23.05.2000 – 17:26
Detergents Partnership In Algeria
Henkel Forms A Joint Venture With ENAD
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 set up.
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 second step.
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 Euro.
ots Originaltext: Henkel Group
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Original-Content von: Henkel AG & Co. KGaA, übermittelt durch news aktuell