Adhesives Mag logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Adhesives Mag logo
  • NEW PRODUCTS
  • NEWS
    • Adhesives & Sealants Headlines
    • Mergers/Acquisitions
    • Events Calendar
    • Market Trends
  • TOPICS
    • Finished Adhesives and Sealants
    • Pressure-Sensitive Adhesives (PSAs)
    • Coatings
    • Raw Materials and Chemicals
    • Materials Handling/Processing
    • Meter/Mix/Dispense
    • Curing
    • Testing/Quality Control
    • Packaging of Adhesives & Sealants
    • Converting/Packaging
    • Composites
    • Sustainability
  • COLUMNS
    • European Perspectives
    • Strategic Solutions
    • Supply Chain Strategies
    • Tape Talk
  • TOP 20
  • MULTIMEDIA
    • Videos
    • Podcasts
    • Webinars
    • eBooks
  • EXPLORE
    • Adhesives in Action
    • Blog
    • ASI Store
    • Industry Links
    • Market Research
    • Classifieds
  • DIRECTORIES
    • Buyers' Guide
    • Global Adhesives & Sealants Directory
    • Raw Materials, Chemicals, Polymers and Additives Handbook
    • Equipment Handbook
    • Distributor Directory
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • ADVERTISE
      • Custom Content & Marketing Services
    • CONTACT
  • SIGN UP!
Adhesives & Sealants Headlines

BREAKING NEWS: Sale of Air Products Polymers Would Change Competitive Landscape for SLPs

April 1, 2006

LITTLE FALLS, N.J. - Potential buyers for Air Products' polymers business could see themselves leapfrog to the front of the synthetic latex polymer (SLP) market in both the United States and Europe with the purchase of a leading supplier in the vinyl acetate-ethylene (VAE) business.

The company announced its intentions last week to explore the possible sale of its amines and polymers businesses, and analysts from Kline & Company, a global business consulting and market research firm specializing in the chemicals and materials industries, are calling these businesses a smart buy for the right investor.

As the largest U.S. producer of VAE latexes, Air Products Polymers - a joint venture between Air Products and Chemicals, Inc. and Wacker-Chemie GmbH - holds more than 60% of the domestic market, according to Synthetic Latex Polymers Market Analysis, a series of Kline studies examining global SLP markets and manufacturing. In Europe, Air Products is the second leading producer of VAE, with a market share of about 40%, just behind Celanese.

"With Air Products Polymers' position in VAE in both the U.S. and Europe, whoever ends up buying the business will gain a strong foothold in the overall SLP market," says Gillian Morris, industry manager of the Chemicals and Materials Practice for Kline's research division. "In addition to VAE, they'll also take over Air Products' position in PVAc and vinyl-acetate acrylics."

VAE is a key component in formulating adhesives and sealants, paints and coatings, and textiles and nonwoven fabrics. Overall, the VAE market is forecast to experience above-average annual growth compared with other SLP products in both the U.S. and in Europe, according to Kline.

Air Products and Chemicals holds a 65% stake in Air Products Polymers and a 20% stake in Wacker Polymer Systems; its partner in both ventures is German-based Wacker-Chemie. Wacker Polymer Systems is the leading supplier of redispersible powders, chiefly based on vinyl acetate, in Western Europe. Construction and construction adhesives are the key applications for these products in Europe.

"Air Products' VAE facilities enjoy economies of scale, but you also have to evaluate their competitive position in terms of raw material sources and against emerging producers in developing regions like Asia," adds Yuki Adachi, director of Kline's Japan branch.

The move by Air Products to look for a buyer for the polymers business comes as the company embarks on a plan to enhance its growth strategy, but CEO John Jones has said the company will only sell to a buyer who appreciates the value of the business.

Meanwhile, PolymerLatex, another global leader in the SLP market, is also up for sale. This follows Celanese's purchase of Clariant's emulsions business in 2003 and its acquisition of Vinamul Polymers in February 2005.

"The SLP industry has gone through significant consolidation within the last few years," says Morris. "It's interesting that there are now two more big SLP producers potentially on the block, each with different product ranges, serving different applications with different regions of focus."

Kline's Synthetic Latex Polymers Market Analysis is a global series of regional analyses that examines the current and forecast demand by major product and end-use industry, including information on grades, prices, applications, captive production/consumption, major customers, distribution channels, supplier sales, and technical and market trends.

A companion series of regional manufacturing cost analyses provides detailed technology and production cost structure assessments for four major latex polymer categories.

Established in 1959, Kline & Company (http://www.klinegroup.com) is an international business consulting and market research firm serving the chemicals and polymers, life sciences, consumer products, and petroleum and energy industries.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • mouse in hole

    Using Foam Sealants for Pest Prevention

    According to the National Pest Management Association,...
    Finished Adhesives and Sealants
    By: Kevin Corcoran
  • linked network nodes

    Using the Power of AI for Adhesive and Sealant Formulation

    With the help of software solutions, adhesive formulators...
    Finished Adhesives and Sealants
    By: Karen Parker
  • top20-hero.jpg

    2024 ASI Top 20: Leading Global Manufacturers of Adhesives and Sealants

    ASI's annual ranking of the top 20 global adhesive and...
    Pressure-Sensitive Adhesives (PSAs)
Subscribe For Free!
  • eMagazine Issues
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

More Videos

Popular Stories

Picture of white beads of hot-melt adhesives

Henkel and Synthomer Work to Cut Carbon Emissions in Adhesives

news on internet screen

H.B. Fuller Names 2025 Customer Innovation Awards Winners

Image of a green plant

BioBond Licenses Technology Developed at Purdue to Create Biodegradable Packaging Adhesives

ASI Top 20 website

Events

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Products

Structural Adhesives: Properties, Characterization and Applications

Structural Adhesives: Properties, Characterization and Applications

See More Products

ASI CASE EBOOK

Related Articles

  • Air Products Completes Sale of Polyvinyl Alcohol Business to Celanese

    See More
  • acquisitions_mergers_gears

    Hexion Announces Updated Timing for Sale of Phenolic Specialty Resins, Hexamine and Europe-Based Forest Products Resins Businesses

    See More
  • Air Products to Sell Interest in Polymers Joint Ventures

    See More
×

Keep the info flowing with our eNewsletters!

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey & Sample
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Youtube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing