Rhein Chemie

Rhein Chemie Corporation’s manufacturing consolidation underway – Announces partner for its lead-based dispersion product line

Rhein Chemie Corporation’s manufacturing consolidation underway – Announces partner for its lead-based dispersion product line

Wednesday, 08. February 2006 Rhein Chemie Corporation, Chardon, Ohio has made its first step in consolidating its manufacturing locations by engaging a domestic partner, Hammond Lead Products, to produce its lead-based polymer dispersion product line. The company announced in August 2005 its plans to consolidate its North American rubber business and close its production facility in Trenton, New Jersey.

Chardon, Ohio – January, 2005 Rhein Chemie Corporation, Chardon, Ohio has made its first step in consolidating its manufacturing locations by engaging a domestic partner, Hammond Lead Products, to produce its lead-based polymer dispersion product line. The company announced in August 2005 its plans to consolidate its North American rubber business and close its production facility in Trenton, New Jersey. Under the new arrangement, Rhein Chemie’s lead-based dispersion products will continue to be produced utilizing the same processes, recipes and equipment that are currently used to manufacture these products in Trenton. The new manufacturing site at Hammond Lead Products’ Pottstown, PA facility, will allow for a seamless transition of supply and rapid approval by customers of the products from the new site. Other benefits of this partnership are expected to include an assured internal supply of lead additives, fully compliant regulatory status of the plant and company, capability for technical, regulatory and environmental support for lead products and financial strength to flourish and grow in today’s volatile price and supply environment.

“We are taking the necessary steps to improve operations, ensure the long-term viability of our businesses in the U.S., and increase our competitiveness going forward,” stated Michael J. Marasch, Vice President Sales and Marketing of Rhein Chemie Corporation regarding the company’s consolidation efforts. “By aligning ourselves with Hammond Lead we are assured of a dependable and captive supply of lead-based additives, and can continue to minimize cost increases and assure timely supply to our customers.”

The transition of the other polymer bound dispersions and products and subsequent closure of the plant will be completed by the end of 2006. Rhein Chemie will retain its warehouse facilities in Trenton. This restructuring and consolidation comes as a result of changing customer demands in the U.S. automotive industry and administrative redundancies.

About LANXESS

LANXESS Corporation was formed when the Bayer Group combined most of its chemical businesses and large segments of its polymer activities. The company began operating as a legal entity in the United States on July 1, 2004. LANXESS Corporation is a member of the German LANXESS-Group that was spun-off from Bayer in January 2005.

The LANXESS-Group manufactures high-quality products in the areas of chemicals, synthetic rubber and plastics. The companies’ portfolio comprises basic and fine chemicals, color pigments, plastics, fibers, synthetic rubber and rubber chemicals, leather, textile processing chemicals, material protection products and water treatment products.

About Rhein Chemie

Rhein Chemie Corporation is a wholly owned subsidiary of LANXESS Corporation, Pittsburgh, PA. Rhein Chemie Corporation is part of the global business unit Rhein Chemie, which is an enterprise in the chemical industry with a history of success spanning over 100 years in the custom additives and services segment. The company with headquarters in Mannheim, Germany employs some 970 people whom each year manufacture and market products for numerous areas of the rubber, lubricant, plastics and polyurethane industries. The company has subsidiaries and production sites in Europe, Asia and North/South America.

Chardon, 08. February 2006
bit (2006-02-901)

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.