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news.Vertellus Specialties has entered into a share purchase agreement, which makes it the sole owner and operator of Nantong Reilly Chemical Corporation (NRCC), Vertellus' pyridine and picoline production facility, located in Nantong, China.
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NRCC, which was established in 1998, has been operated by Vertellus as a joint venture with the Nantong Acetic Acid Chemical Corporation (NAACC).
Sole control of the facility will allow Vertellus to coordinate its operations within the company’s global production infrastructure in a better way.
The share purchase agreement, which was completed on 30 November 2010 will completely end financial and operational involvement of NAACC.
Vertellus CEO Rich Preziotti said the transaction is an important step in the company’s global growth strategy.
"As our business presence in China has matured, we determined that sole ownership of NRCC would better enable us to meet growing Asian demand for our portfolio of products and chemistries including Vitamin B3 and cyanopyridines," Preziotti said.
Vertellus is expanding its production footprint in Asia with the initiation of the construction of a new 3-cyanopyridine production unit in Nantong.
The investment will increase the Vertellus’ production capacity for nutrition products in the region by 10,000 metric tons and maintain its position as the world’s second largest provider of Vitamin B3 and the largest producer of cyanopyridines, the company said.
Vertellus’ Global Operations group will work to incorporate NRCC as a wholly-owned facility within Vertellus’ manufacturing system, in line with the company’s business strategy and operational goals.