18 March 2004 11:35 [Source: ICIS news]
LONDON (CNI)--Degussa has sold its thiourea dioxide activities to American firm Wego Chemical and Mineral Corp.
The German chemical group’s US operation, Degussa Corp, said in a statement received Thursday that the divestment covered all its thiourea dioxide activities, including the brands DegaFAS, DegaFAS AS, Reducing Agent F and Depilor.
Financial terms of divestment of the $6m (Euro4.9m) turnover business were not disclosed. No-one at the firm was immediately available to give further comment.
However, Degussa did note that the sale does not include assets related to production of the products at its site in Weissenstein, Austria - which it plans to terminate by the middle of this year. The move is tied to Wego’s plan to transfer production and all intellectual property of the products from Weissenstein to its own facilities in Qingzhou, China.
Degussa said its hydrogen peroxide production at Weissenstein would be unaffected by the changes at the site. No information on the costs of the production closure or the impact on employment there was available.
Shawn Abrams, head of Degussa’s active oxygens business, was quoted in the statement: “Our people will work closely with Wego in the areas of sales, production and applied technology support to assure that the transition to their product goes smoothly.”
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