Chemtura Corporation CHMT declared that it has stopped the manufacture and sale of Hexabromocyclododecane (“HBCD”)-based flame retardant products. The company will permanently discontinue its HBCD-based flame retardants’ production during or before the fourth quarter of 2015.
Per Chemtura, HBCD-based flame retardants have been facing increasing regulatory restrictions with regard to their usage. Moreover, owing to the availability of a greener alternative, the company’s Emerald Innovation 3000 flame retardant is exposed to an unstable commercial environment. However, Chemtura stated that the sale of HBCD will go on until all inventories are used up.
In May 2015, Chemtura inked a letter of intent with Tosoh Corporation to build a long-term relationship for brominated flame retardant products and technologies in Japan. According to the letter of intent, Tosoh would be granted exclusive rights for the promotion and sale of Chemtura's Emerald Innovation 1000 flame retardant products to customers in Japan. Moreover, Tosoh would be granted a license for manufacturing and selling Emerald Innovation 1000 products to Japanese customers.
Chemtura, which is a global manufacturer and marketer of specialty chemicals, recorded net sales of $2.2 billion in 2014. The company remains focused on expanding in faster growing economies and markets to capture new opportunities, while establishing appropriate value-based pricing levels for its products. Chemtura is emphasizing on managing costs and improving operating efficiency.
Zacks Rank
Chemtura currently holds a Zacks Rank #2 (Buy).
Better-ranked companies in the basic materials sector include Israel Chemicals Ltd. ICL, Celanese Corporation CE and Daqo New Energy Corp. DQ. While Israel Chemicals sports a Zacks Rank #1 (Strong Buy), both Celanese and Daqo New Energy carry a Zacks Rank #2.
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