14 June 2016
DETAILS
Veolia North America has signed an agreement
to take over
Chemours’ Sulfur Products division.
This division is a specialist in
the recovery of sulfuric acid and gases
of the refining process,
which are regenerated into clean acid and steam
used in wide range of industrial activities.
As a tuck-in to Veolia North America’s Industrial Business,
Chemours Sulfur Products division
is an excellent complement to Veolia’s existing business,
and will reinforce its existing recovery
and regeneration capabilities and technologies.
Sulfuric acid is one of the most important compounds
made by the chemical industry and
is used to manufacture hundreds of compounds
needed by almost every industry.
Natural gas and oil contain sulfur compounds,
both organic and hydrogen sulfide, both of which
must be removed before they are used
as fuels or chemical feedstock.
Through the takeover of Chemour’s Sulfur Products assets
for $325 million, Veolia complements
its asset base in the regeneration business,
and thus the circular economy.
This operation includes the following facilities
providing regeneration services and sulfur products:
Three Sulfuric Acid Recovery units located
on refinery sites in Delaware, New Jersey and Texas.
A merchant Sulfuric Acid Recovery
and sulfur product facility in Burnside, Louisiana.
Four sulfur-based acid production facilities
located in the Mid-Atlantic and East Coast.
Veolia will also be able to rely on
the inherent technical expertise relating to
sulfur through Chemours’ Acid Technology Center,
which boasts 18 engineers who exclusively support
the Sulfur Products division.
This take-over provides Veolia with
a highly differentiated services offering
to allow it to move up the value chain
with existing refinery customers, along with
an opportunity to cross-sell its existing offerings t
o a new customer base.
It also presents growth opportunities
within the refinery services sector, and it positions Veolia
to capture future demand for clean gasoline related products.
The Sulfur Products assets, with
approximately $262 million in revenue in 2015,
employs 250 employees at 7 sites
across North America.
Parties anticipate closing the transaction
within the second half of 2016, subject to
customary closing conditions and regulatory approvals
WWW.CHEMWINFO.COM BY KHUN PHICHAI
