Rhein-Chemie buys release agent business from Wacker

ERJ staff report (DS)

Mannheim, Germany -- Rhein Chemie Rheinau GmbH is expanding its product range for the tyre industry by acquiring the tyre release agents business of Wacker Chemie AG, Munich, as of July 8, 2011. Both partners have agreed to keep the purchase price confidential. Wacker's tyre release agents business achieved sales amounting to a mid single-digit million Euro amount in 2010. Wacker said it does not view the tyre industry as a long-term strategic partner.

The transaction includes the rights to the corresponding product formulations as well as the existing customer contracts and business inventories. In addition, Wacker Chemie will supply Rhein Chemie with the required silicon-based raw materials. Employees will not transfer to Rhein Chemie.

The market for these products will grow worldwide by roughly five percent per year in the medium term. The acquisition also opens up new business opportunities for Rhein Chemie, especially in the USA. The majority of the acquired products are aqueous, solvent-free dispersions based on silicone. They are to be marketed by Rhein Chemie under the name Rhenodiv.

“This divestiture streamlines our portfolio of products and solutions,” said Carlos Weise, president of the Wacker Silicones division. “In contrast to Rhein Chemie, Wacker does not focus on tyre-industry applications. Moreover, a multiyear agreement ensures that Rhein Chemie will continue to be supplied with our silicones for the manufacture of tyre-release agents.”

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Press release from Rhein-Chemie (Lanxess)

Press release from Wacker