French chemical producer Rhodia (F-92512 Boulogne-Billancourt; www.rhodia.com) has agreed to sell its 88.4% stake in Brazil-based polyester producer Rhodia-ster (www.rhodia-ster.com) for an undisclosed sum to Italy´s Mossi & Ghisolfi (M&G, HQ: I-20090 Assago; www.mgpolymers.com). Following regulatory approval, the deal is expected to be finalised on 30 September. With the acquisition and the start-up of a new 275,000 t/y plant at Altamira, Mexico, in the third quarter of 2003, M&G will rise to world´s second largest producer of PET polymer, behind Voridian, with 1.2m t/y of capacity worldwide. Two years ago, the Italian group acquired Shell´s PET business.

Rhodia´s exit from the polyester sector reflects the company´s re-orientation to concentrate on core businesses. Rhodia-ster, with capacity for 200,000 t/y of PET granules and 90,000 t/y of polyester fibres is Brazil´s largest polyester producer. It had sales of EUR 337m in 2001. The company also holds a majority stake in a joint venture with BP, called Rhodiaco Industries Quimicas, which operates a 225,000 t/y production facility for feedstock PTA at Paulinia, Brazil.

The M&G group, which up to now has supplied South America from Altamira, said it sees especially high growth potential for PET resins. In its home market of Italy, M&G is also an important supplier of PET preforms and sheet.