€500m charge as Degussa restructures
chemicals business unit as it copes with the current adverse
operating environment.
Germany's third-largest chemicals company Degussa has been forced to take a €500 million charge in its fine chemicals business unit as it copes with the current adverse operating environment.
Of this, €250 million is for goodwill from mergers and acquisitions and the balance is for other intangible assets, according to the group.
The charge comes alongside a complete restructuring of the division, which will see its pharmaceuticals activities, along with catalysts, grouped into a new Exclusive Synthesis and Catalysts unit.
Explaining the reasoning behind the move, Degussa's chairman, Prof Utz-Hellmuth Felcht, said that it was necessary due to the high level of integration of new businesses into the group recently.
"Over the past two years, Degussa has swiftly combined the fine chemicals operations of Hüls, SKW Trostberg, the old Degussa and Laporte at a total of 19 locations worldwide into functioning units. At the same time, the catalysts and initiators activities of Laporte and Degussa have been integrated," noted the company in a statement.
The process will not only provide better focused groups to serve Degussa's customers but will also improve the profitability of the units, it added.
The other units within fine and industrial chemicals are now: Building Blocks (agrochemicals & intermediates, standard & performance intermediates and chlor alkali chemicals); Peroxygen Chemicals (initiators, active oxygen and CyPlus); Performance Materials; C4-Chemistry; and Feed Additives.
