Speciality chemicals and materials company Rockwood Holdings (Princeton, New Jersey / USA; www.rocksp.com) is to sell its AlphaGary plastic compounding business to Mexican PVC producer Mexichem (Tlalnepantla; www.mexichem.com.mx) for USD 300m in cash. Mexichem said the acquisition will bring important synergies to its chlorine-vinyl chain. The transaction is expected to be completed in the first quarter of 2011.

AlphaGary manufactures specialty plastic compounds for the wire and cable business as well as for medical applications. The business, which is the largest division in Rockwood’s specialty compounds segment, has facilities in the USA, Canada and the UK, and reported sales of USD 225m for the 12 months to 30 September 2010.

Rockwood is selling AlphaGary as part of plans to focus on its high-margin specialty chemicals and advanced materials businesses, said Seifi Ghasemi, Rockwood’s CEO. The company intends to use the proceeds from the sale to reduce debt, he added.