New owner outlines plans for ex-ICI Nitrocellulose, Energetic

08 January 2003 15:53  [Source: ICIS news]

LONDON (CNI)--The new owners of ICI’s Nitrocellulose and Energetic Technologies businesses in Ardeer, Scotland said some restructuring of Nitrocellulose is on the cards but they plan growth for Energetic and will be focusing on securing it new business.

The sale of the £30m ($48m/Euro46m) turnover businesses was completed on 31 December. Some 280 former ICI employees and manufacturing facilities have now transferred to the newly registered company Troon Investments.

Troon is a partnership backed by the $3bn turnover Japanese-listed diversified industrial group Inabata and two veterans of the chemical sector – Charles Tuchel and Mike Parker (who is unrelated to the former Dow Chemical chief of the same name).

Tuchel, a former ICI employee and chief executive of Elementis Specialty Chemicals division in the late 1990s, told CNI he saw "exciting growth potential" for the Energetic Technologies business particularly in rocket motors and safety ejectors. He will be looking for opportunities to grow this business, he said.

Of the Nitrocellulose business, which makes film forming resin used in inks and coatings, Tuchel and his partners are planning some "basic restructuring" and believe they can turn the presently non-profitable business into a competitive and profitable enterprise.

The two businesses will be run as separate businesses.

Financial details of the sale were not disclosed but ICI said the sale price was less than 1% of ICI Group net assets (1% would equal about £35m).

A spokeswoman for ICI said the sale was consistent with ICI’s reshaping as a specialties and paints company.

Charles Tuchel and Mike Parker both had careers with ICI and Elementis Specialty Chemicals before forming their own consultancy business in 2000. They have concentrated on advising chemical companies and venture capitalists on chemical mergers and acquisitions. The deal with ICI is the first of what they hope may be a series.

By: Glenda Thisdell
+44 20 8652 3214

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