U.S. OUT OF SAFETY FORUM
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NEWS OF THE WEEK PPG TO SELL TWO OPERATIONS ZaCh Systems will acquire ΡPC s Sipsyfine chemicals facility in Avrille, France. BUSINESS: Divestitures to focus firm on coatings, specialty products, and services P PG INDUSTRIES has signed an agreement to sell its fine chemicals operation for $65 million to ZaCh Systems, the fine chemicals subsidiary of Italian pharmaceuticals firm Zambon. The deal comes just a few days after PPG \ï revealed it would sell its auto- motive glass business for $500 million to private equity firm Platinum Equity. Both busi- nesses had been on the block for some time. Cash raised in the two sales will help the company pay for its pending purchase of the Dutch coatings maker SigmaKalon Group from private equity firm Bain Capital. That deal will cost PPG more than $3 billion, including assumed debt, and enlarge its coatings operations by 40%. PPG CEO Charles E. Bunch says the fine chemicals agreement "is yet another step toward achieving PPG's vision of continuing to be the leading coatings and spe- cialty products and services company." Following the announcement in May of first-quarter results, he told investors that more than 80% of the company's earn- ings are from coatings and specialty products such as optical products and silicas. The sale of automotive glass removes an under- performing business from PPG's portfolio, writes P. J. Juvekar, an analyst with investment firm Citigroup, in a report to clients. The sale to ZaCh Systems includes fine chemicals facilities in LaPorte, Texas, and Avrille, France. PPG will continue to operate a phosgene derivatives plant in LaPorte. It expects to complete the sale during the fourth quarter of this year, subject to regulatory ap- provals. Gianni Marini, ZaCh Systems chairman, says the business, which employs about 360 people, will reinforce his firm's custom synthesis business strategy and research competence. Closing on the sale of the automotive glass business, which employs 4,400 people at more than 18 facilities in North America, is also expected in the fourth quar- ter, subject to government approvals.—MARC REISCH Stober U.S. OUT OF SAFETY FORUM INTERNATIONAL COOPERATION: Focus is shifting to a 2006 chemicals management accord T HE BUSH ADMINISTRATION last week bowed out of an international effort on chemical safety. The U.S. will no longer participate in the In- tergovernmental Forum on Chemical Safety (IFCS), according to a letter from the Department of State. The forum operates under the aegis of the World Health Or- ganization and brings together national governments, United Nations organizations, and environmental and labor groups. IFCS is designed to develop and promote strategies for and partnerships on the sound management of chemicals. The forum is an outgrowth of principles on chemicals management agreed to at the 1992 UN Con- ference on Environment & Development. IFCS has met formally every three years since its founding in 1994. In the Sept. 12 letter to IFCS, Daniel T. Fantozzi, director of environmental policy at the State Depart- ment, explained that the U.S. is shifting its focus to a chemicals management accord forged in 2006. That agreement, the Stratégie Approach to International Chemicals Management (SAICM), established guide- lines for policies to govern the manufacture, transporta- tion, use, and disposal of chemicals in ways that protect people's health and the environment. SAICM is aimed at developing countries without regulatory regimes for managing chemicals (C&EN, Feb. 27,2006, page 31). "We anticipate robust and substantial progress on chemicals management in SAICM," Fantozzi wrote to IFCS. The U.S. withdrawal from the forum seems to con- tradict positions the Administration endorsed a year ago. IFCS Executive Secretary Judy A. Stober points out that the U.S., in consensus with other govern- ments at two separate international meetings in 2006, encouraged the chemicals management forum to con- tinue its work. For instance, at the meeting where SAICM was ad- opted, the U.S. and other governments "invited IFCS to continue its important role in providing an open, transparent, and inclusive forum for discussing issues of common interest and also new and emerging is- sues and to continue to contribute through this to the implementation of SAICM," Stober tells C&EN. Withdrawal from IFCS is consistent with the "Ad- ministration's policy of undermining the multilateral initiatives and institutions that are so important for protecting the global environment," said Jack Wein- berg, global chemical safety program director at the Environmental Health Fund, a Massachusetts-based environmental group.—CHERYL HOGUE WWW.CEN-0NLINE.ORG \β SEPTEMBER 24, 2007 ".5 Ο ':• Ζ Χ 0: Ί UJ
Transcript of U.S. OUT OF SAFETY FORUM
NEWS OF THE WEEK
PPG TO SELL TWO OPERATIONS
ZaCh Systems will acquire Ρ PC s Sipsyfine chemicals facility in Avrille, France.
BUSINESS: Divestitures to focus firm on coatings, specialty
products, and services
PPG INDUSTRIES has signed an agreement to sell its fine chemicals operation for $65 million to ZaCh Systems, the fine chemicals subsidiary
of Italian pharmaceuticals firm Zambon. The deal comes just a few days after PPG
\ï revealed it would sell its automotive glass business for $500 million to private equity firm Platinum Equity. Both businesses had been on the block for some time.
Cash raised in the two sales will help the company pay for its pending purchase of the Dutch coatings maker SigmaKalon Group from private equity firm Bain Capital. That deal will cost
PPG more than $3 billion, including assumed debt, and enlarge its coatings operations by 40%.
PPG CEO Charles E. Bunch says the fine chemicals agreement "is yet another step toward achieving PPG's vision of continuing to be the leading coatings and specialty products and services company." Following the announcement in May of first-quarter results, he told investors that more than 80% of the company's earnings are from coatings and specialty products such as optical products and silicas.
The sale of automotive glass removes an under-performing business from PPG's portfolio, writes P. J. Juvekar, an analyst with investment firm Citigroup, in a report to clients.
The sale to ZaCh Systems includes fine chemicals facilities in LaPorte, Texas, and Avrille, France. PPG will continue to operate a phosgene derivatives plant in LaPorte. It expects to complete the sale during the fourth quarter of this year, subject to regulatory approvals. Gianni Marini, ZaCh Systems chairman, says the business, which employs about 360 people, will reinforce his firm's custom synthesis business strategy and research competence.
Closing on the sale of the automotive glass business, which employs 4,400 people at more than 18 facilities in North America, is also expected in the fourth quarter, subject to government approvals.—MARC REISCH
Stober
U.S. OUT OF SAFETY FORUM
INTERNATIONAL COOPERATION: Focus is shifting to a 2006
chemicals management accord
THE BUSH ADMINISTRATION last week bowed out of an international effort on chemical safety.
The U.S. will no longer participate in the Intergovernmental Forum on Chemical Safety (IFCS), according to a letter from the Department of State. The forum operates under the aegis of the World Health Organization and brings together national governments, United Nations organizations, and environmental and labor groups.
IFCS is designed to develop and promote strategies for and partnerships on the sound management of chemicals. The forum is an outgrowth of principles on chemicals management agreed to at the 1992 UN Conference on Environment & Development. IFCS has met formally every three years since its founding in 1994.
In the Sept. 12 letter to IFCS, Daniel T. Fantozzi, director of environmental policy at the State Department, explained that the U.S. is shifting its focus to a chemicals management accord forged in 2006. That agreement, the Stratégie Approach to International
Chemicals Management (SAICM), established guidelines for policies to govern the manufacture, transportation, use, and disposal of chemicals in ways that protect people's health and the environment. SAICM is aimed at developing countries without regulatory regimes for managing chemicals (C&EN, Feb. 27,2006, page 31).
"We anticipate robust and substantial progress on chemicals management in SAICM," Fantozzi wrote to IFCS.
The U.S. withdrawal from the forum seems to contradict positions the Administration endorsed a year ago. IFCS Executive Secretary Judy A. Stober points out that the U.S., in consensus with other governments at two separate international meetings in 2006, encouraged the chemicals management forum to continue its work.
For instance, at the meeting where SAICM was adopted, the U.S. and other governments "invited IFCS to continue its important role in providing an open, transparent, and inclusive forum for discussing issues of common interest and also new and emerging issues and to continue to contribute through this to the implementation of SAICM," Stober tells C&EN.
Withdrawal from IFCS is consistent with the "Administration's policy of undermining the multilateral initiatives and institutions that are so important for protecting the global environment," said Jack Weinberg, global chemical safety program director at the Environmental Health Fund, a Massachusetts-based environmental group.—CHERYL HOGUE
WWW.CEN-0NLINE.ORG \ β SEPTEMBER 24, 2007
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