Rhodia to Close Carboxylation Unit at Leuna
Rhodia's Perfumery, Performance & Agro (PPA) enterprise announced that it will close its Carboxylation unit at Leuna, Germany, ceasing production at the end of September 2004.
The unit manufactures para hydroxy benzoic acid (PHBA), salicylic and cresotinic acids and has an estimated annual capacity of approximately 2400 metric tons. Rhodia's PPA Management stated that the unit is no longer competitive due to increasingly strong Asian competition, significant worldwide overcapacity and the impact of the weak dollar exchange rate. This action is part of the restructuring measures being implemented and will contribute to Rhodia PPA's recovery plan.
Rhodia's (Performance Products for Multifunctional Coatings (PPMC) enterprise will continue its production in the latex unit at the Leuna site. The Leuna facility is a world-class manufacturing plant and produces latex emulsions for paint formulators of the paints & coatings market, a key market for PPMC.
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