KMG sells products foundational to the global economy. Our Electronic Chemicals support the manufacturing of semiconductors used in everything from automobiles and airplanes to smart phones and tablets. Our Wood Treating Chemicals support the delivery of power and telecommunications across North America. Our Industrial Lubricants business supports the global valve maintenance market with value-added specialty products that enable optimal valve operation and help prevent costly downtime at customer facilities and pipelines.
We aim to establish leading positions in our target markets through consolidation and organic growth. Once KMG has entered a new market, we pursue additional growth organically and through acquisitions.
Organic growth results primarily from expansion into new geographic markets, increased product penetration within the markets KMG already serves, and the extension of product lines through new and alternative offerings. We seek to maximize economic returns through both supply- and demand-side synergies from the integration and optimization of acquired businesses.
In the Electronic Chemicals market, the trend toward semiconductor miniaturization is driving increased demand for ultra-pure chemicals. KMG is at the forefront of this trend, supplying semiconductor manufacturers with the highest purity electronic chemicals needed to produce the world’s most advanced silicon chips.
Having acquired electronic chemical businesses from Air Products & Chemicals, General Chemical, OM Group and Nagase FineChem, we continue to see additional consolidation opportunities within this market. With strong market positions in the U.S. and Europe, as well as a growing presence in Asia, KMG is well-situated to capitalize on the world’s growing demand for semiconductors.
Wood Treating Chemicals
KMG’s Wood Treating chemicals are critical to extending the useful life of wood utility poles that support the delivery of electric power and telecommunications throughout North America. Wood is a highly renewable resource, and North America is endowed with expansive forests to support the United States’ wood-based infrastructure. Because treated wood remains the most cost-effective and energy-efficient product for utility poles, KMG benefits from steady annual demand in this sizable market.
Through its subsidiaries, Val-Tex and Sealweld, KMG is a leading global provider of high-performance products and services for industrial valve and actuator maintenance. Our comprehensive product portfolio includes valve lubricants, cleaners and sealants, as well as related products such as fittings, adapters and application equipment. We also offer routine and emergency valve maintenance services and technician training for many of the world’s leading pipeline operators. We are dedicated to enabling safe and optimal valve operation while preventing costly, unscheduled downtime at customer facilities and pipelines. The global valve maintenance and services market is large and fragmented, providing attractive opportunities for future growth, both organically and through consolidation.