Philadelphia, Pennsylvania -- Chemtura Corp. announced 15 Jan that it has signed a long-term strategic sourcing agreement with Albemarle Corp. under which Chemtura will source flame retardants BA-59PTM, DE-83RTM, Firemaster 2100, n-propyl bromide and sodium bromide from Albemarle.
Albemarle will also pass over its brine interests in Chemtura's West Brine production unit in Union County, South Arkansas to Chemtura, a move the group - currently in Chapter 11 bankruptcy protection - said will further strengthen its bromine operations and maximise productivity.
"This strategic sourcing deal reflects Chemtura's commitment to reinforcing the sustainability of our business," said Chemtura chairman, president and ceo Craig Rogerson in a company announcement, adding that it aids the group's plan to emerge from Chapter 11 as a stronger company.
The parties have also settled ongoing litigation on decabromodiphenyl ethane and bromine, ending a dispute over Chemtura's right to sell decabromodiphenyl ethane globally. Each company will grant a cross-license for their respective decabromodiphenyl ethane products. Chemtura said the settlement needs approval from the Bankruptcy Court.
Following the deal, Chemtura said, it will be able to strengthen operations at South Arkansas -- its most productive brine field. Also, it will be able reinvest in new, innovative flame retardants and brominated performance products designed as part of Chemtura's "Greener is Better" programme, under which it is aiming for "greener solutions without sacrificing safety or quality."
"Many of the changes we are making to our flame-retardant portfolio are aligned with our overall reorganisation plan," said Anne Noonan, vice-president of Flame Retardants at Chemtura, in the statement, noting that it will strengthen Chemtura's bromine business through reinvestment in "innovative and sustainable product options in 2010."
In addition to bromine and bromine derivatives, Chemtura's flame-retardants include a broad range based on bromine, phosphorous and antimony, used to reduce fire hazards in materials for vehicles, home furnishings, insulating materials, consumer electronics, electrical equipment and more.
Chemtura Corp., which had 2008 sales of $3500 million, makes many speciality chemical products - among them urethane prepolymers - as well as crop protection and pool, spa and home care products.
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