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This is the second installment of a two-part article focusing on royalty rate trends in the area of patent and technology licensing. Part I, which appeared in the March issue [...]

The care and treatment of Australian prostate cancer patients is discussed.

Reduced demand for refined cresol products has caused major companies in the cresylic chemical markets to shift their strategies. For example, Sasol Ltd, the largest supplier of cresylic raw materials, is moving into the refined cresol product markets. Merichem Co, which was one of Sasol's largest customers, has shifted to a new supplier: Dakota Gasification Co. Meanwhile, Dakota Gasification is developing its own refining technology and may enter the refined cresol market in the future.

Cyclodextrins, which are toroidal rings of sucrose molecules, are seen as a major growth market due to their ability to bind other molecules within their ring structure. 1992 market demand is 2-5 million pounds, but that could grow to 100 million pounds annually by 2007. One of the first major users of cyclodextrins is Cholorex, a Michael Foods Inc-SKW Nature's Products Inc joint venture, which uses cyclodextrins to extract cholesterol from egg products. Other potential markets and producers of cyclodextrins are also discussed.

The plastic compounding business, in which basic resins are mixed with colors and additives, has become a major part of the plastics industry and accounted for 12.5 billion pounds of thermoplastic demand in 1991. According to R.W. Unterreiner of Sterling Consultants, the plastics compounding business consists of 4 major market segments: dry colored resins, polyvinyl chloride (PVC), color and additive concentrates and reinforced resins. Color resins are the largest market, 7.2 billion pounds annually, while concentrates are the fastest growing segment.

THE DOOR and HARDWARE INDUSTRY affords us the opportunity to earn a living supporting our families in addition to the development of many great friendships along the way. Many of [...]

Executives with Akzo Nobel NV's surface chemistry business unit feel they have put their specialty surfactants house in order; now they are waiting for the rest of the industry to [...]

Rhodia, a new company encorporating Rhone-Poulenc's personal care and household products lines, will sell shares to the public in 1998. Rhodia is receiving one of Rhone-Poulenc's most successful businesses, with earnings that average 15% to 17% per year and sales totalling $675 million in 1996. Figures for 1997 are unavailable due to the pending public offer., Rhone-Poulenc's household and personal care products business is set to become part of a new company, Rhodia, when shares arc sold to the public later this year, but the more [...]

Two buys since privatizing show deals can still be made. FAR FROM DISAPPEARING from the map when it was taken private a year and a half ago, Sterling Chemicals Holdings [...]

Ferro Corp's plan to restructure its $350 million glass coatings and colorants segment will help the company reach new financial goals as part of a three-year realignment. Its present objective is to bring gross margins up to 28% by the end of 1999, up from 25% in 1995. The company will consolidate 80 foreign plants into 50 plants and bring employment from 6,900 down to 5,700. Ferro is on the lookout for acquisitions and will keep its successful specialty chemicals, plastics colorants, and powder coating operations.

The success of the Alco Chemical Division of National Starch & Chemical Co as a stand-alone company is expected to serve as the model for future forays into the specialty chemicals market by new National owner, Imperial Chemical Industries PLC. Alco has been able to blend its small company market savvy with the specialty chemical approach of National to quietly expand and compete effectively in the acrylic polymer market.

Georgia-Pacific Resins Inc. is a major force in the thermosetting resins, performance paper chemicals and the pulp chemicals markets. Sales have increased for the company from $250 million in 1984 to $680 million in 1996. Approximately 33% of its thermoset resins are sold to its parent company, Georgia-Pacific Corp., a paper, pulp and building materials manufacturer. Approximately 33% of its thermoset resins are sold to other forest product companies. The final 33% of its thermoset resins are sold to non-forest product companies.

Huls America Inc, continuing its expansion in specialty isocyanates, plans to build a new isophorone plant. The 50,000-metric-ton plant, to be constructed in two phases, will be located at an undetermined US site. Huls VP Henry Kasprzak explained that the project's first phase will bring 25,000-30,000 metric tons of capacity into production by mid 1999.

Hatco Corp is extending its production of synthetic lubricants with an $8 million expansion. The move represents a shift away from basic petrochemicals to specialty chemicals, basestocks, and custom manufacturing. The shift was partly prompted by the loss of an intermediates contract with Monsanto. Hatco subsequently acquired synthetic lubricant businesses from Huls and Shell Oil Co and landed a large specialty surfactant contract.

Huntsman Corp. acquired $1.2 billion in companies during the first half of 1997. Huntsman CEO Jon M. Huntsman wants the company to increase its revenues from $4 billion in 1996 to $8 billion by 2002. This increase will be achieved by acquisition and internal expansion. Huntsman is a commodities chemical company and has made several of its acquisitions in commodities.

Hercules Inc. and its resins unit, Hercules Chemical Specialties Co., remain committed to producing resins from both hydrocarbons and rosin, says R. Michael Alberts, division VP. Other companies point out that Hercules' two types of resins compete with each other. Most of Hercules' capital investment has gone into hydrocarbon projects, but Alberts says the firm's solid position in rosin resins is demonstrated by its ability to make the chemical from three feedstocks. Hercules official Juan Magrans says the company already has secured crude tall oil supplies for 1997.

Hydrogen peroxide producers are reversing their expansion policies after an anticipated boom in their market failed to materialize. All six domestic manufacturers embarked on expansion products in response to a bearish pulp and paper market and anticipated demand tied to the Environmental Protection Agency's cluster rules. However, the pulp and paper industry collapsed and instead, peroxide producers are suffering from overcapacity and are slowing the continuation of facility expansions or idling its plants.

AlliedSignal Inc. expects its specialty chemicals business to generate $2 billion in sales via acquisition and internal growth by the end of 1999. The unit was formed in 1996 and generated over $1 billion in sales during the same year. Paul J. Norris, president of the specialty unit, claims that it will be difficult but not impossible to accomplish this goal. AlliedSignal plans to acquire product lines that will complement existing products including the acquisition of new businesses. The company's fluorine products and its Riedel-de Haen unit will account for $400 million in new sales.

Henkel Group plans to focus on integration of its various chemical businesses during 1997 following the acquisition of Loctite Corp in 1996. The company's chemical units faced a 4% increase in sales and an 15% decrease in operating profit in 1996. Henkel plans to focus on cost leadership in the oleochemicals market and on chemical specialties for the cosmetics, food additives and surfactants markets.

JLM Industries Inc. plans to take part in one of the four major phenol expansions planned for the year 2000, as the company hopes to double its annual phenol capacity in order to stay competitive in the phenol market. Shell, Aristech, Monsanto and Phenolchemie are the four firms planning phenol expansions; JLM has made preliminary efforts to join with at least one of the chemical companies. JLM also plans to increase its global chemical terminal and distribution businesses.

Albright and Wilson Americas Inc. plans to continue its expansion in the phosphate detergent business. Albright's president, Paul F. Rocheleau, says that the company foresees growth in this business because of the expanding use of phosphates in other North American countries besides the U.S. Demand for the product is also growing in the Caribbean basin. The company has a joint venture in Mexico that produces phosphate. Albright had sales of a half-billion-dollars in 1996.

Occidental Chemical Corp. will invest over $70 million in its plant in Niagara Falls, NY, during 1997 and 1998 to increase its focus on the halogenated aromatics business. The company invested $10 million to $15 million in 1995 when it began the re-operation of segments of the same plant that had been discontinued. This specialty chemicals business will provide a steadier earnings pattern for the company.

Unilever, intending to focus more closely on its consumer goods businesses, will divest its specialty chemical units: Crosfield, Unichema, Quest, and National Starch. The units' combined yearly sales total $4.8 billion. Unilever co-chairman Niall FitzGerald noted that the specialty chemicals business is undergoing significant realignment. The sale, he said, will allow the units being sold to participate in opportunities resulting from that realignment.

Union Carbide Corporation's different approaches to its specialty and commodity surfactant businesses helps the company remain a significant force in the surfactant market. Union Carbide strives for a low-cost position for its nonylphenol ethoxylate (NPE) commodity surfacants, while seeking research-driven differentiation for a range of specialty surfactants. Union Carbide is the lowest cost NPE producer.

Hoechst AG is still trying to decide what to do with the pieces of its business left out of the combination of it specialty chemicals unit with Clariant AG and the formation of Hoechst Marion Roussel. Hoechst's pharmaceutical/fine chemicals and food ingredients businesses are not included in the deal to create the largest specialty chemical company in the world. Hoechst is considering folding the two businesses into joint ventures.

North American pigment and ink markets are consolidating in an attempt to ward off Asian competition, a move that is affecting the $200 million-pound worldwide phthalocyanine blue market. Phthalocyanine blue may be the most important organic pigment in the pigment and ink markets, and it usually sets the tone for the performance of other market pigments. Market activity by Japanese companies has encroached upon U.S. activity, and most U.S. producers of phthalocyanine blue are Japanese-owned.

Monsanto Co. is building a facility to handle the production of phenol and adipic acid. An innovative one-step process will be used that is based on going directly from benzene. Nitrous oxide is used as an oxidant. The plant will be built in Pensacola, FL, by 2000. Monsanto also plans to license its new process for other firms to use.

Witco plans to shutdown 15 facilities and cut personnel, but still plans to increase sales to $3 billion by 2001. Fixed costs will be decreased 20%, variable costs will be cut from 5% to 10% and capital will be reduced 25%. The firm produces stearates, overbased sulfonates and ethylene oxides. About 1,800 jobs will be cut around the world.

Union Camp Corp. believes that supplies of crude tall oil (CTO) from softwood pulp mills will be sufficient for the company to continue producing CTO rosin, fatty acids and other derivatives. Union Camp has invested $80 million in its business since 1990. The company is trying to boost the recovery of CTO from wood, seeking global sources of CTO, and using non-CTO materials such as vegetable fatty acids and gum rosin.

The Chilean mining company Minsal S.A. plans to begin producing lithium carbonate for commercial use in January 1997 and sell the commodity for 90 cents a pound, well below the present price of $1.50 to $2. Minsal hopes to stimulate greater demand from aluminum and specialty glass manufacturers with the lower price. The strategy is possible because Minsal minimized the cost of its lithium carbonate operations, which are an outgrowth of an existing potassium chloride facility.

Dr Hans Dieter Winkhaus, CEO of Henkel KGAA, is cautiously optimistic about his company's future. The company has restructured its operations to focus on six major businesses balanced between chemicals and consumer products. The balance of products and the wide geographic distribution provide stability. The company plans to continue to develop new products based on its alkyl polyglycoside technology.

Vista Chemical Co and Petroleos Mexicanos (Pemex) have signed a preliminary agreement concerning Vista's plans to build a linear alkylbenzene plant in Mexico. Pemex will supply feedstock chemicals for the $250 million plant, which will produce 260-330 million lbs/yr. Final agreements are expected to be signed during the first six months of 1993, and the plant is expected to come on-stream in 1996.

Producers of polyaluminum chloride (PAC) predict strong demand from water treatment plants and paper manufacturers. However, the PAC supplied by different producers varies in quality. For water treatment, PAC is superior but more costly than alum. Sternson Ltd, which reports 40% growth in sales, plans to build three plants in the US within the next six years. The company wins contracts for its expensive product because of high performance ratios.

Prices in the benzyl alcohol market are rising due to a disruption in European production. DSM Belgium NV had an explosion at its benzoic acid plant in Rotterdam, Netherlands, late in 1991. This resulted in reduced production of benzyl alcohol and, several months later, in a tightened market and a price increase of nine to 10 cents per pound. The US imported 1.5 million pounds of benzyl alcohol from the Netherlands between Jan and Apr 1991 but only 312,000 pounds during the same period of 1992, according to Census Bureau data. Though DSM resumed production in Mar 1992, the market is expected to remain tight until 4th qtr 1992.

A coalition of US antimony oxide (Sb2O3) producers is unhappy with an anti-dumping ruling against Chinese sales agents China Minmetals and CNIEC. The International Trade Commission did find that the two companies were selling Sb2O3 in the US below fair market value, but it imposed separate duties of 80.64% on China Minmetals and 13.05% on CNIEC. The coalition feels that the 13.05% duty is insufficient and that Chinese Sb2O3 manufacturers may simply shift to selling through CNIEC to avoid the higher duty.