2009 was a year of change for the synthetic latex polymers industry—not only were latex emulsion customers battling with the recession, resulting in latex emulsion orders dropping significantly, but merger and acquisition activity affected the supplier base in major consuming regions.
Impact in India
With the acquisition of Rohm and Haas, Dow leapt to #1 in the synthetic latex polymers market, extending volume market share from the nearest competitor by a few percent points. The acquisition of Rohm and Haas by Dow has broadened Dow’s portfolio, enabling sales to a wider range of applications such as paints and coatings, adhesives and sealants, construction, paper, and carpet. Additionally, this has provided greater access to the synthetic latex polymers market through the robust distribution network established by Rohm and Haas.
Another key acquisition in India occurred in February 2008 when Eliokem completed the purchase of the Polymer Division from Apar Industries Ltd., resulting in them becoming one of the major players for Nitrile Rubbers and HSR High-Styrene-Butadiene-Rubber.
Impact in China
In China, acquisition of Ciba by BASF extended BASF’s leading position in the market, while the acquisition of the Rohm and Haas business by Dow secured their second place position, extending the share gap of these two players from the rest of the market. As a result of these acquisitions, BASF has strengthened its position within the styrene butadiene (SB) market, significantly extending their market lead, while Dow has enhanced their position in both the acrylics and SB latex segments.
Other major changes shaping this industry globally include:
- Elotex became a part of AkzoNobel’s Functional Chemicals business segment following the acquisition of ICI by AkzoNobel
- Ashland acquired the assets of the pressure-sensitive adhesive business and atmospheric emulsions business of Air Products and Chemicals, Inc.
- Wacker Chemie AG acquiring full ownership of Air Products Polymers and Wacker Polymer Systems
- Arkema’s acquisition of Dow’s Acrylic Monomers and Acrylic Latex Polymers (UCAR Emulsion Systems) business in North America
Kline is currently working on the North American and European studies, with more to come on this topic…