PHILADELPHIA — In a statement Rohm and Haas asserts that the completion of the K-Dow Petrochemicals partnership between Dow Chemical and Petrochemicals Industries Company of Kuwait is not a closing condition for the proposed merger between Rohm and Haas and Dow Chemical.
Rohm and Haas and Dow Chemical entered into a definitive agreement on July 10, 2008 providing for the acquisition of Rohm and Haas by Dow, subject to the terms of that agreement. Rohm and Haas Company shareholders approved this agreement on October 29, 2008. Rohm and Haas continues to work towards the completion of this agreement.
TAIPEI, TAIWAN, SEOUL, KOREA and MELVILLE, NY – Across the globe, copper clad laminate (CCL) suppliers are making adjustments to production volumes and product pricing to cope with weakening demand. Park Electrochemical announced last week that sales for the third quarter were down 23% and profit fell by over 60%.
CCL suppliers in Taiwan and Korea are said to be conducting price wars following demand drop and lower copper prices according to industry sources. The average copper price has dropped from $3.67 per pound in August down to the current price of $1.29 per pound, a 65% drop. Some CCL suppliers have taken losses on copper in inventory that was purchased at the higher third quarter prices and not sold when demand dropped throughout the fourth quarter. These materials are being sold at a loss to clear inventory.
Some CCL suppliers in Taiwan and Korea are quoting laminate materials based on current copper prices in an attempt to gain market share and reduce inventory levels. This is a change to the common practice of quoting based on an average cost of copper over the previous two-to-three month period.
At the same time many CCL suppliers are cutting production, closing plants and reducing headcount.
The decline in CCL prices and weakened demand impacts raw material prices and production as well. As an example, glass fabric manufacturer Taiwan Glass Industrial has stopped production at two more furnaces, TT-6 in Taoyuan, Taiwan and TGF-2 in China. The company had already stopped operations at three other furnaces earlier in December.
TAIPEI, TAIWAN -- Yu Fo Electronic, a PCB motherboard supplier with manufacturing locations in Taiwan and China, reported declining sales and an overall factory utilization rate below 50% for the fourth quarter.
This news follows announcements by Asustek Computer and Gigabyte Technology of sharp declines in shipments for the fourth quarter. Asustek and Gigabyte estimated fourth-quarter shipments would drop by 10% to 25%.
Yu Fo's November sales were down 48% compared to previous months.
According to sources, Yu Fo has reduced its workforce in Huizhou China by 300 people. This is expected to reduce labor cost by approximately $60,000 monthly. The company has also stopped some production lines in Huizhou, China and Taoyuan, Taiwan to cope with weakened demand.
SYDNEY, AUSTRALIA – Altiumhas named Triacon Scientificas its channel partner for Sweden. Triacon will sell Altium Designer,
as well as Desktop NanoBoard and daughterboards. In addition, it will provide
training, sales and support to local electronics designers.
By extending its sales force of
channel partners, Altium believes it will strengthen future growth. “Sales grew
30% in Europe last quarter and 18% in the last financial year,” said Frank
Hoschar, managing director and vice president of sales and support EMEA,
Altium. “European organizations are rapidly turning to Altium’s next generation
electronics design solutions.”
TAIPEI – Hann Star has
temporarily stopped production at its 1A plant in China. The measure comes
after significant November losses.
Netbook and notebook orders dropped by 25% and 53%
respectively when compared to October figures. The company reported a loss of
NT$6 million (US$181,430) for the month. A 30% decline in netbook sales for
December and a utilization rate of 50% is predicted.
The temporary closure is expected to reduce personnel
expenses by 40% and increase the gross margin 1 to 2 percentage points. The
facility is planned to reopen in mid-February.
ST. LOUIS -- To date, EMS provider LaBarge Inc. had largely stayed out of the acquisition game.
The company ended that streak today, announcing a deal for Pensar Electronic Solutions for$45 million, subject to certain adjustments.
Appleton, WI-based Pensar had 2008 revenues of about $55 million and is profitable, La Barge said in a statement announcing the deal. The 75,000 sq. ft. plant becomes LaBarge's third largest. Management and staff, including Pensar general manager David Steel, are expected to stay on.
The deal is expected to broaden LaBarge's end-markets, which are heavily oriented toward defense. The company currently generates about 45% of its revenue from defense programs, 21% from industrial, 16% from oil and gas, and 7% from medical.
"The addition of Pensar is an exciting development in the advancement of LaBarge’s growth strategy. The acquisition adds significant new customers and greatly expands our presence in the medical and industrial market sectors,” said chief executive and President Craig LaBarge.
LaBarge expects the acquisition to be modestly accretive to earnings in the second half of the current fiscal year, which ends June 28, 2009. LaBarge financed the acquisition with senior debt through U.S. Bank and Wells Fargo.
