BFGoodrich Co.'s polymer additives and specialty plastics business unit will not be affected much by BFG's $2.2 billion plan to merge with Coltec Industries.
The additives and plastics unit would remain in the Cleveland suburb of Brecksville, Ohio, even though BFG is moving its corporate headquarters from nearby Richfield, Ohio, to Coltec's hometown of Charlotte, N.C.
The deal, which would give BFG shareholders two-thirds of the new firm, is being driven by the companies' large market shares in the aerospace industry.
BFG officials said the new company has no plans to spin off its Performance Materials division as it did when it separated its Geon PVC division in 1994.
The Performance Materials division, which employs 3,000 worldwide, is split into three units: polymer additives/specialty plastics, consumer specialties and textiles/industrial coatings.
Polymer additives and specialty plastics is expected to account for about $470 million of the Performance Materials' $1.25 billion sales total in 1998. BFG's total sales are expected to reach $4 billion, while Coltec's are about $1.5 billion.
BFG's plastics products include thermoplastic polyurethanes, chlorinated PVC and other specialty engineering resins.
Although Coltec is focused on aerospace, it also has industrial product lines and manufactures such items as seals, gaskets and diesel engine parts. Most of those parts currently are made of metal. But, according to Dale Kramer, global general manager for BFG's Estane-brand TPUs, there's a chance these parts eventually could be replaced by plastic.
``There could be opportunities for material replacement if we can find some potential fits,'' Kramer said.
The companies expect to close the deal in the spring, according to a BFG news release. Stockholders and regulators have not yet approved the plan.
BFG ranks as one of the top 25 plastics compounders in the United States, according to a recent industry study. The company is among the top three U.S. suppliers of thermoplastic elastomer compounds.