Reorganisations, Mergers and Acquisitions

Several suppliers have reorganised their business units in the past four or five years. One of the first to do so in the period under consideration by this report was Ciba Specialty Chemicals. In 2001 Ciba abolished its old divisional structure, along with the business units. Instead, five segments were created. One was called Plastics Additives, formed by the merger of Proeess Additives and Lubrieants. Colorants for plastics were located within the Coating Effeets segment. The move was intended to relate the company s activities more closely to end-user market segments. 

In 2004 another reorganisation resulted in the munber of Ciba imits being reduced from five to fom, with special effects products from the home and personal care segment placed under plastics additives. Additives accoimted for 589 M euros or 28% of Ciba Specialty Chemicals total sales in the first half of 2004. This represented a 3% increase compared with 2003. 

AtoFina, a member of the Total group, has recently changed its name and the old name is expected to disappear. 

Early in 2004 AtoFina armoimced its intention to spin off its additives, together with its substantial PVC interests and its acrylics and engineering plastics businesses, to form a new division ( CIP , or Chlorochemicals, Intermediates and Performance products), employing around 19,000 people. The turnover was estimated at 5 bilhon euros, and the headquarters would be in Paris. The name of the new organisation has since been disclosed as Arkema. 

Bayer AG as a whole will have lost about 13,000 jobs between 2002 and 2005. It has now reorganised a large part of its chemicals business, gathering together engineering plastics, rubber, rubber chemicals and polymer additives to form a new company called Lanxess, which commenced operations in July 2004. Bayer s plastics-related businesses posted increased profits for the first quarter of 2004, but sales in the Lanxess products declined by 2% to 1.478 bilhon euros in the first quarter. Lanxess has indicated that it will concentrate on mature products and niche markets. 

---