Air Products Announces Strategic Changes
The company is exploring the sale of its Amines and Polymers businesses; restructuring its Polyurethane Intermediates business, including plans to sell its dinitrotoluene (DNT) facility in Geismar, La.; and investing in its Performance Materials business with the acquisition of specialty-surfactants producer Tomah3 Products. These actions will enable the company to further sharpen its focus on its four growth platforms: Energy and Process Industries, Electronics, Homecare, and Performance Materials, as well as its position in the Asia region.
The Amines business generated approximately $300 million in revenues in FY2005. Amines production facilities are located in Pace, Fla.; St. Gabriel, La.; and Camacari, Brazil. The consolidated Air Products Polymers joint venture with Wacker Chemie AG of Germany had approximately $550 million in FY2005 revenues with six manufacturing facilities including South Brunswick, N.J.; Piedmont, S.C.; Calvert City, Ky.; Elkton, Md.; Ulsan, Korea; and Köln, Germany.
As part of its Polyurethane Intermediates business restructuring, Air Products announced that it has reached an agreement in principle to sell its DNT production facility in Geismar, La., to BASF Corp. for $155 million. The plant is located on property leased to Air Products at BASF's major manufacturing site in Geismar. This transaction does not include Air Products' Pasadena, Texas, polyurethane intermediates facility, which continues to operate.
Air Products has signed a definitive agreement to acquire Tomah3 Products of Milton, Wis., for approximately $115 million in cash. With sales of $73 million in 2005, Tomah produces specialty surfactants and processing aids. For more information, visit www.airproducts.com.