LONDON (ICIS)--Evonik and US chemical major Dow Chemical have terminated their 50:50 joint venture for production of acrylic acid (AA), the German chemical producer said on Monday.
The StoHaas joint venture has two production sites in Germany and in the US, and each facility will go back to the original owner before the joint venture was set up in 1999.
The joint venture facility in Marl, Germany, will be owned by Evonik, effective 31 December.
A second plant in Deer Park, Texas, will go back to Dow’s ownership. It will now belong to the newly formed DowDuPont.
The German producer did not disclose production capacities for the plants.
“The dissolution of the joint venture will put both companies in a better position to pursue their respective strategic goals. We need to combine high supply reliability with a good cost position,” said Norbert Westerholt, head of the Evonik’s Baby Care division.
“Follow-up agreements governing the mutual supply of acrylic acid will offer both companies a secure supply of the material,” the company added.
The German chemical producer said the transaction would not affect employment in either of the sites.
The joint venture StoHaas was established in 1999 between Stockhausen, a predecessor of Evonik, and Rohm & Haas, a wholly-owned subsidiary of Dow.
Acrylic acid is used as a raw material to make superabsorbent polymer (SAP) for the manufacture of disposable nappies, surgical pads and other personal care items.
Pictured: Marl's chemical park, Germany
Source: Chemiepark Marl