Rhodia completes sale of its polyurethane flame retardants business to Albemarle
Following the annoucement on June 17 of a binding agreement to sell its phosphorus-based polyurethane flame retardants business to Albemarle Corporation, Rhodia today confirmed all regulatory approvals have been received and the sale has been completed.
Used in rigid and flexible polyurethane foam applications, Rhodia's polyurethane flame retardants activity generated sales of around 60 million euros in 2002 with approximately 90 employees.
As part of the divestiture, Albemarle is acquiring Rhodia's associated production site in Avonmouth in the United Kingdom Rhodia will also supply Albemarle with flame retardants and intermediates manufactured at its sites in Charlestonl (S.C, USA), Oldbury and Widnes (UK).
Polyurethane flame retardants are not a key segment for Rhodia's Phosphorus & Performance Derivatives. The Enterprise will focus on developing its global leadership position in Phosphorus chemistry through its strong positions in the water treatment, agriculture, lubricants, pharmaceuticals and textile markets.
This transaction forms part of Rhodia's strategy to make targeted divestments of non-core businesses and reduce its net debt/EBITDA ratio, while re-aligning its portfolio on its growth model based on the cross fertilization of technologies and the development of high value-added solutions.
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