Materials distribution firm Nexeo Solutions has expanded its business with ExxonMobil Chemical Co. to include Santoprene resins for the North American wire and cable market.
The expanded agreement for Santoprene thermoplastic vulcanizates (TPVs) is effective Jan. 1, officials with Nexeo in The Woodlands, Texas, said in a news release.
In a Dec. 19 phone interview, Shawn Williams, plastics senior vice president, cited fiber-optic cable and other specialty applications as Santoprene uses that Nexeo could capitalize on.
"We want to have a broader platform," he added. "Wire and cable is an end market that we'd like to focus more on."
The addition of Santoprene for wire and cable uses "serves as an example of the strong relationship that we already share with ExxonMobil across a broad range of markets," Williams said in the release.
ExxonMobil's Santoprene TPV materials are high-performance elastomers which combine the characteristics of vulcanized rubber with the processing of thermoplastics. This combination offers manufacturing flexibility, ease of processing and durability in a wide range of applications, Nexeo officials said. In addition to wire and cable, Santoprene is used in a variety of market segments, including automotive, household and consumer products.
Williams added that Nexeo's recent acquisition of Mexican distribution firm Ultra Chem "has exceeded expectations." Nexeo acquired Mexico City-based Ultra Chem in March. Plastics-related products distributed by Ultra Chem include polycarbonate resins, as well as plastic additives.
In its 2017 fiscal year, which ended Sept. 30, Nexeo posted improved financial results both in plastics and in its overall business. The firm rang up sales of more than $3.6 billion for the year, an increase of almost 7 percent vs. its fiscal 2016 total. The 2016 amount combines successor and predecessor company totals.
Plastics sales for Nexeo grew almost 6 percent in fiscal 2017 to more than $1.8 billion. Plastics accounted for almost 51 percent of the firm's sales for the year. Most of the remainder of Nexeo's sales came from chemicals. Company officials said the firm's plastics sales volume in pounds was up almost 11 percent for the three months ended Sept. 30.
Nexeo is one of North America's largest distributors of plastics materials, distributing resins, compounds and concentrates for more than 20 suppliers.