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Elementis PLC (ELM)

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Friday 26 June, 2009

Elementis PLC

Elementis plc - pre-close trading statement





Elementis plc, a global specialty  chemicals company, today issues  a
trading update ahead of its interim results for the half year  ending
June 30, 2009, which will be announced on August 3, 2009.

Trading patterns for the  second quarter of the  year appear to  have
stabilized, following the significant drop in sales volume at the end
of last year.

In Specialty  Products, sales  volumes for  the second  quarter  have
shown modest improvement over the  first quarter, when sales  volumes
were down by  33 per cent  compared to the  previous year.  Customers
however remain cautious  and are maintaining  conservative levels  of
inventory.  Contribution  margins  and  market  share  have  remained
relatively stable throughout the first half of the year. In Asia, the
integration of Deuchem  continues to progress  well and the  business
has benefited from robust demand in the Chinese domestic market.

In Chromium, trading in  the second quarter has  been similar to  the
first, with sales volumes  down by over 50  per cent compared to  the
previous year.  The  closure  of the  Eaglescliffe,  UK  facility  is
progressing as anticipated.  The site  has operated  at a  relatively
high production rate during  the first half of  the year in order  to
transition the customer  base and efficiently  process the  remaining
raw material ahead of the closure. This, together with some strategic
purchases of chrome ore in the remaining business, will lead to a net
investment in working capital during the first half, a position which
will reverse later in the year.

Consequently, it is anticipated that Specialty Products, Chromium and
the Group will  have a positive  operating profit for  the first  six
months of  2009, before  previously announced  one time  closure  and
over-hedging costs. The  Group is operating  well within its  banking
covenants.

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Enquiries


Elementis                          020 7408 9300
David Dutro, Group Chief Executive
Brian Taylorson, Finance Director



Financial Dynamics                         020 7831 3113
Andrew Dowler
Greg Quine

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