Trinseo to Sell Polycarbonate Technology License and Assets to Deepak Chem Tech Ltd
In a move that marks significant progression for its strategic realignment, Trinseo, a premier provider of specialty material solutions, has agreed to license its polycarbonate technology and transfer proprietary production equipment from its Stade, Germany facility to Deepak Nitrite Limited, an India-based diversified chemical intermediates company.
The agreement signals the beginning of a new partnership between Trinseo and Deepak Chem Tech Ltd, which promises to drive growth opportunities in emerging markets, particularly India. By leveraging this arrangement, Deepak will use the polycarbonate technology and equipment at its Indian operations to further expand its product range.
"We have made the strategic decision to exit virgin polycarbonate production as part of our broader strategy to focus on higher-growth opportunities and more sustainable areas of business," commented Frank Bozich, President and CEO of Trinseo. "The manufacturing equipment in Stade can be effectively utilized by Deepak to further expand their capabilities in India."
As per the agreement, the total value includes $52.5 million, with a contingent payment of $30 million expected by 2025 upon the achievement of predetermined key milestones. The sale price will see Trinseo receiving around $9 million by the end of this year and an additional $21 million in the first half of 2025.
As part of its strategic reshaping, Trinseo has decided to close its polycarbonate production operations at Stade, which marks a significant milestone for the company's portfolio evolution. With this sale, Trinseo seeks focus on growth areas with strong potential such as specialty materials while divesting from mature segments like virgin polycarbonate.
Trinseo is renowned as a trailblazer in specialising the creation of material solutions, working hand-in-hand with clients to tackle unique challenges faced by them across various industries. From initial design phases to manufacturing stages, Trinseo ensures unique tailored solutions that meet the ever-evolving demands of different sectors.
With vast experience spanning decades, Trinseo stands out as a leading provider in specialty materials sector, delivering innovative solutions based on forward-thinking ideas and premium materials, enhancing overall business and consumer value.