Hoechst, Petrofina swap U.S. polymer assets
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NEWS OF THE WEEK chlorinated hydroxy-furanones, are also produced. Chlorinated surface water contains much higher levels of these com- pounds—a median of 50.7 ppb—than does chlorinated groundwater (from wells and springs), which has a median of 0.8 ppb, because surface water has higher levels of natural organic com- pounds. Just over half the U.S. popula- tion drinks chlorinated surface water. In all, Morris calculates that chlorina- tion by-products cause 4200 cases of bladder cancer and 6500 of rectal can- cer each year. He gets these results by meta-analysis of all studies on the rela- tionship between exposure to chlori- nated water and cancer. Meta-analysis, a method of pooling results of existing studies, increases the statistical power in estimating relative risks, he says. For example, of the original papers in his meta-analysis, only three of the seven bladder cancer studies and two rectal cancer studies were statistically significant. But when the results were pooled, the final calculated risk values were significant because pooling al- lows a greater population and number of cancer cases to be considered. Morris also finds that the association between bladder and rectal cancer 'In- creases with improved exposure as- sessment and higher overall study quality." Therefore, the real risk from chlorinated surface water may be even greater than the numbers calculated. So far, the Environmental Protection Agency has set limits for only one fam- ily of chlorine by-products—100 ppb for total trihalomethanes. A new stan- dard for chlorination by-products to be set by June 1995 will probably include separate limits for each of the trihalo- methanes, as well as an overall limit for the whole family of compounds, says Jennifer Orme-Zalvaleta, chief of EPA's drinking water health assessment sec- tion. Some other chlorination by-prod- ucts, such as haloacetic acids, also may be regulated by 1995, she adds. Lower levels of carcinogenic by- products are produced by two alterna- tive methods of disinfecting water— chloramination and ozonation—now used in some parts of the U.S. In chlo- ramination, ammonia, as well as chlo- rine, is added to water supplies, lower- ing chlorine's reactivity and producing lower levels of chlorinated by-prod- ucts. Chloramination is just as effective in killing microbes as chlorine, but the water must be treated for a longer time. This method is used in about 20% of the largest U.S. public water systems. Less than 1% of U.S. water systems disinfect with ozone, followed by a re- sidual chlorine or chloramination treat- ment to kill microbes that may multi- ply in the water after the ozone effects wear off. This method also produces chlorinated by-products, but fewer of them are carcinogenic or mutagenic in animals. Jack H. Sullivan, deputy executive director of the American Water Works Association, says microbes in drinking water present a much greater risk than Germany's Hoechst A.G. and Belgium's Petrofina S.A., through their U.S. operat- ing arms, plan to swap two polymer as- sets in the U.S. involving high-density polyethylene (HDPE) and polyester. Hoechst's U.S. subsidiary, Hoechst Celanese, has agreed to sell its 350 mil- lion-lb-per-year HDPE operation in Bayport, Tex., to Fina Oil & Chemical, Petrofina's U.S. affiliate. In the second transaction, Hoechst Celanese will buy Fina's 26% interest in Cape Industries, a Wilmington, N.C.-based producer of dimethyl terephthalate (DMT), a poly- ester feedstock, in which Hoechst al- ready holds the other 74% share. Financial details are sketchy. A Fina spokesman says the company is buying the 350-acre Bayport HDPE plant for "less than $100 million." Neither firm will reveal the value of the Cape Indus- tries transaction. Both sales should close in August if they pass Federal Trade Commission review. Fina's HDPE purchase does not in- clude an ultra-high molecular weight polyethylene unit at Bayport. Hoechst Celanese will continue to own and op- erate that unit under an agreement with Fina for access and utility sup- port. Himont is the only other U.S. pro- ducer of that variety of polyethylene. Outlining Fina's strategy, company president and chief executive officer Ron W. Haddock explains HDPE is "a natural fit with our business lines in styrene, polystyrene, and polypropyl- ene. We're a world-scale participant in each of those markets, and with our affiliation with Petrofina, which is the second largest HDPE producer in Eu- rope, we intend to become a major do chlorination by-products. "The tough issue is how do you balance chemical risk versus microbial risk?" Indeed, a survey sponsored by the Chlorine Institute finds that nine out of 10 U.S. public health officials believe chlorination is still the safest way of eliminating waterborne disease, and that the risk would increase without it. It is important to find out which chlorination by-products are responsi- ble for the increased cancer risk, Morris stresses. And more effort should be put into studying the alternatives to chlori- nation, he adds. Bette Hileman factor in the U.S. HDPE market as well." As for Hoechst's strategy, the firm says only that it now plans to concen- trate on HDPE in Europe (where it is a leading producer), and in South Africa, South America, Australia, and India. It has total annual capacity of 2.4 billion lb in those regions. However, Darrell An- nis, an associate with industry consult- ant Philip Townsend Associates, Hous- ton, suggests that Hoechst "probably could have weathered the storm in the U.S. HDPE market"—where prices have plunged over the past two years from about 55 cents per lb to about 33 cents per lb, depending on the grade. But Hoechst probably decided against hold- ing on because profits fell below the com- pany's target rate of return, Annis says. In addition, suggests Robert J. Bau- man, vice president of Chem Systems, a Tarrytown, N.Y., consultant firm, Hoechsf s U.S. HDPE technology differs from technology used at its other plants. Hoechst was not really committed to the U.S. HDPE market, where it ranked 10th or 11th in sales, he adds, and it was not backward integrated into ethylene as are all major U.S. competitors except Solvay America. On the other hand, Hoechst's pur- chase of Fina's stake in Cape Industries reaffirms its commitment to the polyes- ter market, where it is a major supplier of textile and tire cord polyester fiber. The purchase secures its ownership of a plant that sources say has a capacity of 955 million lb of DMT, plus 445 mil- lion lb of DMT that is subsequently hy- drolyzed to terephthalic acid. Marc Reisch Hoechst, Petrofina swap U.S. polymer assets 8 JULY 13,1992 C&EN
Transcript of Hoechst, Petrofina swap U.S. polymer assets
NEWS OF THE WEEK
chlorinated hydroxy-furanones, are also produced.
Chlorinated surface water contains much higher levels of these compounds—a median of 50.7 ppb—than does chlorinated groundwater (from wells and springs), which has a median of 0.8 ppb, because surface water has higher levels of natural organic compounds. Just over half the U.S. population drinks chlorinated surface water.
In all, Morris calculates that chlorination by-products cause 4200 cases of bladder cancer and 6500 of rectal cancer each year. He gets these results by meta-analysis of all studies on the relationship between exposure to chlorinated water and cancer. Meta-analysis, a method of pooling results of existing studies, increases the statistical power in estimating relative risks, he says.
For example, of the original papers in his meta-analysis, only three of the seven bladder cancer studies and two rectal cancer studies were statistically significant. But when the results were pooled, the final calculated risk values were significant because pooling allows a greater population and number of cancer cases to be considered.
Morris also finds that the association between bladder and rectal cancer 'Increases with improved exposure assessment and higher overall study quality." Therefore, the real risk from chlorinated surface water may be even greater than the numbers calculated.
So far, the Environmental Protection Agency has set limits for only one family of chlorine by-products—100 ppb for total trihalomethanes. A new standard for chlorination by-products to be set by June 1995 will probably include separate limits for each of the trihalomethanes, as well as an overall limit for the whole family of compounds, says Jennifer Orme-Zalvaleta, chief of EPA's drinking water health assessment section. Some other chlorination by-products, such as haloacetic acids, also may be regulated by 1995, she adds.
Lower levels of carcinogenic byproducts are produced by two alternative methods of disinfecting water— chloramination and ozonation—now used in some parts of the U.S. In chloramination, ammonia, as well as chlorine, is added to water supplies, lowering chlorine's reactivity and producing lower levels of chlorinated by-products. Chloramination is just as effective in killing microbes as chlorine, but the
water must be treated for a longer time. This method is used in about 20% of the largest U.S. public water systems.
Less than 1% of U.S. water systems disinfect with ozone, followed by a residual chlorine or chloramination treatment to kill microbes that may multiply in the water after the ozone effects wear off. This method also produces chlorinated by-products, but fewer of them are carcinogenic or mutagenic in animals.
Jack H. Sullivan, deputy executive director of the American Water Works Association, says microbes in drinking water present a much greater risk than
Germany's Hoechst A.G. and Belgium's Petrofina S.A., through their U.S. operating arms, plan to swap two polymer assets in the U.S. involving high-density polyethylene (HDPE) and polyester.
Hoechst's U.S. subsidiary, Hoechst Celanese, has agreed to sell its 350 mil-lion-lb-per-year HDPE operation in Bayport, Tex., to Fina Oil & Chemical, Petrofina's U.S. affiliate. In the second transaction, Hoechst Celanese will buy Fina's 26% interest in Cape Industries, a Wilmington, N.C.-based producer of dimethyl terephthalate (DMT), a polyester feedstock, in which Hoechst already holds the other 74% share.
Financial details are sketchy. A Fina spokesman says the company is buying the 350-acre Bayport HDPE plant for "less than $100 million." Neither firm will reveal the value of the Cape Industries transaction. Both sales should close in August if they pass Federal Trade Commission review.
Fina's HDPE purchase does not include an ultra-high molecular weight polyethylene unit at Bayport. Hoechst Celanese will continue to own and operate that unit under an agreement with Fina for access and utility support. Himont is the only other U.S. producer of that variety of polyethylene.
Outlining Fina's strategy, company president and chief executive officer Ron W. Haddock explains HDPE is "a natural fit with our business lines in styrene, polystyrene, and polypropylene. We're a world-scale participant in each of those markets, and with our affiliation with Petrofina, which is the second largest HDPE producer in Europe, we intend to become a major
do chlorination by-products. "The tough issue is how do you balance chemical risk versus microbial risk?" Indeed, a survey sponsored by the Chlorine Institute finds that nine out of 10 U.S. public health officials believe chlorination is still the safest way of eliminating waterborne disease, and that the risk would increase without it.
It is important to find out which chlorination by-products are responsible for the increased cancer risk, Morris stresses. And more effort should be put into studying the alternatives to chlorination, he adds.
Bette Hileman
factor in the U.S. HDPE market as well."
As for Hoechst's strategy, the firm says only that it now plans to concentrate on HDPE in Europe (where it is a leading producer), and in South Africa, South America, Australia, and India. It has total annual capacity of 2.4 billion lb in those regions. However, Darrell An-nis, an associate with industry consultant Philip Townsend Associates, Houston, suggests that Hoechst "probably could have weathered the storm in the U.S. HDPE market"—where prices have plunged over the past two years from about 55 cents per lb to about 33 cents per lb, depending on the grade. But Hoechst probably decided against holding on because profits fell below the company's target rate of return, Annis says.
In addition, suggests Robert J. Bau-man, vice president of Chem Systems, a Tarrytown, N.Y., consultant firm, Hoechsf s U.S. HDPE technology differs from technology used at its other plants. Hoechst was not really committed to the U.S. HDPE market, where it ranked 10th or 11th in sales, he adds, and it was not backward integrated into ethylene as are all major U.S. competitors except Solvay America.
On the other hand, Hoechst's purchase of Fina's stake in Cape Industries reaffirms its commitment to the polyester market, where it is a major supplier of textile and tire cord polyester fiber. The purchase secures its ownership of a plant that sources say has a capacity of 955 million lb of DMT, plus 445 million lb of DMT that is subsequently hy-drolyzed to terephthalic acid.
Marc Reisch
Hoechst, Petrofina swap U.S. polymer assets
8 JULY 13,1992 C&EN
