Tessenderlo Group withdrawing from glycine business

Belgian chemicals company Tessenderlo Group has announced plans to withdraw from the glycine market by the end of 2010.

Glycine is currently made by a production line based in Tessenderlo, Belgium.

The group cited structural problems on the European market and competition from China as the reasons behind the decision.

During the course of 2010, production operations will be systematically wound down, with the workers affected to be gradually integrated in other units. The phase-out will involve the loss of around 40 jobs but no forced redundancies are being planned.

Tessenderlo Group is the only European producer of glycine, a sweet tasting amino acid that is used in a variety of different applications including pet food, animal feed and pharmaceuticals.

Tessenderlo Group is an international chemicals group with over 100 branches in 20 countries. Consolidated turnover in 2008 totalled EUR2.8 billion (US$4.07 billion) from its three business groups - Chemicals, Plastics Converting and Specialities.