Sachtleben to acquire Crenox TiO2 plant
SSachtleben, a titanium dioxide (TiO2) joint venture of Rockwood and Kemira Oyj, has entered into a definitive agreement to acquire Crenox's 100,000mtpa TiO2 plant in Uerdingen in Krefeld, Germany.
The acquisition will enable Sachtleben to manufacture anatase and rutile crystal forms of TiO2 using the sulfate process which is used at the Sachtleben's facilities in Duisburg, Germany, and Pori, Finland, as well as at Crenox's plant.
TiO2 is used in niche market applications such as synthetic fibre production and cosmetics, as well as for higher volume applications in the paints, coatings and plastic markets.
Vernon S. Sumner, Sachtleben CEO, said for most of 2010 and 2011 the company was completely sold out in its titanium dioxide business, with sales limited by production output.
"This acquisition provides us with a financially attractive capacity expansion to meet the growing needs of customers in all market segments," Sumner said.
The acquisition, which is expected to close by mid-July 2012, will increase Sachtleben's TiO2 production capacity by approximately 340,000mtpa. The terms of the deal have not been disclosed.
Seifi Ghasemi, Rockwood chairman and CEO, said: "This 100,000-ton-per-year plant will now enable us to optimise production between three plants, in addition to creating growth opportunities and enhancing our ability to serve customers."
The deal is subject to the completion of due diligence, government approvals and other conditions.
Image: Crenox's TiO2 plant in Uerdingen in Krefeld, Germany. Photo courtesy of: Crenox.