Domo Chemicals Completes Acquisition of Solvay's Performance Nylons Business in Europe
With this acquisition, Domo makes its entry into the nylon 66 business.
Belgium’s Domo Chemicals (U.S. office in Buford, Ga.) has completed its acquisition of Solvay’s Performance Polyamides Business in Europe (U.S. office in Alpharett, Ga.). The transaction includes Technyl nylon 66 engineering plastics operations in France and Poland; high performance nylon 66 fibers in France; polymer and intermediates operations in France, Spain and Poland. The acquired business comprises production, sales, technical support, R&D and innovation services in France, Spain, Poland, Germany and Italy that currently have a combined headcount of approximately 1,100 employees. Also included in the transaction is a joint venture between BASF and Domo in France for the production of adipic acid.
Domo is essentially making its entry into the nylon 66 business. The company offers a complete portfolio of integrated nylon 6 products, including intermediates, resins, engineered compounds and packaging film and distribution of petrochemical products. This acquisition of a leading nylon 66 business significantly strengthens its downstream nylon-based engineering plastics business in Europe, resulting in a backward integrated business with unique technology capabilities and a secured supply of key raw materials. Domo views the strong reputation of the Technyl brand as a perfect complement to its wide range of Domamid engineered and virgin nylon 6 resin grades and Econamid range of recycled nylons.
Said Domo Chemicals CEO Yves Bonte, "This acquisition is a significant milestone on our path to strengthen Domo Chemicals’ nylon-based engineering materials business. It is an important step in delivering on our sustainable growth strategy by combining and leveraging on the unique technology, development and design capabilities of our combined teams to become a major global service provider to our customers in our key markets transportation, electrical & electronics and consumer goods. As a final step in the acquisition, we will now start our process of exploring and integrating the complementary strengths of the diverse teams and talents. Our prime focus will continue to be serving our customers’ needs and meeting their requirements as we set out to become a unique integrated nylon (6 and 66) solution provider”.
Ascend, Borealis, Borouge, Braskem, Dow, ExxonMobil, Nova, SABIC, and Solvay came to Düsseldorf with new applications, including pouches, shrink film, cable ties, flip tops, all-plastic bikes, as well as new materials.
As the third quarter was coming to an end, prices of nearly all volume resins were higher or heading that way. But flat or even lower prices are seen ahead.
While the nylon 66 tightness may not prove long-lasting, resin suppliers, compounders, and distributors have mobilized to offer processors an array of ‘replacement’ materials.