03 May 2013 18:43 [Source: ICIS news]
HOUSTON (ICIS)--Antioxidant and UV stabiliser producer Addivant aims to grow its business and hire more staff following its acquisition by investment firm SK Capital, Addivant CEO Peter Smith said on Friday.
Addivant includes the former Chemtura antioxidant and UV stabiliser business. SK Capital earlier this week completed the $200m (€154m) acquisition from Chemtura.
"All of our staff of more than 500 is staying with the business, and we are actually recruiting people as we expand and grow the business, exploring new markets and new products," Smith told ICIS in an interview.
"We need all the people we have today, and we are vey busy recruiting people as we get ready for growth in the future," he added.
Smith had been leading the antioxidant and UV stabiliser business unit for Chemtura since 2009.
Addivant is headquartered in Connecticut. It has 11 plants and nine technology and application testing centres worldwide. Its annual sales are about $500m.
As an independent stand-alone within SK's portfolio, Addivant will have increased focus and be able to be "very entrepreneurial, with fast decision-making", Smith said.
Importantly, Addivant will benefit from SK’s operational experience and integration in the chemical industry, he said.
"Even though we are independent, we belong to a bigger group and can benefit from the expertise [SK] provides," he said.
While there is no direct overlap between Addivant’s portfolio with that of other SK group members, there will be complementary benefits, especially in procurement and sales, he said.
For one, Addivant would buy some raw materials, such as isobutylene, from SK, Smith said.
Isobutylene is one of Addivant’s largest raw materials. SK, through group member TPC Group, is a large isobutylene producer in North America.
At the same time, Addivant would supply additives to SK members such as nylon 6,6 producer Ascend.
However, Addivant has not cut all ties with Chemtura, Smith said.
"We have various supply agreements in place for them to produce products on our behalf, and we are providing some products to them," he said.
Regionally, Addivant is a "very global business". As such, the ongoing weakness in Europe on its own is "not a big worry" for Addivant.
However, the European crisis – "if it really is a crisis" – is affecting China and southeast Asia as well, where many manufacturers see their export business with Europe slowing, he added.
Addivant ranks as the only antioxidant supplier with production assets in five continents.
The company divides its markets into two basic groups: the polymer industry, and the downstream compounding and extrusion industries.
In polymers, Addivant biggest market segments are polypropylene and polyethylene, as well as engineering plastics.
The company’s specialty chemicals are used in the polymer and rubber industries in a wide range of segments including automotive, packaging, consumer durables, electrical and electronics, and building and construction.
Addivant’s portfolio of products has its roots in predecessor companies that include Great Lakes Chemical, Uniroyal Chemical and GE Specialty Chemicals.
($1 = €0.77)
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