Bloomberg News

Evonik to End China Venture After ‘Irregularities’ Uncovered

April 17, 2012

Evonik Industries AG, the German chemical maker that’s planning a share sale in the first half, will end a joint venture in China after it found “gross irregularities,” spokeswoman Barbara Mueller said.

The German company’s compliance office and internal auditors have been investigating problems at the Evonik Sanzheng Fine Chemicals venture for a year and the responsible employees at the venture have been fired, Mueller said in response to e- mailed questions, without elaborating.

The joint venture partner had asked for a reimbursement of 850,000 euros ($1.11 million), which Evonik refused to pay and the German company doesn’t know what the money was for, Mueller said. Handelsblatt reported earlier today that costs to end the joint venture would be about 25 million euros, citing an internal report. Mueller declined to comment on costs.

To contact the reporter on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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