MONTE CARLO, Monaco (CNI)--The recently completed merger between Finland's Neste Oxo and Sweden's Perstorp is expected to generate annual cost savings of SKr150m ($13.8m/Euro15.1m).
Inge Pettersson, chief executive/managing director of Neste Oxo and chief operating officer of Perstorp, told CNI at the European Petrochemical Association (EPCA) annual meeting here that the savings will accrue from the complementary polyols activities of both companies.
The merger between Neste Oxo and Perstorp was completed in July earlier this year, he added. Both companies are owned by venture capitalist Industri Kapital under holding company Sydsvenska Kemi.
The combined Neste Oxo/Perstorp entity, which has yet to named, will have an estimated annual sales of SKr5bn, Pettersson said, adding that no further job cuts are being planned following the loss of about 100 jobs at Perstorp in the summer (June-August).
As part of the aim to create a Nordic chemicals giant, Industri Kapital will next use its Finnish formaldehyde-based resins producer Dynea to acquire Neste Oxo/Perstorp before merging Dynea with 56%-Finnish government owned chemicals company Kemira.
The merger between Dynea and Neste Oxo/Perstorp will take place simultaneously with the Dynea/Kemira merger, and both deals are expected to be concluded by year-end, said Pettersson.
He added that European Union (EU) regulatory approvals are currently being sought. Pettersson said he expects "no major problems" because there are no substantial overlaps between the businesses of Dynea and Kemira.