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Rhodia Purchases Guar Unit in China/Increases U.S. Guar Production

PARIS - Rhodia has announced the acquisition of the new guar derivatives production unit belonging to the Suzhou HiPro Polymers Co., based in Zhangjiagang, Jiangsu Province, China. The Chinese unit will complement Rhodia’s existing global guar derivatives manufacturing footprint, with production units located in the United States, France and India. This acquisition will enable Rhodia to meet the fast-growing demand for guar–based products in Asia, particularly from the personal care market. The transaction is expected to be finalized in the first quarter of 2011, subject to customary closing conditions.

Rhodia is also investing in its Vernon, TX, facility to increase its guar derivatives production capacity and improve its competitiveness. This additional capacity will help meet increasing global customer demand, in particular in the oilfield, gas, and personal care markets.

Rhodia’s guar-based range, mainly sold under the Jaguar® trade name, is derived from the vegetable and renewable fibers of guar beans. Natural guar-based products are used in the personal care market to provide hair and skin conditioning benefits in shampoo and cleansing products. They are also used as antidrift agents in Rhodia’s patented agrochemical applications and as a thickener in oil and gas extraction.
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