Rhodia, SIBUR to Target $500 Million Russia Surfactant Market

Rhodia SA, the French specialty chemicals maker being bought by Solvay SA, will create a venture with ZAO Sibur Holding to tap the $500 million surfactant market in Russia and neighboring nations.

The companies have signed a memorandum of understanding to create the 50-50 project by the end of 2011, Emmanuel Butstraen, the head of Paris-based Rhodia’s Novecare unit, said in a telephone interview. The venture, which will use Sibur facilities about 400 kilometers (250 miles) east of Moscow, should be operational in 2013, he said.

‘‘A lot of global cosmetics and detergent players are settling in the region,’‘ Butstraen said. ‘‘We will focus on home and personal care, and the oil and gas markets. We’ll be one of the leaders, if not the leader in these markets, which will grow by at least 6 percent a year.’‘

Chemicals companies are fighting for shares in emerging markets, where demand is booming for surfactants and other ingredients that enhance oil recovery and boost the efficiency of cosmetics, cleansing products, and pesticides.

To benefit fr om that trend, companies have targeted special chemical producers. BASF SE last year purchased Cognis GmbH for

$4.3 billion, then Berkshire Hathaway Inc. acquired Lubrizol Corp. for $9 billion three months later. Solvay, the world’s biggest soda-ash maker, announced the acquisition of Rhodia in April, and Ashland Inc., the maker of Valvoline motor oil, agreed to buy International Specialty Products Inc. on May 31 for $3.2 billion in cash.

The surfactant market in the Commonwealth of Independent States is worth about $500 million, according to the Novecare chief. The main players are local companies and international surfactant makers such as Cognis, he said.

Rhodia’s Novecare unit, which had more than 1 billion euros ($1.45 billion) of revenue last year, aims to grow by 10 percent or more annually in coming years as it expands capacity and makes acquisitions in Asia. Sales will get a further boost fr om the introduction of new products such as polymers that increases pesticide efficiency and reduce their dispersion in the environment, non toxic and biodegradable solvents, and less toxic paint additives, Butstraen said.

‘‘We’re the multinational leader of surfactants markets in Asia, wh ere want to develop further and could make acquisitions,’‘ the Novecare head said. ‘‘We’re not big enough in India, wh ere we want to grow either by developing our production base or through the purchase of local players.’‘

Last year, Rhodia paid $489 million for Feixiang Chemicals, a Chinese maker of amines and surfactants. It bought McIntyre Group Ltd, a maker of surfactants based near Chicago, in 2009.