Degussa starts Joint Venture with Ausimont in Area of Persalts

18-Dec-2001

The Detergent Base Materials segment of the Care Specialties Business Unit of Degussa AG, Dusseldorf, Germany, will be entering a joint venture with Ausimont, a Milan, Italy-based company of the Italian Montedison Group, effective October 25. Both corporations will hold a 50 percent stake in the firm, which will go by the name MedAvox S.r.l. and have a workforce of 30. It is projected to generate sales of EUR50 million a year. The joint venture will take up the marketing of the persalts sodium perborate and sodium percarbonate on January 1, 2002, using Degussa's sales organization as an agent, whereby the focus will be placed on the Mediterranean region. MedAvox intends to erect a new sodium percarbonate plant with an annual capacity of 50,000 tonnes at the Ausimont location in Bussi, Pescara/Italy by 2003. Ausimont will strengthen its Bussi facility providing all site services to MedAvox to build-up and then to run this sodium percarbonate plant and supplying hydrogen peroxide, locally produced, needed by MedAvox for the production of sodium percarbonate. Ausimont?s sodium perborate plant at Bussi will continue to run by toll manufacturing products for MedAvox and will be adjusted according to market needs. The joint venture will enlarge Degussa's sodium percarbonate capacity, thus positioning the German corporation for success on the growth market for this substance. Degussa already operates a sodium percarbonate production facility as well as sodium perborate facilities in Rheinfelden/Germany and Antwerp/Belgium. Europe is the world's most important market for persalts such as sodium perborate and sodium percarbonate. Both substances are made on the basis of hydrogen peroxide, and find use in detergents. Sodium percarbonate offers economic, ecological and production engineering advantages. Degussa produces sodium percarbonate according to a technologically leading process of its own. At its Rheinfelden location it is currently building an additional sodium percarbonate plant with an annual capacity of 50,000 tonnes. Completion of the installation is scheduled for early 2003 following closure of the Rheinfelden sodium perborate unit in late 2002.

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