Cognis is pleased to announce plans to construct a new system of boilers at its Cincinnati plant, pending regulatory agencies’ approval. Cognis will invest more than $20 million to provide long-term reliability for serving its customers around the world; to improve its environmental performance; and to renew its commitment to its employees and the community.
As new utility assets, the boilers will operate with lower emissions than existing equipment. “Operating these boilers provides us with fuel flexibility, including the use of naturally renewable bio-fuels. They will allow us to shut down our coal-fired, high-pressure steam boiler, as well as three older units, and are designed to meet or exceed existing and future environmental regulations,” said Bob Squires, Site Operations Director. “A cornerstone of Cognis’ sustainability philosophy is a thoughtful approach to the environment.”
The new fleet of four separate boilers will have the capacity to produce the steam required to operate the plant. As the plant’s primary power source, the new system will increase plant uptime, improving service to customers.
“This business has operated in Cincinnati since 1840, and this investment demonstrates the Company’s commitment to remain part of the local economy,” said Guy Penard, President, Cognis Oleochemicals LLC. “While reliability is the primary driver of our decision, we are delighted to make investments that benefit not only our customers, but our employees and our community.”
Construction on the project is expected to begin sometime in the second half of 2006, following the approvals from the appropriate regulatory authorities.
Cognis’ Cincinnati plant manufactures products made from renewable fats and oils that are used in a variety of industries, such as soaps and detergents, personal care, lubricants, agriculture and adhesives.
Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries. Cognis has dedicated its activities to a high level of sustainability and delivers natural source raw materials and ingredients for food, nutrition and healthcare markets, and the cosmetics, detergents and cleaners industries.
Another main focus is on products for a number of other industries, such as coatings and inks, lubricants, textiles, as well as agriculture and mining. The company holds a 50-percent stake in Cognis Oleochemicals, one of the world’s leading manufacturers of natural-source oleochemical basestocks.
Cognis is owned by private equity funds advised by Permira, GS Capital Partners, and SV Life Sciences. In 2005, Cognis recorded sales of 3.18 billion euros and an Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization and exceptional items) of 356 million euros.
Kathy Bollmer, Manager, Corporate Communications
Rich Wagner, Director, Human Resources & Communications
Cognis Oleochemicals LLC
Source: Cognis-Pressrelease April 26, 2006.