Pinova to Discontinue its Terpene Specialties Business

Pinova, a business unit of Hercules Incorporated, announced its plan to discontinue its Terpene Specialties business.

Terpene Specialties products are used in aroma and fragrance chemicals utilized in a multitude of household and industrial applications. The exit from this segment is timed to match the normal conclusion of several supply and customer contracts. This plan should be completed by the end of the first quarter of 2006.

"This action is a significant step in restructuring Pinova," stated Kathryn L. Fialkowski, President, Pinova. Pinova is a leader in the resin industry, producing highly differentiated specialty resins for adhesives, construction, personal care, and beverages.

Ms. Fialkowski added, "This was a difficult decision to make. We have had excellent relationships with our customers in the aroma and fragrance industries, but ongoing market conditions (including raw material pricing) have made it extremely difficult to sustain profitability. The elimination of this product stream allows us to concentrate our efforts and expertise on differentiated specialty resins, as well as realign our costs."

Source: Pinova