Application Areas Coatings Technologies Legislation Markets & Companies People & Careers Production & Lab Raw materials Sponsored Content Home » News » Markets & Companies » Perstorp and BRB open innovation hub in Shanghai have inaugurated a new laboratory in Shanghai The centre aims to strengthen innovation capabilities in the region particularly for applications in the coatings industry have inaugurated a new innovation centre for specialty chemicals in Shanghai the companies are responding to the growing demand for regional technical support in Asia strengthening customer proximity and driving targeted product and application development for local markets The new site complements existing development centres and will serve various sectors as well as the silicones and intermediates business A particular focus will be placed on technical services and the development of new solutions Secure your stand – grow your business in Southeast Asia the Pacific Coatings Show & Conference has quickly become the leading platform for the coatings industry in the Asia Pacific region and 2,696 trade visitors from 14 countries #PCS25 is the place to be for decision-makers and innovators Don’t miss your chance – register now and be part of it! the investment underlines the company’s commitment to customer collaboration and further global expansion Head of Innovation at PCG Specialty Chemicals also highlights that the new platform will enable earlier identification of market trends and faster time-to-market through closer interaction with customers in Greater China and the Asian region The inauguration in Shanghai forms part of a series of planned initiatives aimed at consolidating Petronas Chemicals Group’s position in the specialty chemicals sector The goal is to promote innovation along the value chain and to further strengthen the service offering for industrial applications such as coatings Demand for sustainable products continues to grow — but decorative coatings must also be durable Striking the right balance is one of the greatest challenges facing the.. has introduced three regional entities in Germany The aim is to decentralise the company’s structure US chemicals group Dow is considering the shutdown of two energy-intensive plants in Schkopau and Böhlen The decision follows market overcapacities rising costs and increasing regulatory pressures... Duncan Taylor will take over as interim CEO of Allnex on May 1 who will retire from the company on June 30 Taylor will continue to serve as Chief Financial Officer.. Marcus Jordan has assumed the role of Chief Executive Officer (CEO) of IMCD N.V Find the answers to the most frequently asked questions in our FAQ collection This advanced lab will support growth in the region by increasing technical support for customers Vinyl Ester Resin (VER) Market Analysis: Industry Market Size Copyright © ChemAnalyst - 2020 | Terms & Conditions | Privacy Policy Biodegradable liquid can apparently increase server efficiency Swedish chemical company Perstorp has released a new biodegradable fluid for data center immersion cooling systems The company says Synmerse DC is a synthetic fluid that offers increased safety and efficiency reducing the power needed by cooling systems Immersion cooling involves dunking servers in large tanks of fluid to keep them running efficiently Perstorp says it has developed the fluid in collaboration with leading chip manufacturers and OEMs to ensure it is compatible with the latest hardware and immersion cooling systems but did not name any of the companies involved said: “With our extensive experience in the engineered fluids sector we have an established record of innovating solutions that provide our customers with a competitive edge enabling them to be at the forefront of their industry “This has enabled us to develop a solution that not only meets today’s requirements but is also designed to address the future needs of cooling systems in data centers.” The company has not detailed the composition of the fluid other than to reveal it is completely free of harmful PFAS which can cause damage to the environment because they do not degrade Cooling fluid for servers is a growing market for oil companies PFAS-based cooling fluids have traditionally been used in two-phase immersion cooling but with legislation emerging around the world to ban their use manufacturers are looking to more sustainable solutions based on vegetable oils Liquid cooling has grown in popularity in recent years as the AI boom has driven a rapid increase in rack density This means traditional air-based systems are often not efficient enough to effectively chill the most powerful servers Perstorp is owned by Malaysian oil and gas company Petronas - which has launched its own cooling fluid and has partnered with Iceotope Data Centre Dynamics Ltd (DCD), 32-38 Saffron Hill, London, EC1N 8FH Email. [email protected]DCD is a subsidiary of InfraXmedia The rise of AI applications has spurred demand for AI servers the increasing computational power has also led to a growth in cooling requirements presenting a challenge for all industry players Traditional air cooling methods are no longer sufficient to meet the thermal management needs of AI servers have gradually emerged as a new business opportunity in the market At the recent Data Centre World Asia 2024 held in Singapore Perstorp showcased its latest liquid cooling solutions alongside partners such as Intel and Foxconn and Industrial Internet (FII) A crucial component of these solutions is the cooling fluid provided by Perstorp a wholly-owned subsidiary of Malaysia's national oil company Petroliam Nasional Berhad (Petronas) possesses a comprehensive solution chain in organic chemistry The company currently operates manufacturing units across Asia With over a century of experience in chemicals Perstorp has extensive knowledge regarding insulation and material compatibility—critical factors related to immersion cooling in data centers The company aims to leverage this expertise to help data centers enhance efficiency and lower energy consumption while developing new market opportunities Regarding the outlook for the liquid cooling market Vice President of Global Lubricants at Perstorp noted that the growing demands from advanced technologies like cloud computing and AI are rendering traditional air cooling methods inadequate revenues from data centers are expected to continue growing at double-digit rates over the next few years the percentage of revenue generated from liquid cooling is projected to increase from 17% in 2024 to 21% in 2025 Due to their compatibility with existing data center infrastructure single-phase cold plates still hold a higher market share compared to immersion cooling as CPUs and GPUs evolve towards greater performance there will be stricter requirements for thermal management and improved Power Usage Effectiveness (PUE) Serra-Holm believes that immersion cooling will become a key technology to meet these objectives the ongoing trend of improving PUE presents significant development opportunities for both single-phase cold plates and immersion cooling technologies Serra-Holm revealed that Perstorp is actively collaborating with partners to develop and expand its product line related to cold plate cooling with potential future solutions on the horizon Regarding the development of immersion liquid cooling systems Serra-Holm explained that various characteristics of the cooling fluid can influence each other achieving low viscosity often requires trade-offs in flash point and fire point Perstorp's cooling fluid was designed in close collaboration with partners This molecular-level design approach allows for a balance of low viscosity while also being more environmentally friendly where air serves as the primary medium contacting the server immersion cooling fully submerges hardware in dielectric fluid to manage heat dissipation Serra-Holm emphasized that due to the unique dielectric properties of liquids compared to air signal integrity—especially for high-frequency signals—is a critical factor that all immersion cooling fluid suppliers must carefully verify FII's servers have been submerged in Perstorp's cooling fluid for a year and the system continues to operate normally at the system level “With this acquisition of OQ Chemicals Nederland B.V. we are further enabling our growth strategy and focus on the Specialty Chemicals sector as well as sustainable solutions” Search Companies editorial@fibre2fashion.com The global chemical company OQ Chemicals has sold its Dutch esters plant in Amsterdam to Perstorp Group The innovation hub will serve various market segments as well as the existing Silicones and intermediates business “This investment reinforces our commitment to innovation and co-creation with our customers, as well as strengthening our global presence. It reflects our growth agenda, our strong ambition and commitment to progress,” commented Debbie Chiu, COO of PCG Specialty Chemicals “With faster response times and reduced time to market we are equipped to anticipate industry trends and deliver tailored solutions that meet our customers’ needs This platform will enable more face-to-face interactions with customers in the Greater China and Asian market to develop innovative solutions that align with market demands,” added Axel Tuchlenski This is the latest of several application and development centers where PCG collaborates with customers to innovate new solutions brought together customers from the different segments that the new lab will serve in the future Are you ready to elevate your pharmaceutical operations Download our exclusive whitepaper and discover how compliance with Good Distribution Practice (GDP) is essential for the safety and integrity of pharmaceuticals ProteiNext is an annual symposium that offers a platform for sharing insights on protein analysis Adipic Acid Market Analysis: Industry Market Size Global specialty chemicals innovator Perstorp a wholly-owned subsidiary of PETRONAS Chemicals Group Berhad (PCG) will serve growing specialty fluids markets from new site in Amsterdam In December 2024 Perstorp announced the acquisition of an ester plant located outside Amsterdam in the Netherlands where Perstorp plans to begin manufacturing a new range of synthetic esters early 2025 This marks Perstorp’s first step toward the growth of the synthetic ester business targeting the specialty fluids markets and becoming a recognized leader and supplier of synthetic fluids that enable sustainability benefits such as enhanced operational safety Perstorp intends to achieve ISCC PLUS certification for the site to produce Pro Environment products with reduced carbon footprint “The acquisition will improve Perstorp’s position of becoming both a producer of building blocks and a supplier of synthetic esters We can thereby advance our position in the value chain and serve new markets with innovative and more sustainable products” Perstorp plans to focus on application areas that have been underexplored and underserved where significant opportunities or unmet needs have been identified Perstorp will focus its efforts on serving the specialty fluids markets specifically dielectric fluids for data center cooling where double digit growth is expected over the coming years “We strive for both a continued collaboration with our current customers and active relationship-building with end users and other partners in the value chain to drive adoption of synthetic ester in the emerging applications Backward integration of our production process will secure reliable supply to our customers” Perstorp already has a progressive portfolio of products designed to improve sustainability performance a biodegradable and high-performing synthetic cooling fluid at Data Center World Asia in Singapore last October “We are committed to being a key collaborator and partner in new technology applications and a dedicated sustainable solutions provider in various industrial and specialty chemicals spaces,” concludes Ib Jensen a subsidiary of PETRONAS Chemicals Group Berhad (PCG) This alignment is with the leadership of PCG Specialty Chemicals (PCG SC) This division combines the strengths of Perstorp and BRB Its goal is to become a global leader in the specialty chemicals industry Both subsidiaries carefully selected the leadership teams The PCG SC Leadership Team maintains operational excellence throughout the transition Chief Operating Officer of PCG Specialty Chemicals “Our ambition is clear: to become a global leader in specialty chemicals by strengthening our position in key areas—Coating Solutions we are committed to aggressively expanding our intermediates business,” said Dr The growth agenda reflects PCG SC’s strong drive to push forward with innovation and leadership Ib Jensen will step down from his role as President and CEO of Perstorp Group Ib has successfully led the integration of Perstorp into the PCG family since its acquisition in 2022 His leadership played a crucial role in navigating the complexities of this major transition who currently serves as Executive Vice President for commercial and innovation at Perstorp will take over as Managing Director of Perstorp Holding AB “I have great confidence in the new direction Perstorp is taking within the PCG SC structure,” said Ib Jensen “It has been an honour to guide Perstorp through this significant phase” Debbie Chiu expressed gratitude for Ib Jensen’s leadership acknowledging his invaluable contribution during a time of change “Ib has been a highly valued leader throughout the integration process,” Chiu said “His dedication and efforts have been instrumental in guiding us through this period and we deeply appreciate his service and leadership” the leadership changes will officially take effect on February 1 function runOnFormSubmit_sf3zec8d52108b34fc71324f853b635efeb0ba361cb5044182b8b5691b5605aa97e5(th){/*Before submit Perstorp progressed in all four assessed areas compared to the previous year; Environment 2-Ethylhexanol Market Analysis: Industry Market Size a global player in specialty chemicals and a wholly owned subsidiary of PETRONAS Chemicals Group Berhad (PCG) This innovative portfolio enables the next generation of high-performance aligning with the coatings industry’s push for more environmentally friendly solutions To help manufacturers lower carbon footprints and VOCs It enables a smooth transition from solvent-based to waterborne alkyds “Our Neptem range redefines what’s possible for waterborne alkyds It is well known that waterborne alkyds have a significantly lower climate footprint than solvent-based alternatives By enabling a smooth transition away from solvents we are helping our customers future-proof their business and lead the industry toward a more sustainable future” “With decades of experience in specialty chemicals Perstorp remains at the forefront of innovation Our Neptem range for alkyds underscores our commitment to driving sustainable transformation while delivering high-performance solutions that anticipate future industry needs” Neptem emulsifiers enable waterborne alkyd resins to work with a broader range of oil lengths This expands formulation possibilities beyond traditional applications Perstorp positions Neptem for alkyds not just as a product the company ensures that resin producers receive expert guidance and assistance This makes the transition to waterborne technologies seamless and efficient Perstorp will unveil the Neptem range for alkyds at the European Coatings Show Attendees will get an exclusive look at how Neptem can transform the coatings industry with sustainable Perstorp has long been dedicated to driving the transformation of the chemical industry with a clear ambition to become Finite Material Neutral Leading global specialty chemicals innovator Perstorp recently announced that the Animal Nutrition focused plant in Waspik has officially reduced its direct emissions (Scope 1 & 2) to report zero over 2024 In an attempt to bring down greenhouse gas (GHG) emissions, Perstorp Waspik has taken several steps including replacing all fossil fuel forklift trucks with electric ones and all lighting by LED all natural gas has been replaced by biogas and total electricity used is renewable The company is on a lookout to further reduce its environmental footprint.  It has science based reduction targets for Scope 1 the target is a reduction of 46.2% in 2030 compared to a 2019 base year This is consistent with the reductions required to keep global warming limited to 1.5°C the most ambitious goal of the Paris Agreement each site has its own roadmap of identified activities to reach the site’s sustainability targets Site Waspik has managed to execute all its activities in the scope 1 & 2 roadmap and in 2024 has reduced their greenhouse gas emissions from operations to zero.  “Perstorp is committed to reducing the environmental impact of its business activities I am proud that in Perstorp Animal Nutrition we continue to accelerate the delivery of our sustainability improvement targets meaningful results," said Ian Atterbury senior vice president of Perstorp Animal Nutrition "Our production site in Waspik achieving zero scope 1 & 2 emissions It is our ambition to be a partner in sustainable animal production for our customers We aim to show that we can help not only through supporting performance and health but also by reducing the environmental footprint of our products to bring down the total impact of animal production.”  Plasteurope.com is a business information platform for the European plastics industry It is part of KI Kunststoff Information and PIE Plastics Information Europe one of the leading content providers for the European plastics industry We offer daily updated business news and reports polymer prices and other services for the international plastics industry News | Polymer Prices | Suppliers Guide | Jobs | Register | Advertising Propylene Glycol Market Analysis: Industry Market Size a global specialty chemicals innovator and a wholly owned subsidiary of Malaysia’s PETRONAS Chemicals Group Berhad (PCG) has successfully reduced direct emissions (Scope 1 & 2) at its Animal Nutrition plant in Waspik The site now reports zero greenhouse gas emissions for 2024 Perstorp Waspik implemented several key measures to achieve this milestone The site replaced all fossil fuel-powered forklift trucks with electric ones and switched all lighting to energy-efficient LEDs the facility transitioned from natural gas to biogas for heating while ensuring that 100% of its electricity comes from renewable sources  Since heating and electricity consumption are the two largest contributors to Scope 1 and 2 emissions these changes significantly reduced the site’s carbon footprint Perstorp Waspik is now exploring further steps to minimize its environmental impact Senior Vice President of Perstorp Animal Nutrition “We are committed to reducing the environmental impact of our business Our Waspik site achieving zero Scope 1 & 2 emissions is a major step forward We aim to be a key partner in sustainable animal production by supporting performance and health while also reducing the environmental footprint of our products This ensures a lower overall impact on animal production” “This milestone demonstrates our commitment to a more sustainable future Our Waspik site now operates without direct emissions from production or purchased energy Every chemical site faces unique challenges in reducing greenhouse gas emissions but securing renewable energy and raw materials is essential We continue to work intensively to lower both the direct and indirect carbon footprint of our sites and products supporting our customers and value chains in their sustainability goals” Perstorp remains dedicated to transforming the chemical industry and becoming Finite Material Neutral The company has set science-based reduction targets for Scope 1 it aims to cut Scope 1 & 2 emissions by 46.2% compared to 2019 levels This target aligns with the Paris Agreement’s goal of limiting global warming to 1.5°C Each Perstorp site follows a tailored roadmap to achieve its sustainability targets Waspik successfully executed all activities in its Scope 1 & 2 roadmap the accomplishment marks a significant step toward Perstorp’s overarching sustainability ambitions and reinforces its leadership in environmentally responsible chemical production The deal was announced in May, when Malaysia´s leading integrated chemicals producer, part of Petronas group signed a Securities Purchase Agreement with Financière Forêt a unit of European private equity firm PAI Partners At the time, PCG’s managing director and CEO, Mohd Yusri Mohamed Yusof, called Perstorp an “outstanding strategic fit with his company,” giving it access to attractive end-markets such as paints and coatings The Malaysian group intends to make Perstorp its platform for growth in specialty chemicals leveraging the acquired company’s critical talent technological platforms and proven customer channels it for eco-friendly and sustainable solutions Perstorp has a global sales presence and seven manufacturing sites in Europe with an eighth site due to be added in India in 2023 The company focuses on the three niche markets of Resins & Coatings PCG said it intends to continue preserving and growing the value of Perstorp The plans include the expansion of the company´s global presence by strengthening its position in the Asia Pacific markets through PCG’s industrial know-how and its substantial customer base and strategic direction in an exclusive CHEManager International interview CHEManager Innovation Pitch supports innovation in the chemistry and life sciences start-up scene and start-ups to present their companies to the industry Continuing a push by state-owned oil and gas firms into the chemical business Malaysia’s Petronas has signed an agreement to acquire Perstorp It generated sales in 2021 of about $1.4 billion It claims to be the largest integrated chemical producer in southeast Asia The acquisition will bring ingredients for “attractive end-markets” including paints and coatings Petronas Chemicals already produces some specialty chemicals ACS’s Basic Package keeps you connected with C&EN and ACS $80 Regular Members & Society Affiliates ACS’s Standard Package lets you stay up to date with C&EN ACS’s Premium Package gives you full access to C&EN and everything the ACS Community has to offer The company aims to increase its overall sales 30% by 2030 partly by making acquisitions in specialty chemicals In recent days there have been rumors that Sabic will seek to acquire the shares in the Swiss specialty chemical firm Clariant that it does not already own a “governance agreement” confirming Clariant’s independence expires between the two firms Sabic is already near the one-third shareholding in Clariant that would trigger a full takeover offer under Swiss law stock analysts at Jefferies Group say in a note to investors Sign up for C&EN's must-read weekly newsletter This article has been sent to the following recipient: Copyright © 2025 American Chemical Society The information on this page is intended for journalists If you click NO you will come back to Mynewsdesk.com In a collaboration aimed at addressing the global challenge of water scarcity and RISE are proud to announce their partnership to implement an innovative enzyme-based solution for water reuse brings together industry-leading expertise from each organization leveraging advanced biotechnological approaches to create sustainable water management practices Water scarcity is a pressing challenge faced by industries worldwide making the development of effective water reuse and circularity systems critical This partnership focuses on harnessing the power of enzymes to enhance the treatment and recycling of water across various applications resulting in improved efficacy and sustainability and our collaboration signifies a commitment to finding sustainable solutions that can benefit industries and communities alike,” said Christian Ryen we can provide effective tools that help manage this invaluable resource more sustainably.” The project aims to explore the potential of enzyme-based treatments to effectively break down contaminants in some selected processes the project participants will review the circularity possibilities and reuse process on the site the initiative strives to equip industry colleagues with practical solutions that are both efficient and environmentally responsible The project will be conducted during 2024/2025 and as the project progresses and RISE will provide updates on their advancements and eventual implementation strategies RISE Research Institutes of Sweden is Sweden’s research institute and innovation partner Through international collaboration with industry we ensure business competitiveness and contribute to a sustainable society Perstorp is a major chemical manufacturer and produces many chemicals used within the Pharma- and Medtech products and is in the heart of the value-chain when it comes to this industry Their products are used internationally and have manufacturing sites in various countries Pharem/Zymatic is a cleantech company with an advanced biotech division By using a combination of technology areas in Zymatic an enzyme-based water treatment technology has been developed that offers treatment of micropollutants Zymatic technology can be used for large scale implementation with broad spectrum treatment in municipalities to more specific and/or smaller scale implementation toward specific pollutants in industrial wastewater The benefits of low cost and simple maintenance is true in all implementations Pharem is specialized in enzymatic treatment of wastewater to remove organic micro-pollutants We use our broad biotechnology expertise to develop innovative enzymatic products which provide an effective means of removing organic pollutants in water environments Our products are specifically developed to meet client needs for simple effective solutions to tackle serious environmental issues within their operational scope we are constantly working toward meeting customer’s requirements and exceeding expectations by providing safe and cost-efficient products to counteract the impact organic pollutants have on the environment Pharem is ​specialized in ​enzymatic ​treatment of ​wastewater to ​remove organic ​micro-pollutants.​ We use our ​broad ​biotechnology ​expertise to ​develop ​innovative ​enzymatic ​products which ​provide an ​effective means ​of removing ​organic ​pollutants in ​water ​environments ​Our products ​are specifically ​developed to ​meet client ​needs for ​simple ​effective ​solutions to ​tackle serious ​environmental ​issues within ​their ​operational ​scope Through close,​ ongoing ​collaboration ​with stakeholders,​ we are ​constantly ​working toward ​meeting ​customer’​s requirements ​and ​exceeding ​expectations by ​providing safe and ​cost-efficient ​products to ​counteract the ​impact organic ​pollutants have ​on the ​environment When you choose to create a user account and follow a newsroom your personal data will be used by us and the owner of the newsroom for you to receive news and updates according to your subscription settings To learn more about this, please read our Privacy Policy, which applies to our use of your personal data, and our Privacy Policy for Contacts which applies to the use of your personal data by the owner of the newsroom you follow Please note that our Terms of Use apply to all use of our services You can withdraw your consent at any time by unsubscribing or deleting your account the facility was officially inaugurated on Feb “This is the largest investment in Asia so far, in Perstorp’s history. It will further strengthen Perstorp’s position as a sustainable and reliable partner in the region of Asia,” commented Gorm Jensen, Perstorp’s Executive Vice President Commercial & Innovation “This plant will increase the availability and reliability of products for current reducing lead times with about 50% for Asian customers It is strategically located close to ports This will help to ensure that Perstorp can supply products effectively throughout India and across all of Asia the plant is well positioned to also export products globally.” Perstorp will produce a Penta (pentaerythritol) product mix including Perstorp’s renewable-based as well as offering Penta Mono and Calcium Formate The plant will use renewably sourced raw materials as well as a hybrid source of electricity it provides customers with the same quality and performance as their fossil counterparts but this investment will represent a significant expansion of its global production capacity Perstorp can annually produce 40,000 metric tons of Pentaerythritol and 26,000 metric tons of calcium formate which is still subject to regulatory and shareholder approvals based on an enterprise value of €2.3 bn for the Malmö-based company Closing is expected in the second half of 2022 Focused on the three niche markets Resins & Coatings An eighth site is due to be added in India in 2023 The Swedish company that supplies more than 130 chemical products to  over 2,600 customers globally regards itself as the market leader for trimethylolpropane (TMP) and pentaerythritol (Penta) Known worldwide for its proprietary oxo and polyol chemistries Pestorp reported sales of €1.3 billion in 2021 with EBITDA of €248 million and an EBITDA margin of 18.6% The two chemical producers complement each other well Perstorp’s president and CEO Jan Secher said adding that by tapping into PCG’s strength and market-leading position in Asia Pacific the Swedish player will achieve the scale needed to increase the pace of innovation and accelerate its sustainable transformation managing director and CEO Mohd Yusri Mohamed Yusof said Perstorp is an “outstanding strategic fit,” giving Petronas access to attractive end-markets such as paints and coatings Mohd Yusri said the Malaysian group wants to make Perstorp its platform for growth in specialty chemicals he said the acquisition will provide Petronas with the critical talent technological platforms and proven customer channels it needs to address the pressing needs of the market for more eco-friendly and sustainable solutions and accelerate its sustainability journey toward achieving a circular economy and carbon neutrality by 2050 The PCG chief said the deal with Perstorp will contribute about 28% in incremental revenue to the Petronas group and will also support its medium-term goal to generate 30% of its revenue from non-traditional businesses by 2030 The acquisition of Perstorp follows PCG’s 2019 takeover of BRB Group a globally oriented independent producer and formulator of silicones CHEManager Spotlight is an exclusive event tailored for practitioners and decision-makers in the chemical industry This part of our event series delves into the latest trends and innovations in logistics to streamline your operations and drive efficiency Shandong Fufeng Perstorp Chemical Co was established as a JV between Perstorp and their Chinese partner Shandong Fufeng Hongjin Investment Co the acquisition of full ownership will ensure that the company can continue to expand the site and carry out substantial upgrades to ensure the competitiveness of the facility "Reaching our long-term strategic direction and our sustainability targets for 2030 mean that we need to develop both our business and the way we operate our site Our ambition is to continue developing safety sustainability and operational excellence at Site Zibo" says Magnus Lannér Based on the company's sustainability goals for 2030 Perstorp has developed action plans to reduce greenhouse gas emissions save fresh water and enable sustainable change throughout the value chain the Scope 1 roadmap includes a number of projects aimed at reducing emissions while minimizing waste production and water consumption As every website has a carbon footprint we want to make you able to contribute to a more sustainable experience by viewing ours in dark mode It will reduce the screen power and carbon emissions generated by your visit More about our work to lower emission here With production and sales around the world specialty chemicals company Perstorp has first-hand experience with the challenges that come with doing business in emerging markets Vice President of Corporate Finance and Investor Relations at Perstorp reflects on these hurdles and the importance of having a trusted banking partner in Nordea to help navigate them As one of the world’s leading specialty chemicals innovators, with production and sales around the world, Sweden-based Perstorp is familiar with the challenges that come with doing business in emerging markets The company has production sites in eight countries throughout Asia, Europe and North America, including China and now India, where Perstorp has been building a new state-of-the-art plant and for that Perstorp has turned to Nordea for expertise navigating the often tricky financial landscape in emerging markets “Emerging markets require more homework,” says Lars Grimsgård “As a treasury department of a mid-cap corporate we rely on having a good banking partner to do much of that homework for us.” One major challenge is navigating the thicket of local documentation requirements that can result in time-consuming administrative processes “Being the smaller treasury that we are in Perstorp we don’t have the resources to stay on top of the local regulations and FX rules we rely on Nordea to track those developments and guide us,” Lars Grimsgård says Jana Poulsenova Managing Director at Nordea Markets who leads a team of experienced emerging markets specialists helped Perstorp with a recent capital injection into India for its new facility “Doing business in emerging markets comes with big risks but also huge rewards,” she says you need to do the background work to ensure a thorough understanding and processes to comply with reporting requisites,” she says has a lot of “nitty gritty” administrative requirements such as certificates that need to be filed within a specific number of days after a transaction She notes that the paperwork burden is greater in India compared to China China can also come down with new regulations or guidelines that then need to be studied “We connect with local banks for their interpretation You need to learn all the steps,” says Jana Poulsenova who has also held trainings for Nordea’s own traders on how to behave as a foreign bank in emerging markets such as India Another key challenge when doing business in emerging markets is being able to tap into local account networks who was responsible for the treasury department at a larger Nordic corporate notes that bigger companies may have treasury hubs in Asia and “more muscle” when meeting with local banks Smaller treasury organisations may lack that local access By having good relationships with settlement banks in emerging markets Nordea can execute and collect payments in local currencies via safe and efficient account networks Nordea’s agreements with settlement banks also allow companies to bypass pre-funding requirements which otherwise would require them to pre-fund accounts in local currencies before conducting transactions in that market companies don’t need to take on the counterparty risk themselves when it comes to working with local banks That can be a major benefit in markets such as India and China where local banks’ non-performing loans and lack of transparency have raised concerns in the past monitoring that counterparty risk can also be a challenge That’s where we prefer to use a Nordic bank to do that work for us implicitly,” says Perstorp’s Lars Grimsgård Jana Poulsenova says her team’s primary aim is to find solutions for complex transactions in regulated currencies resulting in safe settlement and reporting that complies with cross-border rules She emphasises that Nordic companies can manage complex emerging market transactions from their head office without being physically present in the local market That can also help minimise the challenges from language barriers and time zone differences the company was able to arrange an INR intercompany loan from the Nordics as well as a capital injection including the filing of relevant certificates “We’ve had great help from Nordea,” says Lars Grimsgård we’re reliant on having that expertise close by.” Learn more about our emerging markets offering Email: EMsolutions [at] nordea.com (EMsolutions[at]nordea[dot]com) producing chemicals used in resins and coatings “You’ll find us everywhere from your car and mobile phone to towering wind turbines and the local dairy farm,” the company advertises on its website Perstorp has managed to carve out a niche for its products. For 50% of its portfolio, it’s number one in the world in sales. It has 1,500 employees sales representation in 24 countries and SEK 15.3 billion in annual turnover Along with two production sites in Sweden, Perstorp also operates facilities in Germany, the Netherlands, the U.S., Italy, China and soon India, with the completion of a new greenfield project in Gujarat The Indian facility will focus on the production of Penta that offers customers a lower carbon footprint The plant is expected to begin commercial production in 2023 Previously owned by French private equity firm PAI Partners Perstorp was acquired by Malaysia-based PCG (PETRONAS Chemicals Group) in 2022 Sustainability is a core focus for the company and a key driver in the chemicals market as actors throughout the value chain seek more sustainable solutions Perstorp is one of three companies behind Project Air an industrial collaboration to transform the chemical industry towards climate neutrality The project will create one of the first large-scale sustainable methanol plants and is expected to reduce CO₂ emissions by 500,000 tonnes per year The initiative was recently granted EUR 97 million from the EU Innovation Fund Malaysia's Petronas Chemicals is buying Swedish chemical maker Perstorp Holding (Source photos courtesy of Petronas Chemicals and screenshot from Perstorp Group YouTube page)  KUALA LUMPUR -- Malaysia's Petronas Chemicals Group a subsidiary of state energy firm Petroliam Nasional Berhad (Petronas) said on Tuesday it will acquire Swedish specialty chemicals maker Perstorp Holding in a deal worth 2.3 billion euros ($2.4 billion) Petronas Chemicals said it signed a securities purchase agreement on Saturday to acquire all shares in Perstorp from European private equity firm Financière Forêt S.à.r.l for 1.54 billion euros in cash and take on Perstorp's existing debt of 762 million euros This website is using a security service to protect itself from online attacks The action you just performed triggered the security solution There are several actions that could trigger this block including submitting a certain word or phrase You can email the site owner to let them know you were blocked Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page The Technical Committee of the Tray Circularity Evaluation Platform (TCEP) of PETCORE Europe has officially endorsed the use of novel co-polyesters Akestra 100 and Akestra 110, manufactured by Sweeden’s specialty chemicals innovator Perstorp for the production of heat-resistant PET trays the committee has recognized that the use of Akestra 100 and 110 do not have a negative impact on current European PET recycling streams TCEP is a voluntary European industry initiative that provides PET thermoforms design guidelines for recycling evaluates thermoform packaging solutions and technologies and facilitates understanding of the effects of new PET thermoforms innovations on the recycling process The TCEP initiative fully supports the economic and environmental sustainability of the European PET value chain Akestra has been shown to enable customers to enhance recycled PET by adding heat resistance capabilities and also achieve sustainability targets by increasing recycled material content and enabling design for circularity Akestra 100 and 110 are established to enable a circular packaging solution with high post-consumer content (PCR) and for being recyclable in existing recycling streams for tray-to-tray Akestra 100 and 110 are hereby confirmed in Europe as replacement of fossil based linear traditional packaging made of polystyrene or polypropylene First launched at K 2013, Akestra was dubbed as a next-generation co-polyester characterized as a sparkling alternative to PC and glass for use in both disposable and reusable packaging It can be used as a PS replacement for heat-resistant thin- wall containers a PC replacement for durable "dishwasher proof" transparent products and a glass replacement for hot-fill food containers Akestra’s high glass transition temperature combined with its amorphous and high strength properties reportedly make it a superior alternative in food packaging and a material that can be easily blended with other plastics to improve their properties too heat resistance and high melt strength are properties that open up a wide range of design opportunities particularly in packaging The high melt strength of Akestra has been shown to make it particularly suitable for extrusion blow molding as well as extrusion foaming processes it creates a finer cell structure allowing further weight savings with superior mechanical properties in structural and packaging foam applications When used in co-extrusion sheets for thermoforming Akestra is said to surpass PS heat resistance for hot-fill applications and it can contribute to a more sustainable packaging solution with a lower carbon footprint The Technical Committee of the Tray Circularity Evaluation Platform (TCEP) of PETCORE Europe has officially endorsed the use of novel co-polyesters Akestra 100 and Akestra 110, manufactured by Sweeden’s specialty chemicals innovator Perstorp Swedish specialty chemicals producer Perstorp plans to sell its Perstorp BioProducts arm, a major producer of biodiesel and glycerine in Scandinavia to a Swedish investor together with a member of the subsidiary’s management team financial terms of the transaction nor a closing date were revealed Since the French private equity firm PAI Partners purchased Perstorp in 2005 the Swedish specialty chemical maker has gone through an acquisitive phase Succeeding during this last phase could be the most serious challenge yet for Perstorp That’s because a decade is longer than most private equity firms tend to hold onto assets He served a stint five years ago at the private equity firm Apollo Global Management He also knows that a deadline to pay off or refinance close to $1 billion in debt looms in 2017 That’s a hefty chunk of cash for a firm with sales last year of $1.6 billion Secher’s plan for success is simple: Make money and make the firm attractive for a potential buyer or an initial public offering Since the French private equity firm PAI Partners purchased Perstorp in 2005 That’s because a decade is longer than most private equity firms tend to hold onto assets. Jan Secher, Perstorp’s chief executive officer, should know. He served a stint five years ago at the private equity firm Apollo Global Management and make the firm attractive for a potential buyer or an initial public offering of stock Two key assets are an oxo chemicals unit Perstorp just built in Stenungsund and a range of materials coming out of the plant with an environmentally benign profile “We make no secret of the fact that at some point PAI will sell Perstorp,” says Secher, an industrial engineer by training who led specialty chemical maker Clariant from 2006 to 2008 and joined Perstorp in 2013 “That has been prewired from day one.” But “we must not be focused on the point of when PAI is going to exit We have been around for 134 years and intend to continue to be around.” Since PAI acquired Perstorp from another private equity firm Perstorp has searched for niches where it can survive and grow Among them were a Solvay caprolactones business and the isocyanates businesses of Rhodia and LyondellBasell Industries which together added nearly $800 million in isocyanates sales The caprolactones business has proven a success for Perstorp the firm doubled capacity at a plant in Warrington More recently it combined caprolactones with renewable lactide monomers to create a line of polyols for durable and sustainable polyurethane coatings that contain fewer solvents The isocyanates gambit wasn’t so successful. Perstorp sold a stake in the operation, known as Vencorex, to Thailand’s PTT Global Chemical in 2011 It reduced its 49% ownership to 15% last year and could sell the remainder to PTT when an opportunity arises Vencorex would have required “a large amount of capital” to become a profitable enterprise “We decided we would rather focus our attention on a few other business platforms.” Perstorp dealt with the global financial downturn by selling its formaldehyde catalysts business to British catalyst maker Johnson Matthey The downturn also forced the firm to mothball a pentaerythritol facility in Chile and to discontinue production of dimethylol butanoic acid But as the economy began to recover in 2010 Perstorp doubled capacity for the coatings chemical dipentaerythritol in Bruchhausen the firm reinforced its position as a leading producer of neopentyl glycol for solvent-free powder coatings with the opening of a plant in Zibo One of Secher’s first moves was to acquire the pentaerythritol business of Slovakian chemical firm Chemko “was a good example of a classic bolt-on.” Pentaerythritol is a polyol used in alkyd resins and we are determined to maintain our global leadership position,” Secher explains Secher says the unit represents “the single-largest investment the company has ever made into any of its sites.” To run the new plant, Perstorp relies on Borealis a petrochemical maker that operates an ethylene cracker just down the road in Stenungsund Borealis supplies many of the raw materials Perstorp uses at the site A new raw material since January is butane which allows Perstorp to make valeraldehyde and 2-propylheptanol The chemicals are key raw materials for two plasticizers that make polyvinyl chloride supple and for which Perstorp has high hopes dipropylheptyl phthalate and the polyolester Perstorp calls Pevalen which the European Union recently banned because of human toxicity concerns The first is for industrial applications and will compete with a similar product from BASF which is unique to Perstorp and entirely phthalate-free is intended for consumer applications such as flooring and textiles Secher is betting that Borealis will be a reliable and cost-effective feedstock supplier The Austrian firm recently penned a 10-year deal to import low-priced U.S ethane and is upgrading its Stenungsund site to accommodate increased use of ethane as a cracker raw material The deal reinforces a “stable and reliable” relationship an analyst for the credit rating agency Standard & Poor’s Ratings Services The relationship bodes well for the new oxo unit for which Perstorp is projecting strong margins Perstorp’s earnings this year should benefit from the oxo project the firm should also benefit from lower raw material prices and the weakening of the Swedish krona But whether those conditions will put Perstorp in a good position when it has to refinance its debt is anyone’s guess Secher expects the new plant will help and that demand overall for Perstorp’s products will continue strong “A lot depends on financial market conditions when Perstorp tries to refinance,” she says But she agrees with Secher that a good track record for earnings growth should help That track record will also influence what becomes of Perstorp in the next few years And I’m sure there are strategic buyers who would like to see our portfolio as part of their portfolio,” Secher says But Secher reiterates that Perstorp intends to stick around in some form “We are here to build and grow a business for the long term,” he says Sales of the new Pro-Environment products will start in May 2019 Stay at the forefront of the industrial gas industry with a gasworld subscription and get access to: Johnson Matthey (JM) has been selected to provide the methanol license and engineering services for Perstorp Group’s Project Air in Stenungsund The initiative – which will substitute all the fossil methanol used by Perstorp in Europe as raw material for chemical products with sustainable methanol – is expected to be fully operational by 2026 and is a cooperation between Perstorp and Uniper The new plant will operate a first-of-a-kind Carbon Capture Utilisation (CCU) process at an industrial level – converting carbon dioxide (CO2) emissions from Perstorp’s operations together with biogas and renewable hydrogen to create sustainable methanol Project Air will be built at Perstorp’s existing facilities in Stenungsund strengthening the regional chemicals industry cluster Methanol is an important building block in chemistry It is used in the production of chemical intermediates like formaldehyde which are then used to manufacture everyday products – such as furniture to continue reading you must be subscribed At a time when the world is forced to go digital more than ever before just to stay connected discover the in-depth content our subscribers receive every month by subscribing to gasworld 87% of consumers want brands to act now to encourage future sustainability" The integration of sustainability parameters by brand owners has become a reality -55% of CO2 emissions while materials production increased by 43% in 30 years" … collaborating to identify ways to improve the life cycle sustainability performance of our coating products while enhancing their quality and aesthetic variables." … Together we can do more with less." … collaboration enabled to significantly extend the life span of solvents X5 … Collaborating with our stakeholders upstream and downstream is crucial to our sustainability efforts” … it is critical to think and act as a value chain ecosystem to accelerate decarbonization ahead of regulations" No company is greener than its suppliers" we need to change the materials we use." a carve-out of Lonza Specialty Ingredients Previous positions include CFO and executive roles at companies such as Lonza said: “It is with great pleasure we welcome such a seasoned executive in to our team and the CFO role In particular I value the highly relevant experience from our industry and I am convinced he will fit in to our already diverse team and contribute to future value creation in a very successful way.” Welcome to packagingeurope.com. This site uses cookies. Read our policy Perstorp has invested in a project set to supply its facility in Stenungsund Sweden with wastewater from a nearby municipal treatment plant – a move expected to save 1.1 billion litres of fresh water every year The company uses water as a solvent for chemical reactions Wastewater sourced from the treatment plant is set to be further purified and reused at Perstorp’s Oxo production plant where it will contribute towards the production of renewable hydrogen via electrolysis This hydrogen will be put to use in Project Air, an initiative aiming for climate neutrality in the chemical industry. Perstorp is working alongside Uniper in the hopes of producing sustainable methanol for chemical manufacturing through circular production methods which is anticipated to drive down carbon dioxide emissions by around 500,000 tonnes every year – the equivalent of about 340,000 new cars running on fossil fuel “This exciting water treatment and recycling project will involve close collaboration with several partners in the Stenungsund region,” says Andreas Utbult “It exemplifies how Perstorp uses its technology expertise to transfer a sustainability vision into concrete investments.” The Stenungsund project is expected to become a part of Perstorp’s ambition to become Finite Material Netural which involves switching to 100% renewable and eliminating waste across the value chain; improving energy efficiency and using only renewable or recovered energy; and cutting down on the company’s total water footprint and ensuring that neither the environment nor human health are impacted through its utilisation of water or water effluents “This is an important development of core technology for Perstorp,” says Anna Berggren “We plan to implement it at more sites around the world in the future in our drive to reduce freshwater consumption “Fresh water scarcity is already a fact around the world The chemical industry has a responsibility to reduce its use and find new solutions that can also support society as a whole.” A previous project coordinated by the Research Institute of Sweden sought to create bio-based products from excess waste sludge produced from wastewater effluent at paper and pulp mills Borealis has also signed a ten-year power purchase agreement with VERBUND to supply 220 GWh of hydropower to its operations in Schweat Site powered by Webvision Cloud Home » News » Markets & Companies » Vencorex is now owned by a single shareholder Perstorp Holding AB (“Perstorp”) decided to exercise its option to sell its remaining shares (9,18%) to PTT Global Chemical  (“GC”) Perstorp and GC have actively supported Vencorex in building a strong and sustainable company and Vencorex is grateful to Perstorp for its commitment to its business for almost 14 years has demonstrated its willingness to develop Vencorex over the past 10 years and will be able to work even closer with Vencorex and strengthen its support Perstorp has been a well-known name in chemistry for over 130 years Founded in 1881 as a producer of acetic acid and later formalin the Swedish company went through an eventful 20th century Perstorp has gone through some ownership and portfolio changes and is focusing on specialty chemicals for the coatings & resins Having joined Perstorp as President and CEO in September 2013 which reported 2014 revenues of € 1.2 billion Michael Reubold spoke with him about the most recent developments and his future growth strategy for Perstorp and his views about sustainability and the chemical industry’s public image CHEManager International: The most recent period at Perstorp is characterized by significant investments and the development of sustainable products Could you briefly update us on the current situation of the company Secher: We are currently concluding a very interesting phase in which we have been investing quite heavily in certain areas of our technology portfolio During this four- to five-year period we have invested in round numbers 200 million euros – firstly into our caprolactones capacity and product development secondly into a new plant for neopentyl glycol in China that we started up a year and a half ago and thirdly into our new butene-based oxo platform in Stenungsund in Sweden with significantly increased capacity for high-performance cost-effective plasticizers but also other products like 2-propylheptanol or valeric acid for other key application areas such as surfactants and synthetic lubricants This investment into oxo chemicals is the single-largest investment in the history of Perstorp and opens up a new platform for us So, we are concluding this quite intensive investment period and moving on into a period of reaping the fruits from those investments. So from a CAPEX point of view we sort of passed the peak and are entering into more of a cash-generative period going forward The new state-of-the-art oxo plant at Stenungsund has been inaugurated only a couple of weeks ago What about the project has been special and how can you guarantee a competitive cost basis for the facility Secher: Our internal project name for this investment is Valerox and it represents a milestone for us that we have passed three months ahead of schedule and under budget So it has really been a very successful and well-managed project as such I think it is important that we are operating this plant in close collaboration with our raw material feedstock supplier Borealis We are basically over the fence from their naphtha cracker in Stenungsund which is a strategically advantaged cracker to be a cracker in Europe the cracker market in Europe is quite difficult at this point in time in particular with the low-cost competition from North America right now But Borealis is now actually bringing in ethane from the US that makes them a strategically well positioned raw material supplier for us we are quite convinced that becoming a fully integrated supplier as well as moving to butene-based plasticizers will position Perstorp cost-competitive-wise quite well in the global perspective and we feel definitely that we can be competitive with the products produced in the new plant You said that you are now entering into a cash-generative period What is your strategy to lead Perstorp through this next phase Secher: Given that we have invested as much as we have over this four- the focus now is definitely on organic growth In parallel with these investments we have done smaller bolt-on acquisitions we bought the pentaerythritol business from Ashland in the US and last year we acquired the penta and calcium formate businesses from Chemko in Europe Both acquisitions have been part of our investment campaign to increase the polyol capacity And there might be a few additional bolt-on acquisitions of that nature also in the future but the fundamental strategy is to now really reap the benefits from the investments that we have made do you rather look at certain geographies or at opportunities where to add something to your portfolio Secher: There are three dimensions to that The first dimension is technology; the second one is geography; and the third one is market position We always look for interesting opportunities as additions to our current technology platform There our focus would be more on the specialties side rather than on the intermediates volume products our strategic direction is that we want to grow outside of Europe what currently accounts for about 60% of our business we have very strong market positions and the penta deals are a good example of our intention to always look for opportunities to maintain and even strengthen those leadership positions In 80% of our businesses we are amongst the three leading players I truly believe that one should really make sure to nurture leading market positions because they are difficult to reach and once you are there you got to make sure that you defend them Before taking the helm at Perstorp you had been CEO of Clariant SIPCA and Ferrostaal and held leading positions at ABB What experiences and skills you acquired during your career in the chemical and engineering industry are helpful in your current position Secher: There are quite a few experiences that I can apply and use I did not grow up in the chemical industry and I find that the chemical industry tends to have quite an inside-out mentality But there is too little thinking of where is my market what issues do they deal with today and what demands do they receive from their customers further down the value chain The chemical industry is often situated far up in the value chain therefore you need to constantly look forward and try to understand what the end user requirements are coming at us through this value chain And to be driven from the outside-in rather than from the inside-out is something that we are today applying to Perstorp quite successfully And it is my experience from the previous positions that led me to that understanding quicker than I would have gotten there without that experience Would you say that the chemical industry needs to become more customer-centric Secher: One should be careful of generalizing and so this needs to be put into context But generally speaking I find still today there are situations where we understand the chemistry and we have figured out what the molecules do and don’t do but we have not necessarily understood the full extent of how it can be used And far too often I see that it is the inside drive that leads us to a new development rather than the demand and the problem I sometimes use the analogy: ‘we have the perfect solution; the only thing missing is the problem’ And at Perstorp you have implemented the outside-in look Secher: What I just said is a bit black or white but at Perstorp we are trying to create a more healthy balance between the two drivers I am the first to underline that there is a need to properly optimize the utilization of your assets We are an asset-heavy industry compared to a true service industry which is very asset-light we got to always look at how we can make better use of the assets that we have there are many opportunities going by out there and you will not see them How do you make sure that Perstorp will not miss too many of these opportunities we did first of all a rather thorough data-driven analysis of where are we in terms of competitive positions and really try to understand the markets and the go-to-market strategies that we had And we came to the conclusion that we have two types of businesses One is a supply-demand-driven type of business that we call Intermediates & Derivatives but we don’t differentiate substantially by means of our product The other type of business is much more specialized This business is called Specialties & Solutions And that is part of the strategy how to make ourselves more outside-in and market-driven We also have to make sure that our innovation organization that is working very closely with the two business areas gets really closely linked to the customers we are going through a commercial excellence program that we run with our entire sales force which we have separated into the two business areas So there is a lot of work going on right now to really reach commercial excellence in the organization Perstorp’s mission – according to your website – is to provide sustainable solutions through innovative chemistry Does sustainability mean more to you than being a buzzword J. Secher: For us as a company it does, and for me personally it does, too. I don’t think we are going to see a step change but I think that sustainability is something where we see an increasing interest up to a point where it is slowly starting to develop into a demand But the real change will only come when further down the value chain customers are starting to demand products that are more and more made from renewable resources and also be prepared to take the renewable alternative even if that cost them 3% more Today it is questionable if the purchaser would pay extra And until that actually happens you are going to have the pace of the change as you see today It is driven more by convictions than by economics But at some point in time those two drivers need to come together And then we will see an accelerated change we have started a taskforce to establish our future direction with this And we have a lot of good examples already It is a matter of bringing them under one umbrella and making this more of a corporate visible strategy And that is something that we are working on Sustainability is not just about the feedstock but it is also about what your products are doing in the applications they are meant for take for instance our Capa products that help coatings manufacturers to reduce energy consumption and emissions There are so many examples where chemical products directly influence the downstream use of energy and ultimately CO2 footprint I think that if you were to look at what is the carbon footprint of the chemical industry versus what we help other industries save as a result of the products we manufacture This means that – speaking about the European chemical industry as a whole – our products help other industries reduce their footprint double the size of our own This fact needs to be put out there a bit more visibly Being that far up the value chain is also a reason why the solutions chemical products are enabling in industry or consumer goods – for instance in improving performance energy efficiency or environmental impact – usually don’t get mentioned Do you think that the chemical industry is actually rewarded by the customers or by the public I think as an industry we are a poor communicator we take too much of a factual approach in our communication We are sending messages about all these numbers and how good we are and how we decreased our footprint and how much investments we made And you can come with how many rational arguments as you like Because this is an emotional discussion and we need to meet it with emotional arguments – not always but sometimes – in order to create the connection This part of our event series delves into the latest trends and innovations in logistics to streamline your operations and drive efficiency.