Rohm and Haas considering acquisitions to double size until 2011
Valor Econômico - 11/28/2007
Present in Brazil for 53 years, the Rohm and Haas chemical industry intends to double its size in the country until 2011. The scenario outlined by the company to reach the goal is that the economy will continue growing at rates between 4.5% and 5% a year, pushing the sectors of civil construction, mining and technology, three great markets that have impact on its businesses. The American capital company supplies the chemical products that are the basis for the industry. In order to make sales go from US$ 100 million to US$ 200 million a year, vice-president of the company, Luis Fernandez, explains that Rohm and Haas is on alert for assets in the country. "Besides the organic growth, we are evaluating acquisitions in two areas, paint and electronics". The value of the investments may vary from US$ 5 million to US$ 15 million until 2011, but they will not necessarily be used in acquisitions. The company cogitates partnerships in the country as well as the supply from its own plants in Argentina and Colombia to supply the local market, since the Brazilian plant, located in Jacareí (SP), has been operating at full capacity for six years. Rohm and Haas produces, among other things, raw materials such as emulsion for the manufacturers of paints and coatings in the unit. According to Fernandez, this is the flagship of the company, representing US$ 2.2 billion in sales around the world, which means more than one-fourth of the total global sales from 2006. The executive officer believes that the Brazilian civil construction sector may repeat the performance Mexico has had in the last few years, increasing the demand for Rohm and Haas' materials. The company also produces raw material for PVC, materials for plastics and microchips, besides working as a supplier for the fuel and cosmetics industries. In the case of fuels, the company is putting all it chips on biodiesel. In April this year, Rohm and Haas acquired Kodak's LCD division. The business is focused on the Asian continent, which is the basis of the products for the company's electric and electronic market. In Brazil, according to Fernandez, the company expects investments from the manufacturers to strengthen its presence in this area. The other segment that the company is watching closely in the country is the mining segment, for it supplies polyacrylates for ore separation.