensiveodours. Additional applicationsinclude production of industrial gasesby separation of oxygen and nitrogenin air. The use of zeolites as

molecular sieves is being promotedby Union Showa KK, a majorproducer. Other major producersinclude Tosoh Corp, MizusawaIndustrial Chemicals, NipponChemical Industrial, and Zeochem(Switzerland). Pacific ChemicalMarketing Co is the Japanese agencyfor Zeochem. The Swiss company ispromoting the use of zeolites forremoval of odour and foreign materialsfrom gasoline, particularly in marketssuch as India. The wide range ofapplications for zeolites is outlined.

Japan Chemical Week, 22/29 Dec 2005, 46 (2348), 6-7

UK starts work on National BiotechCentre

Thermal Transfer has been awarded aprocurement, construction, andcommissioning contract by the Centrefor Process Innovation for a pilot-scalebiocatalyst facility at Wilton, UK. It willbe known as the National IndustrialBiotechnology Facility, and will becompleted before the end of 2006. Itwill cost around £6.5 M, with fundingprovided by regional governmentagencies in northern England. The unitshould be self-financing within 2 years.

Chemical Week, 25 Jan 2006, 168 (3), 22

COMPANYNEWS

Albemarle surges on catalyst play

Albemarle’s share price increased to$40.97 /share, up $2.62 following anannouncement that BASF had bid forEngelhard.

Chemical Market Reporter, 9 Jan 2006 (Website:http://www.chemicalmarketreporter.com)

BASF makes unsuccessful bid forEngelhard

BASF has made a hostile bid to takeover Engelhard for $4.9 bn in cash, or$37/share. The move would makeBASF a world leader in catalysts.Engelhard advised shareholders totake no action for the moment.Engelhard then formally rejectedBASF’s takeover offer, saying it is“opportunistic and undervaluesEngelhard.” Engelhard’s board has

2 MARCH 2006

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