Dow Corning says it paid $39.7m to acquire the share of the new joint venture that it will hold with Timminco’s registered subsidiary Becancour Silicon which will called Quebec Silicone, as a means of ensuring the supply for all its silicone related products.
The transaction is expected to be completed at the end of September, and once confirmed it will allow Dow Corning a 49 percent share of the estimated 47,000 metric tons of silicon produced at the facility each year.
The deal also means that Timminco will own a majority 51 percent share in the business, allowing it to continue the overall management and day-to-day running of the business.
Building on existing working relationship
Timminco and Dow Corning have worked together for the sourcing of raw materials in the past, and this latest venture builds on that working relationship.
“This agreement will provide us with an efficient, sustainable, secure supply of high-quality, chemical grade silicone metal that is the corner stone of Dow Corning products,” said Dow Corning spokesperson Jarrod Erpelding.
As well as the construction, life sciences and automotive industries, Dow Corning is a major supplier of silicones to the personal care industry.
Development of Dow Corning's Silicone portfolio
Last year Dow Corning launched its new Silicone Organic Elastomer Blends, which are said to provide performance-enhancing qualities and versatility for a wide variety of personal care formulations, building on an already extensive portfolio of silicones for personal care.
The market for silicones in the US cosmetics and toiletries segment is set to grow by 5.7 percent a year to $555m by 2014, according to the latest report from market research provider Freedonia.
Although the estimated figure is said to be a significant slow down in growth compared to previous years, interest in this category of ingredients is expected to be further driven by the fact that formulators continue to search for ways of increasing the functionality of personal care and cosmetic products.