Tessenderlo Group : Tessenderlo Group announces a plan to improve the future performance of its Inorganics sulfates business

 Tessenderlo Group : Tessenderlo Group announces a plan to improve the future
               performance of its Inorganics sulfates business

Tessenderlo Group (NYSE Euronext: TESB) launched in January a plan to  improve 
the future performance of its Business Unit Inorganics. The BRIO-program  aims 
at restoring the competitive position of  the potassium sulfate business in  a 
sustainable manner and to maintain  its global top-3 position. Since  January 
an analysis  was  carried out  to  assess  the improvement  potential  and  to 
identify the financial objectives. Today, the  personnel at the Ham plant  are 
further being informed about the project.

The potassium  sulfate  business  (SOP) fits  within  the  group's  strategy, 
focusing on  agriculture and  food, and  is  a core  activity for  the  group. 
However, the SOP market is changing fast, with increased competitive pressure,
and the BU Inorganics is facing some internal challenges at the same time.

End of 2013, the production of feed  phosphate in Ham will cease, in order  to 
comply with the long term environmental permit, secured in 2008. As from then,
customers for feed phosphates will be  supplied out of the Rotterdam plant  of 
the group (TCR). At the same  time, a broad range of improvement  initiatives 
will be set up in order to  improve the competitive position of the  potassium 
sulfate business.

The BRIO-program aims at a  total financial target of  about 50 million EUR  , 
consisting of taking out stranded cost  related to the phosphate activity  and 
profit improvement initiatives  for the  sulfates business, in  order to  turn 
sulfates into  a  sustainable,  profitable business.  In  the  coming  months, 
details will be worked out in a number of work groups.

Sophie Haan,  BU  Director  Inorganics,  explains:  "These  financial  targets 
confirm that it will be a fundamental change in how we are working today. Our
objectives are ambitious but realistic. Between  120 to 160 employees will  be 
involved during the coming months to  work out the specific initiatives. I  am 
confident that we will succeed. "

The possible impact  of the  BRIO-program will be  clear by  the summer.  Last 
week, an agreement  was made with  the social partners  on job security  until 
December 31 2014.

The group invested 18 million EUR in Ham in the previous years to prepare  the 
site for the stop of the phosphates.  In the 4Q12 results, the group  reported 
that additional environmental provisions have  been established for about  60 
million EUR , on  top of 40 million  EUR announced in 2008  to cover cost  for 
soil remediation in the coming 40 years around the Ham and Tessenderlo plant.

Tessenderlo Chemie Ham employs  about 540 people.  The BU Inorganics  produces 
fertilizers (potassium sulfate) and feed phosphates, exporting its products to
customers globally.  In  potassium sulfate,  Tessenderlo  Group is  the  third 
largest player in  the global  market. Potassium is  one of  the three  major 
essential elements in plant nutrition. Potassium sulfate is especially  suited 
for application  in arid  regions and  for sensitive  crops such  as  grapes, 
tomatoes, citrus fruits.

Tessenderlo  Group  is  a  worldwide  specialty  company,  focused  on   food, 
agriculture, water  management  and  on valorizing  bio-residuals.  The  group 
employs about 7,000  people and is  a leader in  most of its  markets, with  a 
consolidated revenue of  2.1 billion EUR  in 2012. Tessenderlo  Chemie NV  is 
listed on NYSE Eurolist by Euronext Brussels  and is part of Next 150 and  BEL 
Mid indices. Financial News  wires: Bloomberg: TESB BB  - Reuters: TesBt.BR  - 
Datastream: B:Tes

Media Relations       Investor Relations
Kathleen IWENS        Philip LUDWIG
( +32 (0) 478 664 555 ( +32 (0) 499 418 891

This press release is available in Dutch, French and English on the corporate
website www.tessenderlogroup.com - under 'News & Media'

To read the full press release in English, click here
Pour lire le communiqué de presse complet en Français, cliquez ici
Hier kan je het volledige bericht in het Nederlands lezen


This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: Tessenderlo Group via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.