German chemicals companies Degussa of Dusseldorf and Celanese of Kronberg today welcomed the European Commission approval for the proposed joint venture between the two companies' European propylene-based oxo businesses.
The new company will be named European Oxo Chemicals and will be incorporated in Oberhausen, Germany. Meanwhile, Degussa and Celanese have said they will begin with the integration of the two businesses and with the preparations for the start-up of the new company as soon as possible. Oxo chemicals are mainly used as chemical intermediates, solvents and softening agents.
Commenting on the news, Prof. Utz-Hellmuth Felcht, chairman of the Degussa management board, said: "The joint venture creates the necessary conditions for the promising further development of our propylene-based oxo chemical activities."
In turn, Claudio Sonder, chief executive officer of Celanese, said: "The joint venture is an important milestone in our efforts to find future-oriented solutions for our Chemical Intermediates' businesses."
With each company holding a 50 per cent share in the joint venture, Celanese and Degussa will combine the European propylene-based oxo production, technology, marketing and distribution activities of Celanese in Oberhausen and of Degussa's subsidiary Oxeno in Marl, Germany.
According to a statement, on a pro-forma basis, the joint venture would have generated sales of approx. €450 million with around 240 employees in 2002.