LANXESS to sell business with gallium-based organometallics to Vital Materials
Specialty chemicals company LANXESS is taking another step to further develop its portfolio and progressing with the realignment of its organometallics business.
As envisaged by CEO Matthias Zachert during the Meeting-the-management event LANXESS has now sold its gallium-based organometallics business in Pyeongtaek, South Korea, to Vital Materials, a Chinese company specialized in rare metals. Both parties signed a respective agreement on November 28, 2019. The transaction is still subject to customary Chinese outbound investment control approvals. LANXESS expects to complete the planned transaction early in the first quarter of 2020.
At its Pyeongtaek site with around 40 employees, LANXESS produces high-purity organometallics. These advanced organometallics are used for the manufacture of LED chips and other semiconductor applications.
Global realignment of organometallics business
A few days ago, LANXESS announced that it will focus its organometallics business on the profitable growth segment of aluminium-based organometallics. At its Bergkamen site in Germany LANXESS will expand production and is therefore investing an amount in the mid-single-digit millions of euros. Aluminum-based organometallics are mainly used as catalysts in the production of high-quality plastics.
At the same time, LANXESS has sold the business with tin-based organometallics located at the same site to the PMC Group, a U.S. chemicals company. This transaction is expected to close at the end of 2019. Organometallics are part of the Advanced Industrial Intermediates business unit’s portfolio.