OxyChem acquisition

Elementis Chromium acquired OxyChem's North Carolina, US, chromium chemicals business in December 2002. Within three weeks of the acquisition, Elementis Chromium had closed production at its existing Texas facility whilst doubling output in North Carolina to near capacity operation. Synergy benefits have been progressively raised from an originally estimated £10.0 million over two years to £15.0 million, which has mostly been achieved in calendar year 2003. Customer retention at the end of 2003 was close to 100 per cent. Elementis Chromium is now the only producer of primary chromium chemicals in North America and Europe, with a rapidly expanding presence in Asia Pacific.

Our strategy for 2004

• Restore pricing to acceptable level

• Further expand Chinese market position

• Improve Japanese market presence

• Increase sales of the new product range

• Continue to provide product stewardship leadership in the industry