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Betaine exit for Evonik 

2nd August 2022

Submitted by:

Andrew Warmington

Evonik has agreed to sell its US betaine business in Hopewell, Virginia (pictured), to speciality chemicals company Kensing. The deal is expected to close in Q3. This follows the sale of the firm’s UK betaines site at Milton Keynes and the closure of another at Granollers, Spain, both in 2020. 

Evonik will, however, continue its betaine businesses in Europe, Asia and Latin America. It will also retain the rest of the Hopewell facility, which produces additives for polyurethane foam manufacture, plus agricultural and industrial applications.

Betaines are amphoteric surfactants, which are used as ingredients in the formulation of shampoos, hair conditioners and skin care products, plus other consumer applications. They are no longer core to Evonik’s Care Solutions business line, which is to be transformed into “a system solutions provider for the personal care and cleaning industries”.

The term ‘system solution’ refers to “multi-component offerings across products, technologies and services that are tailored to a unique customer need and often have proven sustainability benefits”. They currently account for 20% of the Nutrition & Care division’s business but Evonik aims for this to reach 50% by 2030.

Kensing, which is owned by One Rock Capital Partners, makes plant-based vitamin E, phytosterols, phytosterol and speciality esters, and high-purity anionic surfactants. CEO Serge Rogasik said that the products of Hopewell “are complementary to our existing product portfolio derived from plant-based feedstocks”.
 

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