News bulletin – chemical distribution

NEWS BULLETIN

CHEMICAL DISTRIBUTION

FIRM GROWTH AT IMCD

IMCD has reported gross profit of €398.7m for the first nine months of 2018, an increase of 25 per cent compared to last year, with operating EBITA ahead by 26 per cent at €156.6m. “The strong growth we reported after six months has continued,” says Piet van der Slikke, CEO of IMCD. “All regions contributed with robust organic growth and in addition, in North America we benefitted from the recent acquisitions we have made. In September we completed the acquisition of Velox with subsidiaries in many European countries. We have started the integration process of this company as well as of ET Horn, which we acquired end of July.”

Those two major acquisitions are unlikely to be IMCD’s last; the company says it “sees interesting opportunities to increase its global footprint and expand its product portfolio both organically and by acquisitions”.

Indeed, IMCD has now completed the acquisition of Indian speciality chemical distributor Aroma Chemical Agencies and its affiliate Alchemie Agencies. Established in 1973, Aroma focuses on the distribution of additives, resins and pigments for the coatings, construction, adhesives and polymers sectors. “This acquisition perfectly complements our existing strong position in Life Sciences and helps establish IMCD India as a truly multi-market speciality chemical distributor with an infrastructure to deliver growth for our suppliers across all regions of India,” says Amit Hirani, managing director of IMCD India. www.imcdgroup.com

NEW MATERIAL FOR DKSH

DKSH has signed a term sheet with TNG, an Australian resources company, covering distribution of its 150,000-tpa titanium dioxide production, as well as its sales, marketing and logistics. “With our market coverage and long-standing successful track record in the worldwide distribution of specialty chemicals to the plastics and coatings industry, we are TNG’s optimal partner to exclusively market their titanium dioxide pigments,” says Dr

Natale Capri, co-head business unit performance materials at DKSH.

“Our customers worldwide will benefit from a reliable and steady supply of high-quality products,” Paul Burton, managing director of TNG, adds. “My entire team and I are very much looking forward to the long-term and strategic relationship for our titanium dioxide business as well as the potential future growth opportunities this agreement brings.” www.dksh.com

NEXEO ADDS PRODUCTS

Nexeo Solutions has been selected to distribute Evonik Cyro’s acrylic-based polymer products in the US, Canada, Puerto Rico and Latin America from 1 November 2018. “Expanding our Healthcare portfolio with performance materials from Evonik is a great addition to our offering of specialty plastics for the medical industry,” says Shawn Williams, executive vice-president of plastics at Nexeo Solutions. “Evonik is known as a trendsetter across multiple industries for their trusted collaboration helping shape customers’ businesses. Our customers will benefit from Evonik’s commitment to innovation and quality, coupled with our technical expertise and industry-leading supply chain network to deliver exceptional acrylic-based products that meet demanding requirements.”

Nexeo has also expanded its line of 3D printing materials with the inclusion of filaments from Sabic. “We are delighted with Sabic’s desire to add its new high-performance filaments to our 3D product line,” says Williams. “The strong partnership we have, coupled with our industry knowledge and technical capabilities throughout the development process, makes us an ideal fit to bring customers these differentiated filament options.” www.nexeosolutions.com

AZELIS EXTENDS IN RUSSIA

Azelis has extended its distribution agreement with Merck in the Russian CASE, personal care and food and health markets. “Russian customers know the innovative and highly reputable products of Merck well and we are very proud to add Merck’s products to our product portfolio in Russia,” says Peter Heinig, group principal manager at Azelis. “I am convinced that our team in the Moscow office will create a further success story which will lead to new mandate opportunities in the future.”

Andrey Zhukov, general manager at Azelis Russia, adds: “We see strong interest from the market for the Merck product range and we are confident that we will be able to grow the business further and also strengthen the image of Azelis as a leading speciality chemicals and food ingredients distributor.”

Azelis entered the Russian market in 2008, initially in the food and health sectors. It rapidly expanded into the personal care, plastic polymers, coatings and pharmaceutical markets. Azelis Russia provides technical developments and support for customers from both Azelis’ offices and warehousing facilities in Moscow, St Petersburg, Yekaterinburg, Novosibirsk and Krasnodar, all conveniently located across Russia, safeguarding short lead times and cost-efficient deliveries. www.azelis.com

OMYA BUY SPACE

Omya has acquired Galderma-Spirig’s Egerkingen site in Switzerland, which was closed in September 2017, from GaldermaSpirig’s parent Nestlé Skin Health. Omya also intends to acquire Spirig Pharma’s Cosmospheres business unit, which develops and manufactures high-quality cellulose-based additives for the cosmetics industry.

Omya will move its research and development activities to this site from its headquarters in nearby Oftringen, which is fully occupied. Up to 350 full-time jobs will be located at Egerkingen; Omya will offer continued employment to the employees in this business area, as well as the continued employment of facility management and maintenance staff. www.omya.com

UNIVAR STRENGTHENS IN LATIN AMERICA

Univar has opened a new sales centre in Colombia to extend its reach in Latin America. The new office will bring additional product, market and technical expertise to the region and expands Univar’s overall presence in what it sees as important growth markets.

“Univar’s new Colombian presence allows us to better serve our Latin American customers and suppliers through dedicated resources that are regionally focused,” says Rodrigo Santiago, commercial greatness director, Latin America. “Expanding our geographic reach allows us to sell the value of Univar by helping solve some of the most complex issues our customers and suppliers are facing.”

“Our new Colombian sales centre allows Univar to better serve local needs through enhanced product management, account management, program marketing, and communications within each market we serve,” adds Jorge Buckup, president of Univar’s Latin American division. “Together this allows us to identify local product and technology trends as well as provide technical support and market insights to create specific programs and solutions for our customers and suppliers.”

Meanwhile, Univar has announced third quarter gross profit of $468.7m, 3.1 per cent up from the same period last year. The company has also reported a 27.5 per cent increase in net income to $49.6m, with David Jukes, president and CEO saying: “Our global execution continues to improve and our customers and supplier partners are recognising the value that Univar brings. Since we began to execute our strategic plan, we have delivered our eighth consecutive quarter of EBITDA growth. We are highly confident that we have the right global growth programmes in place ahead of our integration with Nexeo.” On the downside, “foreign exchange headwinds” and demand softness are expected to dampen fourth-quarter growth, with adjusted EBITDA expected to be in line with last year’s results. www.univar.com