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Rhodia to sell silicon ops to China's Blue Star - union
10.06.2006, 06:15 AM
PARIS - French chemicals maker Rhodia plans to sell its silicon operations to China's Blue Star group, the CGT union said in a statement, denouncing the sale of 'family jewels'.
The union attacked the 'suicidal attitude of Rhodia', which is 'killing the goose that lays the golden egg'.
The company earlier this year agreed a strategic alliance in silicon with Blue Star.
Rhodia's silicon business includes three sites in France, employing a total of 780 people, plus another 169 employees outside France, the CGT said.
The division beat its targets last year, increasing sales to 447 mln eur from 408 and posting operating profit of 51 mln eur, according to the statement, whixh said 2006 is looking at least as good.
A Rhodia spokesman told Agence France-Presse a consultation process with staff is taking place about a project concerning the silicon operations 'but as talks are not complete it would be premature to comment on the content of the discussions.'
In May, the National Development and Reform Commission (NDRC), China's top economic planning agency, approved a 4.71 bln yuan silicon joint venture between Rhodia, Blue Star (Group) Corp and Blue Star New Chemical Material Corp.
The NDRC expected the joint venture to have a production capacity of 400,000 tons. Rhodia, Blue Star Group and Blue Star New Chemical Material were expected to hold stakes of 35 pct, 40 pct and 25 pct respectively, the agency added. |
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