By Plasteurope.com staff

Chemical and pharmaceutical company Merck (Darmstadt, Germany; www.merck.de) said it is selling its pigments business to China’s Global New Material International (GNMI, Luzhai, Liuzhou; www.chesir.net) for EUR 665 mn. With the sale of its Surface Solutions division, Merck is sharpening the focus of its electronics segment on high-tech applications, such as the development of new chip generations, said Belén Garijo, CEO of Merck Group.

GNMI was founded in 2011, employs around 800 people at locations in China and South Korea and is listed on the Hong Kong stock exchange. In addition to effect pigments, the company also manufactures products for the growing segment of mica-based pigments. These products are marketed under the brand name Chesir.

As Merck disclosed in response to a Plasteurope.com query, GNMI intends to retain “the three important production sites” of Surface Solutions in Onahama (Japan), Savannah (Georgia, USA), and Gernsheim (Germany), with the German site even being guaranteed until 2032. Among other things, the plant in Gernsheim produces the effect pigments Iriodin and Colorstream, which are also used in plastics processing. When asked, however, the company spokesperson did not want to disclose the volume of material that goes into this processing branch.

Surface Solutions, with its pigment solutions for coatings, cosmetics, and industrial applications, generated sales of EUR 411 mn in the 2023 financial year. Around 1,200 employees are supposed to transfer to GNMI as part of the transaction, according to a statement.

Merck had already separated its Pigments division from the corporate structure in 2022 in order to prepare for a sale. The transaction is now expected to be finalised sometime in 2025, subject to regulatory approvals.

The sale does not currently include the company’s business in France. While GNMI has submitted a binding offer for it, this will only take effect once Merck has carried out the necessary consultation procedure with the respective works council representatives.

— Translated by Elspeth Lenhard