Chemtura Corporation, debtor-in-possession (Pink Sheets: CEMJQ), announced today that the company has entered into a number of new agreements through its worldwide subsidiaries to increase its capacity of antioxidants and UV stabilizers in order to position itself for worldwide growth and to more effectively serve its global customers. The actions support Chemtura's overall objective of utilizing its proprietary technology to expand its presence in the growing global markets. These actions build upon the earlier announcements of Chemtura's geographical expansion in the Middle East.
"Our customers' response to our new global growth strategy for antioxidants and UV stabilizers has been extremely positive. Today's leading polymer producers require their suppliers to supply product globally and be committed to innovation," said Peter Smith, head of Chemtura's Global Antioxidant and UV Stabilizer Group.
"With our expansion plans, we intend to be the most innovative and global supplier focused on meeting the local requirements of our customers," Smith said. "To support global growth, Chemtura will continue to supply antioxidants through a combination of technology licensing, global sourcing agreements, and our own global manufacturing network in the Middle East, Asia, North America, South America and Europe. Today we have a substantial global capacity for antioxidants with the broadest range of chemistry, making us a clear industry-leading producer."
As part of this growth initiative, Chemtura plans to build on its existing alkylated phenol capacity, the key raw material in the manufacture of antioxidants, with the addition of new capacity and a new range of specialty alkylated phenols to be produced at its Catenoy site in France. The alkylated phenols are used as intermediates in a number of Chemtura products and also are sold in the outside marketplace.
Chemtura plans to produce its new Weston(R) 705 product at multiple sites around the world. In the first commercial development phase, total annual capacity will adequately supply the needs of the marketplace. This brand new family of phosphite antioxidants offers significant benefits over the older powder Alkanox(R) 240 type material, especially in terms of end-user performance and overall cost.
Complimenting the new liquid antioxidants and to support its growth in "Powder-Free Solutions" using its proprietary NDB(R) technology, Chemtura has entered into a definitive agreement to cooperate with Everspring Corporation of Taiwan to develop and manufacture a range of phenolic antioxidants, including Anox 20(R) and Anox(R) PP18. "We selected Everspring as our partner of choice based on their proven commitment to the quality of product which fully met our specifications," said Smith.
Chemtura is expanding its own capacity of Alkanox(R) 240 phosphite antioxidants with additional capacity in Asia and the Middle East.
"These strategic changes underscore our commitment to our global Antioxidant and UV stabilizer business," said Chemtura Chairman, President and CEO Craig Rogerson. "These actions will support growth and allow us to take advantage of global expansion opportunities, especially in the Middle East and throughout Asia. We intend to make further moves to expand our global capability to serve our customers as effectively as possible."
Chemtura's antioxidants and UV stabilizers, which are sold under the Chemtura trade namesAnox(R) Antioxidants, Alkanox(R) Antioxidants, Weston(R) Antioxidants, Ultranox(R) Antioxidants, Naugard(R) Antioxidants, Lowilite(R) Hindered Amine Light Stabilizers, and Lowilite(R) Ultraviolet Light Absorbers, are widely used in the manufacture of plastics to increase end-product strength and durability.