Hydro sells fatty acids firm to Oleon

(Nov. 9, 2001) Norsk Hydro has agreed to sell its wholly-owned fatty acids chemicals company Hydro Oleochemicals to Belgian concern OLEON NV.

Hydro Oleochemicals is one of Europe's largest producers of fatty acids-based chemicals used in the cosmetics industry.

The sale is in line with Hydro's strategy to focus on its three core business areas of Oil and Energy, Light Metals and Agri. The deal is part of Hydro's progressive Agri Turnaround process, which has more than achieved its goals. The sale of Hydro Oleochemicals is one of the last actions to be taken before the process concludes at the end of this year.

Hydro Oleochemicals is located in Sandefjord, Norway, and has a production capacity of some 40,000 tonnes of fatty acids and fatty acid derivatives per year. The company employs 110 people.

OLEON, formerly Atofina, Franco/Belgian petro giant's TotalFinaElf's division for fatty acids chemistry, specializes in transforming vegetable and animal fats and oils into a broad range of high quality/environmentally-friendly fatty acids chemicals. The company is based in Ertvelde, Belgium. It has two plants in Flandern, a sales office in Diegem and six international offices. OLEON's acquisition of Hydro Oleochemicals reflects the company's growth strategy.

The sales agreement, which must now be approved by the appropriate authorities, is set to take effect by the end of the year.