11 April 2005 00:01 [Source: ICB Americas]
Rhodia and Snia have signed a letter of intent with RadiciGroup to establish an alliance in textile fibers between their 50-50 Nylstar joint venture and RadiciGroup’s RadiciFibres business. The joint venture formed through this alliance will be owned mostly by RadiciGroup. Rhodia and Snia will share the remaining capital. The joint venture will focus on polyamide, polyester, elasthanne and acrylic fibers. It will have more than 4,000 employees and is expected to generate yearly sales of more than €800 million ($1.03 billion).
“The alliance will put Nylstar and RadiciFibres in a stronger posi-tion to face the growing impact ofimported goods from Asia,” the parent companies say. “The new company will be able to more fully respond to the present and future needs of its customers with a broader and more comprehensive product range. This letter of intent represents the first step toward a binding agreement that should be finalized in the coming months once legal and financial documentations have been formalized and the legal approvals obtained.”
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