Rhodia Divests North American Textile Chemicals Business To Eastman Chemical

Rhodia Inc. has divested its North American textile chemicals business to two Eastman Chemical Co. subsidiaries, ABCO Industries Inc. and Eastman Chemical Canada Inc. The sale does not involve Rhodia's textile business or technology in other parts of the world. Financial terms of the deal have not been disclosed.

The sale involves the textile chemicals business of Rhodia in North America, including technology, Rhodia's customer list and the leasing of office and laboratory space in Lawrenceville, GA. The business employs approximately 22 people in the United States and Canada, who have been offered employment by the new owner.

"The North American textile chemicals business did not have the critical mass to be a core activity for Rhodia Inc.," said Jack Urick, vice president for Rhodia. "We feel that the business and its employees will be better served by ABCO, which is committed to the North American textiles market."

For more information: Rhodia Inc., Prospect Plains Road, Cranbury NJ 08512, USA. Telephone: 732-821-3614. Fax: 732-951-1057.