Chemicals firm to implement redundancy programme at Brazil base

Goole-based Croda Europe has announced it will be looking to implement a redundancy programme in Brazil as part of its acquisition of Plant Impact.

In February, chemicals firm Croda Europe announced it had made a £10m cash offer for the entire issue of Harpenden based Plant Impact.

In an update to the markets this morning, the listed firm said: “Croda has identified a specific need to change Plant Impact’s commercial strategy and the route to market in Brazil.  As a consequence, it is intended that there will be a reconfiguration of the sales force together with an associated redundancy programme in relation to Plant Impact’s agricultural sales team in Brazil.

“Following this programme, Plant Impact’s business in Brazil will operate from local offices of the Croda group and the lease on the Plant Impact office in Brazil will not be required and therefore will not be renewed. The net impact of Croda’s integration plans on Plant Impact Brazil is likely to be a reduction of nine roles.

“As part of its broader global activities, Croda remains positive about the prospects for Plant Impact’s business and is continuing to invest resources, time and capital in several areas such as research and development activity aimed at sustainable long-term growth.”

It said that following completion of the offer, it had undertaken an exercise to evaluate the market positioning and strategy of Plant Impact and how best to integrate Plant Impact, its activities and employees into the wider Croda group. “This evaluation exercise is now complete and its findings have necessitated certain changes to the original Stated Intentions in order to best utilise Plant Impact’s technology, skills and wider employee base and position the business effectively to address its end markets in a sustainable way,” said Croda.

“These internal changes will have no impact on existing business, customer service levels or Croda’s fundamental rationale for the acquisition. Overall the integration programme has been positive, with the majority of Plant Impact’s employees being successfully integrated into the wider Croda group, which employs more than 4,300 people globally.”