Chemtura

Chemtura. It was a major American manufacturer of specialty chemicals, flame retardants, lubricant additives, and crop protection products. The company was formed through the merger of Crompton Corporation and Great Lakes Chemical Corporation in 2005, creating a significant global player in its sector. Headquartered in Philadelphia, its operations spanned across North America, Europe, and Asia before its eventual breakup and acquisition in 2017.

History

The origins of Chemtura trace back to the 2005 merger of two established chemical firms, Crompton Corporation and Great Lakes Chemical Corporation. Crompton itself was the product of a prior merger between Crompton & Knowles and Uniroyal Chemical in 1999. Great Lakes Chemical, founded in the Indiana region, had grown through acquisitions like that of the organometallics business of Schering AG. The newly formed Chemtura immediately became a prominent entity on the New York Stock Exchange, inheriting a complex portfolio from its predecessors. Throughout its existence, the company navigated significant market volatility, including the economic pressures of the Great Recession, which severely impacted demand in key sectors such as automotive and construction.

Products and operations

Chemtura's business was organized into two primary segments: Industrial Performance Products and Industrial Engineered Products. The Industrial Performance Products segment produced lubricant additives, synthetic lubricants, and polyurethane catalysts, serving industries like mining and metalworking. The Industrial Engineered Products segment was a leading global supplier of bromine-based and phosphorus-based flame retardants, used extensively in electronics, building insulation, and automotive applications. Its crop protection division, operating under brands like AgroFresh, provided specialty chemicals for post-harvest fruit preservation. Major manufacturing and research facilities were located in Middlebury, Connecticut, El Dorado, Arkansas, and several sites in Germany.

Corporate structure and acquisitions

Following its creation, Chemtura pursued a strategy of portfolio optimization through both acquisitions and divestitures. In 2007, it acquired the European flame retardants business of Dead Sea Bromine Group. However, facing financial strain, the company sold its crop protection business, including the AgroFresh brand, to Dow Chemical Company in 2013. A significant restructuring occurred in 2014 when Chemtura sold its antioxidant and ultraviolet light stabilizer business to SK Capital Partners, which later became part of Addivant. The most transformative moves came in 2017, when the company agreed to be acquired by two competitors: the flame retardants and lubricant additives divisions were sold to Lanxess, while the organometallics and PVC additives units were purchased by Albemarle Corporation.

Environmental and legal issues

Chemtura faced substantial environmental and legal challenges, many inherited from legacy operations of Uniroyal Chemical. It was a major producer of PCBs and was involved in lengthy litigation concerning contamination, including a significant site in Anniston, Alabama. The company was also a key defendant in multi-district litigation related to the flame retardant DecaBDE, facing allegations from entities like the State of Washington. Chemtura settled numerous cases with the EPA and various states, funding extensive remediation efforts. These legacy liabilities were a persistent financial and reputational burden throughout the company's history.

Financial performance and challenges

Chemtura's financial trajectory was marked by significant volatility. After its formation, it carried a heavy debt load from the merger and soon faced the demand destruction of the Great Recession. The company filed for Chapter 11 bankruptcy protection in 2009, undergoing a major financial restructuring that eliminated much of its debt. Emerging from bankruptcy in 2010 under the leadership of Craig A. Rogerson, Chemtura refocused on its core businesses, leading to improved profitability. However, continued pressures from environmental liabilities, litigation costs, and a competitive global market for specialty chemicals ultimately led its board to pursue the sale of the company's assets to Lanxess and Albemarle Corporation, concluding its independent operations.

Category:Chemical companies of the United States Category:Companies based in Philadelphia Category:Companies established in 2005 Category:Companies disestablished in 2017