MWV Specialty Chemicals Signs Distribution Agreements for Oleochemicals in Europe

BRUSSELS, Belgium -- MWV Specialty Chemicals, a division of MeadWestvaco Corporation (NYSE:MWV) signed exclusive agreements, effective immediately, with three leading distribution companies to market and sell oleochemicals in Europe, including Russia, thus covering the region spanning from Lisbon on the Atlantic to Vladivostok on the Pacific Ocean.

The three new strategic partners will distribute Tall Oil Fatty Acid (TOFA) and Distilled Tall Oil (DTO) in the following countries:

• Carroux Handelsgesellschaft mbH: in Germany
• Quimidroga: in Spain and Portugal (excluding Metal Working Fluids segment)
• Azelis: in all other European countries, including Russia, Belarus and Ukraine, and excluding Turkey, Romania, Bulgaria and Greece

TOFA is a special, natural, and free fatty acid built on sustainably and naturally grown feedstock offering better reactivity and upgrading potential than other vegetable fatty acids, but less influenced by seasonal and weather conditions. Primarily composed of C18 oleic acid, TOFA is therefore used in a wide variety of specialty and niche applications, including the manufacture of alkyd resins, dimer acids, hardeners for epoxy resins, metal working fluids, lubricating oils, hydraulic fluids, soaps and detergents, oilfield chemicals, rubber compounding, plasticizers, wetting and emulsifying agents, flotation reagents, and other specialty applications. While TOFA contains up to 9% of tall oil rosin, DTO has more than 10%, and metalworking is one of its primary applications.

“MWV is seriously committed to Europe, a highly innovative region with strong needs of green technologies. MWV wants to become the preferred partner of those innovative formulators looking for sustainable and renewable molecules, able to unlock their untapped potential. These partnerships with leading distribution companies are an essential complement to our own expanding sales force and will enable us to profitably grow in this key region by optimally serving our current and future customers with specialty intermediates that are truly renewable, not competing with the food-chain and with very low CO2-footprint. Our own facilities in the United States and Brazil, the production site in France operated by our strategic partner DRT, and the logistic capabilities we are building-up will guarantee the required security of supply,” said Nicolas Ivandic, Managing Director Europe, Middle East, Africa (EMEA) MWV Specialty Chemicals.

"We are very pleased about this agreement and the growth opportunities it represents for both companies in the countries mentioned," says Hans-Joachim Müller, CEO of Azelis. "We believe that by adding value and working with MWV, a global player in sustainable chemistry will benefit our customers. Our dedicated specialists will collaborate with MWV, exploring new applications and formulations for these special intermediates. Moreover, Azelis has recently formed a new Lubricant and Metal Working Fluids department including a new laboratory, providing the extra focus needed to support this fast growing market.”