The chemical group Qemetica, part of the Kulczyk Investments portfolio, has finalized the transaction to acquire the precipitated silica business from the PPG conglomerate for PLN 1.2 billion, or approximately USD 310 million. This move sees Qemetica take over factories in the Netherlands and the USA, positioning itself as the third player in Europe and the second in North America in the market for this raw material, crucial for the global automotive industry amongst others.
Sebastian Kulczyk, chairman of the supervisory board at Qemetica and Kulczyk Investments says, “This acquisition is evidence that the Polish group Kulczyk Investments sets very ambitious goals. We are not afraid of challenges, we are not afraid of acquisitions, regardless of the segment or geography. Today we can compete with the largest companies in the world. We can show that not only money, but also excellent know-how can help us achieve our goal, which is global development for Qemetica. Our ambition is for all companies in the Qemetica portfolio to be global companies that are developing dynamically and are not afraid of even the most challenging tasks, such as an acquisition in the United States.”
Qemetica, formerly known as Ciech, is currently the second largest producer of calcined and purified soda in the European Union, the largest producer of salt in Poland, and the largest supplier of sodium silicates in Europe. It is also one of the potentates of the Central and Eastern European chemical market. Thanks to the transaction now finalized, it will join the ranks of global industrial leaders.
Kamil Majczak, CEO of Qemetica, underscores the achievement: “We are expanding the geographical range of our activities and becoming a truly global chemical company, operating in the global market.”
The acquisition has been the priority for David Jakubowicz, CEO of Kulczyk Investments. “We have been thinking about global expansion and entering the American market for a long time; globalization was the axis of our strategy.”
Precipitated silica is a key raw material for the global automotive, electrical engineering and materials industries being used, among others, in the production of car tires, batteries and fillers. As part of the transaction just finalized, Qemetica took over from PPG the production plants of this raw material with a total production capacity of almost 200,000 tons, located in the Netherlands (in Delfzijl) and the United States (in Lake Charles in Louisiana). The Polish company also gains access to a research and development center in Monroeville, Pennsylvania and a production line in Barberton, Ohio.
The transaction will have a significant impact on the company’s revenues, which are estimated to increase by over PLN 1 billion. It will also provide diversification of revenue sources – about 10 percent of them will now come from North America. The silica business will become the second largest in terms of revenue for Qemetica. At the same time, the company will become the third largest player in Europe and the second in North America in the precipitated silica market.
“This acquisition is the largest of its kind by a Polish company in the US to date. This will allow Qemetica to accelerate international expansion in North American countries and diversification of its product portfolio, which now reaches almost 100 countries worldwide. The chemical giant also indicates that the transaction is the result of its strategy for 2024-2029, which, among other things, aims to strengthen the group’s presence outside Europe and seek new sources of growth”, says the CEO of Qemetica.
The precipitated silica sector employs about 400 people who will join the Qemetica workforce, which so far has nearly 3,500 employees in Europe. The conglomerate has nine production plants in Poland and Germany and distribution companies in the plant protection business in several European countries.
