VanDeMark separation is complete

Japan’s Hodogaya Chemical has completed the previously announced acquisition of Hungarian API and intermediates producer Framochem from VanDeMark Chemical, while Valiant Energy Management, a group from Houston, has bought the VanDeMark site in Lockport, New York state. It is unclear if the name VanDeMark will survive.

Framochem is now a wholly owned subsidiary of Hodogaya, which said that it has now “launched full-scale business operations that integrate the strengths of both companies”. The company added that this is the first part of the Code/Chord 2030 five-year plan to strengthen the Specialty Chemicals business in its Functional Polymers segment. 

Hodogaya was the first company to make phosgene in Japan and is one of the largest suppliers of niche phosgene derivatives. Combining this with Framochem, it said, “we will establish a ‘Japan-Europe Dual Hub System’ by acquiring a direct manufacturing base in the European demand area. The transaction reportedly cost about $100 million.

Framochem operates six multipurpose production lines at sites in Hungary. These include specialised lines for phosgene derivatives that will broaden Hodogaya’s product range and enable it to enter a wider range of industrial applications.

Valiant came in to buy the Lockport plant just before it was planned to close over the summer with the loss of 69 jobs. The plant is one of the largest producers of phosgene gas in the US, with customers in renewables, pharmaceuticals and defence, among others. 

Valiant plans to continue investing in it, including possibly bring in some new equipment to expand product lines. “Going into their data room, we thought there was a lot of potential,” said Valiant CFO Scott Bernstein. “We are deep value investors and there was something to be done here. We really felt we could make an impact.”