Rhein Chemie

Rhein Chemie Corporation’s global repositioning strategy shows signs of success – Holds press conference at ACS Rubber Division Meeting

Rhein Chemie Corporation’s global repositioning strategy shows signs of success – Holds press conference at ACS Rubber Division Meeting

Thursday, 19. October 2006 Rhein Chemie Corporation, a wholly owned subsidiary of LANXESS Corporation, reports that its repositioning strategy in the global and U.S. markets to concentrate on innovative service concepts and specialties is beginning to produce positive results.

Chardon, OH – Rhein Chemie Corporation, a wholly owned subsidiary of LANXESS Corporation, reports that its repositioning strategy in the global and U.S. markets to concentrate on innovative service concepts and specialties is beginning to produce positive results.
Rhein Chemie Corporation is undergoing an unprecedented transformation of its business, which involves the consolidation of its U.S. manufacturing operations in Chardon, OH. This process is being guided by a well prepared strategy to position its rubber business as a specialties supplier in order to more effectively meet the demands of the 21st century global economy. The company is in the final stages of its consolidation process with the expectation that the transition will be completed this month – 2 months ahead of schedule. Edward Klavin, President & General Manager for Rhein Chemie Corporation says, “With this bold, yet necessary move, we have stabilized the U.S. operations and improved the overall health of the company.” He went on to say that, “Our business is based on experience and specialized knowledge. This is the main strength of Rhein Chemie. Our chemicals and additives are only a means to an end – our actual product is problem-solving. We sell a service and expertise.”

A further strategic focus for the company will be achieved by expanding the global production capacities for service products. With new production facilities in India and China, the company continues its tremendous growth in Asia and continues to penetrate the more mature markets in Europe. A new plant for batch-ready and specialty products was just commissioned at the company’s headquarters in Mannheim, Germany. The cureblend technology which originated in the U.S. was the foundation by which Batch-Ready® technology was built upon. Mike Marasch, Vice President for Rhein Chemie’s rubber business adds, “We have the products and services to provide solutions for customers to create value. With the consolidation to Chardon, we can be more competitive and profitable. Our investments in new, innovative processes, will keep Rhein Chemie at the top of its game.”

In addition to the new global strategy, other press conference topics included: investments made to strengthen its technological edge; the future outlook for Rhein Chemie, and projects geared to recruit new talent to the rubber industry. To demonstrate its commitment to developing new talent in rubber, Rhein Chemie presented four scholarships to students at Ferris State University.

About Rhein Chemie

Rhein Chemie is a company that has been successfully providing the chemical industry with tailor-made additives and service products for more than 100 years. Approximately 1,000 Rhein Chemie employees produce and sell products worldwide to many segments of the rubber, lubricant, plastics and polyurethane industries. About 550 employees work at the head office in Mannheim-Rheinau. The company has subsidiaries and production facilities in Europe, Asia and North and South America. Rhein Chemie is a wholly-owned subsidiary of the LANXESS Group, Leverkusen.

Cincinnati, 19. October 2006
bit (2006-10-904EN)

Forward-Looking Statements

This news release contains forward-looking statements based on current assumptions and forecasts made by the management of Rhein Chemie Rheinau GmbH. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of our sole stockholder LANXESS Deutschland GmbH and the estimates given here. These factors include those discussed in LANXESS AG’s reports to the Frankfurt Stock Exchange. LANXESS AG and Rhein Chemie Rheinau GmbH assume no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.