FOCUS ON
markets (speciality surfactants,
natural polymers, acetate tow) and
engineering plastics based on
polyamide 6.6. Future geographic
expansion will be driven by a
significant presence in the emerging
markets, which already generate 40%
of sales of the combined group. The
complementary nature of the
industrial activities of Rhodia and
Solvay should provide the combined
group with a balanced presence in its
different market segments: speciality
chemicals for consumer goods,
construction, automotive, energy,
water, environment and electronics.
Beyond the revenue synergies, the
annual cost synergies are estimated
to amount to €250 M within 3 years.
The cost synergies are expected to
result from the alignment of cost
structures in line with good industry
practices used in groups of a
comparable size. Two thirds of these
synergies will come from external
cost optimization. The combination
will therefore not involve any major
downsizing. Nor will there be any
restructuring because the 2 groups
are complementary and their merger
will not adversely affect market
competition. Furthermore, because
their production is different, there will
not be any consolidation of industrial
assets in the short term and almost
all of Rhodia’s 14,100 employees will
join Solvay’s 16,800-strong workforce.
The tender offer is conditional upon
approval by the EU and US anti-trust
authorities and upon a minimum
acceptance level of 50% plus one
share. Solvay expects that the offer
will be closed by late Aug 2011. Upon
reaching a 95% acceptance level
Solvay reserves the right to conduct a
squeeze-out of the remaining shares.
Bonds convertible into and/or
exchangeable into new or existing
shares (OCEANE) issued by Rhodia
will also be offered at a price of €52.3
per OCEANE.
Surprise has been expressed in
some quarters at the bid as market
observers had expected that Solvay
would attempt to acquire a traditional
industrial chemicals company.
Instead, Solvay has selected a
company similar to itself, though with
complementary specializations and
geographical strengths. Both groups
have a long history and both prioritize
research, production and sustainable
JUNE 2011
S U R FA C TA N T S
development. Both have a presence
in Brazil but Solvay is better placed
in India and Russia, whereas Rhodia
is better established in China.
Solvay’s bid is also surprising in that
Rhodia was not for sale. Although
some may mourn the loss of a large
French industrial group, Solvay has a
strong presence in France. Its
largest site is in the Vosges region
and employs 1500. The group’s
European chemicals business unit
recently moved its HQ to Paris. The
new Solvay will be quoted on both
the Brussels and Paris stock
exchanges.
Press releases from: Rhodia SA, Immeuble Coeur
Defense, Tour A, 110 esplanade Charles de Gaulle,
92400 Courbevoie, France, tel: +33 1 5356 6464, fax:
+33 1 5356 6459, website: http://www.rhodia.com
(4 & 6 Apr 2011) & Chimie Pharma Hebdo, 11 Apr
2011, (546), 1,4 (Website:
http://www.industrie.com/chimie) (in French)
Evonik builds plant to produce
surfactants for cosmetics and
household products in China
Evonik Industries AG is building an
integrated production plant for organic
speciality surfactants at its site in
Shanghai, China. With an investment
volume in the upper double-digit
million euro range, the production
network is scheduled to begin
operation in mid-2013. By building the
plant at the Shanghai site, Evonik
benefits from the infrastructure of the
large Shanghai Chemical Industry
Park (SCIP) and close proximity to its
customers’ production facilities. The
various speciality surfactants based
on renewable raw materials that will
be produced at the integrated site will
be used primarily for cosmetics and
laundry care products, as well as for
industrial applications. The Chinese
cosmetics industry accounts for the
lion’s share of production. China, the
largest single market for cosmetics
products in Asia, is expected to
generate 25% of the absolute market
growth in the intermediate term. The
Chinese market for cosmetic
ingredients, which is mainly driven by
multinational corporations, is growing
by 10%/y. The market for laundry care
products in Asia is driven by a
growing environmental
consciousness. With the construction
of the new integrated production
plant, Evonik is also increasing its
local capacities in technical service,
marketing and sales.
Press release from: Evonik Industries AG,
Rellinghauser Str 1-11, 45128, Essen, Germany,
website: http://www.evonik.com (30 Mar 2011)
Earthquake touched off changes in
Asian surfactant market
The 11 Mar 2011 earthquake and
ensuing tsunami in Japan prompted
significant changes in the Asian
surfactant market. The industry was
in short supply of ethylene oxide, a
key raw material, because of the
closure of Mitsubishi Chemical’s
Kashima complex. The facility was
expected to remain offline for 1.5
months. The disaster was also a
factor in the considerable drop in
prices of natural raw material palm
kernel oil (see p 2).
Japan Chemical Web, 11 Apr 2011, (Website:
http://www.japanchemicalweb.jp)
Air Products increases prices for
functional additives
Effective 1 May 2011, or as contracts
allow, Air Products increased prices
of its Tomamine, Tomadry, Tomadyne,
Tomadol, Nonidet and Nonatell
surfactant products by 5 cts/pound.
The increases are in addition to those
announced in Mar 2011 [Focus on
Surfactants, May 2011] and are
necessary to address escalating raw
material costs, it says.
Press release from: Air Products, 7201 Hamilton
Boulevard, Allentown, PA 18195 1501, USA, tel: +1
610 481 4911, fax: +1 610 481 5900, e-mail:
info@airproducts.com, website:
http://www.airproducts.com (4 Apr 2011)
Ashland to increase global prices for
phosphate ester products
Ashland Aqualon Functional
Ingredients, a commercial unit of
Ashland Inc, is increasing the global
price of its Dextrol and Strodex
phosphate ester surfactants by 5-9%
effective immediately or as early as
contracts allow. The pricing action is
necessary to offset rising prices for
freight and key raw materials used to
manufacture these products.
Press release from: Ashland Inc, 50 East RiverCenter
Boulevard, PO Box 391, Covington, Kentucky 41012-
0391, USA, tel: +1 (859) 815-3333, website:
http://www.ashland.com (1 Apr 2011)
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