DuPont to Sell Neoprene Business
DuPont Performance Polymers and Denki Kagaku Kogyo K.K. (Denka), Tokyo, Japan, announced they have signed a definitive agreement to sell DuPont Neoprene polychloroprene to Denka Performance Elastomer LLC, a new joint venture company owned 70 % by Denka and 30 % by Mitsui & Co., Ltd. The sale is expected to close in the first half of 2015 pending receipt of customary regulatory approvals. Financial terms of the deal are not being disclosed.
Neoprene, invented by DuPont in 1931, is a synthetic rubber used for many chemical and weather-resistant products such as wet suits and orthopedic braces. It also is used as a base resin in adhesives, electrical insulation and coatings. DuPont is a leading producer of Neoprene polychloroprene in North America through manufacturing operations at its Pontchartrain Works site in La Place, Louisiana, USA.. Approximately 235 employees in the United States will be included in the transaction.
“Neoprene has been an important product line within DuPont Performance Polymers and we believe it will truly thrive as part of the Denka Performance Elastomer portfolio,” said Patrick E. Lindner, president of DuPont Performance Polymers. “This agreement further enables the DuPont Performance Polymers business to focus on innovative new offerings that drive profitable growth both today and over the long term.”
“We are excited to welcome Neoprene and the employees who manage this product,” said Shinsuke Yoshitaka, Denka president & CEO. “Chloroprene rubber is our core business and the acquisition from DuPont will largely contribute to our further sustainable growth. Denka was founded in 1915 and manufactures and distributes a wide range of chemical products, encompassing organic and inorganic materials, polymer processing, electronic materials and pharmaceuticals. Since 1962, Denka has been manufacturing polychloroprene in its plant in Omi, Japan, using the acetylene method of polychloroprene production.
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