MeadWestvaco Corp. Specialty Chemicals and Chemserve (Chemicals Services Ltd.) are equal partners in the joint venture Resitec Industria Quimica Ltda., a Brazilian company which serves the South American pine chemicals market. MWV Specialty Chemicals and Resitec each make products used in industrial lubricants and metalworking fluids.
Terms of the recently signed definitive agreement were not disclosed. The transaction is expected to close during the second quarter of this year.
The companies said that Charleston, S.C.-based MWV Specialty Chemicals expertise in the pine chemicals market and its long-standing presence in Brazil, along with the success of Chemserves South African-based oleochemicals company, will help Resitec broaden its product offerings and strengthen MWV Specialty Chemicals and Chemserves presence in the South American marketplace.
The Resitec Lubricants Division has developed a line of esters based on renewable plant sources. The esters see use in a variety of applications, including hydraulic fluids, pneumatics pump lubricants, fire resistant hydraulic fluids, drill bit lubrication agents, polishing lubricants and anti-corrosive oils.
Through the joint venture, Resitec will expand its pine chemicals product offerings to include tall oil fatty acid and tall oil rosin acids. Tall oil fatty acids can be used in manufacture of metalworking fluids and corrosion inhibitors, and in industrial uses such as lubricants for belt conveyors, escalators and tracks.
Under the agreement, Resitec will continue to offer production and service support to its customers and will assume some production and all regional sales of MWV Specialty Chemicals products. Resitecs current management will remain in place, under direction of Bernardo Mello, managing director. Resitec is in Duque de Caxias, Brazil. The company employs about 70 people in its manufacturing locations, which also include Rio de Janeiro and Lages, Santa Catarina.
The new joint venture will include Resitecs headquarters and manufacturing facility near Rio de Janeiro, and a new tall oil refinery under construction in Lages, Brazil. Start-up is expected during the fourth quarter of this year.
MWV Specialty Chemicals pine chemicals include the Diacid line of liquid, monocyclic dicarboxyclic acids derived from fatty acids via a patented process. The primary applications for the line include surfactants, metalworking compounds and chemical intermediates.