Stepan Company has officially closed the sale of its Philippine subsidiary’s assets to Masurf, Inc., transitioning to a tolling agreement that maintains its market presence in Southeast Asia while freeing up capital for core strategic investments.
Stepan Company, a global leader in the production of specialty and intermediate chemicals, has announced the successful completion of the sale of its subsidiary, Stepan Philippines Quaternaries, Inc. (SPQI). The manufacturing assets, located in Bauan, Batangas, Philippines, were acquired by Masurf, Inc., a subsidiary of the Singapore-headquartered palm oil giant Musim Mas Holdings Pte. Ltd. The transaction was officially closed on November 14, 2025, following the initial Asset Transfer Agreement signed earlier this year on May 27, 2025. The details of the transaction remain undisclosed.
By shedding these physical manufacturing assets, Stepan is executing on a broader initiative to streamline its global footprint and redirect capital and management focus toward "core growth assets." However, the company is not exiting the region. A critical component of the deal is the execution of a tolling agreement with Masurf. Under this arrangement, Masurf will manufacture products at the Bauan facility on behalf of Stepan. This contract manufacturing model ensures that Stepan’s long-standing customers in Southeast Asia will experience no disruption in service or supply, effectively allowing Stepan to retain its commercial relationships without the burden of asset ownership.
Luis Rojo, President and Chief Executive Officer of Stepan, described the closing as a milestone in the company's efficiency strategy. "The successful closing of this transaction is an important step in Stepan's ongoing strategy to sharpen our focus on core growth assets," Rojo stated. He further emphasized that the new tolling relationship with Masurf guarantees "uninterrupted service and growth opportunities" for regional clients. Rojo also took the opportunity to thank the local Philippine team for three decades of dedication, expressing confidence that the facility would prosper under Masurf's stewardship.
For Masurf and its parent company, Musim Mas Holdings, the acquisition is a logical expansion. Musim Mas is a fully integrated player in the palm oil industry, with operations spanning the entire value chain from cultivation to refining and oleochemical manufacturing. Acquiring the SPQI assets allows them to bolster their downstream manufacturing capabilities in the Philippines, leveraging their existing supply chain dominance in the region.
As Stepan continues to supply polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries, this transaction underscores a growing trend in the chemical sector: decoupling commercial reach from physical asset ownership in non-core geographies to maximize agility and return on invested capital.
