LANXESS is strengthening its product portfolio for biocides to serve the megatrend urbanization. The German specialty chemicals group has acquired Singapore-based PCTS Specialty Chemicals Pte. Ltd. for an undisclosed amount. The transaction closes with immediate effect.
Through the acquisition, LANXESS is now one of the leading suppliers of biocides for paints and coatings in the rapidly-growing Asia-Pacific region. LANXESS will gain access to a complementary portfolio of biocides and will benefit from PCTS’ highly-recognized product expertise and know-how in paints and coatings.
PCTS specializes in biocides for environmentally friendly water-based paints that meet stringent health and safety, as well as environmental standards. Biocides prevent the deterioration and discoloring of the paints caused by microorganisms.
PCTS employs about 20 people at modern production and laboratory facilities close to LANXESS Singapore headquarters. PCTS recorded sales in the single-digit million euro range in 2012, with 60 percent of it being generated in China. The company was majority owned by NIPSEA Technologies Pte Ltd.
“This transaction underlines LANXESS’ standing as a key supplier of high-tech solutions for the megatrend urbanization,” said Rainier van Roessel, Member of the LANXESS Board of Management. “It also strengthens our company’s asset base in the booming Asian market.”
PCTS will be integrated into the LANXESS business unit Material Protection Products (MPP), which belongs to the company’s Performance Chemicals segment. The PCTS facility will also become the new Asia-Pacific headquarters of MPP. The business unit is already one of the world’s leading suppliers of biocides. It acquired the U.S.-based biocide company Verichem Inc. and the material protection activities of Switzerland’s Syngenta in 2011.
MPP also offers stabilizing agents for beverages and is the world’s leading manufacturer of phenolic active ingredients for disinfection. Its production sites are located in Krefeld-Uerdingen and Dormagen (Germany), Pittsburgh (USA), Jhagadia (India) and Changzhou (China). The business unit is headed by Torsten Derr and currently employs around 350 people.
LANXESS in Singapore
LANXESS has been present in Singapore since 2004 and is the home to about 380 employees. It serves as an important business and technical services hub for the company’s operations throughout Southeast Asia and Asia Pacific. Singapore is also the global headquarters to the Butyl Rubber business unit, which began the commissioning phase of its new world-scale plant on Jurong Island in the first quarter. The plant is expected to start commercial production in the third quarter of 2013. In addition, the Performance Butadiene Rubbers business unit broke ground last year for a world-scale Nd-PBR plant on Jurong Island. Ian Wood is the company’s country representative in Singapore.
LANXESS (lanxess.com) is a leading specialty chemicals company with sales of EUR 9.1 billion in 2012 and roughly 17,200 employees in 31 countries. The company is currently represented at 49 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. LANXESS is a member of the leading sustainability indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good as well as the Carbon Disclosure Leadership Index (CDLI).