Arnhem, the Netherlands, February 14, 2006 — Akzo Nobel has signed an agreement to divest its Polymerization Catalysts & Components Business in the United States to Basell Polyolefins, the world’s largest producer of polypropylene and advanced polyolefin products.
The deal includes the catalyst manufacturing business and other assets located at the company’s site in Edison, New Jersey. The business had a turnover of almost USD 60 million in 2005. All 79 employees will transfer to the new owners.
“This agreement represents another important step towards completing the series of divestments resulting from last year’s strategic portfolio realignment,” explained Leif Darner, Akzo Nobel’s Board Member responsible for Chemicals. “Basell is a long-standing customer with whom we have enjoyed a very successful working relationship for nearly 20 years and we are confident that this transaction will be a positive step for both the business and its employees.”
The Edison site produces Avant® catalysts for Basell licensees, as well as toll producing other polyolefin custom catalyst systems and preparing catalyst components used in polyolefins and other specialty chemicals.
“Our primary interest in acquiring these assets is to ensure long-term security of supply for our catalyst customers worldwide,” added Basell CEO Volker Trautz. “The other activities at the site are also a good fit with our catalyst business and will enhance our product offerings.”
This agreement is the third Chemicals divestment announced by Akzo Nobel in 2006 following deals to sell the Electro Magnetic Compatibility business in Japan and the company’s 65 percent majority interest in its Malaysian oleochemicals joint venture. The remaining divestments are expected to be completed by the middle of the year.