07 July 1998 16:28 [Source: ICIS news]
LONDON (CNI)--A new alliance of six European chemical distributors is likely to be a "one-off" for the near future, CNI heard Tuesday.
Six European chemical distributors recently formed an alliance, which they said would provide pan-European chemical supply packages to companies wanting to single-source their chemical supplies throughout the continent.
It includes: Ellis & Everard (UK and Ireland); Novaria (Italy); Epenhuysen Chemie (northern France and Benelux); Quimidroga (southern France and Spain); Produtos Sarcol (Portugal) and Nordmann, Rassmann (Germany).
Ellis & Everard said the development of the alliance followed its recent receipt of a major contract to supply the majority of ICI's European chemicals requirements, as part of its drive to reduce 400 suppliers to just two.
A chemical distribution source told CNI that E&E, while "very big" in the US, did not have a similar size and strength in Europe. "They are looking to expand their interests in Europe and one of the best ways of doing it is through joint ventures and partnerships like this," he said.
"Probably at the moment (the alliance) is a one-off," he added. "There are a lot of changes going on in Europe with the smaller distributors, the smaller family-owned businesses are tending to disappear."
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