Degussa Creates New Business Unit

DUSSELDORF, Germany--Degussa AG disbanded its Health & Nutrition Division effective April 1. The units that make up the division--Flavors & Fruit Systems, BioActives, Feed Additives and Texturant Systems--will be assigned to other divisions.

According to the company, there was a lack of "synergistic potential" between the units, and this move will allow the company to simplify its organization structure still further. The Feed Additives Business Unit will become part of the Fine & Industrial Chemicals Division. Flavors& Fruit Systems, BioActives and Texturant systems will integrate with the Performance Chemicals Division, which will be renamed Performance Materials. The new unit will have sales of approximately $666 million, which is comparable to other Degussa unit sales.

"This concentration of food activities into a single business unit will also improve Degussa's ability to meet market requirements and enable it to serve food industry customers with a broad range of single-source products," the company stated.