We are one of the leading producers in Europe of specific polymer chemical intermediates, such as dibasic acids (fumaric and malic), anhydrides (maleic, phthalic, and trimellitic) and their derivatives (e.g., plasticizers), unsaturated polyester resins, compounds and composites. Such products belong to the broad category of chemical intermediates, i.e., these products are in the middle of the chain that begins with oil refining through production and up to sale and distribution on the market of finished goods. Our business model comprises the research and development, production and sale of specific polymer chemical intermediates, catalysts and compounds. Our products are utilized for the production of plastics, paints, inks and adhesives, electrical and electronic materials and components, paper and lubricants, and to a lesser extent they are utilized in the agrochemicals and food ingredients sectors. Our compounds are utilized in the transportation, construction and electrical industries. We also produce catalysts and develop process technologies that we utilize internally for our production facilities and license to third parties.
We distribute our products primarily through our internal sales staff, which manages our business relationships with our major customers. We have sales agents as external sales staff and we also use professional distributors for the sale of malic acid and unsaturated polyster resins to certain of our lower-volume customers.
Our customers are predominately other producers of intermediate chemical derivatives or products that are sold further downstream to other producers or to end customers. We do not typically sell our products to the end customer.
We separate our activities into four business segments that correspond to our product line classifications.
Phthalic Anhydride and General-Purpose Plasticizers: phthalic anhydride primarily used in the production of plasticizers (which are used to produce cable coatings, covers and flexible plastic materials), alkyd resins for paints and unsaturated polyester resins, and other products.
Maleic Anhydride, Derivatives and Catalysts: derivatives of maleic anhydride include fumaric acid, malic acid, special anhydrides and special esters. This segment includes varied products, such as additives for lubricants, copolymers for detergents, unsaturated polyester resins and alkyd resins, additives in electrical and electronic materials and in high-performance compounds. These products are used in diverse sectors, including the food, agro-chemical, electrical and electronic industries.
Trimellitic Anhydride and Special-Purpose Plasticizers: this product line includes trimellitic anhydride and high-performance plasticizers (trimellates, polymeric and linear plasticizers) primarily used for electronic equipment, electrical cable coating, transport, construction, packaging and medical equipment.
Resins and Compounds: this product line includes unsaturated polyester resins and derivative compounds, primarily used in the construction, transport and electrical sectors.
Special Esters: the family includes acetates, glycerine esters, ultraligh phtalates, citrates, fumarates, and other organic esters of medium molecular weight used in special applications like Flavours & Fragrancies, Cosmetics, glass frames and luxury goods, and as PVC plasticizers for sensitive applications like for food-contact and food packaging.
We are particularly committed to the research and development of new and innovative products and processes, which are carried out in our central laboratory at our Scanzorosciate plant, as well as in laboratories that are specifically dedicated to each of our product lines. Our research and development team consisted of 64 persons as of December 31, 2005.
We develop and produce the products we sell in six production facilities, five of which located in northern and central Italy, and one in Germany. We are also currently building a new production facility in Poland. We believe that we have integrated production units, with suitable storage and warehouse facilities, which allow us to produce, store, sell and deliver the chemical intermediates that we produce at various stages of the production cycle, or to utilize them further in our internal downstream production cycles to produce more specific derivatives and other higher value-added products. This configuration allows us a certain degree of flexibility to respond to changes in demand from our customers and their markets and a cost-efficient integration of the various production cycles and capacities that are available in our facilities.
Italy
