SOLVAY AND K+S SIGN AGREEMENT TO SET UP ESCO, THEIR SALT JOINT VENTURE
Solvay SA, Brussels and K+S Aktiengesellschaft, Kassel, have signed after detailed talks an agreement to set up a joint venture in the salt sector. The supervisory boards of both partners approved the agreement, which will be notified immediately to the European competition authorities.
The new company, of whose capital K+S will hold 62% and Solvay 38%, will be named ESCO - European Salt Company and its headquarters will be located in Hanover. The company is expected to be commercially operational from January 1, 2002.
The joint venture will produce approximately 5 million tons of salt per year in Germany, the Netherlands, France, Belgium, Spain, and Portugal. It will have 1,400 employees and is expected to generate an annual turnover of some EUR 300 million.
Both partners are bringing their salt production sold to external customers into the joint venture.
The activities brought into the Joint Venture by K+S include Marketing and Distribution as well as the production sites of Bernburg, Grasleben near Helmstedt and Harlingen (the Netherlands). Solvay contributes its German site of Borth am Niederrhein as well as activities in Belgium, France, Portugal and Spain. The salt production for captive use in Solvay's own soda ash and electrolysis processes will remain within Solvay.
The core objective of ESCO is to serve the market with a complete product range through efficient structures - which the newly created company can easily set up - as well as favorably located production sites, from the two perspectives of logistics and client proximity.
Other news from the department business & finance
