Sudarshan Chemical Divests VP4 Frankfurt Plant to Celanese, Refocuses on Core Pigments Business

Sudarshan Chemical Industries Limited (Sudarshan) has announced the sale of its step-down subsidiary, VP4 Frankfurt GmbH, to US-based Celanese Corporation. The transaction further strengthens Sudarshan’s strategic focus on its core pigments business. VP4 Frankfurt manufactures intermediates such as diketene and primarily operates as a tolling partner for Nutrinova—an affiliate of Celanese—and Mitsui & Co., Japan. The subsidiary became part of Sudarshan following its acquisition of the Heubach Group. This divestment is expected to enhance Sudarshan’s strategic focus and operational position.

Nutrinova is VP4 Frankfurt’s principal customer, while only a small portion of its output is used by Sudarshan for captive consumption. As diketene is a key intermediate in the production of functional food ingredients, VP4 Frankfurt is strategically better aligned with Celanese and Nutrinova, which manufactures food additives such as sweeteners. The transaction therefore brings VP4 Frankfurt closer to its primary customer. Following its completion, Nutrinova will continue supplying Sudarshan with the materials required for its operations.

“The sale of VP4 Frankfurt is a strategic step in sharpening our focus. Pigments and colorants are where we create the most value for our customers. VP4 is a well-run business with a strong team, and it now moves to the company it already serves. That is the right outcome for the asset, for its employees, and for Sudarshan,” said Rajesh Rathi, Chairman & Managing Director, Sudarshan Chemical Industries Limited.

Source: Sudarshan Chemical