Ecolab Sells Chinese Phosphonate Business To Italy's Italmatch

Ecolab, the US-based provider of water, hygiene, and energy technologies and services, has sold its phosphonate component business in China that was acquired as part of its 2015 Jianghai acquisition to Italmatch Chemicals S.p.A.

Italy-based Italmatch is speciality chemical firm supplying performance additives for water & process treatment, oil & gas, industrial lubricants and plastics.

The acquired business, Jaiyou Chemical Co., is active in the antiscalant phosphonate business. According to Italmatch, the deal includes the acquisition of the entire antiscalant business and assets relating to phosphonate production and sales carried out by Jaiyou Chemical Co. (formerly part of Jianghai), located in the Changzhou area (China).

The transaction allows Italmatch Chemicals to strengthen its presence in Asia Pacific with a new plant specialised in the production of phosphonate antiscalant products. The new site complements other dedicated plants located in North America and Europe.

Mr. Sergio Iorio, CEO of Italmatch Chemicals Group, commented, “Through this acquisition, Italmatch Chemicals achieves a global presence and a global market leadership in phosphonates, thanks to a new manufacturing presence in China. Today, China represents a fast-growing market – especially in industrial water and process water treatment – characterized by higher quality and high environmental standards, in line with the Central Government’s objectives to elevate environmental standards of chemical companies, which are fully aligned with Italmatch Chemical’s strategic objectives in the Asia Pacific region. In addition, the manufacturing footprint expansion gained through this transaction strengthens Italmatch Chemical’s ability to supply its largest global customers.”

Ecolab has retained Jianghai’s Service & Formulated business, which provides differentiated products and services to China’s heavy industry water treatment market.