Poland’s Ciech group to sell NPK fertilizer subsidiary Alwernia

01 February 2013 12:29  [Source: ICIS news]

LONDON (ICIS)--Poland’s Ciech group has reached a preliminary agreement to sell nitrogen phosphorus potassium (NPK) fertilizer subsidiary Zaklady Chemiczne Alwernia to international Kermas Group, Ciech said on Friday.

The transaction price to be paid by Kermas, a manufacturer and distributor of chromium chemicals, would be $13.4m (€9.9m), it added.

As well as being a producer of NPK and specialist fertilizers, Alwernia is the sole Polish manufacturer of food-grade phosphoric acid. The company also produces chromium compounds and fodder additives.

Alwernia is among several non-core subsidiaries earmarked for possible disposal under Ciech’s widened divestment strategy, which new management, backed by Ciech’s controlling shareholder, Poland’s treasury ministry, has adopted to cut debt and focus on the group’s core soda ash business.

Last October, Ciech made its first divestment under the strategy, agreeing to sell assets of its loss-making toluene diisocyanate (TDI) unit Zachem to German major BASF.

The deal has ended Ciech’s involvement in TDI as it included a TDI non-competition clause.

($1 = €0.74)

By: Franco Capaldo
+44 (0)20 8652 3214

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