Ciba has opened a new technology service center in Shanghai to serve the process and lubricants additives industry in China. The companys acquisition by BASF last week also received European Commission approval, though approval by U.S. authorities is still pending.
The new center in Shanghai can perform key tests required for lubricant customers, including thermo-oxidative, wear and corrosion tests. The facility can also perform a full range of testing to support market entry of Cibas Irgaflo pour point depressants and viscosity modifier product lines.
Carole Smargon, director of marketing communications for Ciba, said the company has specifically invested in equipment to support its rapid market build up for the pour point depressants and viscosity modifier product lines but also has invested in equipment to support its core antioxidants and industrial package business.
We launched a range of PPDs a couple of years ago and are now launching a range of VMs that broadens our product offering, Smargon told Lube Report. As these products are based on methacrylate chemistry, the PPDs are applicable to both automotive and industrial lubricants, and the VMs mainly to industrial lubricants. They are new products, she added.
The Shanghai laboratory will allow us to more quickly meet the needs of customers based in China and service our traditional component and industrial lubricant packages businesses, said Douglas Brown, Cibas global head of process and lubricants additives. Ciba also has laboratories in the United States and India.
Shanghai Ciba Gao-Qiao Chemical Co. Ltd. – a joint venture between Ciba, Ciba (China) Ltd. and Sinopec Shanghai Gao-Qiao Petrochemical Corp. – commissioned a production plant in Shanghai in 1997. The plant produces polyolefins stabilizers, antioxidants, blends of the components and textile chemical auxiliary products.
Last December, Basel, Switzerland-based Ciba said it would begin producing antioxidants for lubricants and fuels at its newly commissioned facility in Singapores Jurong Island, enabling it to respond faster to the Asian markets needs and growing requirements. Smargon said production of Ciba Irganox L135 antioxidants has begun at the Singapore facility, and the company is working with key customers to ensure a smooth transition to the site. As demand grows, as part of our usual strategy review, we will assess the benefit from manufacturing additional products at our Singapore plant, she added.
BASF’s Acquisition of Ciba
In September 2008, Ludwigshafen, Germany-based BASF announced plans to acquire Ciba Holding AG via a public takeover offer to shareholders. The offer was for 50 Swiss francs (U.S. $42.24) in cash for each nominal Ciba share, for a total of about CHF 6.1 billion (U.S. $5.2 billion).
On Thursday, the European Commission approved the acquisition, subject to divestiture of individual product lines and production plants as well as a product license. The conditions apply to products that accounted for sales of less than 100 million ($129.2 million) in 2008.
BASF said the decision by the U.S. Federal Trade Commission – which is a precondition for the acquisitions closing – is still pending. BASF expects to receive approval by late March or Early April, and stated that the Swiss Takeover Board has extended the deadline for closing by four weeks until April 9.