FMC Corporation and Solutia, Inc. have announced an agreement to form a new company that will include the North American and Brazilian phosphorus chemical operations of both companies. The joint venture hopes to obtain efficiencies through improved raw material supply and by optimizing production, rationalizing plants, and reducing administrative and overhead costs.
FMC operates the world's largest sodium tripolyphosphate plant in Green River, WY, and is the leading supplier of phosphates used in cleaning compounds. Solutia's strengths include a strong position in the food and beverage industry, where phosphorus ingredients are used in a broad range of food products.
The two corporations are currently filing for governmental approval from the United States and Brazil to form the venture. The companies expect to complete the transaction in 1999.
FMC is one of the world's leading producers of chemical and machinery for industry and agriculture. The company divides its businesses into five segments: Energy Systems, Food and Transportation, Agricultural Products, Specialty Chemicals, and Industrial Chemicals.