Wickliffe, Ohio -- The Lubrizol Corp. has confirmed that it has signed a definitive agreement with Dow Chemical Co. to purchase Dow's thermoplastic polyurethane (TPU) business. This acquisition, structured as a sale and purchase of assets, will expand Lubrizol's Estane Engineered Polymers business, according to an 18 Dec statement from Lubrizol.
No financial details of the agreement were disclosed.
Lubrizol said the deal will close after customary closing conditions are satisfied.
The company also recently acquired the assets of the TPU business of Korean company SK Chemicals.
Lubrizol this year doubled its TPU capacity at its plant in Shanghai, China. It also makes TPUs at two US sites -- Avon Lake, Ohio and Wilmington, Massachusetts - as well as at Oevel, Belgium, and Seremban, Malaysia.
Dow's Pellethane TPU unit, along with some other speciality plastics products, were made part of a Dow Portfolio Optimization group back in February 2007. The aim was to determine whether to realign these businesses into another Dow operation or joint venture, put them into a new JV, or sell the businesses, Dow said at the time.
More recently, in an 8 Dec 2008 announcement, Dow reacted to the current global economic downturn by saying it would eliminate 5000 full-time jobs and 6000 contractor positions, permanently close 20 plants, sell off several non-strategic businesses and temporarily idle 180 additional plants.
Discussing Dow's strategy going forward, Dow chairman and chief executive officer Andrew Liveris said during an8 Dec teleconference, "Shedding non-productive assets will createagility in how we react to the market place. ... This is a new way of working at Dow, as a market-driven, technology-centric company."