| 07/27/99 |
| Signing of the final agreements and start-up of operations
|
| DYNASOL: STRATEGIC ALLIANCE OF REPSOL-YPF IN THE RUBBER BUSINESS
|
REPSOL-YPF, through its affiliate Repsol
Qu�mica, has signed with the Mexican company GIRSA, an affiliate of DESC, S.A.
de C.V., the Final Agreements corresponding to its 50/50 alliance in the
solution synthetic rubber business. Following the Letter of Intent agreed last
February 1999 between both Companies, this signature creates a new Company,
named DYNASOL Elast�meros, which has already started operations world-wide in
the current month of July 1999, after the closing of the transaction. Repsol Qu�mica contributes with a
production plant at Santander, Spain, with a capacity of 110,000 tonnes a year.
Its main strengths lie in a solid presence throughout the European market,
mostly in the thermoplastic rubber (SBS) sector, and in the new hydrogenated
thermoplastic rubber (SEBS) plant, which came on stream recently. GIRSA�s solution rubber business has been
conducted through its affiliate company INSA (Industrias Negromex, S.A. de
C.V.), with a 90,000 tonne a year production at its plant in Altamira,
Tamaulipas (Mexico). Its main strength resides in an important presence on NAFTA
markets, mostly in SBR rubber specialties. The product portfolio and geographical
market coverage of the two companies complement each other, and this alliance,
that will reach a sales volume of around 200,000 tonnes a year, results in
synergies, which will reinforce the good position they already hold individually
in this sector. Both partners will thus consolidate their strategic goal of
achieving a higher leadership position on a global basis. From the start, this
joint venture will become one of the world�s top three producers of solution
styrene-butadiene specialty rubber, and the second largest producer of
hydrogenated thermoplastic rubber. |