Finnish Chemicals Company Kemira Divests Oil and Gas Business to US Chemicals Company

On December 5, 2023, Finnish chemicals company Kemira signed an agreement to divest its oil and gas-related portfolio to Sterling, the US subsidiary of global industrial company Artek Industries, for €260 million.

Kemira and Sterling said they will enter into a long-term partnership that includes a two-way contract manufacturing agreement.

“The divestiture of our oil and gas business crystallizes our focus on sustainability and our strategic priorities: expanding our water treatment business, building a leading renewable energy portfolio and digital services business.

The divestiture of the business will help us better develop and explore new growth opportunities in the water treatment and pulp and paper businesses. Through Sterling, we find great managers for our oil and gas operations. Our long-term partnership with Sterling will support our customers in their transition. ” said Petri Castrén, President and CEO of Kemira.

Vishal Goenka, Director of Artek, commented: "The acquisition of Kemira's high-quality oil and gas-related product portfolio strengthens Artek's vision to become a leading global specialty chemicals company."

By 2022, Kemira's revenue was approximately 430 million euros. This includes revenue from Kemira's oil and gas business of 373 million euros. The remaining revenue of approximately €57 million includes non-oil and gas industry polymers sold through indirect channels.

As part of the deal, Kemira's manufacturing facilities in Mobile, Columbus and Aberdeen in the US, as well as its Teesport manufacturing facility in the UK, which also includes approximately 250 employees, will be transferred to the buyer. In addition, Kemira's new liquid polymer (NLP) manufacturing plant in Botlek, the Netherlands, is also included in the deal, but Kemira said it will continue to operate the plant and retain employees under a long-term agreement.

The transaction will be conducted through a stock and asset sale and is expected to be completed by the end of the first quarter of 2024, subject to customary closing conditions and regulatory approvals.