Plans to Sell California Chemical PlantAP , Associated Press
Nov. 11, 1986 10:59 AM ET
WASHINGTON (AP) _ Rohm and Haas Co. of Philadelphia said today it will sell a California chemical plant that it purchased two years ago in order to satisfy antitrust concerns contained in a lawsuit filed by the Justice Department.
The government sued the company Monday in U.S. District Court in Washington, D.C., saying the firm's purchase of a California chemical plant in 1984 may substantially reduce competition for a specialty product used in water treatment.
According to documents filed in court, the company has agreed to divest itself of the plant in Redwood City, Calif., which it acquired from Duolite International Inc., a subsidiary of Diamond Shamrock Corp. A proposed consent decree was submitted to the court at the same time the lawsuit was filed.
Duolite and Rohm and Haas both produce ion exchange resins, which are small, solid synthetic resin beads used in industrial and home water treatment equipment. The beads combine with pollutants and replace them with harmless elements carried on the beads.
A statement issued today by Rohm and Haas vice chairman J. Lawrence Wilson said that the company was in the process of shutting down the Redwood City plant anyway and that the ''proposed settlement seems like a good way'' to end the Justice Department investigation.
Rohm and Haas spokeswoman Laura Hadden said that the resins can be made more economically at other plants in the United States and overseas.
Rohm and Haas also purchased Duolite France and a plant in Wales that had given Duolite a No. 2 ranking in worldwide sales, behind Rohm and Haas.
According to the Justice Department, the year before the acquisition of Duolite, Rohm and Haas was the nation's leading producer of ion exchange resins, with 35 percent of U.S. sales. Duolite was the third-largest, with 16 percent.