News from Notch Consulting, Inc.

June 9, 2016

Sinorgchem to acquire Emerald’s rubber chemicals business

Filed under: General, Rubber Chemicals — Notch @ 6:00 am

On May 6, Emerald Performance Materials (Cuyahoga Falls, OH) announced an agreement to sell its Specialties and Polymer Additives and Nitriles businesses to DyStar L.P., the US subsidiary of DyStar Global Holdings Pte. Ltd. (Singapore). The sale involves five of the company’s nine plants, specifically the dedicated plants in Charlotte, NC, Cincinnati, OH, Cheyenne, WY, Henry, IL, and a portion of a shared site in Akron, OH.  Terms of the transaction were not disclosed. The sale is expected to close in the third quarter of 2016, subject to standard regulatory approvals.

Rubber & Plastics News has details on this deal. In addition to the transaction mentioned above, DyStar said Jiangsu Sinorgchem Technology Co. Ltd. will acquire the Polymer Additives & Nitriles business. Jiangsu Sinorgchem is a subsidiary of Sinochem Group, a state-owned Chinese chemical company. Emerald Polymer Additives produces Good-Rite antioxidants (phenolics and TMQ) and Cure-Rite accelerators, with applications in rubber, plastics, and lubricants. Plant locations are Henry, Illinois and Akron, Ohio. Emerald’s Specialty Nitrile Latex Polymers is the largest US producer of specialty nitrile latex and butadiene-based emulsion polymers. Applications include paper, coatings, coal tar emulsions, and other industrial applications. These products are produced in Akron, Ohio.

Jiangsu Sinorgchem said acquiring the business group will expand its globalization efforts for the firm’s rubber chemicals business while adding to its capacity, strengthening its global supply system, and enhancing its international marketing and supply capabilities. The acquisition of the nitrile division will give Sinorgchem a solid North American foundation for the manufacture of specialty butadiene and butadiene-acrylonitrile-based latexes.

DyStar, which already has a US headquarters in Charlotte, North Carolina, will retain the Specialties business, which includes three manufacturing plants in Charlotte, North Carolina (foam control products, specialty silicones); Cheyenne, Wyoming (foam control products); and Cincinnati, Ohio (pigment dispersions and dyes).

Financial details on the sales were not disclosed. Officials at Emerald and DyStar said further details would not be released until after the sale closes. After the divestitures are complete, Emerald will consist of two units: CVC Specialty Chemicals (specialty epoxy resins and reactive liquid polymers) and Kalama Chemical (toluene oxidation chemistry).

 

 

 

 

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