KMG Chemicals produces and distributes specialty chemicals in select markets globally. We currently operate in three business segments: Electronic Chemicals, Wood Treating Chemicals and Industrial Lubricants.
KMG is a leading global supplier of high purity electronic chemicals, serving major semiconductor, photovoltaic and flat panel display manufacturers in the U.S., Europe and Asia.
KMG is the only North American supplier of EPA-registered pentachlorophenol (penta) for the industrial wood preservation market.
Val-Tex, a wholly-owned subsidiary of KMG, is a preferred provider of high quality, cost-effective valve lubricants primarily to the oil and gas storage, pipeline and gas distribution markets. Val-Tex manufactures and distributes industrial sealants and lubricants, as well as lubrication equipment and fittings, for the industrial valve maintenance market.
Vision and Strategy
Our vision is to be a growing, financially sound company recognized for excellence, passion and sustainability. We are a company where talented people thrive; customers benefit from our excellent service and value-added solutions; and our neighbors respect our good stewardship of the environment.
Unlike many chemical companies, we’re not interested in undertaking years of expensive research and development to create the next hot chemistry. Instead, we thrive by acquiring stable, mature chemical businesses operating in markets under-appreciated or even ignored by larger chemical companies.
We start by identifying the value in businesses or product lines that others may have overlooked. We specifically target products with significant market share, long product life, high barriers to entry, modest R&D support and low maintenance capital expenditure requirements.
After acquiring these businesses or product lines typically from larger companies, we optimize their value and extend their economic lives by generating efficiencies and establishing leading positions through consolidation and organic growth.
Throughout this integration and optimization process, we always remain focused on maximizing free cash flow to enhance long-term shareholder value.
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 and OM Group, we continue to see additional consolidation opportunities within this market. With strong market positions in the U.S. and Europe, as well as a physical 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.
Val-Tex manufactures and distributes high-quality cost-effective valve lubricants and sealants, as well as related application equipment and fittings. The company primarily serves the oil and gas storage, pipeline and gas distribution markets with value-added specialty products that enable optimal valve operation and help prevent costly, unscheduled downtime at customer facilities and pipelines. In addition, Val-Tex’s products provide important safety benefits along with preventing fugitive valve emissions. The global valve maintenance market is large and fragmented, providing attractive opportunities for future growth, both organically and through consolidation.
Our Continual Improvement (CI) operational philosophy is centered on the premise that performance management is the responsibility of everyone at KMG. As a mindset, CI is a way of approaching work so that a culture of innovation and creativity is encouraged. Our CI Vision is to aggressively stamp out waste and improve the efficiency of the work environment in our continual endeavor to improve employee and customer satisfaction. To this end, we ensure that every employee has the tools, training and direction to achieve this vision.
KMG’s CI process:
- Empowers all levels of the organization to make positive, rapid change towards a defined strategic end;
- Significantly improves teamwork and enhances communication at every level; and
- Aids KMG in becoming a Lean Company, rather than a company that simply undertakes lean projects.
History of Success
KMG’s consolidation strategy has a proven track record: Since our founding in 1985, KMG has grown to become a leading provider of chemicals for the industrial wood treatment market and a leading global supplier of high purity process chemicals for the global semiconductor manufacturing industry. Val-Tex, our most recent acquisition, has earned an outstanding reputation in valve lubricants, serving several leading energy and energy service providers, and has demonstrated a track record of consistent growth and cash flow generation.
KMG’s executive management team possesses extensive experience in the chemicals and industrial sectors, including leadership positions with firms such as Chemical Lime, Dow Chemical, Commercial Metals and Linde LienHwa. KMG’s executive team has considerable experience in the integration and optimization of numerous businesses throughout their careers.
Our dedicated employees are committed to providing the highest quality products with an unwavering focus on delivering exceptional customer service. KMG is proud to have a motivated, diverse and skilled workforce that is always guided by our Core Values: Passion for Excellence, Value Our People, Character Counts and Work as a Team.