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[December 2000]

Degussa-Hüls Builds a New Industrial Plant in South America Development of the Strategic Market Position as a World-wide Partner of the Rubber Industry


With the construction of a new industrial carbon black plant in Brazil, Degussa-Hüls AG, Frankfurt am Main, is participating in the increased growth of that country's automobile and rubber industry. One of the most modern industrial carbon black plants in the world is now coming into being in Pauliñia near Sao Paulo. The plant will have a capacity of about 60,000 metric tons of rubber carbon black per year in the first phase of development and will start production at the beginning of 2002. Robert Wissner, head of Advanced Fillers and Pigments at Degussa-Hüls, says, "This way we achieve two goals. First, we are closing the regional gap in Brazil - that is, we can soon supply the Brazilian operations of our global rubber black customers and the local rubber industry. Second, we are participating in the boom in Brazil. For the tire industry alone, serious economists expect a growth in demand for industrial carbon black of 4 to 5% a year."

The new Degussa AG, headquartered in Düsseldorf, will be created from the merger of Degussa-Hüls AG with SKW Trostberg AG. The new enterprise will employ 63,000 persons and will be looking at worldwide sales of about Euro 16 billion and a foreign share of ca 75%. Industrial carbon black is a core business of the new specialty chemical giant. Within the new Degussa, the Advanced Fillers and Pigments Business Unit will belong to the Coatings and Colorants Division.

ENDS


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