Albemarle Announces Strategic Supply Agreement And Settlement & Cross-License Agreement With Chemtura
Albemarle Corporation announced that it has entered into a series of strategic agreements with Chemtura Corporation. The parties entered into a long-term supply agreement under which Albemarle will supply Chemtura with certain requirements of BA-59P(TM) (Tetrabrom), DE-83P(TM) (Decabromodiphenyl oxide), Decabromodiphenyl ethane, N Propyl Bromide and sodium Bromide. The two companies have also entered into a Settlement and Cross License Agreement that resolves pending litigation and grants Chemtura a license to sell Albemarle's proprietary Saytex(R) 8010 flame retardant. Additionally, the companies have entered into a Brine Mineral Interest Agreement in which Albemarle will assign certain brine mineral interests in Chemtura's existing West bromine Unit to Chemtura, and Chemtura will assume Albemarle's obligations related thereto.
The Settlement and Cross License Agreement is subject to the approval of the court presiding over Chemtura's Chapter 11 bankruptcy proceedings. At that time, all of the other agreements discussed above will also become effective.
"We are pleased to enter into these agreements with Chemtura, and believe both companies and our respective customers will benefit from this strategic collaboration," said Tony Parnell, Albemarle's vice president of Polymer Solutions. "The agreements further solidify Albemarle's global leadership position in bromine and bromine derivative technology."
Albemarle will incur charges of approximately $4 million in the fourth quarter 2009 relating to the transfer of its brine mineral interests and the write-off of certain impacted bromine assets.
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