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. We are a growth-driven organization dedicated to operational excellence through a consistent focus on execution and efficiencies.
We specifically seek to acquire businesses 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 produces and supplies 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 Pipeline Performance Products support the global pipeline market with high-performance products and services that optimize pipeline operations, lower operating costs and enhance safety.
- Our Wood Treating Chemicals support the delivery of power and telecommunications across North America.
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 provide opportunities for organic growth. Additionally, 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.
KMG is a leading global provider of high-performance products and services that optimize pipeline performance, reduce costs and enhance safety. Our products include drag-reducing agents (DRAs) to optimize pipeline flow, as well as lubricants and sealants that enable the optimal operation of industrial valves. We also provide routine and emergency valve maintenance services and technician training for many of the world’s leading pipeline operators. KMG is dedicated to enabling safe and optimal valve operation while preventing costly, unscheduled downtime at customer facilities and pipelines.
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.
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 growth strategy has a proven track record: For more than 20 years as a public company, KMG has enhanced shareholder value by managing our operations as smartly and efficiently as possible, maximizing cash flow and pursuing only those acquisitions that make financial and strategic sense over the long term.
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, Versum Materials and Air Products. 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.