In a bid to optimize its portfolio, German chemical major Covestro, recently revealed that it intends to divest its global polycarbonate (PCS) sheets business. If reports are to be believed, Covestro’s PCS sheet business in the United States generated a revenue of over USD 170 million in 2017.
Patrick Thomas, Covestro’s chief executive officer has apparently stated that as a part of the company’s strategy, it is pivotal that its portfolio be optimized to ensure value creation and secure future growth. Through this process, he further adds, it was found that company’s polycarbonates business was not a strategic fit in the long-term goals, as a result of which it has decided to sell its PCS business.
Reports reveal that the one of the leading US based acrylics sheets manufacturing company – Plaskolite LLC, is buying Covestro’s PCS sheets business to become a one stop solution provider for its global customers. Experts in fact believe that the Covestro-Plaskolite deal is likely to transform the North America sheet industry as it potentially unites the leaders in polycarbonate and acrylic manufacturing respectively. With the PC sheet industry likely to experience a change of dynamics, it goes without saying that dimethyl carbonate industry outlook will also undergo a transformation, they further affirm.
Reportedly, the aforementioned opinion of industry experts comes along the lines of the fact that the polycarbonate space is a prime application arena of dimethyl carbonate market. DMC is used as a solvent to manufacture highly durable polycarbonate sheets that are further deployed in machine housing, roofing systems, and signage applications, cite sources. As per authentic estimates, dimethyl carbonate market share from polycarbonates application was pegged at USD 200 million in 2015.
In a company statement Covestro said that the deal will be led as an asset deal that is expected to be completed by the third quarter of 2018. All the employees that are working for Covestro’s PCS sheets business will be joining Plaskolite and the operation will continue at its current facility in Sheffield, Massachusetts.