MWV to buy the rest of Brazil oleochem firm Resitec

07 November 2012 19:25  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--MWV Specialty Chemicals, a division of MeadWestvaco, has agreed to purchase the remaining outstanding ownership stake of Brazilian oleochemicals producer Resitec Industria Quimica, the US-based subsidiary said on Wednesday.

MWV and South African-based AECI have held a 50-50 joint venture partnership in Resitec for the past four years, MWV said.

The decision to move Resitec to one owner was made jointly, the company said.

Neither party disclosed financial details.

“We’ve had a successful four-year joint venture partnership interest in Resitec, and we are pleased to have them join MWV as we continue to accelerate our growth in emerging markets,” said MWV president Ed Rose.

Explosives and specialty chemicals company AECI said that growth in Brazil remained an important part of the company’s strategy.

“Whilst involvement in Resitec has been invaluable for acquiring local knowledge and experience as a platform for future expansion, AECI concluded that Resitec is not ideally aligned with its core strategy,” said AECI CEO Graham Edwards.

Resitec is the largest producer of oleochemical-based products in Brazil, and currently provides chemical products for the rubber, lubricants, food and adhesives markets.

Resitec’s operations include a manufacturing facility in Rio de Janeiro and a tall oil refinery in Santa Catarina in southern Brazil.

MWV said that following the acquisition it would expand the company’s offerings to include asphalt and oilfield markets.

By: Simon West

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