HÜLS
Changes for Vestolit as merger with Degussa approaches / Sell-offs pad 1998 profits
Changes are in store for PVC maker Vestolit GmbH (D-45764 Marl) as parent company Hüls AG (D-45764 Marl) prepares to merge with Degussa AG (D-60287 Frankfurt). At Hüls´ final report to the press before the merger, chairman Klaus D. Albrecht said perspectives for Vestolit to “participate in the restructurisation of the European PVC market” are being studied. While he said Hüls and Degussa are “under no pressure” to act, rumours of a possible merger with Germany´s other backward-oriented PVC producer, Vinnolit Kunststoff GmbH (Carl-Zeiss-Ring 25, D-85737 Ismaning) persist.
Vestolit claims to be Germany´s largest fully integrated PVC producer with 380,000 t/y of capacity, while Vinnolit claims to be the country´s largest with 570,000 tonnes of annual output. Both are speciality-oriented. According to Albrecht, Vestolit performed better than the market in short business year 1998. Earnings were not revealed, but sales in the nine-month period – the financial year was cut short to coincide with the end of Degussa´s 1997-98 reporting period – totalled DEM 413m.
Along with Vestolit, Hüls said MMA/PMMA producer Röhm GmbH (D-64275 Darmstadt) and absorbent polymers manufacturer Stockhausen (D-47805 Krefeld) made substantial contributions to group earnings, which advanced 49% in 1998 over the 1997 period to DEM 600m.
Extraordinary gains from divestments, including the sale of styrene / polystyrene producer Styrenix GmbH to BP Chemicals (HQ: Britannic House, 1 Finsbury Circus, GB-London EC2 7BA) and the transfer of EPP activities to GefinexPolymerschäume GmbH (Rote Erde 6, D-33803 Steinhagen) were eaten up by the DEM 567m loss made by wafers producer MEMC (St. Louis, Missouri / USA). This company was transferred to parent company Veba on 1 October. Group sales fell 5% to DM 8.3 bn due to divestments.
Hüls said it was also pleased with the performance of its engineering plastics activities, primarily polyamide 12 and PBT, in 1998. Business of PolymerLatex (Paul-Baumann-Str. 1, D-45764 Marl), the joint venture with Bayer (D-51368 Leverkusen), began to improve at mid year as synergies took hold. Shareholders of Degussa approved the merger with Hüls at an extraordinary meeting on 18 December. Current Degussa chief Uwe Ernst Bufe is to be chairman of the merged group, Albrecht vice chairman.
Vestolit claims to be Germany´s largest fully integrated PVC producer with 380,000 t/y of capacity, while Vinnolit claims to be the country´s largest with 570,000 tonnes of annual output. Both are speciality-oriented. According to Albrecht, Vestolit performed better than the market in short business year 1998. Earnings were not revealed, but sales in the nine-month period – the financial year was cut short to coincide with the end of Degussa´s 1997-98 reporting period – totalled DEM 413m.
Along with Vestolit, Hüls said MMA/PMMA producer Röhm GmbH (D-64275 Darmstadt) and absorbent polymers manufacturer Stockhausen (D-47805 Krefeld) made substantial contributions to group earnings, which advanced 49% in 1998 over the 1997 period to DEM 600m.
Extraordinary gains from divestments, including the sale of styrene / polystyrene producer Styrenix GmbH to BP Chemicals (HQ: Britannic House, 1 Finsbury Circus, GB-London EC2 7BA) and the transfer of EPP activities to GefinexPolymerschäume GmbH (Rote Erde 6, D-33803 Steinhagen) were eaten up by the DEM 567m loss made by wafers producer MEMC (St. Louis, Missouri / USA). This company was transferred to parent company Veba on 1 October. Group sales fell 5% to DM 8.3 bn due to divestments.
Hüls said it was also pleased with the performance of its engineering plastics activities, primarily polyamide 12 and PBT, in 1998. Business of PolymerLatex (Paul-Baumann-Str. 1, D-45764 Marl), the joint venture with Bayer (D-51368 Leverkusen), began to improve at mid year as synergies took hold. Shareholders of Degussa approved the merger with Hüls at an extraordinary meeting on 18 December. Current Degussa chief Uwe Ernst Bufe is to be chairman of the merged group, Albrecht vice chairman.
15.01.1999 Plasteurope.com [18238]
Published on 15.01.1999