The acquisition of
Watson will strengthen Johnson Matthey's technology
presence in Detroit, the home of the US automobile
industry, which until now has been primarily served
by its North American Technology Centre located in
the Philadelphia area. It will enhance the company's
position as a full service supplier to all its customers
in the US and around the world.
Watson will also
provide an important base from which to expand Johnson
Matthey's work on Heavy Duty Diesel emission control
catalysts in the United States. In October 1998 the
US Environmental Protection Agency announced a "pull
ahead" to 2002 of significantly tighter emissions
regulations for Heavy Duty Diesel vehicles that had
originally been scheduled for 2004. This will result
in a new market for emission control catalysts estimated
to be worth approximately $200 million by 2003.
In 1998 Watson achieved
sales of approximately $5 million and operating profits
of just under $1 million.
Commenting on the
acquisition Chris Clark, Chief Executive of Johnson
Matthey said:
" The North American
Heavy Duty Diesel market offers major opportunities
for the further growth of Johnson Matthey's autocatalyst
business. The acquisition of Watson is another step
in the strategic development of our Catalysts and
Chemicals division, providing us with an important
facility from which to develop products for this
new market and, at the same time, improving the high
standard of service that we provide to our global
customers."
Neil Carson, Division
Director, added:
"This acquisition
not only brings Johnson Matthey a well established
business but also provides fast track access to heavy
Duty Diesel testing facilities in the US. This will
be critical as this important new market emerges
over the next few years."
