French chemical producer Arkema is planning to purchase an additives and emulsions production site from the Resicryl Group.
As part of the proposed acquisition, Arkema, through its subsidiary Coatex, will acquire the Aracariguama production site in Sao Paulo, Brazil.
The new entity, which comprises of Coatex's existing sales in Brazil and those from the new site, will generate $20m in sales, according to Arkema.
Arkema and Coatex will develop Aracariguama production plants to produce their rheological additives and waterborne emulsions.
Using the French group's expertise, the site will also manufacture resins and specialty emulsions, which are used in industries such as mineral processing, paint, adhesives, paper, construction, water treatment and cosmetics.
The sale is expected to allow Resicryl to focus on the distribution and production of a limited range of coatings and latex.
Alain Mari, Coatex chairman, said the Aracariguama site is ideally placed to fulfil the expectations of both the existing and future customers.
''This is a first major step that will allow Arkema and its subsidiary Coatex to draw on the strong growth of Brazil and Latin America without delay,'' Mari added.
The deal is expected to be finalised in the second half of 2012.