Plastics, rubber and latex binders solutions provider Trinseo is to acquire US chemical firm Dow Chemical’s latex production facilities and related infrastructure in Rheinmunster, Germany, for EUR40 million, in the form of assumed pension liabilities for transferred employees. The transaction is expected to close in the second half of 2019, following European Union regulatory approval and customary closing conditions.
The transaction includes full ownership and operational control of both latex production facilities at Rheinmunster, as well as site infrastructure and services contracts, and approximately 114 employees who are expected to transfer from Dow to Trinseo.
“This acquisition is directly aligned with Trinseo’s strategy to grow its Latex Binders businesses, particularly in applications serving the Adhesives and Construction industry, as well as Specialty Paper,” said Frank Bozich, President/CEO of Trinseo.
He added that taking full control of the manufacturing assets will allow Trinseo to produce a wider variety of products, invest capital for technology upgrades, and optimise operations for the mix of products and chemistries most needed by its customers.
The acquisition adds to Trinseo’s grid of production facilities across Europe – including an existing Trinseo latex production plant in Rheinmunster, Germany, as well as operations in Hamina, Finland; Norrkoping, Sweden; and Terneuzen, the Netherlands. Together this grid of latex binders production facilities allows Trinseo to supply customers all across Europe, the Middle East and northern Africa.
Hayati Yarkadas, Trinseo’s Senior Vice President and Business President, Performance Materials, says that the Rheinmunster site is “well situated” for future expansion, as it is already the global R&D centre for latex binders, and is geographically central to serve many of the company’s European customers.