Profile: FMC Corp (FMC.N)
7 Mar 2014
FMC Corporation (FMC), incorporated in 1928, is a diversified chemical company. FMC serves agricultural, consumer and industrial markets with solutions, applications and products. The Company operates in three business segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals. Its Agricultural Products segment develops, markets and sells all three major classes of crop protection chemicals, such as insecticides, herbicides, and fungicides, with particular strength in insecticides and herbicides. Specialty Chemicals consists of its BioPolymer and lithium businesses and focuses on food ingredients that are used to enhance texture, color, structure and physical stability; pharmaceutical additives for binding, encapsulation and disintegrate applications, ultrapure biopolymers for medical devices, and lithium for energy storage, specialty polymers and pharmaceutical synthesis. Its Industrial Chemicals segment manufactures a range of inorganic materials, including soda ash, hydrogen peroxide, specialty peroxygens, zeolites and silicates. In March 2014, the Company announced that it has completed the sale of its Peroxygens business to affiliates of One Equity Partners.
During the year ended December 31, 2011, FMC’s Agricultural Products segment represented approximately 43% of its consolidated revenues. Agricultural Products segment develops, manufactures and sells a portfolio of crop protection, professional pest control and lawn and garden products. Agricultural Products include insecticides, used for protection of crops, including cotton, sugarcane, rice, corn, soybeans, cereals, fruits and vegetables from insects and for non-agricultural applications, including pest control for home, garden and other specialty markets; herbicides, used for protection of crops, including cotton, sugarcane, rice, corn, soybeans, cereals, fruits and vegetables from weed growth and for non-agricultural applications, including turf and roadsides, and fungicides, used for protection of crops, including fruits, vegetables and tobacco from fungal disease. The Company accesses Western European markets through a Belgian-based pesticide distribution company, Belchim Crop Protection N.V. It also has joint venture arrangements with Nufarm Limited in three countries in Eastern Europe.
During 2011, FMC’s Specialty Chemicals segment represented 26% of its consolidated revenues. The majority of Specialty Chemicals sales are to customers in non-cyclical end markets. Specialty Chemicals products include microcrystalline cellulose, used for drug dry tablet binder and disintegrant, food ingredient; carrageenan, used for food ingredient for thickening and stabilizing, encapsulants for pharmaceutical and nutraceutical; alginates, used for food ingredients, pharmaceutical excipient, healthcare and industrial uses, and Lithium, used for batteries, polymers, pharmaceuticals, greases and lubricants, air conditioning, and other industrial uses.
BioPolymer is organized around the food, pharmaceutical and biomedical device markets, and is a supplier to many companies in these markets. BioPolymer is a supplier of microcrystalline cellulose (MCC), carrageenan and alginates, ingredients that have applications in the production of food, pharmaceutical and other specialty consumer and industrial products. MCC, processed from specialty grades of both hardwood pulp and softwood pulp, provides binding and disintegrant properties for dry tablets and capsules. Carrageenan and alginates, both processed from seaweed, are used in a variety of food, pharmaceutical, nutraceutical and biopharmaceutical applications, which provides alginate and carrageenan-based encapsulant technologies for pharmaceutical and nutraceutical uses. In the Novamatrix business, the Company is developing technology platforms within biomedical markets which develop and provide ultrapure biopolymers and application know-how for biomedical devices.
Lithium is a vertically integrated technology business, based on both inorganic and organic lithium chemistries. While lithium is sold into a variety of end-markets, the Company focused on energy storage, specialty polymers and pharmaceuticals. Lithium is developed as the enabling element in advanced batteries for use in hybrid electric, plug-in hybrids and all-electric vehicles. Organolithium products are sold to fine chemical and pharmaceutical customers who use lithium’s chemical properties to synthesize products. Organolithiums are also valued in the specialty polymer markets as initiators in the production of synthetic rubbers and elastomers.
During 2011, FMC’s Industrial Chemicals segment represented 31% of its consolidated revenues. Industrial Chemicals product include soda ash, used for glass, chemicals, detergents; peroxygens, used for pulp and paper, chemical processing, detergents, antimicrobial disinfectants, environmental applications, electronics and polymers, and zeolites and silicates, used for detergents, car tires, pulp and paper. Industrial Chemicals serves a diverse group of markets, from industrial sectors to specialty markets. It processes and sells refined inorganic products in markets, such as glass, detergents and pulp and paper. In addition, it produces, purifies and markets downstream derivatives into customer-specific applications. These applications include electronics, biocides and animal nutrition.
The Company’s alkali chemical division produces natural soda ash. Soda ash is used by manufacturers in glass, chemical processing and detergent industries. FMC also produces sodium bicarbonate, caustic soda and sodium sesquicarbonate. The Company’s alkali sales are manufactured by and sold through its subsidiary, FMC Wyoming Corporation. The Company produces hydrogen peroxide at production facilities in the United States and Canada, and through its wholly owned Foret subsidiary, in Spain and the Netherlands. FMC sells hydrogen peroxide into the pulp and paper industry, chemical processing, environmental, electronics and food industries. FMC’s specialty peroxygens business supplies persulfate products primarily to polymer, printed circuit board, hair care and soil remediation markets. Peracetic acid is supplied to the food industry for biocidal applications. It sells zeolites and silicates products, which are used in detergents, car tires, textile, foundry and pulp and paper markets.
The Company competes with J. Rettenmaier & Sohne GmbH, Ming Tai Chemical Co., Ltd., Asahi Kasei Corporation and Blanver Farmoquimica Ltda.
1735 Market Street
PHILADELPHIA PA 19103