Economy
Almost every day there is more news about how the chemical industry is faring during the global economic crisis. This archive is intended to help our readers stay current on the industry's responses to changing conditions. We would also like to hear from you - please let us know how this down cycle is affecting your workplace by e-mailing us at [webmaster.cen@acs.org.] On a related note, you may wish to go back and read the recent C&EN cover story Employment Outlook: Thinking Creatively About Work
This archive is not 100% comprehensive; rather it focuses on news and features from the fourth quarter of 2008 to the present. Our coverage of the crisis goes back much further. For example, the first inkling that the subprime mortgage crisis might affect the chemical industry came in mid-2007 when insiders began to express concern that a lack of credit might hamper deal making. (Read: Clouds Loom Over Deal Frenzy)
Economy Archives » 2010 | 2009 | 2008
» Economy Articles
August 23, 2010
A Matter Of Record Keeping
European generic drug firm suffers financial losses after problems with Indian supplier.
August 16, 2010
Strong Demand Buoys Chemicals
Jump in earnings in the second quarter might be difficult to maintain.
Pharma Continues Its Turnaround
Second-quarter earnings rise despite restructuring moves, product problems, and manufacturing issues.
Economy Buoys Chemical Deals
Business: Acquisitions are brisk for the first half of 2010.
Connecting In New England
For new grads searching for a job in this tough economy, networking is not an option but a necessity.
August 9, 2010
BASF And Dow Post Big Gains
Chemical Earnings: Second-quarter results are strong, but future is cloudy.
August 2, 2010
Chemical Earnings Bounce Back
Second Quarter: Companies make up ground lost during the recession.
Transforming Siegfried
Newcomer CEO Rudolf Hanko looks at two businesses and sees one.
Cap And Trade Dies In Senate
Politics: Majority leader says too few votes exist for bill putting a price on carbon.
July 26, 2010
Global Top 50
Firms in 2009 saw solid profitability in the face of plummeting sales; BASF claims top spot for seventh straight year.
South Korea's Honam Makes Malaysian Buy
Purchase of Titan Chemicals is Korean firm's first big foreign move.
Sanofi-Aventis Reveals R&D Cutbacks In U.S.
July 12, 2010
Electronic Materials
Buoyed by the proliferation of high-tech gadgets, the electronics industry rebounds from last year's deep downturn.
Chemistry Matters To Chip Makers
As advanced electronic components become complex, materials suppliers find new opportunities.
Smooth Success
Chemical mechanical planarization is becoming indispensable in chip-making.
E-Readers In Color
Developers of display technology try to break out of black and white.
Salaries Of Chemists Fall
Unemployment reaches new heights in 2009 as recession hits profession hard.
Rising Cleantech
Start-Ups: First half brought record funding for clean-technology firms.
July 5, 2010
Facts & Figures Of The Chemical Industry
The fortunes of the chemical industry continued to decline in 2009 while the recovery took its time.
Industry Adapts To Era Of Low Demand
Chemical firms cut costs and lowered expectations during a rough year for finances.
Industry Slashes Thousands Of Jobs
Employment shrank significantly in europe and the U.S. but held steady in Japan.
Output Declines In U.S., Europe
The recession dragged down chemical production in most regions, but Taiwan and China showed strength.
Economic Downturn Hobbles Commerce
Chemical trade among most regions dropped significantly in 2009 as overall demand plunged.
June 21, 2010
Ready For Five More
Sigma-Aldrich's fine chemicals business sets its sights on the next five years of operation.
June 14, 2010
Familiar Product, Different Use
Firms are hoping new environmental regulations will spark greater sodium bicarbonate demand.
June 7, 2010
Drug Prices
Companies to pull products from Greek market after price cuts.
Downsizing Ethylene
Petrochemicals: Two Japanese firms prepare for onslaught of Middle Eastern capacity.
Borealis Opens One Plant, Plans Another
Grace Opens Aussie Construction Plant
May 31, 2010
Where Chemists Go After Big Pharma
In the U.K., contract research organizations are a bright spot for laid-off chemists
AMRI Cuts In U.S., Adds Internationally
May 24, 2010
Pfizer Reveals Plant Closures
Downsizing: Five-year plan will eliminate 6,000 jobs worldwide.
May 17, 2010
Tech Assessment Makes A Comeback
Government, independent networks aim to enhance public understanding of science, technology impacts.
More Funds For High R&D
APRA-E releases second round of grants, providing $106 million for 37 advanced technology energy projects.
Losses Ease At Japanese Firms
Annual Results: Most chemical makers feel less pain, but Shin-Etsu's profits plummet.
Chemical Deal-Making Heats Up
Announced acquisitions totaled $22 billion in first quarter, up significantly from 2009.
Takeda, Pfizer Set Layoffs
May 10, 2010
Optimism Grows For Biotech
BIO Conference: Economic environment for biotech improves, but challenges persist.
May 3, 2010
Making It Here
Some small custom chemical companies survive the recession and defy the move offshore.
Earnings Jump In First Quarter
Recovery: Return of consumer demand brings chemical results closer to prerecession level.
Renewing America Competes Act
Legislation: House committee clears bill to continue investment in science, innovation, and education.
Enzyme's Active Site Sighted
Methane monooxygenase may use dicopper center to make methanol
April 26, 2010
Good Economic Signs At SABIC and DuPont
FRX Opens Polymer Lab And Pilot Plant
April 19, 2010
BASF Restructures Pigments Business
Plant Closures: Program will eliminate 500 jobs worldwide.
SOCMA Members Expect 2010 Sales To Rise
GSK Spares plant in New York, Closes One In New Jersey
April 12, 2010
Leading DuPont
After a difficult first year as CEO, Ellen Kullman sets the stage for growth.
Accelrys, Symyx Sign Merger Deal
Informatics: Scientific software firms combine to create synergies and growth.
Tax Fight Looms
Administration wants to curtail tax breaks for U.S. multinationals.
April 5, 2010
Radiochemicals: Down But Not Out
After two big departures, business is good for remaining players.
BP Shuts Its Last U.S. Solar Plant
Manufacturing: Price drop spurs shift to China and India.
Celanese, SABIC Plan Polyacetals
Boehringer Launches Venture Capital Fund
March 29, 2010
Positive Signals
At Pittcon 2010, hints of an instrument industry upturn.
Pharma Wins In Health Reform
Legislation: Industry to pick up millions of newly insured customers.
Cleantech Firms Find Investors
Venture Capital: Successful fundraising points to a better 2010.
Succinic Acid Plant Planned For Canada
Lanxess Readies German Expansion
Sigma-Aldrich To Hike Trimethylgallium
March 22, 2010
Indian Firms Expand Abroad
Specialties: India's chemical makers snap up Western assets.
An Impasse Grows In Thailand
Political instability stops construction at chemical plants worth billions of dollars.
LG Chem Plans Big Electronics Plant
Eastman Will Buy Plasticizers Firm
LyondellBasell Plots Emergence from Bankruptcy
March 15, 2010
Pharma Outsourcing
Three case studies illustrate how drug development partnerships persevere through economic ups and downs.
Back Together In Business
Animal Health: Merck and Sanofi re-form a joint venture.
Biocitech Thrives
Biotech hub in Paris that keeps a science legacy alive now needs to expand.
Dow Expands Agrosciences R&D
March 8, 2010
Fine Chemicals Firms Continue To Expand
At Informex, companies wooed customers with new in-house and partnered capabilities.
Always Looking Ahead
Chemical Industry Medalist Michael E. Campbell sees industry advancing by embracing change.
Downturn Dampens Big Mergers
Chemical firms, focused on survival, avoided big-ticket acquisitions in 2009.
New Jolt For Nuclear Power
News Analysis: Obama offers waste-plan overhaul, more R&D funds, and loan guarantees in hopes of building more reactors.
Upbeat Outlook At Pittcon
Instrumentation: Business picks up as worry over economy begins to dissipate.
Bayer Slates TDI Plant For Germany
European Polymer Capacity Is Closing
AstraZeneca Details Deep R&D Cuts...
...As It Bolsters Bangalore Center
March 1, 2010
A World View At India's Dishman
Smart acquisitions and a knack for retaining foreign employees propel growth of drug ingredients producer.
European Firms Look To Future
Earnings: Fourth quarter makes chemical companies hopeful about 2010.
February 22, 2010
Sales And Earnings Turn Positive
Fourth-quarter results suggest a slow recovery is taking hold for the chemical industry.
Transforming Pharma
Despite healthy year-end results, drug firms are shaking up R&D in anticipation of tough times ahead.
Clariant Details Job Cuts
Arch Divests Industrial Coatings
February 15, 2010
Planning A Comeback
Chemical firms slate a 9.4% hike in capital spending and a step-up in R&D spending of 2.1%.
Solvay Plans Three Asian R&D Facilities
February 8, 2010
Custom Chemicals
After struggling through 2009, contract manufacturers are honing their strategies and hoping for a better 2010.
Taking Over Big Pharma Plants
For better or worse, pharma chemical suppliers are repurposing former drug company plants as custom manufacturing facilities.
Resurrection On The Rhine
A downsized Rohner gets another crack at contract manufacturing.
More R&D Cuts From Big Pharma
Employment: GSK, AstraZeneca, Pfizer slash research jobs, spending.
Dow Posts Quarterly Profit
Cellulosic Ethanol Facility Opens
February 1, 2010
Stronger Demand In Fourth Quarter
Earnings: Chemical firms say sales volumes in most segments are rebounding.
Obama Takes On The Economy
Policy: State of the Union address focuses on jobs, innovation to further recovery.
Braskem To Buy Domestic Rival
Latin America: Acquisition of Quattor will make Braskem the king of commodity plastics in the Americas.
Chemtura To Shutter Some Arkansas Assets
AstraZeneca To Consolidate R&D
January 25, 2010
Seeking To Cement A Green Future
New chemistries promise to revolutionize stodgy building materials industry.
Against The Grain
Forma Therapeutics bets on market's appetite for its platform technology.
DSM To Work With Novomer, Shut Plant
DuPont Expanding Films For Solar
January 18, 2010
Fresh Start For Pharma
Outlook: Despite challenges, drug firms were upbeat at the JPMorgan Healthcare meeting.
Dow At Detroit Auto Show
Firm showcases its lithium battery joint venture, other technologies.
Charles River Closes Preclinical Facility
UOP Awarded Grant For Biofuel Plant
January 11, 2010
World Chemical Outlook
The chemical industry predicts better times in 2010.
Biogen Idec's CEO To Retire
Biotechnology: James Mullen will leave as the company grapples with a stagnant pipeline.
Cleantech Funding Declines In 2009
Anika Therapeutics Buys Biopolymer Firm
January 4, 2010
Company Of The Year
Insights: Lubrizol's results, unusual for a chemical company in 2009, need to be acknowledged.
Big Pharma's Year-End Spree
Acquisitions: Flurry of deals bolsters drug companies' late-stage pipelines.
Court Approves New Lending For Tronox Reorganization
Bankrupt firm obtains last-minute $425 million debtor-in-possession and exit financing.
Sanofi Will Buy Chattem, Targeting U.S.'s Over-the-counter Market
Deal will give French drug company access to lucrative U.S. market for over-the-counter products.
Brazilian Complex Gets Financing
» Workforce At A Glance
CHEMICALS
Company Name: Hexion Specialty Chemicals
Date Announced: March 12, 2009
Jobs Cut: 1020 (15% global workforce)
Other info: Increased savings form productivity program to $100 million from earlier $60 million. Actions will occur over the next 12 to 18 months.
Company Name: Dow Chemical (Rohm and Haas)
Date Announced: March 10, 2009
Jobs Cut: 3,500
Other info: Positions cut primarily from Rohm and Haas, as part of acquisition by Dow Chemical.
Company Name: Eastman Chemical
Date Announced: March 9, 2009
Jobs Cut: 300 (3% of global workforce), and cutting salaries of non-union U.S. employees by 5%
Other info: The $100 million cost-saving effort is in addition an earlier plan, announced 3 months ago, to cut costs by $100 million.
Company Name: A. Schulman
Date Announced: March 2, 2009
Jobs Cut: 104
Other info: Will help company achieve annual savings of more than $5 million.
Company Name: Dow Corning
Date Announced: February 24, 2009
Jobs Cut: 800 (8%)
Other info: Workforce reduction will be through a combination of voluntary retirements and layoffs, and will not affect Hemlock Semiconductor.
Company Name: Rockwood Holdings
Date Announced: February 18, 2009
Jobs Cut: 893 (9%)
Other info: The company plans to save the firm $150 million annually.
Company Name: Rhodia
Date Announced: February 17, 2009
Jobs Cut: 28 temporary layoffs in Charleston, SC.
Other info: Company expects to call workers back in mid-March.
Company Name: Redpoint Bio
Date Announced: February 3, 2009
Jobs Cut: 12 (33%)
Other info: The company has hired Burrill & Co. to help it assess alternatives, including an acquisition or sale of the company.
Company Name: Sumitomo Chemical
Date Announced: February 3, 2009
Jobs Cut: 2,500 (10%)
Other info: The company forecasts it will post its first loss in more than 20 years in the fiscal year that ends on March 31.
Company Name: Cabot
Date Announced: January 28, 2009
Jobs Cut: 500 (12%)
Other info: Restructuring to save the company $80 million in 2010
Company Name: DuPont
Date Announced: January 27, 2009
Jobs Cut: 4,000 contractor positions (additional to announcements in Dec.)
Company Name: Ashland
Date Announced: January 27, 2009
Jobs Cut: 1,300 (9%), includes 500 positions eliminated through Dec.
Other info: Some cuts related to acquisition of Hercules
Company Name: Clariant
Date Announced: January 27, 2009
Jobs Cut: 1,000
Other info: Cuts are in addition to the approximately 2,200 headcount reduction announced in 2006 and almost completed by the end of 2008.
Company Name: Huntsman
Date Announced: January 22, 2009
Jobs Cut: 1175 positions by year-end (more than 9%) and 490 full-time contractors
Other info: Will close its titanium dioxide plant located in Grimsby, U.K.
Company Name: Rohm and Haas
Date Announced: January 20, 2009
Jobs Cut: 900 (5%)
Company Name: Nalco
Date Announced: January 16, 2009
Jobs Cut: 400
Company Name: PolyOne
Date Announced: January 15, 2009
Jobs Cut: 370 (8%)
Other info: Reducing work schedules of 100-300 employees, freeze on executive salaries.
Company Name: Nova Chemical
Date Announced: January 7, 2009
Jobs Cut: 400 (15%) Nova will also cut 200 contractor jobs.
Company Name: Cytec Industries
Date Announced: January 5, 2009
Jobs Cut: Estimated 600 (about 10%)
Other info: Most cuts would occur in the specialty chemicals product lines.
Company Name: Kraton
Date Announced: December 22, 2008
Jobs Cut: Not announced
Other info: Suspending production of some styrenic block co polymers at a number of its global production facilities, affecting approximately 50% of global capacity.
Company Name: Minerals Technologies
Date Announced: December 18, 2008
Jobs Cut: 340 or 12%
Company Name: LyondellBasell Industries
Date Announced: December 18, 2008
Jobs Cut: Not announced
Other info: Idling its Chocolate Bayou, Texas, olefins unit, which has 1.2 billion lb of ethylene capacity. Earlier idled its 1.7 billion-lb ethylene cracker in La Porte, Texas.
Company Name: Westlake Chemical
Date Announced: December 17, 2008
Jobs Cut: Not announced
Other info: Idling ethylene plant in Lake Charles, La. representing about half of its 2.5 billion lb per year of ethylene capacity
Company Name: Air Products & Chemicals
Date Announced: December 16, 2008
Jobs Cut: 1,300 (7%) positions cut
Other info: Target savings - $110 million beginning in 2010
Company Name: Momentive Performance Materials
Date Announced: December 16, 2008
Jobs Cut: 250 (9%) positions cut
Company Name: DSM
Date Announced: December 15, 2008
Jobs Cut: 1,000 (about 5%) positions cut
Other info: Target savings $140 million annually by 2010
Company Name: Arkema
Date Announced: December 15, 2008
Jobs Cut: Temporary shutdowns or production cutbacks at 40% of its plants worldwide
Other info: Fixed cost reduction programme of €500 million between 2005 and 2010
Company Name: Chemtura
Date Announced: December 11, 2008
Jobs Cut: About 500, (20% of its professional and administrative staff)
Other info: Aims to reduce fixed costs by approximately $50 million
Company Name: Eastman
Date Announced: December 9, 2008
Jobs Cut: 40 management positions
Other info: Aims to reduce costs in 2009 by more than $100 million, 80% from labor
Company Name: Dow
Date Announced: December 8, 2008
Jobs Cut: 5,000 (about 11%) positions cut
Other info: To save the company $700 million in annual operating costs by 2010
Company Name: DuPont
Date Announced: December 4, 2008
Jobs Cut: 2,500 positions cut, primarily in businesses that support the motor vehicle and construction industries
Company Name: Symyx Technologies
Date Announced: December 3, 2008
Jobs Cut: 90 (15%) positions cut
Other info: Aims to reduce 2009 expenses by $15 million compared with 2008
Company Name: BASF
Date Announced: November 19, 2008
Jobs Cut: 20000 positions cut
Other info: Temporarily shutting down 80 plants worldwide and slashing production at an additional 100 plants
» Workforce At A Glance
PHARMACEUTICALS
Company Name: Elan Pharmaceuticals
Date Announced: February 25, 2009
Jobs Cut: 230 (14%)
Other info: The cuts, about half in Ireland and half in the U.S., will be in the firm's biopharmaceutical business, which is postponing some manufacturing activities.
Company Name: Novogen
Date Announced: February 13, 2009
Jobs Cut: 11 (20%)
Other info: The company is cutting costs to enable the development of its oncology pipeline.
Company Name: Oscient Pharmaceuticals
Date Announced: February 11, 2009
Jobs Cut: about 100 (1/3rd of the firm)
Other info: The company is considering putting itself up for sale.
Company Name: Teva Pharmaceuticals
Date Announced: February 10, 2009
Jobs Cut: 1090
Other info: 300 of the job cuts will be at a plant in Doral, Fla., and 790 jobs at Pliva, a Zagreb, Croatia-based firm that Teva acquired from Barr Pharmaceuticals late last year.
Company Name: KV Pharmaceutical
Date Announced: February 9, 2009
Jobs Cut: 700
Other info: Recently, the St. Louis-based company voluntarily recalled most of its products and suspended all of its manufacturing after FDA inspections turned up "manufacturing and quality-assurance issues," KV says.
Company Name: Advanced Life Sciences
Date Announced: February 11, 2009
Jobs Cut: 9 (30%)
Other info: Company plans to conserve cash and focus resources on commercializing its first product, the antibiotic cethromycin.
Company Name: Rigel Pharmaceuticals
Date Announced: February 3, 2009
Jobs Cut: 36 (20%)
Other info: Company plans to focus on compounds in preclinical and clinical studies and halt research programs in virology and oncology.
Company Name: King Pharmaceuticals
Date Announced: February 3, 2009
Jobs Cut:760 (22%)
Other info: Cuts come as the company integrates Alpharma, the specialty drug company it bought last year for $1.6 billion.
Company Name: Hollis-Eden Pharmaceuticals
Date Announced: February 2, 2009
Jobs Cut:20 (33%)
Other info: Company is freezing salaries and suspending bonuses for remaining employees.
Company Name: Alexza Pharmaceuticals
Date Announced: January 30, 2009
Jobs Cut:52 (1/3rd of staff)
Other info: Company plans to devote cash to the development of AZ-003, an inhaled version of the schizophrenia drug loxapine.
Company Name: AstraZeneca
Date Announced: January 26, 2009
Jobs Cut: 7,400 by 2013
Other info: In addition to 7,600 positions eliminated in its 2007 restructuring program. Part of a plan to save the company $2.5 billion.
Company Name: Sepracor
Date Announced: January 26, 2009
Jobs Cut: 530 (20%)
Company Name: Altus Pharmaceuticals
Date Announced: January 26, 2009
Jobs Cut: 105 (75%)
Other info: Will discontinue development of the cystic fibrosis treatment Trizytek, transferring rights to the drug to the Cystic Fibrosis Foundation.
Company Name: Intercytex
Date Announced: January 26, 2009
Jobs Cut: 38 (about 50%)
Other info: Firm needs fewer workers upon completion of Phase III trials of Cyzact, a wound treatment drug
Company Name: Lexicon Pharmaceuticals
Date Announced: January 22, 2009
Jobs Cut: 102 (22%)
Other info: Most cuts in basic research and early-phase discovery
Company Name: Pfizer
Date Announced: January 14, 2009
Jobs Cut: Up to 800 (between 5 and 8%)
Other info: Cuts affect researchers and other employees in its Pfizer Global Research & Development division
Company Name: Bristol-Myers Squibb
Date Announced: December 16, 2008
Jobs Cut: 3,700 (10%) positions cut by 2010, in addition to 4,350 from 2007 plan
Company Name: Jazz Pharmaceuticals
Date Announced: December 16, 2008
Jobs Cut: 71 (24%) positions cut
Company Name: EntreMed
Date Announced: December 16, 2008
Jobs Cut: 30 (60%) positions cut
Company Name: Pfizer
Date Announced: December 12, 2008
Jobs Cut: 700 jobs in France in addition to 10,000 since early 2007
Company Name: Titan Pharmaceuticals
Date Announced: December 2, 2008
Jobs Cut: about 17 (40%) positions cut
Company Name: AstraZeneca
Date Announced: November 20, 2008
Jobs Cut: 1,400 jobs by 2013 positions cut
Other info: Plans to close manufacturing sites in Spain, Belgium, Sweden
» Latest Business News
September 7, 2009
Powerful Stuff (Member Content)
(September 7, 2009 | Vol. 87 Issue 36 | pp. 32-34)Materials get attention and funding in effort to create U.S. lithium battery industry.
Up From The Ashes (Member Content)
(September 7, 2009 | Vol. 87 Issue 36 | pp. 36-37)U.S. soda ash industry fights its way out of the recession.
Toray Taps China (Member Content)
(September 7, 2009 | Vol. 87 Issue 36 | p. 38)Japanese firm's plant in Beijing will produce high-technology water purification membranes.
Business Concentrates (Member Content)
(September 7, 2009 | Vol. 87 Issue 36 | pp. 29-30)August 31, 2009
Seeking Angels (Member Content)
(August 31, 2009 | Vol. 87 Issue 35 | pp. 18-19)ACS Meeting News: University inventors connect with experienced alumni to start new businesses.
Babies On Board (Member Content)
(August 31, 2009 | Vol. 87 Issue 35 | p. 20)The bisphenol A controversy gives Eastman's new polymer an edge in the infant care market.
Business Concentrates (Member Content)
(August 31, 2009 | Vol. 87 Issue 35 | pp. 16-17)» Career & Employment
News and analysis of the employment market, trends and career best practices.
March 9, 2009
ACS News: Employment & Salary Survey
Salary gains and steady employment for chemists mark 2008 survey.
Fueling An Analytical Chemistry Career
Stimulus bill may energize employment in renewable energy.
January 26, 2009
Postdocs Feel Job Crunch
As recession deepens, postdocs find themselves caught in a difficult academic job market.
November 3, 2008
Special Issue: Employment Outlook
Thinking Creatively About Work
Economic turmoil points to a hazy outlook; a little imagination can open up job opportunities.
June 2, 2008
ACS News: Starting Salaries
2007 chemistry graduates entered a still relatively strong U.S. job market and did quite well
» more career & employment news
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