Perstorp acquires Solvay’s caprolactone business

Perstorp AB, Perstorp, Sweden, which at the end of September 2007 acquired a production unit for Purified Isophthalic Acid (PIA) in Singapore, has now signed an agreement with the chemical and pharmaceutical group Solvay, Brussels, Belgium, for the acquisition of its caprolactone business, which had sales of EUR 60 million in 2006.

Solvay’s caprolactone manufacturing site (workforce of 65) is located in Warrington, UK.

Perstorp also announced its intention to double the capacity for caprolactones, marketed under Solvay´s brand Capa, as well as increasing capacities for downstream derivatives to satisfy the strong increase in demand in all the major applications for the products.

“Perstorp’s aim is a long-term commitment in the caprolactone market. To meet the market’s demand for growth, establishing collaboration with key customers and our intention to develop new application areas, are some of the measures we will introduce to create the world’s biggest caprolactone manufacturing capacity and thereby retain the current leading position,” said Mats Persson, Executive Vice President Business of Perstorp.

Polyols and thermoplastic capacities are also expected to be expanded to utilise the additional monomer generated by the additional capacity and meet the growing market demands. The acquisition is conditional on the usual authority approval and is expected to be completed before the end of the year.