Rhodia completes acquisition of China guar production unit

08 March 2011 16:20  [Source: ICIS news]

LONDON (ICIS)--Rhodia has completed the acquisition of a guar derivatives production unit from Suzhou HiPro Polymers in China, the French specialty chemicals producer said on Monday.

The new unit, based at Zhangjiagang, Jiangsu province, will enable Rhodia to meet the fast-growing demand for guar-based products in Asia-Pacific, and complement the group’s existing global guar derivatives manufacturing footprint in the US, France and India, it said in a statement.

Financial details were not disclosed.

Guar derivatives come from the guar plant, mainly growing in Southern Asia, from which guar gum, a polysaccharide, is extracted. It is used in various applications including agrochemicals, cosmetics, and oil and gas extraction.

“This targeted acquisition and the enhancement of our industrial assets will reinforce our worldwide leadership position in guar derivatives technology as a supplier of natural guar-based materials used primarily in personal care, oilfield and agrochemicals applications,” said Emmanuel Butstraen, president of Rhodia Novecare.

Rhodia said it is also investing in its guar facility at Vernon, Texas, in the US, to increase production capacity and improve competitiveness.

“These two investments are completely in line with Rhodia Novecare’s strategy targeting organic as well as external growth,” Butstraen added.

Butstraen said that following Rhodia’s acquisition of Chinese surfactants producer Feixiang Chemicals in November, the investments represented a further step in the group’s drive to develop its presence in China and capture the fast-growing market in Asia-Pacific.

By: Franco Capaldo
+44 (0)20 8652 3214

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