For the 2004 second quarter, Crompton’sPolymer Products segment reported a 26% gainin polymer additives sales compared to 2Q 2003,reaching $369.8 million. Of this rise, 15% isattributable to the GE acquisition, with theremainder due to 6% higher unit volumes, 3%increased selling prices and 2% from favourableforeign currency translation. Plastic additivessales were up 38% due primarily to the SpecialtyChemicals business acquisition, increased unitvolume and higher selling prices. Rubber addi-tives sales increased 14% mainly as a result ofhigher unit volume. Urethane additives saleswere up 5% due mainly to favourable foreigncurrency translation. Quarterly operating profit of$7.9 million for polymer additives was up 14%from last year due mainly to higher selling pricesand savings from cost-reduction programs, offsetin part by higher raw material and energy costs.

Contact: Crompton Corp, 199 Benson Road,Middlebury, CT 06749, USA; tel: +1-203-573-2000; URL: www.cromptoncorp.com

Polymer additives drivestronger earnings for GreatLakes in 2Q 2004Great Lakes Chemical Corp reported incomefrom continuing operations of US$27.8 millionfor the 2004 second quarter, compared toincome of $16.9 million in 2Q 2003. Secondquarter 2004 net sales from continuing opera-tions were $454.0 million, up 9% on $416.7million reported in the corresponding period in2003.

“Our operating results improved significantlyfor second quarter 2004 thanks in large part tothe strong performance of our PolymerAdditives business,” says Mark Bulriss, GreatLakes chairman, president and CEO. He saysthe considerable progress made by the polymeradditives business reflects continuing efforts topursue higher levels of profitability and provideinnovative solutions to customers. Overall, thecompany’s efforts to consolidate facilities andstreamline its organization are beginning todeliver the results expected, Bulriss concludes.

The Polymer Additives business posted stronggains in net sales and operating income in the sec-ond quarter. Net sales for the business increased

15% to $214.5 million, from $187.3 million forthe same period in 2003. Improved demand in keyend markets, the positive effects of foreign cur-rency translation, and a newly formed joint ven-ture (ADPO, May 2004) drove the sales increase.Operating income in the second quarter increasedto $12.6 million from a break-even level last yeardue to productivity gains, stronger sales volumes,and higher selling prices that more than offset theimpact of higher raw material and energy costs.

Contact: Great Lakes Chemical Corp, PO Box2200, 1 Great Lakes Boulevard, West Lafayette,Indianapolis, IN 47906-5394, USA; tel: +1-765-497-6100; fax: +1-765-497-6316; URL:www.greatlakeschem.com

PolyOne reports record quarterly results PolyOne Corp posted operating income fromcontinuing operations of US$46.7 million forthe second quarter of 2004, more than fourtimes greater than the $10.9 million achieved inthe same period in 2003, and nearly double theoperating income from the first quarter this year.Net income for 2Q 2004 of $21.5 million wasalso a substantial improvement on the net loss of$6.0 million in 2Q 2003. With quarterly netsales from continuing operations rising 10% to$557.8 million compared to the year-ago quar-ter, PolyOne recorded its best quarterly resultssince the company’s formation in 2000.

The company attributes the improvement to thesignificant cost reduction and commercialimprovement initiatives implemented over thepast two years. President/CEO Thomas A.Waltermire says he is “deeply proud” of theorganization’s achievement. “While we gainedleverage from an improving North Americaneconomy, credit for our turnaround goes prima-rily to our people for their focus on our four keypriorities: to reduce debt, turn around two corebusinesses, lower overhead costs and increaserevenues from continuing operations.”

One of the core businesses the company is work-ing to return to acceptable profitability is its NorthAmerican Color and Additives Masterbatch busi-ness unit. PolyOne reports “significant improve-ment” through the first half of 2004, largely attrib-utable to increased sales and lower cost structures.

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The unit accounted for 10% of total 2Q sales, withrevenues up 6% in value terms and 24% in ship-ment volumes compared to a year ago.

International sales by its InternationalCompounds and Colors unit accounted for 21% oftotal quarterly sales. Sales grew 6% in dollarterms but shipments fell 2% compared to 2Q 2003levels because of the sale of the Melos rubbergranulates business. The company reported a 17%growth in shipments from its Asian operations.

Overall, PolyOne expects third quarter revenuesto be up 8–10% compared with the same periodin 2003.

Contact: PolyOne Corp, Suite 36-5000, 200Public Square, Cleveland, OH 44114-2304,USA; tel: +1-216-589-4000; fax: +1-216-589-4077; URL: www.polyone.com

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NEWS AND VIEWS

New masterbatch groupformedThe establishment of a new holding group in themasterbatch sector has been announced. Calledthe Alqemia Group, it incorporates KafritIndustries Ltd of Israel, Constab PolyolefinAdditives GmbH of Germany, Constab AdditivePolymers UK and Areton International PlasticsLtd, UK. The move comes after a series ofacquisition deals involving the companies. First,Kafrit acquired Constab’s manufacturing plantsin Portsmouth, UK and Rüthen, Germany(ADPO, February 2003). A year later, Kafritacquired a majority stake in Areton in exchangefor Portsmouth-based Constab AdditivePolymers UK (ADPO, February 2004).

The combined group has multiple productionsites across Europe, with each of the membercompanies having an international reputation inthe development and production of master-batches and concentrates for various sectors ofthe plastics industry, such as BOPP, polycar-bonates, flame retardants, agricultural films, PEadditives, colour masterbatches, PVC com-pounds and fibres.

The Alqemia Group says it is determined tobecome a global player in its field, and is com-mitted to utilizing the combined strengths of its

members towards achieving this goal. The offi-cial public presentation of the new businessentity will take place at the K2004 show inDüsseldorf, Germany, in October.

Contact: Kafrit Industries, Kibbutz Kfar-Aza,M.P. Negev 85142, Israel; tel: +972-8-6809845; fax: +972-8-6809544; URL:www.kafrit.co.il

Lubrizol to cut jobs followingNoveon acquisitionLubrizol has announced workforce reductionsrelated to the company’s restructuring followingits acquisition of Noveon International, whichwas completed in June (ADPO, June 2004). Thereductions are estimated to result in annual pre-tax savings of approximately US$16 million.

In April, the company announced its target toachieve $40 million in acquisition-related costsavings over three years. About 95 positions arebeing eliminated, primarily affecting technicaland commercial employees at the company’sWickliffe, OH headquarters. These reductionsare expected to be completed by the end of 3Q2004. The company will take pretax restructur-ing charges of approximately $8 million in 2Q2004 and $9 million in 2H 2004, of which about$9 million will be for employee severance costs.The company says it is making solid progresswith identifying and implementing commercial,operating and financial synergies following thecompletion of the acquisition.

Contact: The Lubrizol Corporation, 29400Lakeland Boulevard, Wickliffe, OH 44092-2298, USA; tel: +1-440-943-4200; fax: +1-440943-5337; URL: www.lubrizol.com

VitroTech glass additivereceives food-contact approvalUS-based VitroTech Corp has received confir-mation from the US Food and DrugAdministration (FDA) that its Vitrolite® poly-mer processing aid complies with regulationsfor use in polymers intended for food contact.The components of Vitrolite, which is based onamorphous aluminosilicate, are consideredGRAS by the FDA, and are permitted in foodsand food packaging in the USA and throughout