DyStar files for Bankruptcy

Following earlier rumours, it has now been confirmed that DyStar Textilfarben GmbH, DyStar Textilfarben GmbH & Co Germany and DyStar Holdings have all filed an insolvency petition with the local court in Frankfurt for the company's operations in Germany.

The insolvency petition includes the company's sites in Frankfurt, Leverkusen, Brunsbuttel, Geretsried and Ludwigshafen which in total employ around 1,300 people.

It has been stated that the insolvency filing was necessary after DyStar exhausted alternative solutions to their liquidity problems.

DyStar hold a wealth of dyes technology and it will be interesting to see where it all ends up.

DyStar to file for bankruptcy

The rumour mill has picked up that DyStar will file for bankruptcy. The company's market focus is on textiles and leather and not the paper industry.

DyStar is a conglomeration of textile dyes businesses - founded in 1995 as an amalgamation of the Bayer, Hoechst and Mitsubishi textile dye businesses, they later acquired the BASF, Mitsui, Zeneca, Colour Solutions and Yorkshire Americas businesses. In 2004 DyStar was acquired by the private equity company, Platinum Equity and is recognised as a leader in the textile and leather markets

More news is expected, but the complex collection of companies in a rapidly changing market may have proved too difficult for the private equity company in the 'credit crunch' era. There will surely be some interest from the surviving market players in purchasing some or all of DyStar; however, it is a good opportunity to take capacity out of the ailing European market.

Ciba introduce new brown packaging dyes

Ciba announce a new cost-effective range of anionic, direct, liquid dyes for brown packaging.

A perspective on the Indian and Chinese Colourants Market - Dyes and Pigments

An interesting perspective on the Indian and Chinese colourants market.

Kemira opens 'new' technology and business centre in Leverkusen

On the back of the acquisition of the LanXess paper business, Kemira has opened a 'new' business and technology centre at the Leverkusen base of the former LanXess.

The centre has 98 employees and will primarily concentrate on the traditional business of LanXess which is colourants (dyes and pigments) and optical brightening agents for papermaking. In addition to this core business and dedicated research focus for paper chemicals, there will also be some activities in wet-end and recycling chemicals.

LanXess (now Kemira) is a leading supplier of optical brightening agents (top 3) for papermaking and Kemira is the leader in the supply of chemicals to the global pulp and paper industry. For details of their financial results please see a recent post.

Ciba announce paper chemical price increases

Ciba announced it will initiate price increases for its paper chemicals ranging from 5-20%. The ranges affected are Pergasol dyes, Irgalite pigments, Tinopal optical brightening agents (fluorescent whiteneing agents). The target is to increase prices on 1st August, 2007 or as contracts allow. The price increases are justified on the, '...... significant cost increases in select raw materials coupled with recent changes in duties associated with Chinese exports.'

Again, it will be interesting to see whether the posturing feeds through to actual price increases in the face of significant competition from dollar-based or lower-cost suppliers; particularly those producing OBAs and dyes.

Clariant announce price increases for paper chemicals.

Clariant joins the crowd in announcing price increases in paper chemicals. The reasons given are:

• continuing high price of crude oil
• high energy costs
• increased raw material prices - particularly from China

The price increases affect dyes (10-30%); optical brightening agents - OBAs or FWAs - to increase by 10-15%; and polymer emulsions.

As with the other announcements, it remains to be seen whether they are realised and start to show through in the balance sheet.