DuPont Biomaterials becomes Covation Biomaterials

I am currently working on my Bio-Materials special report regarding M&A and the role of renewable chemicals in flavours and fragrances (F&F) industry when this news just came into my inbox.

We now know that Huafon Group (or Huafeng according to its website) is the company who acquired DuPont Biomaterials after it was divested by its parent company DuPont which now merged with IFF (and hence the connection with my F&F story). Huafon Group is a major spandex and polyurethane producer based in China so it makes synergistic sense to use Sorona to Huafeng’s businesses. According to the press release, Covation Biomaterials is now the new name for DuPont Biomaterials but the brands – Sorona^®, Susterra^® and Zemea^® – will remain. Covation Biomaterials will remain an independent business with Michael Saltzberg as the new CEO (who was formerly the global business director of DuPont Biomaterials). DuPont Biomaterials was sold in October 2020 for $240 million.

What will be interesting is the sourcing of Susterra^® corn-based 1,3 propanediol (PDO) which is produced by the DuPont Tate & Lyle joint venture at Tate & Lyle’s Loudon, Tennessee, USA facility. Tate & Lyle recently sold its stake in the JV in 2021 to US private equity firm KPS Capital Partners while DuPont Biomaterials, now Covation Biomaterials, still owns 50% of the DuPont Tate & Lyle JV. Sorona® polytrimethylene (PTT) is made from 37% bio-PDO and the rest from petro-based purified terephthalic acid. Fibres made with Sorona® are typically used in various apparel applications including athleisure and athletic wear, insulation, swimwear, outerwear, suiting, faux fur, etc.

More analysis on the PDO and PTT markets are covered on Tecnon OrbiChem’s Bio-Materials report. I will also post more about the F&F industry with the recently-announced merger of DSM and Firmenich. DSM is an interesting company to cover because of its deep roots in the industrial biotechnology area. Stay tune!