04 October 2012 02:21 [Source: ICIS news]
HOUSTON (ICIS)--Chemtura’s acquisition of Solaris ChemTech’s bromine assets will further the US-based chemical firm’s applications in the manufacturing of agricultural and pharmaceutical products in the Asian market, the company said on Wednesday.
“Probably the fastest growing region is Asia Pacific,” Chemtura spokesman John Gustavsen said.“[Solaris’ assets] give us a presence close to our sources of supply and close to our customers located where the most robust growth is occurring.”
The deal, which will be finalised at the end of this year, includes two plants, a multi-products plant and a research centre in Gujarat, India. The new subsidiary will be headquartered at Chemtura’s existing facilities in New Delhi.
Chemtura CEO Craig Rogerson did not disclose production levels but said capacity will be increased by 10-15%, adding to the company’s bromine business, Great Lakes Solutions.
“There’s opportunity for capacity to be higher over time,” Rogerson said. “We will be investing in these facilities as the market dictates and will see some expansion in 2012.”
Chemtura currently has access to bromine in Arkansas in the US, as well as the Dead Sea in the Middle East. With India being the third largest salt-producing country in the world, the acquisition would give the company a diversity of supply, Rogerson said.
Since Solaris is established in agricultural and pharmaceutical sectors, Rogerson said, Chemtura’s emphasis in the acquisition would be bromine-performance products outside flame retardants.
“As fire and safety standards continue to evolve in India, I would presume in both electrical and insulations, we will see some expanded opportunity there,” Rogerson said.
Chemtura will continue to look for other business opportunities, including ongoing discussions of an alliance to build on Archean Group's marine chemical facility in Gujarat in the Rann of Kutch which produces sulphate of potash.
“That’s progressing as planned, and if successful, it will be complimentary to this Solaris acquisition,” Rogerson said.
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