Speciality chemicals group Croda International on Wednesday announced a strategic review of two businesses that cater more to industrial customers as it shifts focus to consumer-care and life-sciences sectors.
The London-listed company, which has a contract to supply vaccine delivery components for Pfizer’s COVID-19 shot, said it would assess whether the full potential of the performance technologies and industrial chemicals units could be delivered under Croda, as standalone businesses, or through a sale.
The two units made up about 37% of Croda’s total revenue in 2020 and while its life sciences business outperformed last year despite the pandemic, its other units had seen a slide in sales.
Croda has been refining its performance technologies unit, the larger of the two businesses under review, focussing on high-tech markets including electric vehicles and renewable technology, and reducing exposure to cyclical markets such as oil and gas and automotive application.
Croda said in April it was expanding manufacturing capabilities at two sites that make additives used in Pfizer’s COVID-19 vaccine, raising its sales forecast from its five-year contract with the drugmaker.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Vinay Dwivedi)