Degussa AG at a glance http://www.degussa.com/en/home.html
Degussa AG is a fundamentally newly formed company operating worldwide and consistently oriented towards high-yield specialty chemicals. As the product of the merger between Degussa-Huls AG and SKW Trostberg AG in February 2001, Degussa is Germany’s third largest chemicals company and the worldwide number one in the field of specialty chemicals. The strengths of Degussa lie in its high-efficiency customized system solutions developed for clients in over 100 countries worldwide.
The roots of Degussa stretch much further back in time: The newly created undertaking combines the specialty chemicals activities of various predecessor companies including Degussa, Huls, SKW Trostberg and Goldschmidt. Today their core competences are organized into the six divisions and 23 business units which together comprise Degussa AG. Their united strengths securely underpin the Group’s vigorous position.
6 divisions :
|Health & Nutrition (Headquarters: Trostberg)|
|：||Flavors & Fruit
|Construction Chemicals (Headquarters: Trostberg)|
|Fine & Industrial Chemicals (Headquarters: Marl)|
Bleaching & Water Chemicals
Catalysts & Initiators
|Performance Chemicals (Headquarters: Marl)|
Oligomers / Silicones
|Coatings & Advanced Fillers (Headquarters: Frankfurt a.M.)|
|Coatings & Colorants
Aerosil & Silanes
Advanced Fillers & Pigments
|Specialty Polymers (Headquarters: Frankfurt a.M.)|
RAG finalises Degussa takeover
RAG's takeover bid to Degussa AG's shareholders is to be finalised. All bid conditions have been met in good time: antitrust authorities had given their go-ahead to the RAG-Degussa deal this past autumn, the Federal Republic of Germany and the State of North Rhine-Westphalia have ratified it and RAG has sold its indirect stake in Ruhrgas to E.ON.
Karl Starzacher, RAG Aktiengesellschaft Chairman, comments:
"This transaction makes the best strategic sense for both RAG and Degussa, and will benefit all parties equally. Degussa will find in RAG a dependable partner, one that views its long-term commitment as an investment in a common future. For its part, RAG will be able to use the Degussa takeover to make significant progress towards realising the group's focused reorientation. In this endeavour, we will continue to build upon our core areas, from coal to chemicals."
All Degussa shareholders whose securities accounts contain Degussa shares submitted for sale (security identification number WKN 540 837) will receive a bid price of EUR 38 per share after the completion of the RAG takeover offer. Completion is tentatively set to take place on 14 February 2003.
RAG Aktiengesellschaft is an industrial group, which operators in the sectors of mining, energy, real estate and chemicals. In 2001 sales totalled EUR15.3bn. The group employed 87,500 staff. RAG which was founded in 1969 under the name of Ruhrkohle AG has transformed itself in recent years into an international mining and technology group. Currently, over 80% of revenues are being generated outside of coal mining.
2002/5/20 E.ON AG
E.ON Acquires Ruhrgas Stake of RAG and Initiates Divestment of Degussa
E.ON AG, Dusseldorf, today concluded an agreement with RAG Aktiengesellschaft, Essen. Together with the acquisition of other stakes agreed earlier, this agreement will give E.ON a majority interest in Ruhrgas AG. At the same time, E.ON will initiate the divestment of Degussa AG, Dusseldorf, as part of its strategy of focusing on the energy business.
E.ON will purchase from RAG an 18.4 percent stake in Ruhrgas, mainly held via Bergemann GmbH. The purchase price amounts to approximately EUR 1.9 billion.
In return, RAG will acquire a majority shareholding in Degussa in two stages:
- In the first stage, RAG will submit a public offer at EUR 38 per Degussa share. Including the dividend of EUR 1.10 for fiscal 2001 (which will be due on May 21), this price is 11.5 percent above the average share price of the past three months. In the framework of this takeover bid, the number of shares that will be sold by E.ON will be such that, after the completion of this process, both companies will hold equal stakes in Degussa. RAG and E.ON will then jointly manage Degussa as equal partners. This will enable E.ON to continue to support Degussa’s ongoing restructuring program. The Chairman of the Supervisory Board will be nominated by RAG.
- In the second stage, RAG will increase its Degussa stake to a majority holding of 50.1 percent by May 31, 2004. E.ON will sell RAG the shares required for this purpose at the same price that was offered in the takeover bid. RAG will then have control over Degussa. Any shares remaining in the hands of E.ON after this step will preferably be floated on the stock market. This will provide an opportunity for Degussa to continue to be an attractive stock for investors.
Good prospects for Degussa
The transaction that has been agreed gives Degussa in the long term a good strategic perspective and a secure business environment. The globally operating specialty chemicals company will be retained in its entirety. In the framework of RAG’s industrial reorientation, Degussa will become a core business area of the RAG Group.
Agreement is subject to antitrust approval
The agreement concluded with RAG will only become effective if the German Ministry of Economics grants the ministerial permit requested by E.ON for taking over a majority shareholding in Ruhrgas. E.ON expects a decision in this matter by mid-July. In addition, the acquisition of Degussa by RAG is also subject to antitrust approval.
Founded in 1969 as a coal mining
enterprise called Ruhrkohle AG, the company's extensive technical
know-how has since been applied extensively to other
mining-related divisions. Today, the value-added chain with
respect to hard coal has been systematically and expertly
realized on a global scale by the RAG Group. The 460 companies
that comprise the RAG Aktiengesellschaft Group offer a broad
range of products and services. At year-end 2001, with holdings
in approximately 240 companies abroad, RAG is engaged in
extensive global activity. As in the previous year also in 2001,
these foreign enterprises accounted for 30 percent of the Group's
In addition to international coal mining and coal trading, the Group's IPP-related construction and operation of power plants abroad have gained in importance. RUTGERS is a market leader in the area of plastics for the electronic industry, while STEAG is Germany's second largest converter of hard coal to electricity. RAG IMMOBILIEN is among the largest real estate companies in the residential and commercial real estate sectors in the German state of North Rhine-Westphalia.
Applying the hard-earned know-how from its coal mining origins to other fields of endeavor, RAG Aktiengesellschaft has evolved into a mulftifaceted international group with a work force approximately 87,500 strong and total annual revenues of more than Euro 15 billion in 2001.
The future beckons for a refocused RAG Group
・ The RAG Group is to strengthen its activities in the three core areas of mining, real estate and chemicals
・ The power generation/gas and plastics business areas will be sold off
As part of a strategic restructuring programme, the RAG Group is to concentrate on the three core areas of domestic and international mining, real estate and chemicals. As a result, the power generation/gas and plastics business areas will have to be relinquished. "Concentrating on these three well-positioned pillars will help us to improve the performance and earnings power of the Group. Domestic bituminous coal mining will remain a core business area within the RAG Group," explained Chairman of the Board Karl Starzacher. Power generation/gas and plastics will no longer form part of RAG's core business areas. "We are convinced that those areas which are to be sold off have far more potential for further development in the hands of new owners for whom the relevant business areas form part of their core business activities," stated Starzacher. RAG will relinquish earnings of approx. EUR 6.3 billion in the medium term and around 17,800 employees will find themselves under new management. The concept proposed by the RAG managerial board was approved by the Supervisory Board the previous evening.
RAG reached a milestone in terms of focussing on high return and strong growth business areas in the middle of February when it purchased a 46.48 percent stake in specialty chemicals company Degussa. RAG will increase this equity stake into a majority holding in Degussa in spring 2004, when it acquires further Degussa shares from E.ON.
As part of its strategic concentration on three pillars, the Group will make further significant changes to its portfolio: RAG will sell off STEAG and the plastics divisions of RUTGERS. Likewise, in the future it is also intended that the power generation/gas business areas of RAG Saarberg be continued in the hands of an alternative operator. All activities which do not fit in with the three-pillar strategy will in future be run as non-core businesses. This will be the case for automotive, merchant wholesaling, as well as the industrial properties held by our subsidiary RAG Real Estate, for example. RAG will be selling off all non-core business activities.
Implementation of the majority of the planned portfolio focusing process should be complete by the end of 2004. The divestiture programme will be implemented swiftly, clearly structured and consistently. The loan of approx. EUR 1.9 billion which was taken up in connection with the Degussa takeover will also be redeemed by the end of 2004.
The portfolio restructuring process will boost long-term economic performance by improving the earnings power of the RAG Group, and will also secure the further expansion of future core businesses. As a result of the portfolio restructuring process RAG will emerge as a focused and value-oriented industrial group concentrating on mining (domestic and international mining, coal trading and mining technology), real estate (residential property, real estate services as well as the development of floor and space projects) and chemicals (including specialty and basic chemicals). "International mining and chemicals offer high potential for growth. In the real estate sector, we possess substantial assets and stable returns. Our new structure as an industrial group based in Nordrhein-Westfalen with a strong international focus puts RAG Aktiengesellschaft in a highly competitive position," said Starzacher.
"However, good results alone do not provide sufficient reason to keep business areas within a Group," continued Starzacher. "Business areas which do not fit into the strategic focus of the RAG Group have more potential for development with another strong partner." The power generation/gas business areas which are due to be sold off have registered good performances over the past few years. STEAG AG has strengthened its profile as an Independent Power Producer (IPP) and reinforced the strong position it has already achieved on the international market. Including the domestic coal-fired power stations, the company has all the necessary prerequisites for a successful future. The same applies to SaarEnergie, SFW (Saar Fernwarme) and Saarferngas, which belong to RAG Saarberg AG. The plastics business area (base materials for electronics, construction plastics and thermosetting plastics) which is also earmarked for sale is in good shape following rigorous restructuring measures and stands to benefit when the economy picks up again. The Rutgers Basic Chemicals area will remain within the RAG Group, which has coal processing synergies with sub-group RAG Coal International.
When selling off its non-core businesses, RAG will analyze which new owners offer the best potential for future development. "We are well aware of our social responsibility towards our employees," explained Starzacher. "A significant aspect of this is to safeguard the interests of staff when a transfer of ownership takes place and to secure their long-term prospects." In line with this, the company reached an agreement with the working group of the workers' councils in the RAG group and the IG BCE (Mining, Chemical and Energy Industrial Union) on the previous evening.
RAG began focussing on its core business areas in 1998. In an initial wave, the number of business areas was reduced from 41 to 21. By 2001, RAG had conducted disinvestments with a turnover volume of EUR 2.7 billion and invested a total of EUR 4.7 billion in remaining core business areas. The aim of this strategy was to focus the Group on a few strong business areas. According to Starzacher: "RAG has been laying the foundations for secure, long-term success since 1998. We will continue to build upon this sound basis in the future."
2003/3/5 PolymerLatex http://www.polymerlatex.com/
Degussa and Bayer sell
PolymerLatex to Soros Private Equity Partners
Degussa AG of Dusseldorf, Germany, and Bayer AG of Leverkusen, Germany, are selling Polymer Latex GmbH & Co. KG, their Marl, Germany-based 50:50 joint venture, to the financial investment company Soros Private Equity Partners. The sales price amounts to approx. Euro 235 million. The transaction is subject to the approval of the relevant antitrust authorities.
The sale is in line with Degussa's strategy to focus on specialty chemicals, which it entered in February 2001 on taking up business. This involved identifying activities that no longer fitted in with its core operations and giving them better possibilities of development within another ownership structure. Along with the intended disposals in its divestment program, now almost completed, these non-core activities included PolymerLatex.
In fiscal 2001, PolymerLatex generated sales of Euro 344 million with about 730 employees. The joint venture, which was founded in 1996 by Degussa and Bayer, produces latex products in the paper, carpet/moulded foam and speciality applications fields, and holds a leading position among latex suppliers. PolymerLatex has been able to expand its leading market position even further over the past few years thanks to significant investments in its five European production sites, and continuous development of customized products.
Soros Private Equity Partners ("Soros") is a global private equity investor which, together with its affiliates, currently manages in excess of US-Dollar 4 billion of equity capital. Soros has announced that it intends to develop PolymerLatex’s operations in the coming years and will consider possible add-on-acquisitions to consolidate its market share.
European Commission clears
Celanese-Degussa oxo alcohols JV
The European Commission has granted clearance under the European Union's Merger Regulation to a proposed joint venture between German chemical producers Celanese and Degussa in the market for oxo chemicals, EC said in a statement Wednesday.
The Commission was initially concerned about the parties' strong position in several of the markets, including the oxo alcohols. But an analysis showed that competitors would be able to keep in check any attempt by the venture to raise prices especially in view of the spare capacity in the sector, EC said.
On Dec 18, 2002, EC received a notification according to which Celanese and Degussa would contribute most of their oxo chemicals business to a 50/50 joint venture company, to be called European Oxo Chemicals (EOC). EOC will be active in the production of several oxo chemicals, including butyraldehyde, butanol, 2-ethylhexanol, dioctyl phthalate, butyl acetate, and carboxylic acids.
Nov 26 2002 Celanese AG
Celanese and Degussa complete negotiations on joint venture for C3-oxo chemicals in Europe
Degussa AG of Dusseldorf and Celanese AG, Kronberg, have successfully completed their negotiations to establish a joint venture for propylene-based oxo chemicals in Europe.
Both companies will hold a 50% share in the European joint venture. The joint venture will merge the commercial, technical and operational C3-oxo business activities of Celanese in Oberhausen, Germany, with those of Degussa’s Oxeno subsidiary in Marl, Germany. Oxo chemicals are primarily used as chemical intermediates in solvents and plasticizers.
The integration of both businesses is expected to begin immediately after regulatory clearance by the respective authorities. The companies currently expect the joint venture to start up operations during 2003.
On a 2001 pro-forma basis, the new joint venture would have a sales volume of around Euro 410 million and approximately 240 employees. With the creation of the joint venture, both partners will deconsolidate their C3-based oxo businesses.
Celanese AG is a global chemicals company with leading positions in its key products and world class process technology. The Celanese portfolio consists of five main businesses: Acetyl Products, Intermediates, Acetate Products, Technical Polymers Ticona and Performance Products. Celanese generated sales of around Euro 5.1 billion in 2001 and has about 11,700 employees. The company has 30 production plants and five research centers in 11 countries mainly in North America, Europe and Asia. Celanese AG shares are listed on the Frankfurt stock exchange (stock exchange symbol CZZ) and on the New York Stock Exchange (symbol CZ).
Degussa is an entirely newly-formed, multinational corporation consistently aligned to highly profitable specialty chemistry. With sales of Euro 12.9 billion and a workforce of some 53,400, it is Germany's third-largest chemical company and world market leader in specialty chemicals. In fiscal 2001, the corporation generated operating profits (EBITA) of more than ?1 billion. Degussa's core strength lies in highly-effective system solutions tailored to the requirements of its customers in over 100 countries throughout the world. Its activities are led by the vision "Everybody benefits from a Degussa product - every day and everywhere".
Jul 30, 2003 Chemical Week Newswire
Degussa Sells Makroform to Bayer;Methanova to Ineos
Degussa says it has agreed to sell its 45.5% share in polycarbonate (PC) sheeting joint venture Makroform (Darmstadt, Germany) to its partner, Bayer Polymers. Bayer and Degussa subsidiary Rohm (Darmstadt) established Makroform in 2000. Makroform generated sales of Euro100 million ($115.4 million) in 2002. It produces) sheeting using Bayer's PC, resins, as well as pentaerythritol tetranitrate semifinished products. It employs 300 and has production at Darmstadt and Weiterstadt, Germany; Milan; and Tielt, Belgium.
Separately, says Degussa has sold its Methanova (Mainz-Mombach, Germany) subsidiary to Ineos Capital. Methanova produces methanol derivatives, including formaldehyde and paraformaldehyde, used in melamine, phenolic, and urea resins, and has sales of E45 million/year.
September 01, 2003 Degussa
Degussa sells Vitamin B3 Business to Reilly
Degussa AG, Dusseldorf, and
Reilly Industries, Inc., Indianapolis, announce a two-stage
transaction to transfer Degussa’s vitamin B3 business in Antwerp/Belgium
to Reilly’s wholly owned
Belgian subsidiary, Reilly Antwerp N.V. The parties have signed
all contracts necessary to complete both stages of the
transaction and are waiting for final Belgian government approval
to complete the purchase by Reilly. The purchase price will not
be disclosed, by agreement. In 2002 Degussa generated sales in
the double-digit millions euros with this business.
Until approvals can be obtained, Degussa Antwerpen N.V., a wholly owned Degussa subsidiary, will toll manufacture all vitamin B3 products currently made at its Antwerp site exclusively for Reilly. Once the governmental approvals have been received, Reilly and Degussa AG will close the transaction to transfer the assets of the B3 business to Reilly Antwerp N.V. Reilly will be responsible for the business from the date the toll manufacturing begins on September 1st, 2003. Degussa will continue to sell vitamin B3 into the feed market as an agent for Reilly.
Upon completion of both transactions, Reilly will have all assets and know-how necessary for continuing and growing the business. Once this stage of the transaction closes, Reilly Antwerp N.V. will produce the vitamin B3 products at Antwerp with the same 34 experienced staff members currently employed at the facility.
The Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht stated: “Divestment of the B3 business is a logical consequence of our strategic decision to focus our feed additives resources on amino acids for animal nutrition.”
Dr. Hubert Wennemer, President of the Feed Additives Business Unit added: “We are firmly convinced that our B3 activities will continue to develop favorably under Reilly’s management, since they will be part of its core business. This strategic step will simultaneously enable us to continue strengthening our worldwide leadership position in amino acids.”
“This acquisition makes good business sense for several reasons,” said Reilly Chief Executive Officer and President Robert D. McNeeley. “First, it advances Reilly’s position as a major supplier of vitamin B3. With this acquisition we will have the world’s largest capacity for food grade vitamin B3 and we will be the second largest producer of feed grade vitamin B3 as well. Second, as Reilly is the world’s largest supplier of beta picoline, a key raw material for vitamin B3 production, this acquisition fits well with our growth strategy. Finally, it demonstrates Reilly’s commitment to being a world-class supplier of vitamin B3 and its derivatives.”
This transaction will have no direct impact on Reilly’s Indianapolis operations since vitamin B3 production will remain in Antwerp. “In Indianapolis we currently produce raw materials for Degussa’s vitamin B3 business,” said Reilly Vice President Jacqueline Simmons. “It is our intention to continue to make those raw materials in Indianapolis and become a much stronger integrated supplier of vitamin B3.”
Reilly and Degussa have a longstanding relationship since 1982 when both companies formed joint ventures for the production and sale of vitamin B3 in North America and Europe.
Degussa is the only manufacturer to market all three of the important amino acids for animal nutrition DL-methionine, L-lysine (Biolys®) and L-threonine. These amino acids are produced at five sites in four countries. Degussa’s Feed Additives Business Unit sells its products in 100 countries throughout the world and generated sales of - 568 million in fiscal 2002.
Reilly Industries is a leading world producer of specialty chemicals in the B3, pyridine, carbon and esters businesses. It employs 625 people in eight facilities across the United States, Europe and Asia.
Degussa is a multinational corporation consistently aligned to highly profitable specialty chemistry. With sales of 11.8 billion Euro and a workforce of some 48,000, it is Germany’s third-largest chemical company and the world market leader in specialty chemicals. In fiscal year 2002, the group generated operating profits (EBIT) of more than 900 million Euro. Degussa’s core strength lies in highly-effective system solutions that are tailored to the requirements of its customers in over 100 countries throughout the world. Degussa’s activities are led by the vision "Everybody benefits from a Degussa product ? every day and everywhere“.
Degussa enters into research alliance with Korean partner
Targeting the next generation of materials for electronics applications
Dusseldorf, Germany and LG Chem, Ltd., Seoul, Korea, have agreed
strategic research into the next generation of highly functional
materials for electronics and IT applications. The aim is to develop
products and systems solutions for and with the Korean chemicals
company LG Chem.
“Alliances at all stages in the value-added chain - with partners like LG Chem - allow rapid commercialization of scientific knowledge through marketable products and technologies,” explains Dr. Alfred Oberholz, Member of Degussa’s Board of Management and responsible for research and development. In technology-driven markets with rapid innovation cycles it is especially important to start working with customers on the development of new solutions as early as possible.
Innovation and intelligent linking are Degussa’s core competencies. That includes collaborating with customers as well as universities. “Strategic alliances are a key to gaining and main-taining new market positions in the global marketplace,” says Dr. Oberholz. Degussa is planning to step up its research capacity in Asia significantly and Korea is to be integrated into the Group’s global R&D network.
LG Chem, Ltd., is the leading chemicals company in Korea. As part of the LG Group it manufactures a wide range of products, from petrochemicals and high value-added plastics to high-performance industrial materials. It is also expanding its chemical expertise in the field of high-tech materials for electronics and information technology, rechargeable batteries and display materials.
Degussa is a multinational corporation consistently aligned to highly profitable specialty chemistry. In fiscal 2003, its 47,000 employees generated sales of ? 11.4 billion and operating profits (EBIT) of ? 878 million, making it Germany's third-largest chemical company and the global market leader in specialty chemicals. Innovative products and system solutions enable Degussa to play a valuable and indispensable role in the success of its customers, as summed up by our claim “creating essentials”.
November 17, 2004 Degussa 広西チワン族自治区南寧
Degussa’s new China L-Methionine plant completed
The new Degussa
L-Methionine plant was officially inaugurated on Nov. 11, 2004,
at the Nanning
Only-Time Rexim Pharmaceutical Co., Ltd. (NOTR). The plant is
situated in Wuming, Nanning City, capital of Guangxi Zhuang
Autonomous Region, South China.
With the establishment of this plant, Rexim S.A., a 100% subsidiary of the Degussa Group, has “confirmed its strong commitment to the infusion solution industry and all other segments of application,” said Mr. Manfred Mueller, President of Rexim at the inauguration ceremony. Degussa started the production of L-Methionine in the 1980s in Constance, Germany. After closing of the plant in Constance in 2001, Degussa decided to transfer its technology to Wuming and furthermore increase capacity from 250 tpa to 340 tpa. The L-Methionine plant, the world’s largest, will cover more than 50% of the world’s market demand.
NOTR is a joint venture that was founded in 2001 between Nanning Only-Time Pharmaceutical Co., Ltd. and Rexim S.A, France . The first phase of the joint venture was to build an amino acids refining unit with a capacity of 500 tpa, which was inaugurated in Nov. 2003. The new L-Methionine plant is the second phase of the joint venture, which increased the total Degussa investment in Wuming to 35 million Euros.
The plant, operated by the Exclusive Synthesis & Catalyst Business Unit, represents Degussa’s state-of-the-art technology. Running a continuous enzymatic reaction process, the plant will ensure consistency and stability of quality according to Degussa’s high standards. “The new L-Methionine plant opens a new chapter in our book of China operations. We are proud that from now on we will be able to deliver the highest quality materials from here in Wuming,” said Mr. Eric Baden, President of Degussa China.
Degussa (China) Co., Ltd. was founded in November, 2002. It is to unite and expand Degussa’s activities in the China region. Today, Degussa operates in China a total of seventeen companies with production sites in Beijing, Guangzhou, Nanning, Qingdao, Shanghai and Hongkong. In China, Degussa now has a workforce of more than 1,300 employees. In fiscal 2003, the Group generated total sales of Euro280 million in China. Degussa’s mission for China is to become its most committed partner in special chemicals.
Degussa is a multinational corporation consistently aligned to highly profitable specialty chemistry. In fiscal 2003, its 47,000 employees generated sales of Eruo11.4 billion and operating profits (EBIT) of Euro878 million, making it Germany's third-largest chemical company and the global market leader in specialty chemicals. Innovative products and system solutions enable Degussa to play a valuable and indispensable role in the success of its customers, as summed up by our claim “creating essentials”.Contact:
Degussa Signs a Precontract with Jilin University on high performance polymers PEEK and PES
Utz-Hellmuth Felcht, Chairman of the Board of Management of
Degussa AG, signed a precontract with Prof. Zhou Qifeng,
academician President of Jilin吉林
to buy an equity stake of 80% of Changchun Jida High Performance
Materials Co., Ltd. (“Jida New Materials”長春吉大高新材料有限公司), a subsidiary of Jilin
University in Changchun長春, northern China. The
document was signed in the presence of German Chancellor Gerhard
Schroeder and Wen Jiabao, Premier of China温家宝国務院総理. The Degussa Management
Board Chairman is a member of the business delegation that is
accompanying the Chancellor on his current China trip.
The precontract governs the cooperation concerning the two high performance polymers PEEK and PES, both developed by Jilin University. Earlier this year, Degussa already signed a letter of intent with Jida New Materials for the joint development, production and marketing of PEEK and PES. The final joint venture contracts are subject to supervisory board approval.
Felcht commented this deal: "With this successful project we have established a new model for cooperation between German companies and Chinese universities: In this particular case, Jilin University has developed these high-tech materials, while Degussa will utilize its sales, marketing, project management experience and capital resources."
The cooperation with Jilin University will enable Degussa to strengthen its High Performance Polymers Business Unit, which produces specialty polymers as well as high-quality high performance polymers ー some of them unique ー based on polyamide 12 and polybutylenterephthalate.
The high temperature polymers developed by Jilin University will broaden High Performance Polymers' range of these polymers, which mainly find use in automotive engineering, aviation and electronics. This will take High Performance Polymers a further important step forward in positioning itself as a broad supplier of customer-tailored solution systems in the field of polymeric materials. The Business Unit is part of the Specialty Polymers Division, which generated sales of approx. Euro1.3 billion in fiscal 2003.
In 2003, Degussa increased its sales in China by 17 percent to approx. Euro 280 million. The Group currently operates 17 companies in the country and opened a new research and development center in Shanghai this spring. Above and beyond this, the foundation stone for a multi-user site, a location at which Degussa will be setting up the new activities of several business units, was laid at Shanghai Chemical Industry Park (SCIP) early November.
Degussa is a multinational corporation consistently aligned to highly profitable specialty chemistry. In fiscal 2003, its 47,000 employees generated sales of Eruo11.4 billion and operating profits (EBIT) of Euro 878 million, making it Germany's third-largest chemical company and the global market leader in specialty chemicals. Innovative products and system solutions enable Degussa to play a valuable and indispensable role in the success of its customers, as summed up by our claim “creating essentials”.
Degussa acquires all shares of Agroferm from Kyowa Hakko
Dusseldorf, is acquiring all of the shares of Agroferm Hungarian -
Japanese Fermentation Industry Ltd. (“Agroferm”), currently a wholly owned subsidiary of
Kyowa Hakko Kogyo Co., Ltd. (“Kyowa Hakko”), Tokyo. Degussa will also obtain
exclusive rights to Kyowa Hakko‘s intellectual property
for L-lysine, L-threonine, and L-tryptophane in the field of feed
amino acids. Upon finalizing the transaction, Degussa will begin
selling Tryptophan produced by Kyowa Hakko’s subsidiary under a toll manufacturing
agreement. Silence has been agreed on the financial aspects of
the deal. The deal is subject to the approval of the relevant
This transaction will further strengthen Degussa’s activities in the field of essential amino-acids used for animal nutrition. The Hungarian company with sales of approx. EUR 25 million and approx. 160 employees will be integrated into the Business Unit Feed Additives of Degussa as of summer this year. Degussa is the only manufacturer in the world to produce all three of the important animal feed amino acids DL-methionine, L-lysine (BiolysR) and L-threonine. The feed additives are currently manufactured at five locations in four countries, with sales in over 100 countries worldwide. The Business Unit Feed Additives generated sales of EUR 613 million in fiscal 2003 with around 1,000 employees.
The sale of Agroferm to Degussa will allow Kyowa Hakko to further concentrate management resources on pharmaceutical-, food-, and industrial-use amino acids. Kyowa Hakko has for some time scaled back its feed-use amino acid business. At a meeting on April 27, 2004, the Board of Directors of Kyowa Hakko Kogyo Co., Ltd. therefore resolved to sell all of the shares of Agroferm to Degussa.
Degussa is a multinational corporation consistently aligned to highly profitable specialty chemistry. In fiscal 2003, its 47,000 employees generated sales of Euro 11.4 billion and operating profits (EBIT) of Euro 878 million, making it Germany's third-largest chemical company and the global market leader in specialty chemicals. Innovative products and system solutions enable Degussa to play a valuable and indispensable role in the success of its customers, as summed up by our claim “creating essentials”.
デグサ フードイングレデｲエント ビジネスユニット（食品原材料事業）グローバルな食品産業の提携パートナーとして、専門的ノウハウおよび優れたサービスに基づいて、革新的なソリューションをテクスチュアライジング、香料や生物活性の分野で提供します。フルーツ・システムズ事業の売却に関する調整を行い、傘下にあるそれぞれの他事業を加えて、フードイングレデｲエント ビジネスユニットでは、2004年度に4億4100万ユーロの売上を計上しました。当ビジネスユニットは2005年6月30日現在、アメリカとフランスを中心に総計で2,088人の従業員を擁しています。その内、およそ200人は、ドイツで雇用され、ハンブルク、フライジング、トロストベルクおよびボーネンの事業所に勤務しています。
acquires additional know-how in manufacturing polyaryl ether
In a move
to further consolidate its expertise in the area of
high-temperature polymers, Degussa AG, Dusseldorf, is acquiring all the know-how
and patents of Ticona GmbH, Kelsterbach, in the field of polyaryl ether
ketones. Patents and know-how for the
manufacture and use of these polymers had been developed in the
Technical Polymers Division of Hoechst AG in the 1990s and had
been assigned to Ticona when Hoechst spun off its non-pharma
businesses in 1999. With the acquisition, Degussa is combining
the experience gained by the former Hoechst AG from almost ten
years of researching, manufacturing and using polyaryl ether
ketones with the results of 20 years of research by Jilin University,
Changchun, China, along with its own research
This will strengthen Degussa's High Performance Polymers Business Unit, which is preparing for the start of the Chinese joint venture JIDA Degussa High Performance Polymers Changchun Co. Ltd. that was agreed in early June 2005. The joint venture, in which Degussa holds an 80 percent share and Jilin University 20 percent, will produce polyether ether ketones (PEEK*). "The comprehensive know-how and patents that Degussa has now acquired will ensure us successful entry into the technology-driven PEEK* market," states Dr. Joachim Leluschko, the Business Unit's Head. "This package is buying considerable time for High Performance Polymers to start the first developments with customers, as soon as all permits for the start of JIDA Degussa High Performance Polymers Changchun have been obtained."
High Performance Polymers manufactures high-performance polymers based on polyamide 12 and various other specialty polymers. Products from the PEEK* family will enable the business unit to expand its range of products in the attractive segment of high-performance plastics, which need to meet extreme mechanical, thermal, and chemical requirements. As a comprehensive systems supplier for polymer materials Degussa is thus setting its sights in particular on the automotive engineering and electronics end markets, as well as the aerospace industry.
* PEEK is the official ISO 1043 abbreviation for polyether ether ketones.
As the global market leader in specialty chemicals, Degussa uses its innovative products and system solutions to create something indispensable for its customers' success. It's an approach we sum up in our claim of "creating essentials". In fiscal 2004 its 45,000 employees generated sales of 11.2 billion euros, and operating profits (EBIT) of 965 million euros.
November 21, 2005 Degussa
Degussa: New Joint
Venture to Manufacture Rubber Silanes in China
Degussa AG, Dusseldorf, and Rizhao Lanxing Chemical Industry Co., Ltd. (Lanshan-Rizhao日照市嵐山, Shandong Province, People’s Republic of China) have signed an agreement to establish a joint venture for the manufacture of sulfur-functional silanes for rubber applications. This agreement represents a successful conclusion to the negotiations that followed a memorandum of understanding signed by the two companies in July 2005. Degussa will own a 50 percent share in the new joint venture, and Lanxing 40 percent. A financial investor will assume the remaining 10 percent. Degussa is the worldwide leading manufacturer of silanes for rubber applications. Lanxing has been a well-established local manufacturer on the Chinese market since 1998. The new joint venture company will begin operating under the name Degussa Lanxing (Rizhao) Chemical Industrial Co., Ltd., following approval by the responsible bodies, and having obtained all licenses from the Chinese authorities. The company is scheduled to produce sulfur-functional silanes in liquid form and as a blend with carbon black.
Along with silica,
sulfur-functional silanes are used to manufacture high-quality
rubber compounds for use in tires, technical rubber articles, and
sports shoes. In tires, the use of the silica/silane system ー
development by Degussa ー allows a significant reduction in
rolling resistance and therefore a reduction in fuel consumption.
demand for the kind of high-quality rubber silanes produced by
Degussa's Advanced Fillers & Pigments Business Unit is
continually growing ー not least because of the current
fuel prices. Robert Wissner, head of the business unit, explains
the company’s commitment to China: “By building a production plant in
Asia we are supplementing our production facilities in Europe and
the United States, and further expanding our position as world
market leader. Our joint venture facility in China will produce
for our customers from the rubber and tire industries in
Asia/Pacific who need our silanes to manufacture products that
meet international standards."
Together with an increasing production of tires and other rubber products the demand for rubber silanes in China is growing strongly. China has already become the worldwide largest market for truck tires and the third largest for all kinds of tires. Powering this leap in demand is the increased involvement of global automobile manufacturers and big international tire producers, as well as the massive expansion of China’s network of roads and highways.
Degussa, which has been producing specialty chemicals in China since 1988, now has 20 companies in the country, operating production facilities in Beijing, Guangzhou, Nanning, Qingdao, Shanghai and Hong Kong. Its broad spectrum of products ? ranging from carbon blacks, amino acids, polyurethane foam additives, high-performance water treatment chemicals, construction chemicals, and initiators used in the production of plastics ? is aligned to customers not only in China but in the whole of Asia. As parent corporation of the Degussa Group in China, Degussa (China) Co., Ltd., Beijing acts as a holding company for the Group’s activities in China, supporting Degussa’s business units through an efficient and expert platform of services.
Degussa’s Advanced Fillers & Pigments Business Unit is one of the largest producers of carbon black in the world. As a specialist in surface chemistry and surface physics, the business unit concentrates on the production and application of carbon black, performance silicas, matting agents, and functional organo-silanes. The business unit serves a broad clientele, including manufacturers of tires and technical rubber articles, as well as customers from the printing, paint and polymer industries.
As the global market leader in specialty chemicals, Degussa uses its innovative products and system solutions to create something indispensable for its customers’ success. It’s an approach we sum up in our claim of “creating essentials”. In fiscal 2004 its 45,000 employees generated sales of 11,2 billion euros, and operating profits (EBIT) of 965 million euros.
2005/12/15 デグサ ジャパン
ドイツ・デグサ 収益力ある成長に焦点 − 組織の簡素化へ
解消する５事業部に代わって、デグサは２００６年１月から、レポーティングセグメントを導入します。レポーティングセグメントとは、事業部のような独自の体制を持つ組織ではなく、ビジネスモデルならびに戦略上の成功事例など様々な活動の成果を共有する単位です。新たに発足するレポーティングセグメントは４つあり、（１） テクノロジー スペシャリティ、（２） コンストラクション ケミカル、（３） コンシューマー ソリューション、（４） スペシャリティ マテリアルに分かれ、別紙のように、全体で１７あるビジネスユニットを束ねます。
コンシューマー ソリューションは、消費者向け製品および素材用にカスタムメードした原料をグローバルに供給する事業から構成されます。開発段階での協業により、デグサは主要な最終製品メーカーと密接な関係を築いています。スーパーアブゾーバー、ケア＆サーフェス スペシャリティ、飼料添加物のビジネスユニットは全て、このレポートセグメントに組み込まれます。
スペシャリティ マテリアルはデグサのハイパフォーマンスマテリアル事業から成り立ちます。優れた素材、製法と応用技術から、デグサはこの市場においても優位に立っています。これらの製品の多くはメタクリル酸メチル（ＭＭＡ）から製造され、Ｖｅｒｂｕｎｄと呼ばれる統合された製造ネットワークが駆使されています。このセグメントはコーティング原料、ハイパフォーマンスポリマー、メタアクリレート、スペシャリティ アクリリクスのビジネスユニットから構成されます。統合製造ネットワーク、Ｖｅｒｂｕｎｄの高い競争力は、これらの事業が組織的に、製薬ポリマーや光学エレクトロニクスといった特殊分野の応用市場へ進出することを可能にします。
デグサＡＧ ＣＥＯとしてウツ ヘルムート・フェルヒト会長はグループ戦略の責任を担います。ベアンハート・ホフマンはテクノロジー スペシャリティとコンストラクション ケミカルにおける責任者となり、マンフレッド・シュピンドラーはコンシューマー ソリューション、スペシャリティ マテリアルの責任者となります。他の取締役員であるアルフレッド・オーバーホルツ、トーマス・シェーネベルグ、ハインツ ヨアヒム・ワーグナーの権限に大きな変更はありません。
Group）の福建南平信元投資有限公司（Fujian Nanping Xinyuan Investment
DWS）社」で、同社の株式は、デグサが 60 ％、ウェリンクがシリカ事業を共同出資している信元（Xinyuan）社が 40 ％保有します。
DWS 社は中国に3箇所の生産拠点を有し、地域顧客向けにパフォーマンスシリカを供給します。現在は、中国のゴム製造業者が主要顧客となっていますが、DWS 社は今後、特にシリコーンゴムと歯磨き粉事業での成長を見込んでいます。 DWS 社は福建省南平市内に自社研究所を擁し、顧客の特定の需要に合った新製品の開発に取り組んでいます。
新合弁会社の設立により、デグサは世界におけるパフォーマンスシリカ生産のトップメーカーとしてのポジションをさらに強化します。現在デグサは、アジア・太平洋地域においてパフォーマンスシリカ生産のトップの地位を占めており、 5 カ国の 8 製造拠点で年間合計 17 万 5 千トンの生産能力を有しています。
新会社 DWS 社の中国側提携先であるウェリンク グループは、 1994 年にパフォーマンスシリカの生産を開始。今日では中国におけるパフォーマンスシリカ製造のトップ企業となっています。
デグサはカーボンブラック、パフォーマンスシリカ、ゴム用有機シランの全てを供給できる世界唯一のメーカーです（革新的な 3 製品製造システムを提供）。またデグサ グループは中国の顧客に向け、 3箇所の研究開発センターが支援する 5 製造拠点より多様な製品を提供しています。
February 10, 2006 Degussa
Degussa Acquires Superabsorbent Business from Dow
Degussa AG, Dusseldorf,
is acquiring the superabsorbent business of The Dow Chemical
Company, Midland, MI, USA. The Parties agreed not to disclose
financial terms of the transaction. The agreement involves the acquisition of
Dow's superabsorbent facility in Rheinmuenster/Baden-Baden,
toll manufacturing arrangement with Dow's superabsorbent facility
In addition, Degussa and Dow will enter into a long term
agreement for Dow to supply glacial acrylic acid 精製アクリル酸
to Degussa with
opportunities for future growth of this volume over time. Glacial
acrylic acid is the most important raw material used in the
manufacture of superabsorbent polymers. The transaction remains
subject to regulatory approvals.
Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht states: “The arrangement with Dow marks a milestone in the strategic expansion of our superabsorbent business. Over the next few years we intend to adequately participate in the accelerated growth of this attractive market. Moreover, the arrangement allows for further backwards integration.” “The market for superabsorbents has been growing significantly in the recent past. The development in Eastern Europe and Latin America is particularly promising”, adds Gunther Wittmer, President of the Degussa Business Unit Superabsorber.
As part of the agreement, Degussa will gain Dow's worldwide existing superabsorbent business. The acquisition, combined with a debottlenecking at Degussa's facilities in Garyville, LA, Greensboro, NC, as well as capital investments at the new Rheinmuenster facility, will result in a considerable expansion of Degussa's present global superabsorbent manufacturing capacity. The conclusion of the long-term glacial acrylic acid agreement secures upstream integration also for the new capacities in Europe and NAFTA for Degussa. This has become increasingly important in light of fluctuations in the availability of raw material.
Degussa is the market and innovation leader in the superabsorbents market. In 2004 its Business Unit Superabsorber generated sales of 432 million euros with a workforce of around 500. The Business Unit has production facilities in Germany (Krefeld and Marl) and in the USA (Garyville, Greensboro and Deer Park, TX).
Superabsorbents excel through their extreme absorbency and high-capacity fluid storage. They are used in products such as baby diapers and feminine and adult hygiene articles.
Degussa is the global market leader in specialty chemicals. Our innovative products and system solutions make an indispensable contribution to our customers' success. It's an approach it sums up in its claim of "creating essentials". In fiscal 2004 Degussa's 45,000 employees worldwide generated sales of 11.2 billion euros and operating profits (EBIT) of 965 million euros.
Ashland signs agreement
to acquire Degussa water treatment business
Ashland Inc. announced
today that it has signed a definitive agreement to purchase the water treatment
business of Degussa AG, branded under the Stockhausen name, in a transaction valued at
approximately $144 million (120 million euros). Five
manufacturing facilities located in Germany, China, Brazil,
Russia and the United States are included in the transaction. The
Degussa water treatment business posted 2005 sales of nearly $250
“This transaction demonstrates Ashland’s continuing strategy to build shareholder value by expanding our products, services and geographical reach in market segments where we already compete,” said James J. O’Brien, chairman and chief executive officer of Ashland. “Water management is an essential and growing part of the world economy, and the addition of the Degussa water treatment business to Ashland will help us participate in that growth.”
"This acquisition expands our technology base, product line and service levels -- strengths that already distinguish us and that we continue to build upon," said Len Gelosa, senior vice president, Water Technologies, Ashland Specialty Chemical, a division of Ashland Inc. "It also helps us develop our presence in the important BRIC nations (Brazil, Russia, India and China) where the economic future offers significant potential for growth."
The closing, which is anticipated to take place in May 2006, is conditional upon a number of standard closing conditions, including regulatory review.
Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht said, “Our Water Chemicals business is an ideal strategic complement to Ashland’s portfolio. We have passed our business into good hands.”
Ashland Water Technologies, a business of Ashland Specialty Chemical, is a supplier of specialty products and consulting services to the manufacturing and institutional markets through its Drew Industrial business group and a leading supplier to the global marine industry through its Drew Marine business group. Drew Industrial provides industrial, commercial and institutional water treatments, wastewater treatment, pathogen control, paint and coating additives, pulp and paper processing and mining chemistries. Drew Marine provides boiler and cooling water treatments, fuel treatments, welding, refrigeration and sealing products; and fire fighting, safety and rescue products and services.
Ashland Specialty Chemical, a division of Ashland Inc., is a leading, worldwide supplier of specialty chemicals serving industries including adhesives, automotive, composites, metal casting, merchant marine, paint, paper, plastics, watercraft and water treatment. Visit www.ashspec.com to learn more about these operations.
Ashland Inc. is a Fortune 500 chemical and transportation construction company providing products, services and customer solutions throughout the world. To learn more about Ashland, visit www.ashland.com.
Fine Chemicals: Degussa and Lynchem establish a joint venture for exclusive synthesis in China
Degussa AG of Dusseldorf,
Germany, and Lynchem Co., Ltd.(大連緑源), Dalian, Liaoning Province,
China (“Lynchem”), have signed a contract to
establish a joint venture. The goal of the new company is to
enhance Degussa’s and Lynchem’s manufacturing asset base for the
production of custom-manufactured fine chemicals
provide the customer base of Degussa and Lynchem with more
competitive solutions. Degussa (China) Co., Ltd.,
Beijing, an affiliate of Degussa AG, will acquire 51 percent of
remaining 49 percent will be held by the current owners. Closing
of the transaction is expected before the end of 2006, and will
be subject to governmental and antitrust authority approvals. The
new company will operate under the name of Degussa Lynchem
The joint venture will be a cornerstone for the implementation of the Asia strategy of Degussa’s Exclusive Synthesis & Catalysts Business Unit. It will combine Lynchem’s track record in the efficient production of custom-made fine chemicals with Degussa’s strength as a market leader in technology development as well as for good manufacturing practice (GMP) intermediates and active pharmaceutical ingredients (APIs) for the pharmaceutical industry. Degussa will become the first European supplier to implement the concept of horizontal integration in the custom-manufacturing market. This will allow cost competitive manufacturing of on-patent intermediate and API steps, off-patent APIs and other special chemicals in the Chinese joint venture. At the same time, the customers will benefit from Degussa’s extensive portfolio of leading technologies available at its European sites and Degussa’s track record of compliance with all regulatory and intellectual property requirements for on-patent intermediates and APIs.
Degussa Lynchem will be fully integrated into Degussa’s global production infrastructure and marketing network, and will continue the commitment to Lynchem’s existing customers and projects. This will ensure that all customers will be provided with better services and solutions, but served from one key contact.
"This transaction is a decisive step in the continued development of our fine chemicals activities, which represent one of our important core business areas,” states Dr. Alfred Oberholz, Deputy Chairman of the Management Board of Degussa AG. Dr. Rudolf Hanko, Head of Degussa’s Exclusive Synthesis Business Line, remarks: “Customers have been waiting for the opportunity to get the best of both regions from a single supplier. In forming the joint venture with Lynchem we are combining with a leading force in the Chinese custom-manufacturing industry”.
Mr. Yuncai Wang, founder and majority shareholder of Lynchem, comments: “Lynchem has been a pioneer in promoting and developing in China the custom-manufacturing of intermediates and GMP regulated products for the world markets. The partnership with Degussa, well known as a leading player in exclusive synthesis, will result in a competitive advantage for the new joint venture. We are pleased to have attracted such a strong partner.”
Lynchem is a leading Chinese fine chemicals custom-manufacturing company of 1,200 employees with a 50 hectare facility in Dalian/ Liaoning Province and sales of 35 million euros in 2005. The company was established in 1995, has a reactor capacity of more than 800 cubic meters and exports over 95 percent of its products to leading pharmaceutical, agrochemical and other highly specialized customers in Europe, North America and Japan.
With sales of 335 million euros in 2005, Degussa’s Exclusive Synthesis & Catalysts Business Unit focuses on the custom manufacturing of chemical catalysts, advanced pharmaceutical intermediates and active pharmaceutical ingredients. Through its global network of sites and R&D facilities, the business unit offers seamless services ranging from synthesis development on lab-scale to commercial production in its different USFDA approved facilities. It is also a leading supplier of catalytic system solutions, offering a broad portfolio of catalysts as well as all-round services for the life science, fine chemicals, industrial chemicals, intermediates and polymer industries.
Degussa Puts Colorants and Polyesters Plants in Shanghai on Stream - Start of Production in the Shanghai Chemical Industry Park
Degussa AG, Dusseldorf,
recently celebrated the start-up of its new polyesters
and colorants plants at
its multi-user site (MUSC) in Shanghai. On June 12, 2006, Dr.
Alfred Oberholz, Dr. Manfred Spindler, and Dr. Hans-Peter
Schaufler welcomed a large number of guests from the worlds of
politics and business to the Shanghai Chemical Industry Park.
"The start-up of the first production plant at the MUSC
represents a milestone for Degussa. We're systematically
expanding our presence in China's attractive growth market,"
said Dr. Oberholz, deputy chairman of Degussa AG's Management
Board. "We’re happy to now be able to offer
our high-quality products and solutions in China too. These
plants will strengthen Degussa's core business," added Dr.
Spindler, member of the Management Board. Dr. Schaufler, head of
the Coatings & Colorants Business Unit, emphasized the
importance of the MUSC for the Coatings & Colorants Business
Unit. "We attach great importance to a long-term commitment
to China. With this step, our business unit is affirming its
confidence in the dynamic growth of the Chinese market, and is
supporting customers in the region with local production."
The new multi-user site is located in Shanghai Chemical Industry Park (SCIP), on the southern outskirts of the city. The investments are pooled in Degussa Specialty Chemicals (Shanghai), a subsidiary of Degussa's Chinese holding Degussa (China) Co., Ltd. The polyesters and colorants plants of the Coatings & Colorants Business Unit are the first projects at this site.
DYNAPOL coating polyesters of the Polyesters & Adhesive Resins Business Line, which belongs to the business unit, are used mainly in hard, but at the same time flexible, coil and can coating systems. Light- and weather-resistant coil coatings are obtained by combining polyesters with blocked single-component polyester PUR systems (VESTICOAT). For the adhesives industry, the business line offers DYNACOLL copolyesters for moisture-curing systems and the adhesive polyester DYNAPOL S for hot melts.
For both in-plant and point-of-sale tinting (in home improvement stores, for instance), the Colorants Business Line produces and develops high-quality pigment pastes and color tinting systems that can be adjusted with extreme accuracy and are aimed particularly at the paints, coatings, and related industries. Thanks to high-grade pigment pastes, colors of paints and coatings can be adjusted as desired with high accuracy and reproducibility. For the decorative coatings market, pigment pastes of the COLORTREND brand name represent an international standard for tinting of architectural paints and DIY coatings, while CHROMA-CHEM pigment pastes optimize the coloring of industrial paints and coatings.
Degussa is the global market leader in specialty chemicals. Our business is creating essentials ? innovative products and system solutions that make indispensable contributions to our customers’ success. In fiscal 2005 around 44,000 employees worldwide generated sales of 11.8 billion euros and operating profits (EBIT) of 940 million euros.
July 12, 2007 Degussa
New PMMA Plant of Degussa and Forhouse Goes Onstream in Taiwan - Growth market PMMA Molding Compounds for flat-panel displays
RAG subsidiary Degussa
GmbH today started up a new production facility for PMMA (polymethyl
methacrylate) molding compounds in Taichung, Taiwan, together with its joint venture
partner Forhouse Corporation 輔祥実業. Degussa holds a 51
percent share and Forhouse a 49 percent share in the joint venture
Degussa Forhouse Optical Polymers Corporation, launched in
January 2006. The construction project for the new plant, which
manufactures high-quality PMMA for optical
applications in flat-panel displays was implemented quickly after a
short planning phase.
"The Asian market for PMMA molding compounds is very attractive. Through our strategic partnership with Forhouse and by starting up the new facility, we have done a lot to strengthen our position with PMMA molding compounds in Asia and are expanding our global position as a leading supplier of PMMA," Dr. Klaus Engel, Chairman of the Managing Board of Degussa GmbH, said at the inauguration.
"Global demand for our high-quality PMMA molding compounds is set to rise significantly in the next few years," added Gregor Hetzke, President of the Methacrylates Business Unit. "The market for liquid-crystal flat-panel displays is currently expanding at an annual rate of more than 10 percent. The new production facility enables us to serve this growing market from our local site.“
The plant will have an initial annual capacity of some 40,000 metric tonnes and is designed for "over the fence" production. Apart from PMMA manufacture, the further processing of lighting modules (backlight units) for flat-panel displays will also be located at this site. The integrated supply chain ensures the continuous supply of the ultra high purity optical-grade material to customers. The PLEXIGLAS® molding compound used to manufacture optical light guides in TFT-LCD (Thin-Film-Transistor Liquid-Crystal Display) flat-panel displays has to meet the most stringent quality requirements to enable perfect illumination of the displays.
"The start-up of the PMMA plant marks a huge advance in our backward integration strategy and the related goal of securing the PMMA supply for our further growth," adds Francis Pan, President of Forhouse. "The plant also helps us achieve our objective of improving our cost position.“
The joint venture unites the core competencies of both partners. Degussa's comprehensive know-how along the entire process chain of methacrylate chemistry enables Forhouse to position itself favorably in the technology-driven markets for optoelectronic devices, through the joint development of innovative products.
Degussa is a leading global manufacturer of PMMA molding compounds, with production facilities in Europe, North America and Asia. With its wide product portfolio for all extrusion and injection-molding applications and its strong applications know how, the Molding Compounds Business Line offers customer-specific solutions for a multitude of demanding applications.
Forhouse is one of Taiwan's leading companies in its field, with substantial expertise in manufacturing and developing lighting modules for flat-panel displays, and operates several production facilities in Taiwan and mainland China. As one of the leading suppliers of back light unit modules, Forhouse possesses excellent knowledge of the market and outstanding technical support skills. In 2006, Forhouse achieved sales of some EUR 492 million with around 6,000 employees. By combining their strengths, the two partners will not only be able to cooperate successfully in their existing business, but also develop innovative products for the expanding market.