WICKLIFFE, OHIO (Dec. 24, 2008)—Lubrizol Corp. has signed a definitive agreement with Dow Chemical Co. to purchase Dow's thermoplastic polyurethane business.
This acquisition, structured as a sale and purchase of assets, will expand Lubrizol´s Estane Engineered Polymers business, according to a Dec. 18 statement from Lubrizol. Terms of the agreement weren't disclosed.
Lubrizol said the purchase will close after customary closing conditions are satisfied.
Wickliffe-based Lubrizol also recently acquired the assets of the TPU business of South Korean company SK Chemicals.
Lubrizol this year doubled its TPU capacity at its plant in Shanghai, China. It also makes TPUs at two U.S. sites—Avon Lake, Ohio, and Wilmington, Mass.—as well as at Oevel, Belgium, and Seremban, Malaysia.
Dow's Pellethane TPU unit, along with some other specialty plastics products, were made part of a Dow Portfolio Optimization group in February 2007. The aim was to determine whether to realign these businesses into another Dow operation or joint venture, put them into a new JV, or sell the businesses, Dow said at the time.
More recently, in a Dec. 8 announcement, Dow reacted to the current global economic downturn by saying it would eliminate 5,000 full-time jobs and 6,000 contractor positions, permanently close 20 plants, sell off several non-strategic businesses and temporarily idle 180 additional plants.