Specialty chemical company
) has signed definitive agreements to form a joint venture with
Shanxi, China-based coal and bauxite mining company Senze Meilu
On receipt of the necessary approvals from the relevant Chinese
government authorities, the joint venture named "Albemarle Senze
Chemicals (Shanxi) Company, Ltd." will build a new 50,000 MT
facility in Lvliang, Shanxi, to make MARTINAL fine precipitated
alumina trihydrate (ATH) flame retardants based on Albemarle's
proprietary technology, mainly used in wire and cable
applications. Production at the new facility is expected to
start by mid-2015.
Albemarle, which will hold a majority stake in the joint venture,
will market MARTINAL in the high-growth Asia-Pacific and Indian
This agreement will position Albemarle as a premiere player in
the flame retardant technologies and markets globally. It will
also enhance Albemarle's place in the rapidly growing wire and
cable markets in Asia and India and complement Albemarle's
existing world scale production facility in Bergheim, Germany.
MARTINAL, an eco-friendly, mineral-based flame retardant and
smoke suppressant is used in a wide range of polyolefin resins.
Low-smoke wire and cable applications are the largely used
applications in the energy sector which is gaining momentum from
rising energy consumption in China and Asia-Pacific.
Albemarle came out with its first-quarter 2013 results last
month. The company reported adjusted earnings (excluding
non-operating items) of 93 cents a share in the quarter compared
with $1.20 a share earned in the year-ago quarter. The results
fell behind the Zacks Consensus Estimate of $1.00, reflecting a
negative surprise of around 7%.
Profit, as reported, was $84 million or 94 cents per share. This
represents a roughly 26.5% decline from $114.3 million or $1.27
per share posted in the prior-year quarter.
Revenues decreased 9.8% to $641.6 million in the quarter from
$711.7 million in the year-ago quarter, missing the Zacks
Consensus Estimate of $674 million. The results were impacted by
Albemarle's exit from the phosphorus flame retardants business,
lower metals surcharges and pricing on some products.
Albemarle currently holds a Zacks Rank #4 (Sell).
Other companies in the chemical industry having favorable
Zacks Rank are
Shin-Etsu Chemical Co., Ltd.
). All of them hold a Zacks Rank #1 (Strong Buy).
ALBEMARLE CORP (ALB): Free Stock Analysis
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METHANEX CORP (MEOH): Free Stock Analysis
SHIN-ETSU CHEM (SHECY): Get Free Report
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