News from Notch Consulting, Inc.

April 16, 2009

DC Chemical Files Lawsuit Against One Equity Partners Regarding Sale of Columbian Chemicals

Filed under: Carbon Black — Notch @ 10:30 pm

On March 23, 2009, DC Chemical filed a lawsuit in New York supreme court against One Equity Partners, L.P. (OEP) for breach of share acquisition related to the sale of DC Chemical’s interest in Columbian Chemicals Company to OEP. As noted on this blog yesterday, on April 1, 2009, DC Chemical changed its name to OCI Company, Ltd.

Here is a link to the case at WebCivil Supreme.

In the complaint, DC Chemical alleges that OEP violated the purchase agreement because it did not use “commercially reasonable best efforts” to cause the closing of the sale to occur.

DC Chemical states (i) it is ready for closing; (ii) the SPV [special purpose vehicle, an entity created to purchase the shares] is not ready for closing; and (iii) no MAE [materially adverse effect] has occurred that would justify non-performance by the SPV.

In its answer, the SPV, Columbian Chemicals (Cayman) Holdings, Ltd., denied the charges and asked the court to dismiss the case.

DC Chemical Changes Name to OCI

Filed under: Carbon Black, General — Notch @ 8:59 am

On April 1, 2009, Korean chemical company DC Chemical Co., Ltd. changed its name to OCI Company Ltd., part of a change in its corporate identity and strategic direction, particularly its increasing focus on polysilicon production. In January 2009, DC Chemical announced it was selling its two-thirds stake in Columbian Chemicals Company, though the company continues to produce carbon black through two Korean factories.

According to a company press release, the company’s new name “OCI” means “The Origin of Chemical Innovation,” and another purpose for the name change is to obviate any misperception regarding OCI’s core businesses that may have been caused by its previous name, which in Korean contained the words “steel” and “chemical.” Further, the goal is to eliminate any confusion that may have arisen due to the use of different corporate names domestically and abroad.

Here is the press release.

Oriental Chemical Industries was formed in 1959 and over the ensuing 50 years grew into a global producer of inorganic chemicals, coal chemicals, petrochemicals, fine chemicals, and most recently polysilicon. In 2001, OCI merged with Korea Steel Chemical and changed its name to DC Chemical.

Work Opportunities in Silica and Carbon Black

Filed under: Carbon Black, Silica — Notch @ 8:19 am

Conditions are definitely difficult in the rubber and tire industries right now, so I wanted to pass on two potential employment opportunities for individuals with the appropriate skill sets.

1. Precipitated silica engineering consultant needed

Agri Process Innovations is seeking an engineer with experience in precipitated silica production for periodic consulting work. Interested parties should contact Steve Danforth or Brian Mattingly.

Agri Process Innovations
PH: 870-673-3030
Email: bmattingly AT apinnovations.com (replace AT with @)
Web: http://www.apinnovations.com

2. Tire Recycler Seeks Personnel for Carbon Black Advisory Board

I posted this earlier in the month but wanted to repeat it.

McKinstry Reklaim is a Pacific Northwest company focused on reclaiming carbon black, oil, and steel from used tires through pyrolisis. The company’s first facility has been constructed in Boardman, OR, in cooperation with McKinstry Company and Harris Group. The plant became operational in late 2008.

The company is now interviewing individuals to join a Carbon Black Advisory Board. This group will provide industry insight, experience, and contacts to McKinstry Reklaim’s management team. Candidates should be seasoned professionals with strong experience in the following areas:

Marketing and Sales: Individuals with (a) extensive sales contacts in existing carbon black market places, (b) direct experience in developing marketing and pricing strategies, and (c) direct experience in developing sales accounts.

Product and Market Development: Individuals with extensive experience in developing carbon black products for specialty applications in inks, dyes, and pigments, and for use in rubber products. Candidates will advise the product development programs to be compatible with product properties and for enhancing product attributes.

Interested parties should contact Yaniv Gelnik
PH: 206-547-9557
Email: yanivg AT mckinstryreklaim.com (replace AT with @)

China’s First Quarter GDP Was Slowest Ever

Filed under: General — Notch @ 7:44 am

From Reuters comes the news that China’s economy slowed in the first quarter to its weakest pace on record. However, though an improvement in data for March offered tentative signs that the worst may be over for the world’s third-largest economy.

Annual economic growth slowed to 6.1 percent from 6.8 percent in the fourth quarter of 2008, slightly missing economists’ forecasts of a 6.3 percent rise and marking the weakest expansion since quarterly records began in 1992. Growth was dragged down largely by a sharp fall in exports, but a surge in lending in the first quarter spurred by the government’s 4 trillion yuan ($585 billion) stimulus package, helped cushion the blow.

Economists said there were no big surprises in the data, which confirmed a scenario of a gradual recovery in the latter part of the year, though they were divided over whether the government’s 8 percent growth target for this year was still attainable.

“Overall, the data shows that China had a very weak start to the year, offset by some stabilization in economic conditions in March as the impact of policy stimulus starts to build,” said Brian Jackson, economist at Royal Bank of Canada In Hong Kong.

“We think that the economy will remain subdued in the next few months but should start to improve gradually in the second half of 2009.”

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