Brenntag consolidates its leading position in the chemical distribution industry
Despite the weak economic environment in the chemical sector, the efforts of 8,900 Brenntag employees at over 300 locations worldwide further consolidated the company's leading market status. In the business year 2003, the company recorded external sales of 4.3 billion euros despite the negative impact from unfavorable exchange rate effects. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 241 million euros.
"Alongside the difficult conditions in the market, the sale of the Brenntag Group to Bain Capital by Deutsche Bahn tied up considerable resources. We are delighted to have found an expert partner in Bain Capital who will continue to support our growth strategy," says Dr. Klaus Engel, Chief Executive Officer.
Brenntag continued to operate successfully in 2003. In October of last year a state-of-the-art distribution center was opened in Spain following investment of 18 million euros. The new facility meets the full range of requirements in terms of safety and technology and complies with the stringent environmental protection and quality standards laid down in DIN ISO 14002 and 9002. The site is designed to initially handle an annual volume of 75,000 tons.
In December 2003, Brenntag signed a pan-European agreement with Hydro Agri, Europe's leading producer of urea, for the distribution of the fuel additive "Air1". Diesel-powered utility vehicles fitted with an SCR catalytic converter which additionally use the "Air1" additive not only stay within the lower nitrogen oxide emission limits stipulated by the EU's "Euro IV" exhaust emission regulations but also use less fuel.
Construction work on a new regional logistics center in Dallas (Texas) with a total investment volume in the order of 19 million US dollars is expected to be completed by the end of 2004.
Earlier this year the company reinforced its presence in the attractive Eastern European markets by acquiring Orlen Polimer, the leading distributor of polyolefins in Poland.
Following the first quarter, Brenntag is cautiously optimistic about the outlook for 2004 as a whole. Dr. Klaus Engel: "Brenntag is ideally geared up for 2004 and stands to profit from its strengths as an international and multicultural company. The key elements that give us a competitive edge are global access to all the major markets for the procurement of chemicals, the operation of a worldwide system for knowledge transfer and our ability to learn from each other now and in the future."
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