NAPERVILLE, Ill., Jan. 28, 2010 (GLOBE NEWSWIRE) -- Nalco (NYSE:NLC), providing essential expertise for water, energy and air, announced today it has signed a joint venture agreement to re-enter the water and process treatment markets of southern Africa. The new entity, Nalco Africa, will be jointly owned with Protea Chemicals, one of Africa’s largest suppliers of industrial chemicals and services. Protea Chemicals is a division of the Omnia Group, a diversified and specialist chemical services company, located in Johannesburg, South Africa.
“We believe southern Africa holds strong growth opportunities,” said Erik Fyrwald, Nalco Chairman and CEO. “The total accessible market in the region is estimated at more than US$400 million per year and is expected to grow significantly over the next 10 years. There is a tremendous immediate opportunity for our air protection services, along with our existing service and process offering. This joint venture provides us with an opportunity to bring our innovations to this market faster.”
Water use and availability are important issues across the region as current United Nations’ projections expect more than two dozen nations in Africa will suffer from water stress by 2025. Nalco’s award-winning, patented 3D TRASAR® cooling water automation technology will help reduce industrial water use. Since its introduction in 2004 3D TRASAR® cooling water technology has saved more than 596 million cubic meters of water for industrial users worldwide.
Increased urbanization and industrialization are also affecting air quality in Africa. Nalco Africa’s Air Protection Technologies will provide cost-effective, engineered solutions for the control of nitrogen and sulfur oxides (NOx /SOx), carbon monoxide, mercury and particulates.
Commenting on the joint venture, Omnia MD, Rod Humphris said: “This joint venture will enable Omnia to assist its clients to significantly reduce their environmental impact using Nalco’s industrial water and process treatment technologies. This partnership with the leading global water and process services company complements our existing chemicals business and demonstrates our continued commitment to growing our business through proactive management of South Africa’s scarce water resources.”
The Boards of Directors of both companies have approved the joint venture subject to meeting the necessary regulatory approvals and conditions, and it is expected to begin operating in the first quarter of 2010.
About Nalco
Nalco is the world’s leading water treatment and process improvement company, delivering significant environmental, social and economic performance benefits to our customers. We help our customers reduce energy, water and other natural resource consumption, enhance air quality, minimize environmental releases and improve productivity and end products while boosting the bottom line. Together our comprehensive solutions contribute to the sustainable development of customer operations. Nalco is a member of the Dow Jones Sustainability World Index. More than 11,500 Nalco employees operate in 130 countries supported by a comprehensive network of manufacturing facilities, sales offices and research centers to serve a broad range of end markets. In 2008, Nalco achieved sales of more than $4.2 billion. For more information visit www.nalco.com.
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About Protea Chemicals
Protea Chemicals is the Chemical Division of the Omnia Group, a diversified and specialist chemical services company, a well known manufacturer and distributor of specialty, functional and effect chemicals, and polymers in Africa. It has a presence in every sector of the broader chemical distribution market, with an extensive branch network in Africa.
About Omnia
Omnia Group is a diversified, specialist chemical services provider listed as Omnia Holdings Ltd. on the Johannesburg Stock Exchange, with business interests balanced across chemical, mining and agricultural markets. The Group’s business model, which leverages its intellectual capital and technology, differentiates it from commodity chemical companies.
The Group’s three businesses (chemical, mining and agriculture) continue to provide high value, customised solutions built on a continually expanding knowledge base. Omnia’s unique business model places it at the forefront of the chemical services industry and involves matching customer needs to product innovation and application expertise to add extraordinary value to its customers businesses.
For more information visit www.omnia.co.za
This news release includes forward-looking statements, reflecting current analysis and expectations, based on what are believed to be reasonable assumptions. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from those projected, stated or implied, depending on many factors, including, without limitation: ability to generate cash, ability to raise capital, ability to refinance, the result of the pursuit of strategic alternatives, ability to execute work process redesign and reduce costs, ability to execute price increases, business climate, business performance, economic and competitive uncertainties, higher manufacturing costs, reduced level of customer orders, changes in strategies, risks in developing new products and technologies, environmental and safety regulations and clean-up costs, foreign exchange rates, the impact of changes in the regulation or value of pension fund assets and liabilities, changes in generally accepted accounting principles, adverse legal and regulatory developments, including increases in the number or financial exposures of claims, lawsuits, settlements or judgments, or the inability to eliminate or reduce such financial exposures by collecting indemnity payments from insurers, the impact of increased accruals and reserves for such exposures, weather-related factors, and adverse changes in economic and political climates around the world, including terrorism and international hostilities, and other risk factors identified by the Company. Accordingly, there can be no assurance that the Company will meet future results, performance or achievements expressed or implied by such forward-looking statements. This paragraph is included to provide safe harbor for forward-looking statements, which are not generally required to be publicly revised as circumstances change, and which the Company does not intend to update.