Press Releases
Cytec
and DSM Announce Termination of Melamine Joint Venture
July 31, 2006
West Paterson, New Jersey, Cytec Industries Inc. (NYSE:CYT) and
Royal DSM N.V. announced today that agreement had been reached
for the early termination of their 50/50 manufacturing joint
venture American Melamine Industries (“AMEL”) as well as the
dismissal of all legal action between the parties concerning
this joint venture.
Upon closing of the transaction, which is expected on August 1,
2006, Cytec will assume 100% ownership of the assets and
liabilities of AMEL and receive $7.4 million (approximately €5.9
million) for releasing all past and future obligations under
various partnership agreements.
David Lilley, Cytec Chairman, President and Chief Executive
Officer stated, “We are pleased to have entered into this latest
agreement with DSM, our long-term partner in melamine
manufacturing. Since being formed in 1986, we have worked
closely with DSM and very much respect their decision to end our
joint venture. We will continue to operate the melamine plant
for both our internal use and sale to third party customers.”
Commenting on Cytec’s earnings, Lilley stated, “The payment to
be received roughly approximates cost reimbursements which we
had expected to receive from DSM from mid-year through year-end
and thus the receipt of this payment does not materially impact
our most recent earnings forecast dated July 20, 2006.”
Jan Zuidam, DSM Deputy Chairman stated, “We are also pleased to
have worked out an amicable agreement with Cytec. We have a long
standing relationship with Cytec encompassing many business
areas and we look forward to continue working with them. It goes
without saying that we will continue to serve our melamine
customers in the Americas in the same way as before from our
other plants in the world.”
Corporate Profiles
Cytec Industries Inc. is a global specialty chemicals and
materials company focused on developing, manufacturing and
selling value-added products with pro-forma sales in 2005 of
approximately $3.2 billion. Our products serve a diverse range
of end markets including aerospace, adhesives, inks, automotive
and industrial coatings, chemical intermediates, mining,
plastics and water treatment. We use our technology and
application development expertise to create chemical and
material solutions that are formulated to perform specific and
important functions in the finished products of our customers.
DSM is active worldwide in nutritional and pharma ingredients,
performance materials and industrial chemicals. The company
creates innovative products and services that help improve the
quality of life. DSM's products are used in a wide range of end
markets and applications such as human and animal nutrition and
health, cosmetics, pharmaceuticals, automotive and transport,
coatings, housing and electrics & electronics (E&E). DSM's
strategy, named Vision 2010 - Building on Strengths, focuses on
accelerating profitable and innovative growth of the company's
specialties portfolio. Market-driven growth, innovation and
increased presence in emerging economies are key drivers of this
strategy. The group has annual sales of over EUR 8 billion and
employs some 22,000 people worldwide. DSM ranks among the global
leaders in many of its fields. The company is headquartered in
the Netherlands, with locations in Europe, Asia, Africa and the
Americas. More information about DSM can be found on www.dsm.com.
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