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supplier of organometallic catalysts for polyolefins and elastomers. Grace is also strong in silica-based and chrome-based catalyst technology. It would like to take its technology around chrome, silica, Ziegler-Natta, and the components business, combine them, and make specialty catalysts for a range of customers across the polyolefins business. The company scans the catalyst businesses for bolt-on acquisitions. The world market in specialty catalysts market is growing at about twice GDP on a long-term basis. Grace says it is investing in acquisitions and in its specialty catalysts business, and also in organic growth. It is mainly engaging in de-bottlenecking activities. Grace Davison, which includes catalysts, silicas, and other specialty chemicals, had sales of $1.37 bn in 2005. In 1Q 2006, sales rose 7% to $356 M though pretax operating profits fell 5% to $36 M because higher energy and raw material costs, and restructuring expenses ate into earnings.
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