Clariant continues strategy focus on portfolio management by selling its North American sodium hydrosulfite business

05-Dec-2002

Clariant today announced it has signed an agreement to sell its North American sodium hydrosulfite business to the Canadian firm Chemtrade Logistics Inc. of Ontario at a price of US$ 62 million. Clariant CEO Reinhard Handte says: "This sale marks a further logical step in Clariant's strategy of active portfolio management by divesting non-core businesses and focusing on fine and specialty chemicals. We are pursuing this strategy in order to strengthen our position in these higher growth segments"

The sodium hydrosulfite semispecialties business is part of the Paper Business Unit within the Textile, Leather and Paper Chemicals division. Sodium hydrosulfite is used mainly as a bleaching agent in the paper industry. In 2001 the North American hydrosulfite business generated sales of about CHF 120 million.

The hydrosulfite product line has two U.S. production sites - one at Carlisle, South Carolina and one at Kalama, Washington State. Sales support is based at Charlotte, North Carolina and Trois Rivières, Canada. Chemtrade Logistics Inc. will take on the unit's nearly 120 employees. For Chemtrade, the acquisition is a further step towards forward integration and strengthens its position in the supply of the sodium hydrosulfite product line in the firm's regional markets.

With the sale of the sodium hydrosulfite product line Clariant follows its strategy to create value through focused diversification by active portfolio management, concentrating on higher value added businesses in sustainable growth areas.

The transaction, which still requires the approval of U.S. and Canadian antitrust authorities, should be completed by year-end.

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