Chemtura Expands Distribution Tie-Up With Azelis Americas

Chemtura Corporation (NYSE:CHMT) is expanding its distribution relationship with specialty chemical distributor, Azelis Americas. The specialty chemical company has named Azelis as sole distributor for its pre-polymer urethanes, curatives and polyester polyols product lines in North America, effective Jul 26, 2016. This is in addition to the existing urethanes surface coatings portfolio.

In addition, Chemtura said that it will discontinue its relationship with AdipreneDirect in North America, effective Jul 26. Chemtura has asked its customers in the U.S. and Canada to continue to work with AdipreneDirect through July 25, before the transition to Azelis Americas. Moreover, Azelis Americas will be contacting customers to help facilitate the transition.

Stamford, CT-based Azelis Americas is a leading specialty chemical distributor in the U.S. and Canada. Its focus markets include CASE (coatings, adhesives, sealants and elastomers), personal care, homecare & industrial cleaning, pharma, chemical industries, rubber and plastic additives and lubricants.

The expanded relationship with Azelis will enable Chemtura to more efficiently serve all market segments leveraging the former’s world-class technical capabilities and supply chain expertise.

Chemtura’s shares fell around 1.4% to close at $26.09 yesterday.

Chemtura’s sales slipped roughly 5% year over year to $414 million in first-quarter 2016, hurt by lower selling prices. It swung to a loss of $96 million or $1.46 per share in the quarter versus a profit of $21 million or 30 cents per share a year ago. The company witnessed weak demand in the mining and oil & gas industries that affected its urethane products sales volumes in the quarter.

Chemtura remains focused on expanding in faster growing economies and markets to capture new opportunities, while establishing appropriate value-based pricing levels for its products. The company is emphasizing on managing costs and improving working capital efficiency.

Chemtura currently carries a Zacks Rank #2 (Buy).

Other well-placed companies in the chemical space include Akzo Nobel N.V. (OTC:AKZOY) , Sinopec Shanghai Petrochemical Co. Ltd. (NYSE:SHI) and Koninklijke DSM N.V. (OTC:RDSMY) , all sporting a Zacks Rank #1 (Strong Buy).