DSM to split Elastomers business - report

ERJ staff report (DS)

London -- DSM is to split its elastomers business prior to a sale, according to a report in today's Financial Times, quoting un-named sources.

The paper did not say how the business would be split, but the clear demarcation line is between the Keltan business which focusses on thermoset EPDM materials and the Sarlink business which focusses on thermoplastic vulcanisates (TPE-V) which use EPDM and polypropylene.

The FT said, "Lanxess may have been attracted to the high margin EPDM Keltan product range"

The report contrasted this with DSM Elastomers', "low-margin business, which is a rubber pre-product."

Neither DSM nor Lanxess was prepared to comment on the report.

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