PPG completes sale of silicas business to Qemetica

Pittsburgh, Pennsylvania – PPG has completed the sale of its silicas products business to Polish chemicals group Qemetica SA for $310 million (€280 million), the US supplier announced 25 Nov.

The divested operations, which represented 1-2% of PPG’s total sales of $18 billion in 2023, include precipitated silicas manufacturing facilities in Lake Charles, Louisiana, and Delfzijl, The Netherlands.

In addition, Qemetica will lease silicas manufacturing and research and development operations at PPG sites in Barberton, Ohio and Monroeville, Pennsylvania, respectively.

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

The acquisition by Warsaw-based Qemetica, a privately owned manufacturer of soda ash, silicates and other speciality chemicals, was initially announced in August, following a strategic evaluation of the unit by PPG. 

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.

The company’s growth strategy focuses on building a global presence through acquisitions and expansions beyond Europe, aiming to diversify its portfolio and tap into new markets.

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.”

As previously reported by ERJ, the 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. (ERJ report)

The PPG unit will increase the share of revenue generated by Qemetica in North America to over 10%, while 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.

Prior to the purchase, the Polish group operated in seven business areas: production of soda ash, evaporated salt, agricultural solutions, polyurethane foams, silicates and glass, as well as rail transport services.