Leather chemicals producer loses chief executive
The UK-based speciality chemical company and the world’s largest producer of chromium chemicals, Elementis, has announced the departure of its chief executive, Lyndon Cole.
Jonathan Fry, currently Non-executive Chairman, will temporarily become Executive Chairman until a new Group Chief Executive is appointed. The process to find a new Group Chief Executive is underway.
Speaking to the UK financial press, Mr Fry attributed Mr Cole’s departure to a boardroom rift concerning the company’s plans to retain its independence. He denied it was anything to do with the company’s failed attempt to sell itself earlier in the year, though he admitted that this had been a distraction at a time when trading conditions were especially difficult.
In December, Elementis reported it had received a bid approach from a private equity group. By April, however, it had called a halt to discussions saying that the offer made was not acceptable. Formerly Harrisons & Crosfield, the company is said to face high energy costs in its chromium business and declining demand in its coatings unit.
Elementis is the world's largest producer of chromium chemicals with two major plants, one at Stockton On Tees the north east of England and one in southern Texas, US. For some time, the company’s management is known to have been split over whether or not to sell its leather and pigments division, which is seen by analysts as being too small in a fast-consolidating segment of the market, (See leatherbiz.com story Schroder emerges as main suitor for Henkel).
