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Ingredients & formulation

Solvay Group poised for expansion in Latin America with the acquisition of Dhaymers

In late 2014, the Solvay Group, a world leader in the development and production of specialty chemicals, announced the acquisition of Sao Paulo-based specialty esters manufacturer Dhaymers. With the acquisition, global business unit Solvay Novecare, which already operated in the personal care and hair care segments, now enters the skin care market.

Valdirene Licht, vice president of Solvay Novecare Latin America

Valdirene Licht, vice president of Solvay Novecare Latin America

In just over a year, Rhodia’s controlling company invested R$ 240 million in Brazil – which includes the acquisition of chemical company ERCA – and expects significant growth both in Brazil and in Latin America. Brazil Beauty News talked to Valdirene Licht, vice president of Solvay Novecare Latin America, about the group’s prospects for the latest acquisition and expansion plans in the skin care industry.

Brazil Beauty News - Solvay operates in distinct segments, ranging from aerospace to flavors and fragrances. Why has the group decided to invest in the skin care industry?

Valdirene Licht - With the acquisition of Rhodia’s international operations, in 2011, the Solvay Group has broadened its activities and established leadership in several key markets. This includes the specialty chemicals segment for personal care, in which Rhodia had mastered various technologies, with a special focus on hair care. The acquisition of Dhaymers represented a step further with the entry in the Brazilian skin care market, which has seen substantial growth in recent years. It considerably increases our portfolio of products and technologies, and strengthens our position is different markets, given that Dhaymers also operates in other industries, such as industrial lubricants and mining.

Brazil Beauty News - How has Solvay approached Dhaymers?

Valdirene Licht - Dhaymers is a well-known company in the market of specialty chemicals, with an emphasis on emulsifiers and emollients, among which is the skin care category. Its client portfolio includes key domestic and international manufacturers of skin care products, which attests its outstanding quality and technology excellence. The acquisition has allowed the addition of new products to our personal care portfolio, thus strengthening our presence in a segment that is constantly growing. Brazil is the third largest cosmetics market, falling only behind the U.S. and Japan.

Brazil Beauty News - Dhaymers’ acquisition took place in a time of uncertainty and economic stagnation in Brazil. Has this scenario had an impact in Solvay’s decision?

Valdirene Licht - Rhodia has been in Brazil for 95 years, during which time it created deep bonds with the domestic industry. The company has always believed in the growth potential of the Brazilian economy, and this is evidenced by its investments throughout the decades. Although the macroeconomic environment is full of challenges for the industry as a whole, Rhodia and the Solvay Group also understand that there are many growth opportunities for their operations in Brazil, which include the specialty chemicals industry and the personal care segment.

Brazil Beauty News - What are the prospects for this acquisition ?

Valdirene Licht - Our market studies indicate that we have the potential to grow significantly in the specialty chemicals industry, both in Brazil and in Latin America. Therefore, the Solvay Group approved investments of R$ 240 million in 2014 for the acquisition of the two companies – firstly ERCA, followed by Dhaymers – and the expansion of its production capacity, which will strengthen our positions in the region.

Brazil Beauty News - How does the group plan to emerge in the skin care market?

Valdirene Licht - We have many plans to expand our activities in skin care, although I cannot reveal details at this stage. Dhaymers will play a key role in this strategy, as the company already has a wide range of technologies that allow us to offer unique product formulation solutions to meet customer demands.

Renata Martins

© 2015 - Brazil Beauty News - www.brazilbeautynews.com

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