TAMINCO Corp. and Balchem Corp. have reached an agreement to build and operate a choline chloride facility in St. Gabriel, La., where both companies operate existing production facilities, according to an announcement.
Balchem will contribute its current St. Gabriel choline chloride production assets to the joint venture, and both parties will invest in expanding these assets into a world-scale production unit, which is expected to come on stream in 2015.
This new capacity will help serve the growing North American market, which is underpinned by increasing demand for choline chloride, a quaternary compound that functions as a clay stabilizer in oil and gas drilling and hydraulic fracturing applications. Choline chloride is also widely used as an ingredient additive for a variety of animal feeds.
Balchem and Taminco will market the choline chloride through separate and fully independent channels. According to the announcement, the joint production model will lead to a state-of-the-art unit that uses advanced technology, generating advantages of scale and providing customers with a high-quality product and a reliable supply chain at a competitive cost.
The safe and benign profile of choline chloride contributes to reducing the environmental footprint for oil and gas development projects, the announcement said.
Through its three business segments, Balchem produces specialty packaged chemicals for use in health care and other industries, provides proprietary microencapsulation solutions to a variety of applications in the human food, pharmaceutical and nutrition marketplaces and also manufactures and supplies products to numerous animal health markets and certain derivative products into industrial applications.
Taminco is an integrated producer of alkylamines and alkylamine derivatives for use in the manufacture of a diverse array of products for the agriculture, water treatment, personal/home care, animal nutrition and oil/gas end markets.