Cognis continues to streamline its product portfolio: the global specialty chemicals supplier today announced the sale of its PVC Stabilizers business, a segment of the Plastics Technology business unit. The buyer is a consortium comprising Reagens SpA of Bologna, Italy, and Singapore-based Sun Ace Kakoh Pte. Ltd, both long-term strategic partners. The sale is expected to be formally concluded by the end of June.
By selling the PVC Stabilizers product group, Cognis is divesting itself of a secondary business that in the words of Cognis CEO Antonio Trius "has little in common with our core competencies in the area of oleochemicals, and few synergies with our other businesses."
Reagens and Sun Ace, the two companies in the buying consortium, are among the market leaders in PVC Stabilizers in Europe and Asia respectively, and the acquisition represents a logical extension of their existing technological expertise and product range. It will enable them to benefit from Cognis' technology leadership in areas such as non-toxic calcium/zinc stabilizers, and to strengthen their market presence in Germany and both Northern and Eastern Europe. Comments Antonio Trius: "We firmly believe that we have found a buyer for our PVC Stabilizers segment that can take the business forward successfully."
The sale of the PVC Stabilizers segment affects approximately 160 Cognis staff at the Lohne and Loxstedt production sites in Germany, the sales team in Düsseldorf, Germany, and the Hong Kong production site. Most of the staff will either be taken on by the new owners or will continue to be employed by Cognis.