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Comment Business & Economics

Süd-Chemie expands its business in Brazil

By Gerald Ondrey |

Süd-Chemie AG (Munich, Germany; www.sud-chemie.com) is substantially expanding its position in the Brazilian growth market for bentonite-based additives used in the foundry, construction, and paper industries in a joint venture (JV) with the internationally leading and largest Brazilian group in the provision of services for drilling and chemical analysis for the mineral industry, Geosol (Belo Horizonte, Brazil). According to the agreement with Geosol, Süd-Chemie, through its subsidiary Süd-Chemie do Brasil, Jacarei, will initially acquire 26% of the Geosol subsidiary Companhia Brasileira de Bentonita, Vitória da Conquista. Furthermore, it is planned that Süd-Chemie will successively increase its share of the company to 90% in the coming years. The parties have agreed to maintain confidentiality with regard to the purchase price. The JV, currently consisting of more than 70 employees, will produce bentonite-based additives for use in the Brazilian iron ore, foundry, construction, and paper industries. These chemical additives, produced through the refining of the natural clay mineral bentonite, serve as binding agents which assist in enabling or optimizing the production processes in numerous target industries.…
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