Cookson Assesses Potential Refractories Unit Demerger

Cookson Group plc has announced that it is considering a potential de-merger or separation of its two main divisions, Engineering Ceramics (refractories) and Performance Materials (speciality chemicals). In its interim management statement released in May, Cookson said it would initiate a strategic review of its portfolio over the next few months. Options include a potential de-merger or separation of Cookson's main divisions, which includes Engineering Ceramics, home of leading refractories producer Vesuvius International and foundry additives supplier Foseco. An initial analysis of costs by Cookson suggests that the likely up front, one-off cash costs on any separation would be in the range of £50-70/M.