The core objective will be to establish what ownership structure best serves this part of Croda’s business going forward, to create a stronger platform for its future growth.

The Snaith-based firm says the review is consistent with its prioritisation of investments in faster-growth life science and consumer markets, which now represent over 80 per cent of the group’s profitability.

Croda said: “PTIC is an excellent, world-leading business, with an impressive financial track record. It delivers industry-leading margins across the cycle through well invested manufacturing, innovation and sales operations, supported by a dedicated and experienced global team. It has a highly attractive portfolio, offering customers innovative, sustainable solutions in advanced technologies, and is focused on fast-growth markets in the circular plastic economy, electric vehicles and other renewable technologies.

“This strong technology portfolio supports PTIC’s leading market positions in automotive, polymer and food packaging applications.

The scope of the strategic review will focus on the businesses and activities within PTIC that do not directly support the Consumer Care and Life Sciences sectors.

“It will consider whether Croda is the best future owner of all the PTIC businesses within the context of opportunities to deploy more capital and resources within PTIC, as well as in Consumer Care and Life Sciences.

“The review will assess whether the full potential of PTIC can best be delivered under Croda, as a stand-alone business, or via a full or partial divestment.

“It will consider the extent of the mutual dependencies between PTIC and the rest of Croda, the practicality of all options, whilst prioritising the best interests of all stakeholders, including employees, customers and shareholders.”

The review is expected to conclude by the end of 2021.

The strategic review is being launched in the context of ongoing improvement in group trading year to date, continuing the trend seen in the second half of 2020.

Customer demand is strong across all regions and sectors, including PTIC, in some cases driven by a recovery in end-consumer demand, in other areas by customer inventory build ahead of an anticipated economic recovery.