France's Rhodia lifts FM on HMDA products; sees €20m hit in Q1

17 March 2011 07:23  [Source: ICIS news]

SINGAPORE (ICIS)--French specialty chemicals firm Rhodia said on Thursday it has lifted its force majeure (FM) on hexamethylene diamine (HMDA) and downstream products, expecting as much as €20m ($28m) hit on its first-quarter results from the supply disruption.

The force majeure was declared on 4 February due to problems in shipping over the river Rhine in Germany and a supply shortage of adiponitrile (ADN).

“The overall impact on the group's earnings before interest, tax, depreciation and amortisation [EBITDA] has been revalued at around €20m. This will be for the most part recorded in the first quarter,” the company said in a statement.

Rhodia CEO Jean-Pierre Clamadieu said: “Our priority was to restore service to our customers as fast as possible.”

Despite the FM, Clamadieu said that the company should be able to post new record operational profitability in the first quarter.

($1 = €0.72)

By: Pearl Bantillo
+65 6780 4359

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