Rhodia sells remaining latex business to Hexion

Paris -- Rhodia has announced a deal to sell its remaining latex business activities (latex dispersions & powders and organic foam control agents) to the US Hexion Specialty Chemicals Group. The divestment is expected to be completed by the end of this year once all the necessary legal authorisations have been obtained.

Rhodia sold its stake in the Latexia paper latex business to joint-venture partner Raisio in 2002. That business was subsequently sold to Ciba in March, 2004.

Rhodia's remaining latex operations fall under its Coatis unit and include dispersions & powders and organic foam control agents. These are chiefly used in the markets for decorative paints, specialty mortars used in the construction industry, and liquid adhesives. The Latex business is chiefly based in Western Europe but also enjoys strong positions in Asia, North & Latin America. It employs a total of almost 440 people worldwide and generated net sales of approximately €150m in 2004.

Hexion Specialty Chemicals, an American chemicals group, claims to be the world's largest producer of thermosetting resins. The Group chiefly serves the Adhesives and Coatings markets (industrial and decorative paints and coatings). Its corporate headquarters are based in Colombus, Ohio (USA).