16 April 2012 16:11 [Source: ICIS news]
LONDON (ICIS)--Poland’s Ciech Group is conducting intensive talks with several investors interested in acquiring its Zachem toluene di-isocyanate (TDI), epichlorohydrin (ECH) and epoxy resins business, the company said on Monday.
Following Zachem’s loss-making 2011, Ciech’s management reviewed the subsidiary’s role in the group and decided it would be difficult to fit the firm into Ciech’s strategy for the coming years, even though upcoming first-quarter results were expected to show an improvement in its fortunes, it added.
Ciech, Europe’s second largest producer of soda ash, is continuing with a major restructuring, which has already seen it sell, or earmark for sale, several assets in its agrochemical and silicates and glass divisions.
Last June, as part of the restructuring, Ciech broke away the polyurethane (PU) foams division of Zachem into a separate business unit.
Zachem is Poland’s sole, and Europe’s fifth biggest, TDI producer.
Last year it struggled because of very low prices, with the main consumers of its output, the furniture and automotive industries, hit by the renewed downturn in demand across Europe, Ciech said.
Zachem is also under pressure from a rising oversupply of TDI in Europe, according to ING Bank.
The company plans to expand its TDI capacity by 15,000 tonnes/year, to 90,000 tonnes/year, by 2013.
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