Recticel has reached an agreement with the Group Strazzante - an industrial group mainly active in the Charlerloi region (Belgium) - on the sale of its remaining car window encapsulation activities in Gilly (Belgium). In principle, the transaction, which is subject to certain conditions precedent, will be finalised before the end of the current year. The transaction encompasses the transfer of the whole workforce to the acquirer, pursuant to the provisons of Collective Labour Agreement 32bis.
With the sale of these activities Recticel is now withdrawing definitively from the car window encapsulation market (Automotive - Exteriors).
After Recticel sold its window encapsulation activities in France and the Czech Republic to Asahi Glass Company (AGC) at the end of 2005, it still maintained a very limited presence in this sector.
Recticel currently provides specific solutions (add-ons, electrical connections, seals) for car window encapsulation from the site of Gilly. This business involves about 100 employees and represents an annual turnover of about EUR 3.7 million. The Group is selling these loss making activities because it considers that they no longer form part of its core business. The cost of the transaction will be recorded in the consolidated results of 2009.