Commoditization, Consolidation, Globalization

Jones Day's involvement with the chemicals industry reflects not only the Firm's roots in representing manufacturing concerns and others in that supply chain, but also the Firm's position as a global problem solver for businesses in a changing and consolidating industry.

Chemicals manufacturers rely heavily on natural gas and petroleum as raw materials for the chemical products which themselves become raw materials in a limitless variety of manufacturing processes. Whether commodity or specialty, chemicals manufacturers across the world are heavily affected by rising energy prices and cyclical demand. These competing factors incent manufacturers to explore mergers, joint ventures and alliances to maximize revenue growth and operating efficiencies.  In recent years, major players in the private equity markets have been particularly aggressive in participating in the consolidation in the chemicals industry, and Jones Day has been active in all aspects of this new initiative.  Jones Day has assisted chemical industry clients in raising equity and debt funding in the capital markets to support these transactions, and, where cyclicality has been particularly significant, we have advised major industry participants in restructurings as well.

Regardless of the industry cycle, the Firm has provided transactional and competition services in an extraordinary range of transactions, whether industry transforming deals or smaller transactions that will show their impact through accumulation and time. It is also worthy of note that strategically sound acquisitions and divestitures in the chemicals industry often do not align themselves perfectly with the practical realities of sites, property lines and integrated processes. Jones Day property lawyers have developed considerable expertise in site separation mechanics, shared facilities agreements, toll manufacturing and services agreements that are necessary in these circumstances.

Growth in the chemicals sector does not only occur by acquisition. Organic growth, particularly in the specialty chemicals area, occurs through the exploitation of new ideas and technologies, and the defense of proprietary processes. For decades, Jones Day has housed the intellectual property muscle to counsel and prosecute critical patents in this industry and to litigate complex patent disputes. The Firm has lawyers with advanced degrees in biochemistry, chemical engineering, physics, and other relevant technologies, so that the intellectual property needs of chemicals industry participants can be addressed.

Due in no small part to the considerable competitive pressures experienced in the chemicals sector, at times, chemicals manufacturers have found themselves the target of investigations related to price-fixing and other competition-related actions. In recent years, these investigations have been prevalent in Europe, the United States, and Canada.  Jones Day has been very active in advising and defending antitrust litigation and competition matters across the globe.

And finally, the chemicals sector invites private litigation from a variety of sources, whether relating to toxic tort and products liability, intellectual property or environmental and occupational health and safety considerations.  Jones Day understands all facets of those risks, and is experienced not only at counseling in a highly regulated and closely watched environment, but also at handling complex, multijurisdictional litigation for leading industry participants.

Kontakte

Lizanne Thomas
Atlanta
Tel: 1.404.521.3939
E-mail

Ronald R. Janke
Cleveland
Tel: 1.216.586.3939
E-mail