US chemical curb will hit Elementis

THE US Environmental Protection Agency plans to restrict the use of chromated copper arsenate used to protect timber from weather and rot from 2004, reducing by 30% American demand for chromic acid from Elementis, the world's biggest chromium manufacturer.

The EPA is worried about environmental poisoning caused by the chemical, and Elementis believes this may spread to other countries, hitting global sales by 15% in 2004.

Pre-tax profits slipped to £13.3m in the six months to the end of June from the previous period's £15.1m. Net borrowings are down to £37.1 million from £72.5m.