Sterling Chemicals seeks commodity bargains

As an increasing number of chemical companies put their assets up for sale to survive today's stormy commodity business climate, Sterling Chemicals is taking the opposite tack. Sterling's chairman, Gordon Cain, who profited handsomely in the mid-1980s by buying ailing petrochemical businesses and waiting for the rebound, is once again shopping for bargains. To focus the effort, the Houston-based firm has created an Office of Corporate Development and named to a new vice presidency heading that office Robert W. Roten, formerly commercial vice president. "We believe that Sterling's future growth will come through acquisitions, commercial partnerships, and continuing construction of additional facilities that fit our strategy as a low-cost producer of commodity petrochemicals. The current depressed chemical markets will offer opportunities" as other firms evaluate existing businesses, says J. Virgil Waggoner, Sterling's president and chief executive officer. Phillips Petroleum and Tenneco are among companies that have recently put assets up for sale (C&EN, Sept. 16, ...