Rhein Chemie

Rhein Chemie forges ahead with the realignment of its US business – Investments in technical equipment and specialist personnel continue at the Chardon, Ohio site

Rhein Chemie forges ahead with the realignment of its US business – Investments in technical equipment and specialist personnel continue at the Chardon, Ohio site

Tuesday, 09. May 2006 Rhein Chemie Corporation, a wholly owned subsidiary of chemicals company LANXESS Corporation and a supplier of products and services for the polymer and chemical processing industries, announced further steps in the realignment of its business, which includes the expansion of its U.S. production facilities and continued investment in expert personnel.

Chardon, OH Rhein Chemie Corporation, a wholly owned subsidiary of chemicals company LANXESS Corporation and a supplier of products and services for the polymer and chemical processing industries, announced further steps in the realignment of its business, which includes the expansion of its U.S. production facilities and continued investment in expert personnel. The company’s application technology laboratory in Chardon, Ohio, is expanding with new equipment investments to meet the specialized needs of its innovative customers. This follows Rhein Chemie’s decision late last year to consolidate U.S. manufacturing operations in Chardon.

Not only do we want to offer all services from one location, says Rhein Chemie Corporation President Ed Klavin we want to ensure high-quality services that our customers require.

The new lab will meet these needs by allowing Rhein Chemie to compound batches for customers and provide them with physical data comparisons. The lab will also provide the capabilities to press-cure tensile slabs, perform mold flow studies, conduct compression set testing and tensile testing, test for Mooney, and test for scorch and rheometer data (both MDR and ODR).

The company is also adding a new dynamic mechanical analyzer (DMA) to its impressive list of equipment. The DMA measures rheological properties of various materials –including rubber and plastics thereby offering significant benefits to Rhein Chemie’s tire, anti-vibration and belting customers.

The investments in the Chardon lab are only one example of Rhein Chemie’s commitment to providing top-grade specialties and technical service. The company is also distancing itself from the industrial trends of increased product standardization and reduced services.

This approach only considers the short-term cost effects, Klavin explains. Our focus needs to be the long-term success of innovation-driven specialty products and applications.

The company understands the importance of developing and maintaining highly technically qualified employees as part of this strategy. Rhein Chemie has supported the Ferris State University trainee program for several years. This year the company plans to hire three trainees, who as part of a rigorous training program will become acquainted with the practical requirements of rubber technology, and therefore develop a solid foundation on which to build their careers at Rhein Chemie. Tim Higgins, application technologist at Rhein Chemie Corporation, sees great benefits for these students. Our trainees are involved in daily business from the very beginning. As a result, they can see problem-solving processes take place at a high technical level. Tim speaks from experience. He took part in the program in 2002 before beginning his career at Rhein Chemie.

Scott Zemanek has been tapped to lead the technical efforts of Rhein Chemie Corporation’s rubber business. Zemanek brings numerous years of industrial rubber experience to help Rhein Chemie continue its development of expert applications assistance for customers.

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 1,000 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.

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, synthetic rubber and rubber chemicals, leather, textile processing chemicals, material protection products and water treatment products.

Chardon, 09. May 2006
bit (2006-05-903EN)

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.