SABIC Innovative Plastics and RheTech Inc. Announce the A...

SABIC Innovative Plastics and RheTech Inc. Announce the Acquisition of the RheMax Product Line by SABIC Innovative Plastics

BERGEN OP ZOOM, The Netherlands – April 20, 2009 – As part of an ongoing effort to reaffirm and further strengthen its long-term commitment to the North American auto industry, SABIC Innovative Plastics today announced its agreement to acquire the RheMax product line from RheTech, Inc., of Whitmore Lake, Mich. Under the terms of agreement, RheTech will be the toll manufacturer of SABIC Innovative Plastics’ STAMAX* LGFPP (long glass fiber-filled polypropylene) resins, which were launched in North America in September 2008. This acquisition enables SABIC Innovative Plastics to immediately fulfill North American automotive OEM and tier product needs from local production.

“We believe the American automotive industry plays a pivotal role in the design and development of automobiles on a global basis. The expansion of STAMAX composite production in North America and the RheMax acquisition are key aspects of SABIC Innovative Plastics’ growth strategy to further strengthen our position as a leading supplier and to meet the global specification needs of customers with local production,” said Greg Adams, vice president, Automotive for SABIC Innovative Plastics. “Even during the current down cycle, SABIC Innovative Plastics continues to invest in products and services to ensure that our business is helping to increase the future global competitiveness of our customers. With the addition of STAMAX LGFPP composites to our already comprehensive product portfolio, our customers can benefit from an even greater array of materials to reduce costs, provide innovation and differentiate their vehicles from the competition.”

"This is a win-win situation for both sides and customers,” said John Levinson, president and COO of RheTech. "SABIC Innovative Plastics gains immediate North American product and production capability, the customers gain a global product and supply base and RheTech will reinvest and redirect its resources to develop new products and technology for the customers of its core polyolefins compounding business."

As a part of this agreement, existing RheMax products will be integrated under the STAMAX resin product line and brand name. Product formulations will be kept the same to ensure that STAMAX resin material properties and performance are maintained. The transaction includes only the RheMax product line. RheTech will continue to provide its other outstanding compounded polyolefin products and services to its customers.

STAMAX LGFPP resins offer a great balance of properties such as 10-25 percent lower density than traditional materials and hence lighter weight parts, better surface finish than short glass fiber products enabling molded-in-color, and processability.

Read more