Joint venture to make oxo
8 Mar 2002
Celanese and Degussa have signed a letter of intent to set up a 50/50 joint venture for their respective European oxo chemicals businesses.
Pending approval by the Boards and the regulatory authorities, the companies plan to combine Celanese's C-3 based oxo activities in Oberhausen with those of Degussa's subsidiary Oxeno in Marl.
On a pro forma basis, the joint venture would have generated sales of approximately 410 million Euros with around 240 employees in 2001.
With the creation of the joint venture, both partners will deconsolidate their own C-3 oxo businesses.
Oxo chemicals are mainly found in chemical intermediates, solvents and softening agents.
In 2001, Celanese recorded a net loss of 385 million Euros, or 7.65 Euro a share, after net earnings of 58 million Euros, or 1.09 Euro a share, in 2000.
