29 November 2010 21:56 [Source: ICIS news]
NEW YORK (ICIS)--US specialty chemical firm Chemtura is aiming to boost its sales to Asia and Latin America to 35% of overall figures, up from less than 20% in 2010, its chief executive said on Monday.
“Clearly, emerging markets are a key area of focus for us,” said Chemtura chairman, president and CEO Craig Rogerson, in an interview with ICIS.
Asia-Pacific represents about 15% of current sales and Latin America less than 5%, he noted.
“Latin America and Asia-Pacific need to approach 35% of sales within four to five years. What we really need is to source our own products from those regions,” said Rogerson.
“We export the majority of the products we sell into Latin America and Asia-Pacific from western Europe and North America. While that’s worked up to now, if we want to get to over a third of sales from those markets, we need to produce in those regions,” he added.
Chemtura is aiming to increase its footprint in Asia and Latin America through bolt-on acquisitions, joint ventures and grassroots facilities, the CEO said.
“That will be a critical portion of our capital and M&A spending over the next five years. While we continue to invest in new product capability in western Europe and North America, the expansion capacity will certainly be dominated by emerging market regions,” said Rogerson.
Chemtura plans to boost capital spending to $143m in 2011, up from an estimated $120m (€90m) in 2010. More than half of that figure would be for expansion growth capital, he said.
The company is planning to increase plastic additives and organometallics capacity in Saudi Arabia.
Chemtura's normalised run-rate capital spending after 2011 will be about $100m, Rogerson added.
The company’s seven business segments are consumer products (pool and cleaning chemicals), Chemtura AgroSolutions (crop protection chemicals), Great Lakes Solutions (flame retardants, brominated performance products, fumigants), organometallics, petroleum additives, urethanes and plastic additives (antioxidants, UV stabilisers).
($1 = €0.75)For more on Chemtura visit ICIS company intelligence
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