Süd-Chemie subsidiary Phostech continues its operations with battery material LFP despite negative judgement of the Canadian Federal court of appeal

Despite a decision delivered on August 17th 2011 by the Canadian Federal Court of Appeal that a process used by Süd-Chemie’ Canadian subsidiary Phostech Lithium at its plant of St-Bruno, Canada, violated a patent of Valence Technology Inc. there is no significant impact on the business of Phostech Lithium.

As already released on July 27th 2011, Phostech is about to finalize the production capacity expansion in St-Bruno for its new advanced grade LFP (lithium iron phosphate), an innovative battery material for use in lithium ion batteries for stationary applications and the automotive industry. This new grade LFP with significantly improved performance is not affected by the decision of the Federal Court of Appeal.

“The decision of the Federal Court of Appeal is certainly disappointing, but as our P1 grade was scheduled for replacement by our new advanced grade anyway, we don’t expect a significant impact on our business,” declared Christian Knobloch, General Manager of Phostech Lithium.

In addition, Phostech’s 2,500 tonnes-per-year LIFE Power® P2 grade factory in Candiac, Canada, will start series production in January 2012. The production process of P2 at Candiac is not subject to the procedures that led to the judgment of the Federal Court.

Based in St-Bruno, Canada, Phostech Lithium, a subsidiary of Süd-Chemie AG, Munich, Grmany and part of the Swiss Clariant group, is a world leader in battery materials focusing primarily on research, development and manufacturing of lithium iron phosphate (LiFePO4, LFP) – an innovative cathode material with excellent performance and superior safety profile which is expected to contribute to the breakthrough of the new generation of lithium ion batteries for stationary application and the automotive industry.

 

ALTANA continues on its growth course

08-08-2011: The specialty chemicals Group ALTANA AG continued its growth course over the first six months of the current business year. Compared to the first half of 2010, the company was able to increase its sales by 9%, up from €773.1 million to €840.3 million. However, sharply rising raw materials costs which can only be passed on to customers with a certain time lag burden the company's profit. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew less strongly by 1% to €172.9 million, compared to €171.5 million in the prior-year period. The EBITDA margin thus declined from 22.2% to 20.6%. Earnings before taxes (EBT) rose by 1% from €126.2 million to €127.0 million.

Sales in the BYK Additives & Instruments division rose strongly in the first six months of 2011; they were up from €279.5 million in the prior-year period to €314.4 million, which is an increase of 13%. The ECKART Effect Pigments division recorded sales of €184.6 million, an increase of 2% on the prior year (€180.2 million). Sales in the ELANTAS Electrical Insulation division improved by 10% and were up from €185.5 million to €203.3 million. The ACTEGA Coatings & Sealants division was also able to improve sales noticeably, achieving an increase of 8%. The division generated sales of €138.0 million following €127.9 million in the first half of 2010.

"We are looking back on a successful first half-year 2011, in which we were able to continue our dynamic growth of the past business year,“ stated Dr. Matthias L. Wolfgruber, CEO of ALTANA AG. "However, the partially massive raw materials cost increases negatively affect our earnings,“ continued Wolfgruber. "The best strategy against rising raw materials costs is a clear and strong focus on specialties with high relevance of research and service, which offer our customers added value,“ said Wolfgruber. "We will therefore maintain our course which is oriented to innovation and customer service in order to continue profitable growth in the future."

ALTANA anticipates sales growth in comparison with the prior year also for the second half of the current business year. However, compared to the first six months of 2011 the growth momentum is expected to slow down. The EBITDA margin 2011 should remain below the prior-year figure (20.5%) owing to the raw materials cost increases. Should the economic environment worsen, caused for example by the high public debt levels of many industrial nations, the business of ALTANA would also be affected.

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