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Solutia to Cease Production in Cologne

Published on November 25, 2009 at 1:23 AM

Solutia Inc. (NYSE: SOA) today announced it will discontinue manufacturing at its plant in Cologne, Germany, effective as soon as practical. Taminco N.V. will acquire certain assets and assume certain contracts and commercial obligations relating to the tetramethylthiuram disulfide (TMTD) and tetraethylthiuram disulfide (TETD) products.

As a part of that transaction, Solutia will continue to produce TMTD and TETD at Cologne for Taminco during a transition period, which is expected to conclude by the end of the first quarter 2010. Solutia will continue to manufacture and provide Perkacit DPTT to customers.

"Due to the emergence of lower cost competition, the TMTD and TETD products manufactured by Solutia at Cologne are no longer competitive on a global scale," said Mike Donnelly, president and general manager, for Solutia's Technical Specialties business. "This decision is consistent with Solutia's strategy to strengthen core businesses that are market leaders with attractive margins and a presence that spans the globe. We will work to ensure the employees impacted by this change are treated fairly, and will help customers transition to a new supply arrangement with Taminco."

Solutia's Technical Specialties segment offers advanced products that meet or exceed rigorous specifications and are distributed through a reliable, global manufacturing and supply system. Its products include specialty fluids and rubber chemicals that improve durability, increase safety and enhance energy efficiency. The service team works closely with customers to constantly improve key performance and quality levels and to anticipate and develop solutions to market challenges.

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