Düsseldorf (ots-PRNewswire) - The German Henkel Group and the ENAD
Group, Algeria, formed a joint venture in the field of detergents,
Henkel ENAD Algérie (HEA).
This agreement is the outcome of two years of negotiations during
which ENAD organised an international bidding with a view to choosing
a partner for the privatisation of their detergents activity.
In December 1999, Henkel was selected as the joint venture partner
and a letter of intent on the partnership agreement was signed.
The joint venture company, HEA, has the ownership of the ISIS
brand and of the two factories, one in Ain Témouchent, the other in
Reghaia. The turnover figure of HEA will be approximately EUR 121 Mio
(8 billion dinars). Henkel shall own 60% of the capital and ENAD 40%.
The partnership is estimated to have a value of EUR 92 Mio (6 billion
dinars). Henkel's contribution for the initial participation is EUR
50 Mio (3.6 billion dinars).
The agreement includes the technical upgrading and the
rehabilitation of the production tools of the two factories over a
three-year period, as well as the subcontracting of the production of
detergents in the other ENAD premises for the account of the
partnership. The integration of a third site after an 18-month period
into the joint venture has also been agreed. Henkel has agreed to
maintain the whole of the personnel concerned in the joint venture.
Henkel France is responsible for the negotiations and is carrying
out the acquisition of the shares in HEA. A team of managers made up
of executives of the Henkel Group and of Algerian managers has been
Henkel considers the creation of this joint venture to be a
strategic step in the development, with Algeria as a base, of the
Group's activities in the Maghreb, notably in the field of detergents
as a first step and then in the other branches of the Group as a
ENAD is an industrial group whose shareholding is 100% managed by
the Algerian State. In 1999, the detergents sector of ENAD achieved a
turnover of approximately EUR 137 Mio (9 billion Algerian dinars).
In 1999 Henkel achieved sales worth _11.4 billion and employed
56,300 people in 70 countries. Today Henkel is the world number one
in adhesives, surface technologies, specialty chemicals and
industrial hygiene, as well as Europe's biggest producer of
detergents and household cleaners, and holds a top-ten position in
the cosmetics and toiletries sector. For more information about
Henkel, visit the Company's Web site at www.henkel.com
Henkel is a worldwide operating specialist in adhesives,
brand-name products and in industrial specialties with affiliates in
over 70 countries. Henkel is the number one producer of Adhesives,
Surface Technologies and Industrial and Institutional Hygiene
(jointly with Ecolab Inc.) on a worldwide scale. In Detergents it
ranks second in Continental Europe and in Cosmetics Henkel holds the
number three position in Europe. Cognis, the recently carved-out
chemicals business is the world's leading producer of Oleochemicals.
With over 56,600 employees, Henkel generated sales of 3 billion
Euro in the first quarter 2000, 12.9 percent up on the same period
last year. Operating profit increased by 17.6 percent to 207 million
ots Originaltext: Henkel Group
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Original-Content von: Henkel AG & Co. KGaA, übermittelt durch news aktuell