DuPont agreed to sell its Special Adhesives business to Bostik GmbH, based in Borgholzhausen, Germany.
"We looked for synergies within DuPont that would allow this business to deliver the financial results to which we have committed for our entire portfolio, but a viable option was not identified," said Terry Caloghiris, group vice president, DuPont Coatings & Color Technologies.
Under the sale agreement, DuPont continues to produce adhesives for Bostik until its own manufacturing facilities are established.
These divestitures are part of the transformation strategy announced by DuPont Performance Coatings in March 2006. The strategy is designed to allow the unit to focus more effectively on global growth in refinish, automotive OEM, transporation, powder and liquid coatings for industrial markets.
Sika acquired German-based Proxan Dichtstoffe GmbH, a manufacturer of sealants for the production of insulated glass and for construction joints. Proxan develops, produces and sells sealants made from polysulfide and two-component polyurethane.
Sika has also opened a new production plant in Turkey. The 19,000 square-meter facility located in a modern industrial park in Tuzla on the Asian side of Istanbul, manufactures admixtures, mortars and coatings as well as resins for flooring. Its modern equipment not only makes the new plant a state of the art facility but also contributes to a substantial increase in Turkish production capacities.
Turkey is a significant market for Sika and an important production base for supplying customers also in Central Asia and the Gulf region. The new plant represents another step in Sika's expansion in growth markets in the IMEA-India, Middle East, East Africa-region.
Effective April 1, 2007, the Consumer and Craftsmen Adhesives and Henkel Technologies business sectors merged to form the new Adhesives Technologies business sector, with total sales of €5.5 billion realized in fiscal 2006.
"The strategic rationale behind the merger of these two businesses derives from the advantages of a unified market approach," said Ulrich Lehner, chairman of the management board of Henkel KGaA. "We expect this move to enable us to better utilize the core competences of both business sectors and to significantly accelerate growth in all regions of the world."
Additionally, Henkel also recently announced it had agreed buy the adhesives and electronic materials businesses of National Starch and Chemical Co., which is owned by ICI, for £2.7 billion, which will further increase its already broad global reach in the construction chemicals markets around the world.
3M has acquired the Rite-Lok global industrial adhesives product line from Chemence Inc., a specialty chemical company that manufactures a range of consumer and industrial adhesives.
Acquisitions such as this support 3M's growth strategy to expand its core adhesives business. "The addition of Chemence's industrial adhesives, sold under the Rite-Lok brand, broadens our robust industrial adhesives product portfolio," said Patrick Deconinck, division vice president, Industrial Adhesives and Tapes Division. "The widely recognized Rite-Lok brand complements 3M's product line and expands the depth and breadth of our offering in the area of specialty structural adhesives."
3M has also acquired E Wood Holdings, a UK-based manufacturer of high performance protective coatings for oil, gas, water, rail and automotive industries.
E Wood's expertise in liquids technologies for new pipes and rehabilitation coatings for existing pipes in oil, gas and water markets complements 3M's core corrosion protection product offering of external powder coatings for new oil and gas pipelines. This acquisition provides 3M enhanced access to key markets, including the rehabilitation of existing oil and gas pipelines, and the protection and rehabilitation of water pipelines and infrastructure.
"The combination of 3M's corrosion protection technologies and global presence with E Wood's strong product line of specialty coatings for industrial markets positions 3M as the premier source of protective solutions for oil, gas and water infrastructure," said Richard Scott, general manager, 3M Corrosion Protection Products.
Demand for Construction Chemicals in China to Reach $6.6 Billion in 2009
Demand for construction chemicals used in on-site applications in China is forecast to expand 10.5% annually through 2009 to 53.5 billion yuan, or $6.6 billion, according to The Freedonia Group. While growth will moderate after more than quadrupling in value since 1994, strong annual gains will continue as China's ongoing emergence as an economic powerhouse provides additional capital for infrastructure and housing construction. Growth will also be driven by the use of higher quality products as structure quality and longevity become progressively more important, environmental regulations tighten and construction techniques advance to meet the needs of increasingly complex projects.
Coatings and sealers will continue to be the dominant product group, comprising over 55% of the total market value in 2009. Demand for coatings will be driven by the increasing use of decorative products in the residential sector for both interior and exterior applications, the need for protective coatings in harsh industrial environments and the increasing consumption of higher value formulations.
Rising personal incomes and housing privatization will support demand for caulks and adhesives as new housing contains more showers, sinks and windows. The consumption of cement and asphalt additives will be driven by the ongoing development of China's highway system and the pervasive use of cement as a building material. Polymer flooring will benefit from its emerging use in the industrial sector. Slower gains are expected for grouts and mortars, which will be moderately restrained by the governments ban on using clay bricks in urban construction.
The nonbuilding market for construction chemicals will be driven by the widespread construction of highways, power plants, dams, and water and sewage systems necessary to provide China with the infrastructure base needed to continue growing economically. Rising personal incomes and the ongoing privatization of China's housing sector are driving similar gains in the residential building market. China's large nonresidential building market is also poised to post double digit annual growth, bolstered by the continued expansion of the country's manufacturing sector and the replacement of poorly constructed older buildings and factories.