Global Barium/Strontium Tie-Up

In a major shake-up in the global barium and strontium market, Solvay SA, the world's leading producer through its Solvay Barium Strontium business unit has signed a memorandum of understanding (MOU) to combine several of its key operations with those of the USA's Chemical Products Corp (CPC). Solvay would also serve as CPC's marketing agent in Asia. Solvay will hold 75% of the new venture, according to the MOU, with CPC retaining the balance of 25%. The deal, which wold cover both production and marketing, is subject to negotiation of a definitive agreement, but both companies have tentatively scheduled to launch joint operations in the first half of 2005. Overall, the j-v would have an annual pro forma turnover in excess of Euros 100M.