Solvay has successfully completed the acquisition of Cytec and will immediately begin the integration
of Cytec’s businesses to deliver cost synergies and capture significant business
opportunities in advanced lightweighting materials for the aerospace and
automotive industries and in specialty
chemicals for mining.
“Cytec represents a decisive milestone
in Solvay’s transformation and opens up
new horizons for growth and innovation.
Solvay is now a leading provider of light-
weighting materials for the aerospace in-
dustry,” said Jean-Pierre Clamadieu, CEO
A large team of Solvay and Cytec
personnel has been mobilized since early
October to prepare detailed integration
plans. Solvay will also create two new
Global Business Units (GBU):
•GBU will group Cytec’s compos-
ite businesses Aerospace Materials
and Industrial Materials. Bill Wood
is appointed President of this GBU,
•GBU will combine Cytec’s In
Process Separation, Polymer
Additives and Formulated Resins
activities with Solvay’s phospho-
rus-based intermediates. Mike
Radossich is appointed President
of this GBU, which will form part
of the Advanced Formulations
segment.
Solvay fully expects to generate a
minimum of 100 million euros in annual synergies within three years after
Solvay Completes Acquisition of
Cytec and Starts Integration Plans
LANXESS Pigments Symposium 2015 in Shanghai, China
LANXESS held its second LANXESS Pigments Symposium in Shanghai, China, on November 19, 2015. The topic this year was, “The global pigments industry in transition – Turning challenges into sustainable
value creation,” and the Inorganic Pigments business unit (IPG) again
provided worldwide experts and users with a discussion platform for
learning more about current developments and future challenges in
the pigments industry.
Issues such as the continued implementation of progressive environmental regulations in China, the simultaneous advancement of
consolidation in the global pigments industry, and new challenges
facing the paints and coatings industry, were the subject of animated
discussion. Over 150 international participants, including customers
and sales partners, as well as representatives of government, professional associations and the media, responded to LANXESS’ invitation
to join in this dialogue.
China is both the largest sales market and the largest production
center for inorganic iron oxide pigments worldwide. The country’s
economy is in a restructuring phase, which is also greatly affecting
the pigment industry. “Rising environmental regulations are forcing numerous Chinese manufacturers to close down their manufacturing plants. However, despite temporary, localized downturns,
global demand for inorganic pigments is on the rise, due in part
to expanding urbanization. This development has far-reaching consequences for the global paints and coatings industry,” explained
Rafael Suchan, head of LANXESS pigments business in the Asia/
Pacific region, at the symposium.
Representatives of the Chinese authorities agreed that consolida-
tion will continue in the pigment industry. It is more than evident from
China’s 13th five-year plan and its influence on the paints and
coatings industry that iron oxide pigment manufacturers can
only operate successfully in China in the future if they com-
ply with strict environmental laws. The national development
concept clearly defines the goal of fundamentally improving
the quality of life by 2020 by dramatically reducing environ-
mental pollution. For the pigment industry, this means that all
pigment-producing plants, without exception, are required
to meet high environmental standards based on extensive
risk assessments and reviews.
Government representatives further discussed the impacts of China’s new environmental legislation: Companies
will be subject to drastic sanctions if they fail to comply with
the new guidelines. In 2014 alone, the number of prosecuted
environmental offenses tripled compared to the year before.
Furthermore, the number of pigment manufacturers with an
annual capacity of less than 10,000 metric tons will continue
to decline as a result of the new legislation. The government’s
goal is to promote further industrial consolidation. In the end,
only a few iron oxide manufactures with sustainable production facilities and increased capacities will remain on the Chinese market.
Jörg Hellwig, head of LANXESS’ Inorganic Pigments business unit, emphasized that technological advancements and
optimized manufacturing processes are of critical importance
to achieving this goal: “Developments in China leave no
doubt that investments, technical expertise and new process
solutions are an integral part of any business model geared to
long-term success, and imperative for the advancement of our
