Rhodia to exit fine organics within 12 months

19 March 2008 17:06  [Source: ICIS news]

NEW YORK (ICIS news)--French chemical maker Rhodia will exit its remaining fine organics businesses in the next 12 months, CEO Jean-Pierre Clamadieu said on Wednesday.

The salicylic acid, paracetamol and chlorinated products businesses, with sales of €272m ($425m) last year, will be incorporated in a specific unit as part of Rhodia’s plan to sell its isocyanates business to the Perstorp Group.

“We still intend to exit in these businesses and in fact have already announced a number of plant shutdowns and restructuring in France, but we continue with some divestment projects,” Clamadieu said in an interview with ICIS news.

“We organized it as a business unit with an objective to find solutions for all the businesses by mid-2009,” he added.

The divestment project is the last major step in the refocusing of the group’s portfolio, Rhodia said. The company’s profitable organic di-phenols business, with sales of €272m last year, will be incorporated into Rhodia’s Silcea unit.

The company is the top producer of diphenols for vanillin worldwide, with more than 50% market share, said Clamadieu.

(€1=$1.56)

By: Doris de Guzman
+1 713 525 2653

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