Madhvani International (MISA) has announced the signing of an agreement for the acquisition of Rhodia's Phosphates derivative STPP business in Huelva, Spain Nitin Madhvani, the MISA president, recently hailed the acquisition, saying it would have direct bearing on the development of the phosphate deposits in Uganda.

"This transaction will be another significant step to integrate our activities with the development of the phosphate deposits in Uganda, through our subsidiary Nilefos Minerals.

"It will make MISA a significant producer of high-value phosphate-based derivative products with markets in Europe, Middle East, Africa and the Americas," Nitin said.

He said MISA would spend eight million euros (about sh18.8b) in a modernisation programme at the Spanish plant. "The business in Huelva requires considerable investment and modernisation in order to maintain global competitiveness and we are excited by the challenges ahead. The investment is to be implemented within 12 months," he said in a statement.

The acquisition, expected to be completed by March 2007, will be made through Madhvani's associated firm MISA Inc, and will be the second phosphates derivatives unit it has acquired in Europe within the last 12 months.

The plant, located in the port city of Huelva, manufactures sodium-tri-polyphosphates (STPP) for the detergent and food industries and employs 115 people.

Nitin said he was impressed with the dedication and commitment of the work-force, which is "welcome to our worldwide staff community."

He hailed the cordial relationship they have enjoyed with Rhodia.

Nitin assured the employees that the plant would not close.
Last year, MISA acquired Rhodia's inorganic chemicals business in Rieme, Belgium, which has been re-renamed Nilefos Chemie and MISA Eco.

Since then, an investment programme of € 10 million nearing completion, with a further expansion of € 80 million planned for 2007 and 2008.