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RHODIA plans to close Italian Polyamide Plant
10
Oct '08
Rhodia has presented a plan to improve the competitiveness of its Polyamide businesses in Europe to its European Works Council. The aim of the plan is to help these businesses adapt to changes in the polyamide market, which is expanding rapidly in Eastern Europe, Latin America and Asia but is experiencing slower growth in Western Europe.

The plan presented to the European Works Council proposes to address this challenge by optimizing Rhodia Polyamide's production and research and development resources in Europe. It will involve:

- The closure, by mid-2009, of Rhodia Polyamide's Ceriano facility in Italy, which could affect 212 people.

- Increasing production capacity at the Lyon Belle-Etoile facility in France and the Gorzow facility in Poland.

- Transferring all Rhodia Polyamide's European Research, Development and Applications teams to a single site in Lyon, to enhance their efficiency.

Employee representatives will be consulted about the plan in the coming weeks and Rhodia will do everything possible to help employees whose jobs could be eliminated to find alternative employment.

The plan is part of a broader program to cut Rhodia Polyamide's costs by about €40 million per year by 2010 and will help to strengthen our leadership of the various segments of the polyamide market.

Rhodia Polyamideis Rhodia's fully integrated enterprise focusing on Polyamide 6.6. Its strategy rests on three pillars: development of a highly competitive worldwide position in intermediates & polymers along with fast expansion of its manufacturing footprint in strong growing regions; the development of engineering plastics as a growth engine and a focus on Asia and Brazil as priority regions for growth beyond its European base. InSouth America, Rhodia Polyamide also holds strong positions in phenol and the adiponitrile route, industrial yarns and fibers.

Rhodia

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