Dec 19 2005
Solvay announces today that it has signed a binding Sale & Purchase agreement for the acquisition of the Polymers Division of Gharda Chemicals in India. The operation will provide Solvay with a new global platform for the development, manufacturing, and marketing of a new range of specialty grades of ultra-high performance polymers such as polyether ketones (PEEK), high performance sulfones, and related monomers. The transaction is subject to certain conditions including approval from the relevant authorities. Solvay and Gharda are aiming to complete the transaction as soon as practical thereafter.
The Polymers Division of Gharda Chemicals operates a state-of-the-art R&D center and production plant in Panoli, Gujarat State, with about 180 employees including a large number of highly educated specialists (chemists, engineers, polymer engineers and PhDs) with revenues slightly over USD 10 million. The acquisition will provide the Solvay Specialty Polymers Strategic Business Unit with its first industrial base in India. Solvay plans to combine the acquisition into its Solvay Advanced Polymers, L.L.C. operating unit headquartered in Alpharetta, Georgia and intends to invest in this strategic location to develop it into a global center for the development and production of specialty polymers and other innovative materials. As a first step in this direction, Solvay will make investments to expand PEEK production at the Panoli site as part of a broader plan to establish a strong market position for Solvay in this ultra-high performance polymer.
“This acquisition fits very well the strategy of Solvay to reinforce its presence in high added-value specialties and also to expand its activities in Asia. The combined knowledge and technical capabilities of the two companies, supported by Solvay's extensive commercial network, fortifies the Group’s position as a global leader in specialty polymers. We believe Solvay will greatly benefit from the expertise, creativity and entrepreneurship of the new Indian team,” commented Vincenzo Morici, General Manager, Strategic Business Unit Specialty Polymers, Solvay. “This move is also part of our renewed interest in the Indian market for the entire range of our Specialty Polymers, including barrier polymers and fluoropolymers, where we see strong local growth,” Morici added.
Ultra-High Performance Polymers such as PEEK, Polyamideimide (Torlon®) and high performance sulfones (Supradel®) are used in a broad range of industries such as semiconductors, electronics, aircraft, medical and automotive whenever the requirements of the application exceeds the performance of other technical polymers, metal, and other traditional materials.