According to Solvay’s reps, this investment will give its’ Novecare business unit greater access to one of the world's largest personal care markets, which is growing at a double-digit pace.
Located at Itatiba city in the state of Sao Paulo, Brazil, these new industrial assets will give Solvay the scalability to expand further to meet growing demand. The venture includes ERCA's local specialty chemical assets and its portfolio of agrochemicals and home & personal care products.
"With a competitive industrial footprint, we are able to help our customers capture business opportunities and develop new products and solutions to meet their growth ambitions," says Emmanuel Butstraen, president of Solvay Novecare.
Expanding its reach
Novecare will, in addition, enter into a partnership with ERCA to manufacture their products for their construction and textile market segments.
The company says it will deploy its strong position in several technology platforms, especially in developing and providing quats, which are the building blocks for an array of Novecare specialty chemicals and surfactants.
"The acquisition of these specialty chemical assets represents an important step for Novecare to grow in Brazil's dynamic market, expand our technology and product portfolio, increase production capacity and provide global innovations to meet the immediate demand of our customers.”
The completion of the transaction is subject to customary closing conditions, including Brazilian anti-trust clearance.
Make efforts to build on growth since Rhodia acquisition
Solvay has grown significantly in recent years, mainly fuelled by the acquisition of Rhodia, which it bought for €3.4 billion in September 2011 and is expected to contribute to total group sales of more than €13bn in 2012.
The acquisition also bought considerable personal care operations to the business, specifically its Novecare division which specialises in high performance cosmetic ingredients, together with its Aroma Performance division.
Solvay Novecare specializes in surfactants and a major player in polymers, amines, guar, and phosphorus derivatives.
These formulations are used in shampoos, detergents, paints and lubricants as well as in crop protection, mining and energy production and stimulation.