Portfolio adjustment will allow Evonik to position itself further as a system solutions provider
Betaines are amphoteric surfactants used across a wide range of products
Evonik has divested its US betaine business as part of a wider portfolio transformation.
The personal care ingredients giant inked an agreement on 28 July to sell its betaine business based in Hopewell, Virginia to specialty chemicals company Kensing.
Staff and part of the site are included in the deal.
The divestment is described as part of the transformation of Evonik’s Care Solutions business into a system solutions provider for personal care and cleaning.
System solutions, as categorised by Evonik, are multi-component offerings across products, technologies and services that are tailored to a unique customer need and which frequently have sustainability benefits.
Evonik’s Nutrition & Care division (of which Care Solutions is a part) aims to increase its share of system solutions from 20% today to more than 50% by 2030.
“Betaines are an attractive and profitable business, but they are no longer core to Care Solutions’ strategy, which is driven by high-value-added system solutions,” said Yann d'Hervé, head of Evonik’s Care Solutions business line.
“We are convinced, with the new ownership under Kensing, the business will be in good hands for the North plant employees of Evonik.”
Betaines are amphoteric surfactants used across a wide range of products in the personal care field, including shampoos, hair conditioners and skin care products.
Evonik’s Hopewell deal follows the shedding of several other betaine businesses by the company, which have, to date, included the sale of its Milton Keynes, UK site to 2M Group in August 2020, and the closure of its site in Granollers, Spain in November of the same year.
The remaining part of the Hopewell facility, which produces additives for polyurethane foam manufacture, agricultural and industrial applications, together with around 100 employees, will continue to operate as part of Evonik.