Sachtleben boosts its cosmetics reach with acquisition of TiO2 production assets

By Andrew McDougall

- Last updated on GMT

Sachtleben, which is a venture of Rockwood and Kemira Oyj, will strengthen its position in the cosmetics market thanks to the acquisition of crenox GmbH’s titanium dioxide production assets.

Germany-based crenox went into administration three years ago with Sachtleben purchasing the assets from the insolvency administrator and the deal is expected to close in mid-July.

Sachtleben will acquire the crenox Krefeld-Uerdingen plant and all inventory of the facility. The acquisition will add over 100,000 metric tons of titanium dioxide production, increasing capacity to approximately 340,000 metric tons, further enhancing Sachtleben's position as a prominent global supplier of high quality TiO2 pigments.

Bolstering cosmetic position

In cosmetic and skin care products, titanium dioxide is used as a pigment, sunscreen and a thickener.

Titanium dioxide is found in almost every sunscreen with a physical blocker because of its high refractive index, its strong UV light absorbing capabilities and its resistance to discolouration under ultraviolet light.

Commenting on the acquisition, Rockwood chairman and CEO, Seifi Ghasemi, said, "This acquisition significantly enhances the value of our TiO2 businesses. We have been trying to buy this facility for more than five years as we have always believed it would be a great fit with our TiO2 business.”

“This 100,000-ton-per-year plant will now enable us to optimize production between three plants, in addition to creating growth opportunities and enhancing our ability to serve customers."

Enhancing portfolio

Sachtleben CEO Vernon S. Sumner echoed these sentiments, stating the acquisition provides it with a financially attractive capacity expansion to meet the growing needs of customers in all market segments, and complements Sachtleben’s current portfolio.

This additional capacity better positions Sachtleben to supply customers' growing needs for specialty grades of titanium dioxide for high performance, high value applications, and to more fully participate in the growing global demand for titanium dioxide.

In addition, crenox's strong position in DeNOx catalysts will complement Sachtleben's portfolio of specialty products.

The proximity of the crenox plant to Sachtleben's Duisburg plant will allow for additional synergy potential.

Related topics: Business & Financial, Skin Care

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