27 February 2004 20:04 [Source: ICIS news]
LONDON (CNI)--Degussa said Friday it has agreed to sell its Radebeul fine chemicals site near Dresden in eastern Germany to pharmaceuticals manufacturer Hexal.
German specialty chemicals company Degussa said the Radebeul site would begin production for compatriot Hexal on 1 July, subject to approval of the deal by the federal cartel office.
Financial terms of the sale were not disclosed but Degussa said Hexal had provided a guarantee of employment at Radebeul for 177 jobs for five years. Munich-headquartered Hexal, which has about 5900 employees and an annual turnover of around Euro1.2bn ($1.5bn), has also agreed to retain the 32 existing apprenticeships at Radebeul.
Degussa disclosed four months ago that it was in talks with companies interested in taking over part of its Radebeul fine chemicals facility where some 300 people were employed at the end of last year.
Dusseldorf-headquartered Degussa, which has a workforce of around 48 000 and is the world's largest specialties company with annual sales of about Euro12bn, said the deal would give Hexal its own chemical synthesis facility, thus creating the platform for developing its own active substances.
Thomas Strungmann, founder and director of Hexal, commented: "We are certain that with the know-how of the employees at the site we will be able to establish an efficient and profitable production unit within a very short period of time."
No further details were immediately available from either Degussa or Hexal. However, a spokeswoman for Degussa said tonight that more information would be disclosed at a press conference to be held in Dresden on Monday.
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