Page 134 - CW E-Magazine (19-12-2023)

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OVERSEAS FORAY
Sterling Speciality Chemicals buys Kemira’s Oil &

Gas business

Finland-based Kemira has signed support the transition for our custo- manufacturing facilities in Mobile,
an agreement to divest its oil & gas-re- mers,” said Mr. Petri Castrén, Interim Columbus and Aberdeen in the US. The
lated portfolio to Sterling Specialty President and CEO at Kemira. Teesport manufacturing facility in the
Chemicals LLC, a US subsidiary of UK is included in the transaction sub-
Artek Group, a global industrial chemi- “The acquisition of a high-quality ject to certain site-specifi c closing con-
cals group based in India. The trans- Oil & Gas-related portfolio from Kemira ditions being fulfi lled. In addition, the
action enables Kemira to focus on is another step in our global vision and novel liquid polymer (NLP) manufac-
its core businesses and accelerate its growth strategy of becoming a leading turing assets, which are part of Kemira’s
profi table growth strategy. Kemira and specialty chemicals player. We warmly manufacturing facility in Botlek, the
Sterling Specialty Chemicals LLC will welcome all new employees and are Netherlands, are included in the transac-
also enter into a long-term partnership, looking forward to exploring exciting tion, but Kemira will continue to operate
consisting of contract manufacturing future growth opportunities together the plant under a long-term agreement
agreements in both directions. with our existing oil & gas business. We and will retain the employees.
are also pleased with our long-term part-
“The divestment of the Oil & Gas nership with Kemira, one of our larg- The total consideration on a cash
business will clarify our focus on sus- est customers going forward,” said Mr. and debt-free basis amounts to approxi-
tainability and our strategic priorities: Vishal Goenka, Director, Artek Group. mately $280-mn, subject to ordinary
we want to expand in water, build The revenue to be carved-out from closing adjustments. Based on current
a leading renewables portfolio and Kemira was around €430-mn in 2022. estimates, assets amounting to around
digital services business. This move This includes Kemira’s Oil & Gas busi- €300-mn are expected to transfer to the
strengthens our capability to look for ness, which had a revenue of €373-mn buyer as part of the transaction. Kemira
growth within our water treatment and in 2022. The remaining carved-out and Sterling Specialty Chemicals LLC
Pulp & Paper businesses and also to revenue of around €57-mn consisted of target to complete the transaction by the
explore new growth opportunities. With non-Oil & Gas industrial polymer sales end of Q1 2024 at the latest. The com-
Sterling Specialty Chemicals LLC, we through indirect channels. pletion of the transaction is subject to
have found a committed owner for the customary closing conditions and regu-
Oil & Gas business enabling it to grow Approximately 250 employees are latory approvals before completion.
further. Our long-term partnership with expected transfer to Sterling as part of The transaction will be carried out as a
Sterling Specialty Chemicals LLC will the transaction, which includes Kemira’s combination of a share and assets sale.

ELECTRIC VEHICLES
IFFCO to build LFP cathode material plants in India

and Jordan

Advanced Lithium Electrochemi- The aim of the projects is to meet Aleees and IFFCO are also explor-
stry (Aleees), Taiwan, a subsidiary of the huge Ex-China lithium battery sup- ing opportunities to build factories
lithium intellectual property service pro- ply chain needs of many multinational in Jordan with end customers. Since
vider Aleees-Ky, has signed a Memo- electric vehicle (EV) manufacturers Jordan and the US have signed a Free
randum of Understanding with The and energy storage customers, and Trade Agreement (FTA), the LFP pro-
Indian Farmers Fertilizer Cooperative work together to strengthen the lithium duced by the Jordanian factory will
Ltd. (IFFCO), to explore the transfer of battery industry in Europe, the US, and be supplied to the US market, and end
technology to build lithium iron phos- the India-Pacifi c, in order to eliminate customers can obtain high subsidies
phate (LFP) cathode material plants the risk of multinational customers and tax credit from the US Infl ation
in India and Jordan. relying on China. Reduction Act (IRA).

134 Chemical Weekly December 19, 2023

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