Nov 25 2004
Solvay S.A. and Chemical Products Corporation announced today that they have signed a memorandum of understanding, aiming at creating a world-wide joint venture for the production and marketing of Barium and Strontium Carbonates as well as some related products.
The purpose of the joint venture is to integrate operations located in Mexico, Germany, Korea and India, pending agreement of local partners where needed, in order to achieve efficiencies that will allow the joint venture to compete more effectively in the world markets - particularly Asia. The memorandum of understanding is subject to the negotiation of a definitive agreement between the parties. Both companies have tentatively scheduled to launch their joint operations in the first half of 2005. The contemplated joint venture would have an annual pro forma turnover of more than EUR 100 million. In the meantime, the two companies have entered into an agency agreement pursuant to which Solvay will serve as Chemical Products Corporation’s marketing agent in Asia.
Solvay’s high purity Barium derivates for the electronics industry and other high value added products from Solvay Bario Derivati (Italy) as well as other specialties under development in the Korean plant, among others for the next generation of information technology screens, will not be included in the joint venture.
CPC’s Cartersville, Georgia plant, which will continue to produce all grades of barium carbonate including Micro-Flow and Aqua Flow as well as all grades of barium chloride, will not be included in the joint venture. However, CPC’s Sr(NO3)2 production on the same site will be included in the joint venture.
“Barium and strontium carbonates are essential products whose growth perspectives have been reassessed in the light of technological evolution and as a consequence of a geographical shift in activities,” explained Paul Dandoy, Managing Director of Solvay’s Strategic Business Unit Barium/strontium. “The contemplated alliance with CPC would boost the competitiveness, improve the efficiencies and consequently maximize the sustainability of these activities,” he added.
Ballard Mauldin, President of CPC commented, “The Joint Venture will allow CPC a global presence and the economies of scale to pursue the migration of the cathode ray tube business. In addition, the Joint Venture and CPC are positioned very well for new display technologies. By retaining Cartersville, CPC will continue to develop its current line of specialty barium and strontium salts for a host of applications in electronics, magnetics, pigment and structural ceramic applications.”
For more information on barium carbonate, click here.