Süd-Chemie, a leading manufacturer of industrial catalysts based in Munich, Germany, and GTC Technology, Houston, Texas, U.S., a global technology licensing and engineering company for chemical and petrochemical applications, have reached agreement on a strategic alliance. As part of this alliance agreement, Süd-Chemie has acquired a 25% share in GTC.

The partnership significantly strengthens Süd-Chemie's position in the market for catalysts used in aromatic complexes. Aromatics are key intermediates for many fast- growing applications. A prime example is para-Xylene - a compound that is the key intermediate for polyester and whose demand is projected to grow significantly especially in China, the Middle East and Southeast Asia.

Within the scope of this cooperation, Süd-Chemie will develop and supply catalysts and absorbents for GTC's processes. The two companies have also agreed to cooperate closely in promoting research and development, expanding the product portfolio and providing mutual technical support. GTC Technology, a technology and process equipment supplier focused company has been growing rapidly over the last couple of years. They currently employ more than 100 people worldwide and run production and sales sites in the U.S., South Korea, China, Mexico, Singapore and the Czech Republic. Dr. Hans-Joachim Müller, member of the managing board at Süd-Chemie, said,"By combining Süd-Chemie's catalyst know-how with GTC's process expertise and technical support capabilities we will make a difference to the industry we are serving." CHEManager Europe asked him to explain the strategy behind this alliance in more detail.

CHEManager Europe: Dr. Mueller, what role do aromatics catalysts play in your portfolio?

Dr. H.-J. Müller: Süd-Chemie is already well positioned in certain aromatic areas, such as styrene catalysts, where we are the world market leader, but still a smaller player in xylene production catalysts for polyester applications.

How do you judge the growth rates?

Dr. H.-J. Müller: While styrene is projected to grow with a rate of 2%, a much stronger growth rate of some 6% is projected for xylenes in the years to come. Key drivers of xylene growth rate are textile and packaging applications.

How will the strategic alliance with GTC increase Süd-Chemie's market position?

Dr. H.-J. Müller: By forming this alliance, both GTC and Süd-Chemie will enjoy tremendous benefits from aligning development capabilities and from exploiting synergies related to our current service offerings. This partnership will not only focus on growing the existing portfolio but is also determined to expand its role as a technology and service provider.

What R&D synergies do you pursue with GTC and what is the cooperation strategy?

Dr. H.-J. Müller: If you want to make a difference to your customers in petrochemical production, you need to have both a strong and reliable technological process and bespoke high performance catalysts running in this process. Therefore, Süd-Chemie and GTC will jointly develop catalysts and processes. Our catalysts will be tuned for optimum performance in GTC's processes and vice versa.

What is the geographic presence of Süd-Chemie?

Dr. H.-J. Müller: Süd-Chemie already has a strong global market presence. In recent years, we have expanded our catalyst activities focusing on high growth regions with strong access to natural energy resources such as the Middle East, Russia and China.

Is it planed that the stake in GTC will expand Süd-Chemie's presence in key market areas?

Dr. H.-J. Müller: The partnership with GTC enables us to particularly strengthen our global position in aromatic applications for polyesters, which is one of the key market areas in petrochemicals. These applications show particular high growth rates in China, the Middle East and Southeast Asia.