Page 162 - CW E-Magazine (20-2-2024)

News from Abroad

CHANGE OF PLANS
Gulf Resources puts off delivery of factory equipment

for its chemical plant

Gulf Resources Inc., China’s lead- the Middle East, recognising that any
ing producer of bromine and specialty escalation of conflict could significantly
chemicals, has announced a halt in impact global bromine markets, given
procuring additional equipment for that around 74% of the world’s bromine
the factory being built by its chemical production is concentrated in the Dead
subsidiary, Shouguang Yuxin Chemi- Sea area between Israel and Jordan.
cal Industry Co. Ltd. (SYCI). The new
factory – being set up in Bohai Marine The exploration of alternative busi-
Industrial Park located in the Shandong ness avenues is also underway, with
province – was to focus on production sodium-ion batteries emerging as a
of higher margin pharmaceutical inter- promising field. Notably, two leading
mediate products, besides other chemi- Resources is exercising caution, opt- Chinese automobile manufacturers,
cals for use in sectors like oil & gas, ing not to invest further in a sector that CATL (Chery) and BYD, have already
agrochemicals and paper making. The might not yield immediate returns. The integrated sodium-ion batteries into
factory had received all approvals in completion of the factory and the start their vehicles. While Gulf Resour-
May 2020, but has been hit by supply of production will be contingent on ces has not concluded its investiga-
chain and energy related issues. economic recovery signs. tion into this technology, the company
acknowledged the synergy between its
The latest decision came after an In the meantime, Gulf Resources crude salt business and the burgeoning
evaluation of market conditions, par- is assessing various chemical market sodium-ion battery market. Gulf
ticularly the downturn in the Chinese segments for profitability, with a keen Resources said it remains committed to
economy and the housing market, interest in pharmaceuticals and poten- completing its chemical factory in the
which is a significant consumer of tial opportunities to generate capital long term. However, the company is
bromine. The company has indicated offshore. This strategic move aims to prepared to pivot and potentially repur-
that many chemical firms in its niche enhance shareholder value. Addition- pose the facility for sodium-ion battery
are currently unprofitable due to the ally, Gulf Resources is closely mon- production if economic conditions
economic challenges. As a result, Gulf itoring geopolitical developments in persist or deteriorate.

CHANGE OF PLANS
Teva planning to part with its API business

Israeli drug firm, Teva, has to pursue new growth strategies, ena- to enable TAPI to maximise its potential
announced its intention to divest its bling it to maximise an array of oppor- for growth, capture more opportunities
active-pharmaceutical ingredient (API) tunities in the $85-bn global API mar- with third-party customers, leverage its
business, TAPI. TAPI is a global leader ket,” the company said in a press note. technology, expand its capabilities and
in the small-molecule API industry, continue to support generics players
with approximately 4,300 employees Mr. Richard Francis, Teva’s Presi- and innovators, including Teva, world-
worldwide. dent & CEO, said the move will help wide.” Teva expects the intended dives-
increase the focus on its core business, titure to be completed in the first half of
“The intent to divest TAPI will accelerate the biosimilar pipeline, and 2025, subject to reaching a satisfactory
allow Teva to maximise current and position its generics portfolio and pipe- agreement on transaction terms with a
potential revenue streams, focusing on line to drive growth for the future. prospective purchaser, the successful
capital reallocation towards growth and satisfaction of closing conditions, and
innovation, and to better serve patients. Mr. R. Ananth, CEO of TAPI added, the approval of an agreed transaction
It will also allow the divested company “Our goal, operating outside of Teva, is by Teva’s Board of Directors.

162 Chemical Weekly February 20, 2024

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