Genova, Italy-based Italmatch Chemicals, a global specialty chemical group leader in the production and marketing of performance additives for water & process treatment, oil & gas, industrial lubricants and plastics, acquired Chinese Jiayou Chemical, active in the phosphonate business, from Ecolab Inc.
Italmatch announced in November 2017, it signed a deal to acquire Detrex Corporation, parent company of Cleveland, Ohio-based lubricant additive manufacturer Elco Corporation. Elco markets ZDDP, sulfurized EP, phosphorous/friction modifiers, corrosion inhibitors, antiwear agents and other components for making grease, antiwear hydraulic fluids, industrial gear oils, slideway oils and metalworking fluids.
This latest deal includes the acquisition of the entire business and assets relating to phosphonate production and sales carried out by Jiayou Chemical Co. (formerly part of Jianghai), located in the Changzhou area (China). Phosphonates are used as corrosion inhibitors in lubricants and in water treatment.
This transaction allows Italmatch Chemicals to strengthen its presence in the Asia Pacific Region with a new plant specialized in production of phosphonates. The new site complements the other dedicated plants located in North America and Europe.
Sergio Iorio, CEO of Italmatch Chemicals Group, stated: "After closing 2017 with important acquisitions in North and Latin America, we are happy to begin 2018 with a very significant agreement for Italmatch Chemicals in Asia Pacific. Through this acquisition, Italmatch Chemicals achieves a global presence and a global market leadership in phosphonates, thanks to a new manufacturing presence in China.
Maurizio Turci, CFO, Corporate Affairs and HR Director of Italmatch Chemicals Group said: "We have believed and invested in China ahead of the curve in the early 2000s and intend to continue investing here in the future, thanks to the excellent relations with the local financial authorities. We have developed a high-quality growth model in this country, combining industrial corporate practices and respect for local communities, as a means for transforming short-term efforts with sustainable and effective long-term company solutions for expansion in China.”
Founded in 1997, Italmatch Chemicals group generates 400 million Euros in revenues and operates through six manufacturing plants in Europe (Italy, Spain, Germany and UK), four in Asia Pacific (China and Japan), four in North America (USA) and sales/distribution subsidiaries in Brasil, Belgium, China, Japan, India, Poland, Singapore and the USA. It employs 700 workers.
Ardian, the largest European independent private investment company, acquired the majority of Italmatch Chemicals together with the management in July 2014 and is committed to supporting the company’s growth.