Rhodia may sell parts of organics business

28 February 2008 15:46  [Source: ICIS news]

PARIS (ICIS news)--Rhodia may sell off or close parts of it organics line which is underperforming after the business made a fourth-quarter operating loss of €3m down €16m from the same period in 2006, Rhodia’s chief executive said on Thursday.

 

“Part of this business [organics], which focuses on diphenol for vanillin, is one of the very best performers for our company,” CEO Jean-Pierre Clamadieu said at a press conference following the release of Rhodia’s 2007 financial results.

 

“But the other part, isocyanates and salicylic acid, is underperforming and we are looking for solutions to that problem.”

 

Most likely will be the sale of the business or closure of production facilities, a move that is unlikely to pass without some difficulty.

 

French unions are already concerned about the probable sale of the Pont de Claix isocyanates plant, which employs 450 people and is one of the longest-running facilities owned by the French group.

 

Union leaders are concerned that the business could be sold to a foreign investor – most likely LyondellBasell, with which Rhodia has a supply agreement in this market.

 

The company has already announced the closure of two other French plants operating within the Organics division, but Clamadieu stressed that no decision had yet been taken about Pont de Claix, and that talks with potential buyers were just one of the options.

By: Chris Jones
+44 20 8652 3214

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