Portuguese pine chemical derivatives producer United Resins has acquired 50pc of the share capital of Brazil's Florpinus Industria Quimica, the latter company said.
The acquisition adds 35,000 metric tonnes (t)/yr of pine oleoresin and 30,000 t/yr of gum rosin processing capacity, as well as 18,000 t/yr of gum rosin derivatives capacity, according to Florpinus' website.
The Florpinus group includes Florpinus Industria Quimica, which operates its pine chemical facilities, and Resisul Agroflorestal, which manages 1,989.20 hectares of forests.
"This transaction represents a significant strategic step in strengthening the group's value chain," the company said.
The deal gives United Resins access to "critical raw materials" such as pine oleoresin and gum rosin. Brazil is a leading supplier of elliottii gum rosin and Portugal's largest provider of the material.
Citing synergies between the two companies, Florpinus said the transaction enables vertical integration of their combined elliotti gum rosin and tall oil rosin (TOR) portfolio, increases capacity to develop new value-added products and expands their presence in Europe, Latin America and North America. TOR is a fraction obtained from crude tall oil refining. TOR and gum rosin are interchangeable in several applications, but their production processes differ.
Both gum rosin and TOR are used as feedstocks for gum rosin derivatives used in adhesives, road marking and food and beverage applications.
Florpinus' main facility and headquarters are in Campo Largo, Parana state. It also operates a facility in Itapeva, Sao Paulo state.
As part of the deal, United Resins' co-founder and chief executive officer Antonio Mendes Ferreira will be named as a member of the Florpinus board of directors, the company added.
