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Solvay sells barium, strontium, sodium percarbonate businesses to private equity firm

November 24/2020

MOSCOW (MRC) -- Solvay says it has reached an agreement to sell its technical-grade barium and strontium business in Germany, Spain, and Mexico, as well as its sodium percarbonate business in Germany to Latour Capital (Paris, France), an independent private equity firm, according to Chemweek.

The company says its joint venture (JV) with Chemical Products Corp. (Cartersville, Georgia) is included in the transaction as part of Solvay's barium and strontium business. The transaction - financial terms of which have not been disclosed - will be completed in the first quarter of 2021 and remains subject to the completion of information and consultation procedures with employee representatives and approval from the relevant regulatory authorities.

Didier Gaudoux, partner at Latour Capital, says that under Solvays umbrella, the businesses "have established leading competitive positions and proved to have very efficient production processes. We will support the management to deliver an ambitious and sustainable growth strategy, with the right investments in capacities and continuous improvements on ESG matters, he says.

The agreement is a key step toward streamlining Solvays portfolio while reducing the companys footprint by exiting its position in niche technical-grade chemical markets, the company says. The divestment also aligns with Solvays G.R.O.W. strategy, announced last year, it says.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF  enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASFs position as a solution provider to develop advanced material solutions for key industries.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, excluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
Author:Margaret Volkova
Tags:Asia, PP, PE, PP random copolymer, propylene, HDPE, ethylene, compounding, petrochemistry, poliamid, BASF, Sinopec, Solvay, Germany, China, Russia, USA.
Category:General News
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