Specialty Chemicals Business Losing Some Luster

Abstract

In the early to mid-1980s, specialty chemical businesses were too good to be true, promising continuous high performance and profits. So it was not surprising that so many companies were snatching up these specialty chemical gems at record pace and for record price tags, while others rushed to find ways to relabel a broad spectrum of chemical products as specialty. And indeed, specialty chemicals do have some advantages over commodity businesses that will help them weather the current recessionary storm and look to bright skies in the future. Especially well positioned will be companies in a select number of high-flying segments, such as the environmental area, with its certain, regulation-driven sales growth. However, the industry's perceptions of specialty chemicals have come down to Earth over the past 10 years. Acquisition activity has mellowed and companies have come to realize that specialties are subject to many of the same issues confronting those of the overall chemical ...