News – full story
The aerospace lightweight materials business is growing 10% per year
29/07/2015
Solvay buys lightweight material firm Cytec
Acquiring US-based company for US$5.5bn
Richard Jansen-Parkes
BELGIUM’S Solvay is buying US-based chemicals company Cytec for US$5.5bn as it looks to expand its presence in the lightweight materials market.
Cytec makes composite and adhesive materials for the aerospace and automotive industries, as well as some of the chemicals used in the mining sector for mineral processing and solvent extraction.
While Solvay CEO Jean-Pierre Clamadieu says that the deal represents a unique chance to “strengthen its know-how with activities in mining chemicals,” the biggest draw is Cytec’s composites business. He told investors that the lightweight materials market in the aerospace sector – which represents two-thirds of Cytec’s sales – is growing by around 10% per year.
“This acquisition will create value for our stakeholders and will support our ambition to become a leader in sustainable chemistry,” he adds.
Cytec’s composites businesses will be folded in to Solvay’s own advanced materials unit, while its mining chemicals, niche additives and phosphine specialty chemical businesses will all become part of Solvay’s advanced formulations unit.
Solvay expects the deal to begin saving it more than €100m/y (US$110m/y) within the next three years.
