HOECHST
Plans for plastics revealed / Talks with Elenac on PE / OPP films jv with Mobil in the works
After months of silence, Hoechst (HQ: D-65926 Frankfurt) has cast some light on plans for ending its active role in plastics. Although Chairman Jürgen Dormann would prefer to shed polymers altogether to make Hoechst a purely life sciences group, he hinted at the annual balance sheet press conference that some "cash cows" initially could be kept grazing on the home meadow. Scenarios for reshaping plastics include joint ventures, divestments or flotations.
Hoechst executives have confirmed that parallel to negotiations with BP Chemicals, talks are being held with Elenac, the new 50:50 partnership between BASF and Shell about absorbing the HDPE business. Board member Ernst Schadow, who also is current president of the German plastics manufacturers' association, Verband Kunststofferzeugende Industrie (VKE, Karlstr. 21, 60329 Frankfurt), told Plasteurope.com that a sale to BP has been delayed not only by differences over the value of Hoechst's metallocene technology. While questions of environmental liability also play an important role, Schadow suggested that Hoechst has been happy to delay a deal, waiting for higher resins prices to enhance the value of the business.
Another trump up the Frankfurt group's sleeve is the planned merger of OPP films producer Hoechst Trespaphan GmbH (PO Box, 1143, D-66511 Neunkirchen) with the Mobil Chemicals films segment. Schadow said a deal with the US group was agreed following Hoechst's full takeover of the former joint venture with Courtaulds (PIE No. 05, 1997). The Hoechst-Mobil jv, expected to start up this year, would have 400,000 t/y of capacity and USD 1bn in sales. It would control around a third of the world market. An initial public offering is being eyed for 1999.
Hoechst also is seeking a solution for Vinnolit GmbH (Carl-Zeiss-Ring 25, D-85737 Ismaning), the PVC jv with its 50% subsidiary Wacker Chemie. One option is a merger with Hüls subsidiary Vestolit GmbH (D-45764 Marl). Schadow, who will hand over the VKE job to BASF's Volker Trautz in May, also hinted that EVC International NV (HQ: Strawinskylaan, 1535, NL-1077 XX Amsterdam) and the Solvay group (HQ: Rue du Prince Albert 33, B-1050 Brussels) could be interested in the Hoechst PVC portfolio. A partnership for the technical polymers producer Ticona GmbH (Lyonerstr, 38, D-60528 Frankfurt) also is being weighed.
READER SERVICE: Press conference speeches by J. Dormann and Dr. Klaus-Jürgen Schmieder, Chief Financial Officer of Hoechst AG: PIE-No. 42421.
Hoechst executives have confirmed that parallel to negotiations with BP Chemicals, talks are being held with Elenac, the new 50:50 partnership between BASF and Shell about absorbing the HDPE business. Board member Ernst Schadow, who also is current president of the German plastics manufacturers' association, Verband Kunststofferzeugende Industrie (VKE, Karlstr. 21, 60329 Frankfurt), told Plasteurope.com that a sale to BP has been delayed not only by differences over the value of Hoechst's metallocene technology. While questions of environmental liability also play an important role, Schadow suggested that Hoechst has been happy to delay a deal, waiting for higher resins prices to enhance the value of the business.
Another trump up the Frankfurt group's sleeve is the planned merger of OPP films producer Hoechst Trespaphan GmbH (PO Box, 1143, D-66511 Neunkirchen) with the Mobil Chemicals films segment. Schadow said a deal with the US group was agreed following Hoechst's full takeover of the former joint venture with Courtaulds (PIE No. 05, 1997). The Hoechst-Mobil jv, expected to start up this year, would have 400,000 t/y of capacity and USD 1bn in sales. It would control around a third of the world market. An initial public offering is being eyed for 1999.
Hoechst also is seeking a solution for Vinnolit GmbH (Carl-Zeiss-Ring 25, D-85737 Ismaning), the PVC jv with its 50% subsidiary Wacker Chemie. One option is a merger with Hüls subsidiary Vestolit GmbH (D-45764 Marl). Schadow, who will hand over the VKE job to BASF's Volker Trautz in May, also hinted that EVC International NV (HQ: Strawinskylaan, 1535, NL-1077 XX Amsterdam) and the Solvay group (HQ: Rue du Prince Albert 33, B-1050 Brussels) could be interested in the Hoechst PVC portfolio. A partnership for the technical polymers producer Ticona GmbH (Lyonerstr, 38, D-60528 Frankfurt) also is being weighed.
READER SERVICE: Press conference speeches by J. Dormann and Dr. Klaus-Jürgen Schmieder, Chief Financial Officer of Hoechst AG: PIE-No. 42421.
31.03.1998 Plasteurope.com [18754]
Published on 31.03.1998