Written on 21.01.2011 - Industry
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Lanxess buys DSM Elastomers

Lanxess and Dutch company Royal DSM N.V. have agreed on the sale of DSM Elastomers to Lanxess for EUR 310 million. DSM Elastomers produces EPDM under the brand name Keltan. The Sittard Geleen-based company has about 420 employees worldwide and expected sales of about EUR 380 million in 2010. Closing is expected in the first months of 2011.

In his ambitions to focus on Life Sciences and Materials Sciences DSM announced the plan to divest its elastomers business in September 2007. In September 2010 the Sarlink TPV business was acquired by Teknor Apex.

DSM operates an EPDM plant in Sittard-Geleen with an annual production capacity of 160 kt. Another EPDM plant of the company is based in Triunfo, Brazil, with an annual capacity of 40 kt. Lanxess sells EPDM under the brand name Buna EP and produces the rubber in Marl, Germany, and Orange, USA, with a combined annual capacity of 120 kt. The headquarters of the combined EPDM businesses will be in Sittard-Geleen.

Through the transaction, Lanxess gains access to the ACE technology. DSM is in the process of implementing this technology on a larger scale at its site in Sittard-Geleen. In comparison to conventional technology, ACE reduces the energy and production costs for EPDM and at the same time broadens the application possibilities of the rubber. Lanxess says it will evaluate implementing ACE technology into its existing plants. The company expects the global rubber market for EPDM to show single-digit percentage growth per annum in the next ten years, driven by rising demand in China and Brazil.