The new performance additives segment would consist of Lanxess Rhein Chemie Additives business unit, along with Chemturas two additive segments – its lubricant additives and synthetic lubricant business, for industrial applications such as power generation and aviation; and its brominated flame-retardant additives, elemental bromine and bromine derivativeness business.

Anno Borkowsky, head of Rhein Chemie Additives, noted that Chemtura holds a competitive position in industrial lubricant additives and also manufactures the necessary precursors and intermediates. Combined with our own additives portfolio, we will be a major supplier for industrial lubricants and will further strength our competitiveness through our integrated value chain, Borkowsky said in a news release.

Cologne, Germany-headquartered Lanxess indicated it expected the industrial lubricant additives market to grow at an annual rate of 3 percent to 4 percent in the medium term, primarily driven by steadily increasing requirements with respect to the performance and environmental sustainability of lubricants.

Consultant Geeta S. Agashe, president of Geeta Agashe & Associates LLC, said the combination of the two companies puts them in a very strong position globally in metalworking fluid additives and other industrial lubricant applications, and creates synergies at the regional level as well. However, for a merger to be successful, there are many other factors to be considered. Time will tell, Agashe told Lube Report. But it is very clear that with this acquisition, Lanxess is highlighting its intention of being a much stronger player in the industrial additives and specialties segment globally.

In a presentation on the acquisition, Lanxess said growth drivers for industrial lubricants include increasing demands on performance, rising labor protection standards and higher demands on environmental performance.

With this acquisition, we are forming a champion in the field of additives and are strengthening our already profitable portfolio, Matthias Zachert, chairman of the Lanxess management board, said in a news release. We are significantly building on our competitive positioning in medium-sized markets and increasing our presence in North America. Lanxess noted that about 45 percent of Chemturas revenue is generated in North America. In addition to additives, synthetic base oils, specialty lubricants and greases, Chemturas portfolio includes urethanes and organometallics.

For the past year, our management team and board of directors have been actively working to identify a transformative opportunity to create value for our shareholders and to enhance the scale, strength and diversity of our business, both vertically and geographically for the benefit of our customers and employees. The transaction we are announcing today delivers on that promise, stated Craig Rogerson, Chemturas president CEO and chairman of the board, in a press release.

Philadelphia-based Chemtura was formed in 2005 through the merger of Crompton Corp. and Great Lakes Chemical, which included Witco detergent additives and Uniroyals antioxidants and phosphate esters.

In 2007, Chemtura acquired Hatco and Anderol from Kaufman Holdings Co. Hatco produces polyol esters used for synthetic lubricant applications, including aviation turbine oils and lubricants for CFC-free refrigeration compressors. Anderol produces synthetic lubricants used in aviation and industrial applications such as compressors, bearings, gears and food-grade machinery.

Some of Chemturas plants serving the lubricants industry include high-viscosity polyalphaolefin plants in Ankerweg, Netherlands, and Elmira, Ontario in Canada; a grease plant in West Hill, Ontario; an esters plant in Fords, New Jersey; a phosphate esters plant in Manchester, United Kingdom; and a grease and synthetic lubricants plant in Nantong, China.

The company also produces alkylated diphenylamine antioxidants, at a manufacturing facility in Latina, Italy, and supplies antiwear agents, corrosion inhibitors, emulsifiers and other additive components.

In November 2010, Chemtura completed financial restructuring and emerged from Chapter 11 bankruptcy in both the United States and Canada. The company and 26 of its U.S. affiliates filed for Chapter 11 bankruptcy protection in March 2009, citing significant decreases in liquidity and cash flow due to declining order volumes in the preceding months because of the global economic recession.

Based in Mannheim, Germany, Lanxess Rhein Chemie subsidiary develops, produces and sells additives for the rubber, lubricant and plastics industries. Under the brand name Additin, Rhein Chemie provides components for a variety of industrial lubricants. These include light-colored sulfurized additives for metalworking fluids and greases, as well as additive packages for hydraulic, turbine, compressor and industrial gear oils.

Lanxess reorganized the Rhein Chemie Additives business unit in 2015, combining its Rhein Chemie and functional chemicals business units with the specialty chemicals line of Lanxess rubber chemicals business unit. The four additives business lines are lubricant, rubber, colorant and plastic. Rhein Chemie has 18 sites in 10 countries, with laboratories and technical service centers in Europe, North and South America and Asia.