Albemarle Exits Mineral Flame Retardants

Albemarle has signed a definitive agreement to sell its Mineral Flame Retardants and Specialty Chemicals businesses to Huber Engineered Materials, part of the J.M. Huber Corporation, which specialises in flame retardants. The transaction, financial details of which were not disclosed, is expected to close in early 2016.

CEO Luke Kissam described this as part of a continuing plan “to sell non-strategic businesses and assets which will allow Albemarle to enhance our focus on growth opportunities within our core businesses”. Being sold are the Martinswerk subsidiary, with its manufacturing facility at Bergheim, Germany, plus a 50% ownership stake in Magnesiaprodukte, Albemarle’s joint venture with RHI at Breitenau, Austria.

Huber will acquire the Marginal and Magnifin brands of precipitated and ground alumina trihydrate and precipitated magnesium hydroxide flame retardants respectively, which will become part of its Fire Retardant Additives business unit. It is also taking over the Martifin range of speciality hydrates for paper, Martoxin aluminum oxide mainly for ceramics, Pergopak flatting agents mainly for coatings and Compalox granulated activated alumina

Huber said that this all “complements Huber’s existing portfolio of fire retardants and smoke suppressants while expanding its geographic presence and reach globally”. This is the fourth and largest addition to in this field in five years, following the Kemgard flame retardant and smoke suppressant business from Sherwin Williams in 2010, Almatis’s speciality hydrate flame retardant business in 2012 and the Safire nitrogen and phosphorus flame retardant technology from Floridienne Group and Catena Additives earlier in 2015.