Arkema plans sale of glass fiber reinforced plastic business

Germany“s Fact GmbH is to acquire Arkema“s Pryltex long glass fiber reinforced polypropylene business, the French firm announced on 10 March 2006. Arkema said it had presented a project for the sale…

Germany“s Fact GmbH is to acquire Arkema“s Pryltex long glass fiber reinforced polypropylene business, the French firm announced on 10 March 2006. Arkema said it had presented a project for the sale of the Pryltex business to its Central Works Council on 7 March 2006. If carried out, the plan would mean the closure of Arkema“s long fiber thermoplastics production plant at Dieuze, part of the firm“s Carling facility at Moselle, North-Eastern France. Pryltex is used in the automobile sector for the manufacture of structural and protective parts. Arkema said that the “competitiveness of (its) Dieuze plant is being impaired by too small a production capacity as well as a difficulty in standing out from other suppliers in a highly competitive market. In this context, Arkema decided to sell its LFT activity to Fact.” “The German company is planning to take over 100% of the Pryltex business and to continue the production of Pryltex materials in its newly built plant with a capacity of 20,000 mt/year in Kaiserslautern, Germany,” Arkema said. Progress on the project is subject to the “legal information and consultation procedure involving personnel representative bodies,” the company said.