Engelhard to sign catalyst supply agreement; agrees to purchase European polyolefin plant
The joint venture, Novolen Technology Holdings C.V., was formed to acquire the Novolen technology business from Targor GmbH, a subsidiary of BASF AG. Concurrently, Engelhard agreed to purchase from Targor its PTK catalyst manufacturing facility in Tarragona, Spain. Terms of the transaction were not disclosed.
Acquisition of the Novolen technology business and the PTK manufacturing facility is contingent on approvals by regulatory authorities in Europe and the United States.
The exclusive supply agreement is expected to significantly increase Engelhard's polyolefin catalyst business. Polyolefin catalysts are used in the production of polypropylene and polyethylene. Engelhard currently manufactures polyolefin catalysts at its operations in Pasadena, Texas. Acquiring the Tarragona facility gives Engelhard a European base and, coupled with Pasadena, two sites from which it can supply polyolefin products to customers worldwide.
"This acquisition underscores Engelhard's commitment to rapidly growing our global polyolefin catalysts business," said Barry W. Perry, Engelhard's president and chief operating officer. "It supports our strategy to leverage our core competencies in surface and materials science."
The Tarragona plant is presently underutilized, and Engelhard plans to add capacity there for its other polyolefin catalysts, including Lynx 1000, a highly efficient catalyst that has gained rapid market acceptance around the world. Lynx 1000 is used by polypropylene producers for a wide range of high-performance applications, including car battery cases, carpet, toys and car bumpers.
Edited by Drew Bowden
Assistant Editor, Chemical Online