Covestro to Acquire Two Vencorex Sites for Expanding Aliphatics Production
German materials manufacturer Covestro has agreed to acquire two legal entities with stand-alone production sites for HDI (Hexamethylene Diisocyanate) derivatives in Rayong, Thailand, and Freeport, USA, from Vencorex Holding SAS, a subsidiary of Thai chemical company PTT Global Chemical Public Company Limited.
The legal entities and sites were formerly part of the French aliphatics specialist Vencorex. With this acquisition, Covestro strategically expands and improves its aliphatics production portfolio in the US and in the Asia-Pacific region. Therefore, the company further advances the implementation of its "Sustainable Future" corporate strategy by continuing to grow in profitable and innovative business areas, such as Coatings and Adhesives.
"The acquisition of these two former Vencorex sites fits perfectly to our portfolio and our strategic goals," says Christian Baier, Chief Financial Officer of Covestro. "While we maintain cost discipline to secure our short-term performance, we strengthen our long-term competitiveness through targeted investments like this one.”
HDI is an essential component in polyurethane coatings, adhesives, and sealants. It can be found in a myriad of applications, like coatings and adhesives for cars, trucks, bridges, ships, wood furniture, and electronics. Through the acquisition, Covestro complements its existing capacities in the US, Germany, China, and India, among others.
"These new capacities in Thailand and the US will augment our existing comprehensive production capabilities across all major regions. They will enable us to produce and deliver according to our customer’s demands even better, especially during current market challenges," says Thomas Roemer, Head of the Business Entity Coatings and Adhesives at Covestro. “After the acquisition of the Resins & Functional Materials (RFM) business from DSM and investments in organic growth this is yet another sign of confidence the company has in the coatings and adhesives business. I look forward to welcoming the new colleagues into our organization!”
Both parties have agreed not to disclose the purchase price. The transaction is expected to close by the end of 2025.
