23 May 2011 16:12 [Source: ICIS news]
HOUSTON (ICIS)--US-based specialty chemicals producer Chemtura plans to establish a bromine joint venture with India-based Archean Group, the company said on Monday.
The joint venture will be the second phase - as outlined in a letter of intent that Chemtura signed with the company, it added.
In the first phase, the companies will establish a long-term bromine sourcing alliance, Chemtura said. This phase will provide Chemtura with bromine from India.
Chemtura, in turn, will use the bromine to produce derivatives such as flame retardants, it said.
This alliance will later extend to a joint venture.
The deal provides Chemtura with a third source for bromine - in addition to the US and the Dead Sea in the Middle East.
The deal will build on Archean's marine chemical facility in the state of Gujarat, India. The facility produces sulphate of potash.
Chemtura did not reveal financial terms of the deal or any timelines.
"We have made significant investments in our US facilities in the form of brine infrastructure upgrades and retrofit of existing assets to produce innovative and sustainable flame retardants," according to a statement by Anne Noonan. Noonan is the president of Great Lakes Solutions, the Chemtura subsidiary that produces flame retardants.
"This, coupled with expansion of our specialized container fleet, the strength of our existing brine field rights, the acquisition of certain brine leases in 2009, and the long-term viability of our existing brine wells, enhances our already solid position to sustainably deliver bromine and brominated derivatives from South Arkansas for decades to come," she added.
Chemtura also produces agricultural chemicals, petroleum additives, pool chemicals and urethane chemicals.
For more on Chemtura visit ICIS company intelligence
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