Rhodia Will Shed Isocyanates Business

Wrapping up a portfolio restructuring, Rhodia will sell its isocyanates business to Sweden's Perstorp. The sale is being negotiated by Rhodia and LyondellBasell, partners in the isocyanates business. The deal includes Rhodia's aliphatic isocyanates unit, which produces intermediates for paints and coatings, and Lyondell's aromatic isocyanates business, which makes intermediates for polyurethane foams. Based in Pont de Claix, France, and Freeport, Texas, the operations together employ around 680 people. The sale will be followed by the breakup of Rhodia's organics division. The diphenols business in that division will become part of Rhodia's Silcea business, and the remaining fine organic businesses are under strategic review or have been earmarked for restructuring or closure.