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[January 2001]
Degussa-Hüls to withdraw from Zeolite Business
Degussa-Hüls AG will withdraw from production, research and sales of zeolites. Zeolites are aluminosilicates used primarily as water softeners in detergents, but also as odor-eaters in hygiene products such as diapers. The company cited major over-capacities in the market and a drastic price drop, which make it impossible to continue the business within the portfolio of Degussa-Hüls AG, as the reason for the withdrawal. Possible sale of the entire business was investigated thoroughly but was not feasible because of the unsatisfactory market situation.
Degussa-Hüls will therefore shut down its production facilities in Wesseling and Taipei (Taiwan) and will further pursue a separate sale of the site in Miranda de Ebro (Spain) as well as of the production technology for specialty zeolites. The decision whether to sell or to shut down the Spanish plant is expected during the first quarter of 2001. There are already several interested parties for the technology package in specialty zeolites.
Approximately 70 employees are affected by the shutdowns in Wesseling and Taipei (Taiwan). Degussa-Hüls will keep the 40 employees of the Wesseling site on the payroll in other areas of the company. Due to the small size of the site, the possibility of continued employment for the 30 employees of the Taiwan site is very limited. Approximately 30 employees work at the site in Miranda de Ebro.
Degussa-Hüls had already reported last May that the zeolites business is not part of its core business. The specialty chemicals group, which will merge with SKW Trostberg AG to form the new Degussa AG, had sales of Euro 9.3 billion in the first nine months of the 2000 business year (without sales from precious metals) and maintains a payroll of about 44,000 employees.
Dr. Edda Schulze
Tel.: + 49 (0) 69-2 18-27 12
Dr. Karin Aßmann
Tel.: + 49 (0) 69 2 18-22 30
ENDS