HOECHST
Search for polyolefins partner may be close to conclusion / Earnings on plastics rebound
After long deliberation, the Hoechst group (D-65926 Frankfurt) appears to have moved closer to bringing its polyolefins business into a joint venture or strategic alliance with a European or overseas partner. At the spring press conference in Frankfurt, retiring deputy chairman Günter Metz hinted that a deal could be around the corner, although he indicated it may be a more a question of months rather than days. "Several options" are being studied, including whether to separate HDPE and PP. In view of the ongoing concentration process in the industry, Hoechst, whose activities are concentrated mainly in Europe where it has an estimated 7% market share, needs "more critical mass," Metz said.
The group's polymers businesses improved for the most part in 1995 against 1994. Helped by higher prices, earnings of the plastics and films business unit soared to DM 352m in 1995 from DM 1m. Sales rose 14% to DM 3.6bn. Due to a buildup of reserves for product liability in the US, the technical polymers unit posted an operating loss for the second consecutive year, at DM 80m considerably reduced against the 1994 figure of DM 643m. A return to profit is expected for 1996. Turnover rose 6% to DM 1.4bn, not including Polyplastics, the jv with the Japanese Daicel group, which had sales of DM 700m. Backed by successful restructurisation and buoyant demand for PET packaging resins, net income of the fibres division surged ahead 80% to DM 521m, as sales declined slightly to DM 7.2bn from DM 7.3bn.
On the whole, Hoechst was satisfied with its films activities, which have now been brought into joint ventures, polyester with Mitsubishi and oriented PP films with Courtaulds. The rigid PVC films business is to be allied with Klöckner Pentaplast. Polyester films returned to profit. Meanwhile, finishing touches are being placed on a strategical reorientiation of the technical polymers business. To improve synergies, group operations already have been split into four global units.
According to BU head Bernd Sassenrath, Hoechst is mulling a new marketing approach directed at customers in individual sectors, possibly in cooperation with system suppliers. Hoechst also has its strategy for individual polymers nailed down. In its largest business segment, polyacetals, Sassenrath said the group will move with or ahead of annual growth rates. In PPS, it will aim at passing Philips as leading player. "More flexibility" in PBT is expected to result from the restructursation in polyester fibres. Former fibres production plants – most of these in the US – are to be converted, as needed, to produce the engineering plastic, which can be imported into Europe in polymer or compound form. Sassenrath said Hoechst's PBT business will concentrate on niche markets, rather than trying to compete with rivals BASF / GE or DuPont on a broad scale.
READER SERVICE: Press conference speeches by Hoechst chairman Jürgen Dormann and finance chairman Dr. Martin Frühauf: PIE-No. 39032 – Hoechst group annual report 1995: PIE-No. 39033 (all in English).
The group's polymers businesses improved for the most part in 1995 against 1994. Helped by higher prices, earnings of the plastics and films business unit soared to DM 352m in 1995 from DM 1m. Sales rose 14% to DM 3.6bn. Due to a buildup of reserves for product liability in the US, the technical polymers unit posted an operating loss for the second consecutive year, at DM 80m considerably reduced against the 1994 figure of DM 643m. A return to profit is expected for 1996. Turnover rose 6% to DM 1.4bn, not including Polyplastics, the jv with the Japanese Daicel group, which had sales of DM 700m. Backed by successful restructurisation and buoyant demand for PET packaging resins, net income of the fibres division surged ahead 80% to DM 521m, as sales declined slightly to DM 7.2bn from DM 7.3bn.
On the whole, Hoechst was satisfied with its films activities, which have now been brought into joint ventures, polyester with Mitsubishi and oriented PP films with Courtaulds. The rigid PVC films business is to be allied with Klöckner Pentaplast. Polyester films returned to profit. Meanwhile, finishing touches are being placed on a strategical reorientiation of the technical polymers business. To improve synergies, group operations already have been split into four global units.
According to BU head Bernd Sassenrath, Hoechst is mulling a new marketing approach directed at customers in individual sectors, possibly in cooperation with system suppliers. Hoechst also has its strategy for individual polymers nailed down. In its largest business segment, polyacetals, Sassenrath said the group will move with or ahead of annual growth rates. In PPS, it will aim at passing Philips as leading player. "More flexibility" in PBT is expected to result from the restructursation in polyester fibres. Former fibres production plants – most of these in the US – are to be converted, as needed, to produce the engineering plastic, which can be imported into Europe in polymer or compound form. Sassenrath said Hoechst's PBT business will concentrate on niche markets, rather than trying to compete with rivals BASF / GE or DuPont on a broad scale.
READER SERVICE: Press conference speeches by Hoechst chairman Jürgen Dormann and finance chairman Dr. Martin Frühauf: PIE-No. 39032 – Hoechst group annual report 1995: PIE-No. 39033 (all in English).
31.03.1996 Plasteurope.com [20171]
Published on 31.03.1996