INDIANAPOLIS, Dec. 14, 2010 /PRNewswire/ -- Vertellus Specialties Inc. ("Vertellus" or the "Company") today announced a share purchase agreement the terms of which make it the sole owner and operator of Nantong Reilly Chemical Corporation ("NRCC"), Vertellus' pyridine and picoline production facility located in Nantong, China. Established in 1998, NRCC has been operated by Vertellus as a joint venture with the Nantong Acetic Acid Chemical Corporation ("NAACC"). Sole control of the facility will enable Vertellus to better coordinate its operations within the Company's global production infrastructure. The share purchase agreement was completed on November 30, 2010 and will completely end NAACC's financial and operational involvement.
"We would like to thank NAACC for a successful joint venture that lasted for more than ten years," said Rich Preziotti, Chief Executive Officer of Vertellus. "This transaction is an important step in Vertellus' global growth strategy. As our business presence in China has matured, we determined that sole ownership of NRCC would better enable us to meet growing Asian demand for our portfolio of products and chemistries including Vitamin B3 and cyanopyridines."
Vertellus is currently expanding its production footprint in Asia. Construction began this past summer on a new 3-cyanopyridine production unit in Nantong – the first step of an investment that will increase the Company's production capacity for nutrition products in the region by 10,000 metric tons and maintain its position as the world's second largest provider of Vitamin B3 and the largest producer of cyanopyridines.
"Nantong Reilly Chemical Corporation is one of the most efficient facilities of its kind. It is a leader in operational best practices and has maintained a near perfect safety record since its inception," continued Preziotti.
Vertellus' Global Operations group will work to assimilate NRCC as a wholly-owned facility within Vertellus' manufacturing system, consistent with the Company's business strategy and operational goals. Vertellus plans to retain all employees who were previously employed by the NRCC joint venture.
Further details regarding the transaction are available on the Company's Form 8-K posted on the Company's confidential investor website at www.vertellus.com.
About Vertellus Specialties Inc.
Vertellus is a specialty chemicals company focused on the manufacture of ingredients used in pharmaceuticals, personal care, nutrition, and agriculture markets. Vertellus is the world's largest producer of pyridine and picolines, specialty pyridine derivatives, DEET, castor oil derivatives and systems, and the world's second largest producer of Vitamin B-3 and citrate polymer additives and systems. Vertellus benefits from a technically advanced global manufacturing base, has approximately 700 employees worldwide, and is headquartered in Indianapolis, Indiana. For more information, visit www.vertellus.com.
SOURCE Vertellus Specialties Inc.