LEHIGH VALLEY, Pa. (Jan. 27)—Air Products and Chemicals Inc. has sold its methylene diphenylene isocyanate business, inventory and customer base to ITWC Inc. for an undisclosed amount.
The sale of the prepolymer unit essentially was a portfolio management decision, an Air Products spokesman said. The deal completes an eight-year relationship between the two companies under which ITWC produced all MDI prepolymers for Air Products, he said.
Malcom, Iowa-based ITWC acquired the MDI business because its sales organization has grown "to the point that we are now able to deal directly with all our MDI customers," said Roger Smith, the firm's vice president of sales. He noted that Air Products has helped the company grow during the last eight years, "and we have a good relationship that I am sure will continue."
"ITWC had been of great assistance in expanding the product line we were offering with MDI systems," Curtis D. Junge, global business manager for Polyurethane Specialty Products at Air Products, said in a prepared statement. "The sale of this business is consistent with our portfolio management strategy, and as we reviewed this product area, we decided for this process sensitive market that ITWC and it direst support would benefit Airthane product customers."