Specialty chemicals firm LANXESS entered into an agreement Monday to sell its chrome chemicals business to Chinese leather chemicals manufacturer Brother Enterprises, a company press release announced.
“We have successfully reorganized our chrome chemicals business in recent years. However, it no longer fits in with our strategic focus on specialty chemicals,” said LANXESS Chairman Matthias Zachert in a statement. “We are therefore convinced that future growth and the further development of the business can be better implemented under the leadership of Brother Enterprises.”
Part of the German company’s Leather business unit, the chrome chemicals business brings in annual sales of about €40 million.
LANXESS produces the chrome chemicals at two plants in South Africa. Its facility in Newcastle manufactures sodium dichromate and its Merebank site produces chrome tanning salts. The products are sold to leather industry customers around the world.
Under the terms of the transaction, 220 workers in Newcastle will join Brothers Enterprises, while LANXESS will operate the Merebank facility for the Chinese firm on a contract basis.
The deal is subject to approval by antitrust regulators and is expected to close by the end of this year.