| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Download our free Specialty Function Coating Systems eResource Book

Paint and Coatings Industry News

Main News Page

Cytec Strips Coatings, Forges New Path

Tuesday, May 22, 2012

More items for Coating Materials

Comment | More

As expected, specialty chemicals maker Cytec Industries is closing the door on 52 years of coating resins production.

With the ink barely dry on an agreement to sell its high-performance Pressure Sensitive Adhesives (PSA) product line, Cytec has announced that its venerable Coatings Resins business is now on the block.

 Cytec Coating Resins
Cytec’s Coating Resins are used in a wide variety of protective coatings.

Just two years ago, that unit accounted for more 40 percent of Cytec’s sales.

Cytec’s formal announcement of its long-rumored exit from Coating Resins came just 10 days after the company signed the $105 million PSA deal with German adhesives maker Henkel AG & Co.

‘Transformation Strategy’

In its announcement Monday (May 21), Woodland Park, NJ-based Cytec said that its financial advisor, J.P. Morgan Securities LLC, was looking for a buyer and that it hoped to seal a deal by the end of the year.

Shedding its Coating Resins unit is part of a “portfolio transformation strategy” that will allow Cytec to expand its fast-growing businesses in advanced composite materials and separation technologies, said chairman, president and CEO Shane Fleming.

“After extensive analysis, we determined that the sale of our Coating Resins business is our preferred alternative for separating the business,” said Fleming.

In April, Cytec reported that its first-quarter 2012 Coating Resins sales had decreased by 6% and sales volumes had dropped 9% over the prior-year period, due to “weaker demand across most of our product lines, particularly in Europe and Asia Pacific.”

Adding and Subtracting

The Coating Resins sale, “coupled with other recent actions, will continue to create enhanced value for our shareholders,” Fleming added.

Those other actions include both the adhesives sale and an announcement last October that the company would close its powder coating manufacturing site in Brazil.

 Cytec's business in 2010


Building Block Chemicals and Coating Resins made up the majority of Cytec’s business in 2010. The chemicals unit sold last year; Coating Resins will be next.

On the growth side, the company announced earlier this year that it was acquiring Umeco plc, an international provider of advanced composite materials, and Star Orechem International Private Limited, an India-based manufacturer of extraction technology that will support Cytec’s separation technologies unit.

Product Lines

Cytec has been producing coating resins since 1960.

The business currently consists of radiation-cured (radcure) resins; liquid coating resins and additives, including water- and solvent-borne resins, urethane resins and additives; powder coating resins; and amino cross-linkers.

Cytec’s products serve a diverse range of end markets, including automotive and industrial coatings, aerospace composites and structural adhesives.

Cytec said it would not release any more information about the sale until it has a deal to announce.


Tagged categories: Additives; Adhesive; Coatings manufacturers; Cytec Industries Inc.; Henkel Corp; Raw materials; Resins

Comment Join the Conversation:

Sign in to our community to add your comments.

Polyval Coatings
Polyflex® Polyurea Linings

Polyflex ™ new Polyurea Geotextile Membrane System has been specifically engineered to protect the environment in containment applications.

Heat-FLex® Hi-Temp 1200

Improved Corrosion
Enhanced Durability
Faster Shop Throughput

New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films

International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment

    Wasser High-Tech Coatings Inc.
    Wasser Coatings Protect

    Wasser Coatings offer a complete range of Moisture Cure Urethane (NEPCOAT approved) systems in addition to Polyurea membranes and linings(NSF).

    Carboline Company
    Hyrdrocarbon Fire & Jet Fire Protection

    Pyroclad X1 is the latest breakthrough in epoxy based intumescent fireproofing technology

    Mitsubishi Gas Chemical America
    Performance Amine 1,3-BAC

    A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.

    HoldTight Solutions Inc.

    Our HoldTight®102 salt remover & flash rush inhibitor prevents flash rust by removing surface contaminants.
    Contact us for your nearest distributor. (800) 319.8802

    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker

    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us

    © Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail