Wilmar said on Thursday that it completed the sale of its indirect, wholly owned subsidiary Wilmar France Holdings, which owns and operates an ethoxylation facility, to Ineos Chemicals Holdings Luxembourg.
As part of the transaction, Wilmar’s wholly owned subsidiary Wilmar Europe Trading and Ineos Europe entered an agreement to guarantee Wilmar a long-term supply of surfactant products produced at Ineos’ ethoxylation plants in Europe, it said in a filing to SGX after the market close on Thursday.
Ethoxylation is a chemical process which adds ethylene oxide to a substrate, or an underlying layer. Surfactants lower the surface tension of liquids and may act as detergents or emulsifiers.
Bernd Noldt, general manager for Wilmar’s European operations said the deal was part of the company’s strategic goal of geographic diversification and supply security.
“[It] will enable us to improve customer service through our access to multiple ethoxylation locations, consolidating and enhancing our position as a reliable partner to the European soap and detergent industry,” Noldt said in the statement.
The deal gives Wilmar access to five locations for ethoxylation in North Western and Southern Europe, the filing said.
That will allow it to continue to expand in the European surfactants markets, with its efforts built around it natural fatty alcohol plant in Rozenburg, The Netherlands, Wilmar said.