Profile: Chemtura Corp (CHMT.N)
18 Dec 2013
Chemtura Corporation (Chemtura), incorporated on May 27, 1999, is a diversified global developer, manufacturer and marketer of performance-driven engineered specialty chemicals. The Company's products are sold to industrial manufacturing customers for use as additives, ingredients or intermediates. The Company's agrochemical products are sold through dealers and distributors to growers and others. The Company's pool, spa and household chemical products are sold through independent retailers, mass merchants and larger retailers to consumers for in-home and outdoor use. Its operations are located in North America, Latin America, Europe and Asia. In addition, it has important joint ventures primarily in the United States, but also in Asia and Europe. On November 9, 2012, the Company sold of its antioxidant and UV stabilizers (Antioxidant) operations. As of December 31, 2012, the Company operated 30 manufacturing facilities in 14 countries. The Company operates in four segments: Industrial Performance Products, Industrial Engineered Products, Consumer Products and Chemtura AgroSolutions. In May 2013, the Company acquired UP Chemical Co., Ltd.’s (UP Chem) 50% stake in DayStar Materials, LLC.
Industrial Performance Products
The Industrial Performance Products segment develops, manufactures and sells performance specialty chemicals. Industrial Performance Products include petroleum additives, which provides detergency, friction modification and corrosion protection in automotive and industrial lubricants and greases, synthetic finished lubricants, synthetic base-stocks and greases used in aviation, industrial and refrigeration applications; castable urethane pre-polymers engineered to provide superior abrasion resistance and durability in many industrial and recreational applications, and polyurethane dispersions and urethane pre-polymers used in various types of coatings such as wood floor finishes, glass fiber coatings and textile treatments. These products are sold directly to manufacturers through distribution channels. The Industrial Performance Products segment represented 34% of the Company's total net sales during the year ended December 31, 2012.
The Company is a global manufacturer and marketer of additive components used in transports and industrial lubricant applications including alkylated diphenylamines antioxidants (ADPAs), which are marketed as Naugalube ADPAs and used in automotive lubricants. The component product line also includes overbased and neutral calcium sulfonates and overbased magnesium sulfonates used in motor oils and marine lubricants. These sulfonates, marketed as Hybase and Lobase sulfonates, are oil-soluble surfactants whose properties include detergency and corrosion protection to help lubricants keep car, truck, and ship engines clean with minimal wear. A special grade of over-based magnesium sulfonate has been developed as a heavy fuel additive.
The Company provides a range of synthetic lubricant base-stocks, including its polyalphaolefins, marketed as Synton polyalphaolefins, and its portfolio of esters marketed as Hatcol esters. These products are used in the production of synthetic lubricants for automotive, refrigeration, aviation, and industrial applications. The Company also manufactures and sells calcium sulfonate specialty greases and phosphate ester based fluids and additives for power generation fluids and for use in anti-wear agents in a variety of lubricants. The Company is also a supplier of finished synthetic lubricants serving the aviation and industrial markets. The Company's product line has original equipment manufacturer approvals and is marketed under the Company's Anderol Royco brands, as well as for private label customers.
The Company is a supplier of cast urethane pre-polymers with approximately 200 variations in its product offerings. The Company's urethane pre-polymers offer abrasion resistance and durability in industrial and performance-specific applications. These characteristics allow the Company to market the Company's urethane pre-polymers to niche manufacturers where such qualities are imperative, including for industrial and printing rolls, mining machinery and equipment, mechanical goods, solid industrial tires and wheels, and sporting and recreational goods, including skateboard and roller skate wheels.
Adiprene and Vibrathane urethane pre-polymers are sold by its direct sales force and through distribution partners in the United States, Canada, Australia, Europe, Latin America and the Far East, and are used in cast elastomer applications. The Company's urethane chemicals business provides products for a range of end uses and applications. The urethane chemicals business consists primarily of three product lines: Fomrez saturated polyester polyols, Witcobond polyurethane dispersions, and Trixene blocked isocyanates. Fomrez polyester polyols are employed in industrial applications, such as flexible foam for seating. The Company's Witcobond polyurethane dispersions are sold to a larger and more diverse customer base primarily for applications, such as glass fiber sizing, wood floor coatings and ballistics protection applications. The Company's Trixene product offering includes blocked isocyanates and specialty polymer systems used in a range of coating, adhesive, sealant and elastomer applications.
Industrial Engineered Products
The Company is manufacturing and selling of engineered specialty chemicals utilized in the plastics, agriculture, fine chemicals, oil and gas, building and construction, insulation, electronics, mercury control, solar energy, pharmaceutical and automotive industries. The Company's products include catalyst components, surface treatments, flame retardants and a bromine based product line used as agricultural and pharmaceutical intermediates, completion fluids for oil and gas extraction and mercury control products for coal fired power stations. These products are sold across the entire value chain ranging from direct sales to monomer producers, polymer manufacturers, compounders and fabricators, fine chemical and pharmaceutical manufacturers, photovoltaic panel and light-emitting diode producers, oilfield service and electricity generation companies to industry distributors. The Industrial Engineered Products segment represented 34% of the Company's total net sales during 2012.
Great Lakes Solutions is engaged in flame retardant products and solutions for use in applications, such as electronic components, electrical enclosures and building products, including insulation and furniture foam, and automotive. The Company also specializes in the manufacture and marketing of bromine, bromine intermediates and end products to chemical manufacturing and energy producing industries. Organometallics are a special group of metals containing organic chemicals which is used in industrial applications.
The Consumer Products segment develops, manufactures and sells performance chemicals to consumers for in-home and outdoor use. These chemicals include recreational water treatment products sold under a variety of branded labels through local dealers and retailers to assist consumers in the maintenance and enhancement of their swimming pools and spas and branded cleaners and degreasers sold primarily through mass merchants and retailers to consumers for home cleaning. The Company's pool and spa product lines consist of sanitizers, algaecides, biocides, oxidizers, pH balancers, mineral balancers and other specialty chemicals and accessories. The Company's primary channels of distribution are pool and spa independent dealers and mass-market retailers throughout North America, Europe, Australia and South Africa.
The Company also operates in the specialty and multi-purpose cleaners business with branded non-abrasive bathroom cleaners, glass and surface cleaners, toilet bowl cleaners, drain openers and rust and calcium removers, as well as a family of multipurpose cleaners. The Company's primary channels of distribution for specialty and multi-purpose cleaning products are through national and regional retailers in the do-it-yourself, hardware, mass market, club and discount sectors. The Consumer Products segment represented 16% of the Company's total net sales during 2012.
The Chemtura AgroSolutions segment focuses on specific target applications in six major product lines which include seed treatments, fungicides, miticides, insecticides, growth regulators and herbicides. The Company has developed its products for use on crops, such as tree and vine fruits, ornamentals and nuts and for commodity row crops such as soybeans, oilseed rape and corn. The Company develops and sells its own products and the Company also sells and registers products manufactured by others on a license and/or resale basis.
The Company's seed treatments are used to coat seeds in order to protect the seed during germination and protect the plant during initial growth phases. The Company's fungicides are products that prevent the spread of fungi in crops which can cause damage resulting in loss of yield and profit for growers. The Company's miticides (acaricides) are products that control a variety of mite pests on the crops. The Company's insecticides are products used against insect pests at different stages of the life cycle from egg and larvae to nymph and adult. They have both crop and public health applications. Its plant growth regulators are products used for controlling or modifying plant growth processes without severe phytotoxicity. Its herbicides are products used to control unwanted plants while leaving the crops they are targeted to treat unharmed. The Chemtura AgroSolutions segment represented 16% of the Company's total net sales during 2012.
As of December 31, 2012, the Company had over 2,000 product registrations in more than 100 countries. It sells its products in North America through a distribution network consisting of approximately 1000 distributor outlets, which sell directly to end use customers. Internationally, its direct sales force services over 3000 distributors, dealers, cooperatives, seed companies and growers.
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