Rhodia Sheds Isocyanates

Wrapping up its portfolio restructuring, Rhodia will sell its isocyanates business to Sweden's Perstorp. The isocyanates sale is being negotiated by Rhodia and LyondellBasell, joint partners in the isocyanates business.

Included in the sale is Rhodia's aliphatic isocyanates unit, which produces intermediates for industrial 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 divestment will lead to 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.