Qemetica in €280m deal to acquire PPG silicas business

Warsaw / Pittsburgh, Pennsylvania – PPG is selling its silicas products business to Polish chemicals group Qemetica SA for approximately $310 million (€280 millon), the companies announced 29 Aug.

The acquisition by Warsaw-based Qemetica, a privately owned manufacturer of soda ash, silicates and other specialty chemicals, is expected to close in the fourth quarter of 2024. 

In January, Pittsburgh-based PPG revealed that it was evaluating strategic alternatives for its silicas business, which represented 1-2% of the group’s net sales of $18.2 billion in 2023 (ERJ report).

With around 400 employees, PPG’s silicas products business manufactures precipitated silica products which are used as performance-enhancing additives in tires, among a range of other applications.

The transaction includes PPG’s precipitated silicas manufacturing facilities in Lake Charles, Louisiana, and Delfzijl, The Netherlands, noted the US group’s announcement.

In addition, it said, Qemetica will lease silicas manufacturing and R&D operations at PPG sites in Barberton, Ohio and Monroeville, Pennsylvania, respectively.

The acquisition is in-line with Qemetica’s strategy to build up its global presence through acquisition and expanding its operations beyond Europe and tapping into new markets.

"After finalising [the deal] and fully integrating the new business, we will be closer to achieving our strategic goals,” commented Kamil Majczak, chief executive officer of Qemetica.

The key targets, he said, are “to develop sources of growth other than soda ash, to achieve geographic and product diversification and to significantly expand our global footprint with revenues from new markets."

Qemetica is currently one of Europe's largest suppliers of silicate raw materials for silica production and a major EU producer of soda ash from which silicates are made.

With the acquisition, Qemetica said it “will be able to offer more specialised chemicals (precipitated silica) used by blue chip customers to manufacture end products such as modern “green” tires.”

Production and sale of precipitated silicas will become Qemetica’s second-largest business in terms of revenue and the eighth – independently-operating – business unit within the Polish group.  

The PPG unit will increase the share of revenue generated by Qemetica in North America to over 10%, while the its share of revenue from Poland will drop below 40%.

With around 3,500 employees, Qemetica has nine production plants in Poland and Germany, and distribution companies in the crop protection business in several European countries.

The Polish group currently operates in seven business areas: production of soda ash, evaporated salt, agricultural solutions, polyurethane foams, silicates and glass, as well as rail transport services.

Qemetica “is well positioned to lead the silicas products business forward,” said Tim Knavish, PPG chairman and CEO, adding that the group will now be more focused on its coatings and specialty products businesses.