Jan 17 2010
Chemtura Corporation, debtor-in-possession (Pink Sheets: CEMJQ) ("Chemtura"), today announced a long-term strategic sourcing agreement with global specialty chemicals company Albemarle Corporation (NYSE: ALB). The transaction represents a key milestone in Chemtura's Flame Retardants business strategic reorganization process.
Under the agreement, Chemtura will source BA-59PTM, DE-83RTM, Firemaster(R) 2100, n-propyl bromide and sodium bromide from Albemarle. Additionally, Albemarle is assigning its brine interests in Chemtura's West Brine production unit located in Union County, South Arkansas to Chemtura, which will further strengthen Chemtura's bromine operations and maximize productivity.
The parties have also settled ongoing decabromodiphenyl ethane and bromine litigation, which will end the dispute over Chemtura's right to sell decabromodiphenyl ethane to the global market. Chemtura and Albemarle have executed a settlement agreement covering the litigation which, among other things, provides that each company will grant a cross license for their respective decabromodiphenyl ethane products. The settlement agreement has been executed by both parties but is pending Bankruptcy Court approval.
"This strategic sourcing deal reflects Chemtura's commitment to reinforcing the sustainability of our business," said Chemtura Chairman, President and CEO Craig Rogerson. "Specifically, the transaction furthers our strategic plan to emerge from Chapter 11 status a stronger company by focusing on growth products and services that differentiate us in the marketplace and provide more sustainable solutions for our customers."
The strategic agreement will allow Chemtura to further strengthen operations at its most productive brine field in South Arkansas. In addition, this agreement will provide greater opportunities for the company to reinvest in new, innovative flame retardants and brominated performance products designed as part of Chemtura's "Greener is Better" program, which is focused on offering customers greener solutions without sacrificing safety or quality.
"Many of the changes we are making to our Flame Retardant portfolio are aligned with our overall reorganization plan," said Anne Noonan, Vice President of Flame Retardants at Chemtura. "This particular deal allows us to optimize value for our customers and stakeholders while further strengthening our overall bromine franchise by reinvestment of dollars in new, innovative and sustainable product options in 2010."
In addition to bromine and bromine derivatives, Chemtura's product line includes a broad range of bromine, phosphorous and antimony based flame retardants, which are used to reduce fire hazards from materials used in automobiles, home furnishings, insulating materials, consumer electronics, and electrical equipment, among other applications.