As part of a three-way deal that also involved Singapore chemicals supplier DyStar, Jiangsu Sinorgchem Technology Co. agreed to acquire two Emerald Performance Materials LLC factories that make antioxidants for lubricants and other industries.
DyStar Global Holdings, through its United States subsidiary DyStar LP, agreed to buy Emeralds Specialties, Polymer Additives and Nitriles businesses, which includes 5 U.S. manufacturing sites. DyStar in turn agreed to sell two of those plants – facilities in Akron, Ohio, and Henry, Illinois – to Jiangsu Sinorgchem, which is headquartered in Shanghai.
The Akron and Henry sites produce a range of polymer additives, including aminic and phenolic antioxidants used as intermediates for lubricants, according to Emeralds corporate website. Aminic antioxidants protect base oils and greases from heat and oxygen that may cause corrosion, deposits and viscosity breakdown.
It was not clear if Jiangsu Sinorgchem will continue selling output from the Akron and Henry plants for lubricant applications. Aminic and phenolic antioxidants are also used as intermediates in the manufacture of rubber, which is Jiangsu Sinorgchems primary business. The company, part of Beijing-based, state-owned chemicals giant Sinochem Group, claims to be a leader in the rubber chemicals market and to have established long-term relationships with the globes biggest tire manufacturers. Before this deal, it owned and operated three chemical manufacturing sites – all in China.
This acquisition will enhance our presence in North America and bring us closer to international customers, Jiangsu Sinorgchem Chairman Qin Hengde said in a press release. It reflects the commitment that Jiangsu Sinorgchem will continuously invest and develop in the rubber chemicals industry.
DyStar would also acquire and keep plants located in Cincinnati; Charlotte, North Carolina; and Cheyenne, Wyoming, it stated in a press release. Those plants make foam control additives, specialty silicones, repellents, technical dyes, pigment dispersions and others.
The price tags for DyStar and Jiangsu Sinorgchem were not disclosed, and individuals authorized to answer questions were not available by deadline at any of the three companies.
Emerald, of Cuyahoga Falls, Ohio, will retain its other four plants, which are located in Kalama, Washington; Moorestown, New Jersey, its specialty polymers plant in Akron and a facility in Rotterdam, the Netherlands. These plants make products such as benzoates, benzoic acid, coalescents, epoxy resins, reactive liquid polymers and modifiers, among other chemicals.
The sale is expected to close in the third quarter of 2016, subject to standard regulatory approvals, read the press release from Emerald.
Emerald produces and markets specialty chemicals for a broad range of applications, such as corrosion inhibitors, metalworking fluids, automotive fluids, grease, engine, gear, hydraulic and turbine oils, as well as synthetic and industrial lubricants. It supplies its products to the aerospace, lubricants, industrial intermediates, automotive, plastics, textiles, and the food and beverage industries, among others.
DyStar LP specializes in manufacturing chemicals for textile applications, but also produces non-textile intermediates for lubricants such as phosphate esters and stearates. Phosphate esters are niche base stocks with limited usage, but highly valued for providing antiwear protection in metalworking fluids. Metallic stearates are used as lubricants in the metal processing and plastics industry.
Emerald Performance Materials was formerly part of the lubricant additives division of Lubrizol Corp. In 2006, Lubrizol divested five non-core business segments and its lubricant additives were acquired by an affiliate of Florida-based Sun Capital Partners, which specialized in food ingredients and industrial specialties.