Milan, Italy -- Novotex Italiana SpA, which is part of polyurethane specialist COIM Group, has announced that it is buying the European business, technology and manufacturing rights of the polyurethane division of Cytec Surface Specialities, based in Drogenbos, Belgium.
The deal, expected to be complete by the end of February, does not affect the rest of Cytec's polyurethanes business in other regions. Both parties agreed not to disclose financial details of the purchase.
With this agreement, Novotex Italiana said in a 12 Feb statement, it will become, "one of the leading suppliers in Europe of polyurethane solutions, granules and dispersions used in the coating industry." As well as supplying the European market, Novotex supplies products to North and South America, Middle East and Asia, and has sales units and plants in Brazil and Singapore.
The deal will involve the polyurethane resins used in making textile, leather and synthetic leather goods waterproof and breathable, principally in the European market.
As well as being a good fit with Novotex's current portfolio, the deal offers the chance to further develop higher specification, technically demanding uses. This is one of Novotex's strategic directions, said Novotex president Antonio Magni, adding that acquiring further 'top-end' technology will allow it to offer more solutions to customers and create new opportunities.
Pointing out that the coated fabric sector in Europe has been under pressure in recent years, with strong competition from Asia, Magni said the Cytec deal will "provide a strong platform for future growth of the business," since high technology 'niche' sectors offer opportunities for the future.
The Drogenbos unit was part of the UCB Group. Cytec bought the Surface Specialties business of UCB for $1800 million in late 2004.
Cytec will continue to make these materials for a transitional period at Drogenbos, but Novotex said production will be transferred to the COIM factory in Italy as soon as is practical. The agreement ensures current customers of Cytec continue to receive products as normal, Novotex said.