Albermarle to be restructured following Rockwood acquisition

By Adam Page
Published: Wednesday, 21 January 2015 on http://www.indmin.com/

After completing its merger with lithium producer Rockwood Speciality Holdings Inc. last week, speciality chemicals producer Albemarle is now focusing on having a flexible and forward-looking lithium strategy.

US-based Albemarle Corp. is being re-structured into three global business units; Chemetall Surface Treatment, Refining Solutions and Performance Chemicals.

"The new company will be structured to leverage its complementary fit, especially between lithium and bromine, allowing us to capitalise on our long-term lithium strategy while providing immediate scale and ability to leverage its similarities with bromine," said Luke Kissam, Albemarle's CEO.

Chemetall Surface Treatment will supply products for metal pretreatment. The company's lithium and bromine businesses meanwhile will sit in its Performance Chemicals business arm, as this will supply speciality chemicals to the industry as well as fire safety solutions.

The Refining Solutions business arm will consist of the heavy oil upgrading and clean fuels technologies businesses, which could also see some bromine usage, as the company is developing clear brine fluids, used in offshore drilling and water treatment.

Each unit will have a dedicated teams of sales, R&D, processers, manufacturing and sourcing and business strategists.

Rockwood’s investors 

Albemarle has proposed changes to investors regarding the material terms of the security agreement relating to a set of senior notes issued by Rockwood Specialties Group Inc. The new arrangements would enable Albemarle to file periodic reports with the Securities and Exchange Commission (SEC) and make such filings available to investors.

Albemarle completed its acquisition of Rockwood Holdings on 12 January 2015, in which Rockwood became a wholly-owned subsidiary of Albemarle. It also led to Albemarle fully and unconditionally guaranteeing the senior notes.

As of 16 January 2015, there are $1.2bn worth of of senior notes outstanding. Both companies are offering to pay each shareholder a cash payment of $2.50 per $1,000 worth of notes.