21 March 2003
IMPACT OF FINAL US ENVIRONMENTAL PROTECTION AGENCY RULING ON CCA
Staines, UK, 21 March, 2003 - Elementis plc (London Stock Exchange, ELM) notes
the press advisory released by the US Environmental Protection Agency (EPA) on
20 March, 2003, regarding the use of chromated copper arsenate ('CCA') for wood
As expected, the EPA has confirmed the withdrawal of registration for the use of
CCA's for most residential uses, but has reduced the scope of the ban so that
agricultural and permanent foundation applications will now not be affected.
Elementis Chromium supplies chromic acid, which is used in the manufacture of
CCA and acts primarily as a binding agent.
Elementis now expects that, as a result of this ruling, Elementis Chromium's
global sales of chromium chemicals will be less affected than previously
anticipated. It is currently estimated that sales of chromium chemicals could
be affected by around 12 per cent in 2004, representing approximately 4.5 per
cent of total Elementis plc sales.
In order to create a viable low cost manufacturing capability in the changed
market environment that this ruling would create, Elementis acquired the
chromium chemicals business of OxyChem, a US producer, in December 2002.
Following this acquisition, rationalisation of the Elementis Chromium facilities
was undertaken, which is expected to achieve annualised savings in excess of £13
million, with at least half of that amount expected to be achieved in 2003.
The EPA's ruling can be viewed at: http://www.epa.gov/pesticides/factsheets/
Tel: +44 (0)1784 224212
Geoff Gaywood Chief Executive
Brian Taylorson Finance Director
Hilary Reid Evans Head of Corporate Communications
Tel: +44(0)20 7404 5959
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