Sudarshan Chemical Sells VP4 Frankfurt to Celanese, Focuses on Pigments

Sudarshan Chemical Industries Limited has announced the sale of its step-down subsidiary, VP4 Frankfurt GmbH, to Celanese Corporation, USA. This divestment is a strategic move to sharpen Sudarshan's focus on its core pigments business.

VP4 Frankfurt is primarily engaged in the manufacture of intermediates such as Diketene, operating mainly as a tolling operator for Nutrinova, an affiliate of Celanese Corporation and Mitsui & Co. Japan. Sudarshan had acquired VP4 Frankfurt through its acquisition of the Heubach Group. The asset is considered a stronger strategic fit with Celanese and Nutrinova, a producer of food additives like sweeteners, as VP4 Frankfurt's principal customer is Nutrinova, with only a small portion of its output used for Sudarshan's captive consumption.

Following the transaction, Nutrinova will continue to supply Sudarshan with the necessary materials. Rajesh Rathi, Chairman & Managing Director of Sudarshan Chemical Industries Limited, stated that the sale is a strategic step to sharpen focus on pigments and colorants, where the company creates the most value. He added that VP4 Frankfurt is a well-run business moving to a company it already serves, representing the right outcome for the asset, its employees, and Sudarshan.

Sudarshan Chemical Industries Ltd. is a global leader in color solutions and specialized pigments, serving customers in over 120 countries with a broad portfolio of organic, inorganic, and pearlescent pigments.