Rhodia looks to guar technology unit in China for reinforcement
The Chinese unit, based in Zhangjiagang, complements Rhodia’s existing guar derivatives units located in France, the US, and India.
Big demand for guar-based products
The company hopes the acquisition will enable it to meet the fast-growing demand for guar based products in Asia, particularly from the personal care market.
“This targeted acquisition and the enhancement of our industrial assets will reinforce our worldwide leadership position in guar technology as a supplier of natural guar-based materials used primarily in personal care, agrochemicals and oilfield applications,” explained Emmanuel Butstraen, president of Rhodia Novecare.
Rhodia’s guar-based range, is derived from the vegetable and renewable fibres of guar beans, and is typically used to provide hair and skin benefits in shampoo and cleansing products.
For the Personal Care market, Rhodia will first produce guar derivatives products of its Jaguar range, Oliver Hufer, vice president Home & Personal Care Market at Rhodia Novecare told CosmeticsDesign-Europe.com.
Increased capacity on a global level
The France-based company is looking to focus on organic and external growth following the acquisition of Feixiang Chemicals, an Asian chemicals firm, earlier this year.
As well as the Chinese unit Rhodia is also investing in its US facility in Texas to increase its guar derivatives production capacity and improve its competitiveness.
The chemical firm states the additional capacity will increase by 30 per cent and contribute to meeting increasing global customer demand particularly in the oilfield and gas, and personal care markets, Hufer explained.
“These two acquisitions are completely in line with Rhodia Novecare’s strategy targeting organic as well as external growth. Following the recent acquisition of Feixiang Chemicals in surfactants, it also represents a further step in our drive to develop our presence in China and capture the fast-growing market in Asia-Pacific,” Butstraen said.
"Thanks to this unit in China, Rhodia will offer globally consistent quality, increased security of supply and regional capacity to accompany both our global key accounts and answer local formulators needs," Hufer added.
No financial details were disclosed with the transaction expected to be finalised in the first quarter of 2011.
