SÃO PAULO, February 23, 2016
Elekeiroz and Nexoleum combine forces to tap the global market in plasticizers by producing and selling bio-based products patented in Brazil and in relevant regions like the United States and Europe.
The transaction has materialized with the formation of a joint venture between Nexoleum’s and Elekeiroz’s original shareholders. The new entity will be engaged in the production, marketing and distribution of “green” plasticizers produced by chemically modifying vegetable oils.
The terms of the agreement between the JV partners include the approval of a new plant to be based in Várzea Paulista, São Paulo, which will produce those plasticizers with capacity of 24,000 tons per year. The new plant will start up in early 2017.
“We are moving towards an Elekeiroz more and more focused on providing solutions for our customers taking into account their challenges in terms of sustainability and competitiveness and seeking to anticipate regulatory restrictions that are certainly going to be increasingly stringent. The formation of this joint venture is a great step in this ongoing change process,” stresses Elekeiroz CEO Marcos De Marchi.
According to Nexoleum founders, the joint venture will also provide the means to a competitive, sustainable operation aiming for business in international markets as well.
“It is an innovative technology, offering customers products from renewable sources that replace traditional, fossil-based plasticizers featuring equal or even superior performance in several applications, and the best thing about them is that they do so at competitive costs. We view this joint venture as a historic milestone in the flexible PVC market,” says Jacyr Quadros Jr., co-owner and CEO of the new company.
Elekeiroz S.A., a 100-percent Brazilian publicly-held business controlled by the holding company Itaúsa, has a history of 120 years marked by pioneering initiatives. Today it is South America’s leading supplier of oxo alcohols, plasticizers, organic anhydrides, 2-ethyl hexanoic acid, butyric acid and fumaric acid, as well as a major producer of unsaturated polyester resins, formaldehyde, urea formaldehyde concentrate and sulfuric acid. Its capacity is in excess of 500,000 tons per year at three strategically well-located plants, one in Várzea Paulista, São Paulo, and two at the Camaçari Industrial Complex, Bahia.
Nexoleum is a privately-held company headquartered in Cotia, São Paulo. Through its founders, the company has developed a proprietary technology to produce bio-based products from vegetable oils for various markets and applications. Nexoleum owns international patents and is also a licensee of the Battelle Memorial Institute.