Chemtura agrees to sell oleochemicals business

25 January 2008 14:46  [Source: ICIS news]

TORONTO (ICIS news)--Chemtura has agreed to sell its oleochemicals business to US-based PMC Group for an undisclosed amount to help cut its debt, the US specialty chemicals maker said on Friday.

 

The company expected to conclude the sale of the business, which generated sales of some $175m last year, by the end of the first quarter, it said.

 

"This transaction will be another step in improving our polymer additives business by strategically divesting product lines to better focus on the products and businesses where we have our greatest strengths and leading market positions," said Chemtura CEO Robert Wood.

 

Chemtura's oleochemicals plant in Memphis, Tennessee, makes fatty acids, fatty esters, glycerin approved for pharmaceutical applications, glycerol esters, amides, bisamides, stearates and triglycerides.

 

The facility employed about 260 workers and was the only producer of primary amides in North America for the plastics additives market, Chemtura said.

 

Chemtura said in December it was looking for strategic alternatives, including the potential sale of the company or a merger.

 

($1.00 = €0.68)

By: Stefan Baumgarten
+1 713 525 2653

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