Announcing on October 3 that it would be selling its Urethane Systems business to Japan's Ube Corp., German materials supplier Lanxess says that it is exiting the last remaining polymer business once the transaction closes in the first half of 2025. Previously, Lanxess transferred its High Performance Materials (HPM) business unit to a joint venture with private equity firm Advent International, which subsequently agreed to acquire the DSM Engineering Materials business (DEM) from Dutch group Royal DSM.
An engineering plastics powerhouse emerges
DSM’s Engineering Materials business comprised polyamides (PA6, PA66) as well as various specialty materials (PA46, PA410 and specialty polyesters as well as PPS). Around 2,100 employees work for the division at 8 production and 7 research sites in all relevant markets worldwide. In addition to Europe and the US, the business has a particularly strong presence in Asia.
Lanxess’ High Performance Materials (HPM) business unit is one of the leading producers of PA6 and PBT engineering polymers and thermoplastic fiber composites. A total of 1,900 employees at 10 production and 7 research sites worldwide work for HPM. The global production network is characterized by a high degree of backward integration. The backbone is the Antwerp/Belgium site. There, HPM produces not only PA6 polymers but also relevant precursors such as caprolactam and glass fibers.
Urethane systems
The Lanxess Urethane Systems business includes Elastomer Solutions, Coating Solutions, Adhesive and Sealant Solutions, and Wear Repair Material Solutions. Lanxess cast urethane elastomer systems, which include prepolymers, curatives and catalysts, provide extensive coverage across a large range of demanding applications, from pipe linings and mining screens to roller coaster wheels and golf ball covers.
What remains?
Lanxess will still have a presence in the plastics industry through its Polymer Additives business, which includes flame retardants, foam stabilizers, plasticizers and modifiers, bonding agents, crosslinking agents, and polyurethane catalysts). This unit also includes the Colorant Additives business (pigments and dyes). The company's transition to a pure-play specialty chemicals concern also sees it maintain strong positions in businesses such as Aroma Chemicals, Biosecurity Solutions (providing protection against pathogens and vectors), Microbial Control, Paints & Coatings, and Industrial Intermediates (aromatics, inorganic acids, polyols, and organometallics).
Ube overview
Ube is a diversified chemical company whose product portfolio includes polyamides, polyimide, polyethylene, elastomers, polyurethane raw materials and dispersions, fine and industrial chemicals, industrial and specialty chemicals, pharmaceuticals, battery materials, separation membranes, and ceramics.
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