Under the agreement, Chemtura will source BA-59PTM, DE-83RTM, Firemaster 2100, n-propyl bromide and sodium bromide from Albemarle. Additionally, Albemarle is assigning its brine interests in Chemtura’s West Brine production unit to Chemtura, which will further strengthen Chemtura’s bromine operations and maximize productivity.
The parties have also settled ongoing decabromodiphenyl ethane and bromine litigation, which will end the dispute over Chemtura’s right to sell decabromodiphenyl ethane to the global market. Chemtura and Albemarle have executed a settlement agreement covering the litigation which provides that each company will grant a cross license for their respective decabromodiphenyl ethane products. The settlement agreement has been executed by both parties but is pending Bankruptcy Court approval.
Craig Rogerson, chairman, president and CEO of Chemtura, said: “This strategic sourcing deal reflects Chemtura’s commitment to reinforcing the sustainability of our business. Specifically, the transaction furthers our strategic plan to emerge from Chapter 11 status a stronger company by focusing on growth products and services that differentiate us in the marketplace and provide more sustainable solutions for our customers.”
The strategic agreement will allow Chemtura to further strengthen operations at its most productive brine field in South Arkansas. In addition, this agreement will provide greater opportunities for the company to reinvest in new flame retardants and brominated performance products designed as part of Chemtura’s ‘Greener is Better’ program.
Anne Noonan, vice president of flame retardants at Chemtura, said: “Many of the changes we are making to our Flame Retardant portfolio are aligned with our overall reorganization plan. This particular deal allows us to optimize value for our customers and stakeholders while further strengthening our overall bromine franchise by reinvestment of dollars in new, innovative and sustainable product options in 2010.”