Bayer and DuPont to build new PBT polymer plant

12-10-2000: Geneva and Leverkusen- Bayer and DuPont Engineering Polymers recently concluded the signing of a Letter of Intent ( LOI ) concerning the formation of a manufacturing joint venture to build a new 80,000 ton plant to produce polybutylene terephthalate (PBT ) base polymer in Europe. Bayer and DuPont plan to bring the plant on stream early in 2003. The decision on the location for the new plant has not yet been finalised, but it is anticipated that the facility will be built at an existing Bayer or DuPont site. Each partner will continue to process the base polymer into resins and market these products independently. The construction costs of the new facility were not disclosed.

This increase in PBT base polymer capacity is in response to the anticipated growth of the market for PBT resins, estimated at 7-9% per annum -- one of the highest growth rates for engineering polymers. This strategic decision to further invest in the growing PBT market underscores Bayer's and DuPont's confidence in the PBT market and ensures that both companies will have the capacity to meet market demand on a global basis. PBT semi-crystalline resins are characterised by their excellent performance characteristics and ease of processing in demanding automotive, electrical and electronic applications.

Bayer´s Plastics Business Group employs more than 6000 people around the world and generates sales worth more than EUR 3.4 billion. The principle focus of its activities is the production of and marketing of engineering thermoplastics used especially in the automotive, electric and electronic industries. This includes, among others ABS and ABS-blends, SAN, polyester PBT, PET and blends, polyamides as well as thermoplastic polyurethanes and fabricated products.

The DuPont Engineering Polymers business manufactures and sells a broad range of thermoplastic polyesters and polyester elastomers, polyacetals, polyamides, liquid crystal polymers and polyimides. These products serve global markets in the aerospace, appliance, automotive, consumer, electrical, electronic, industrial, sporting goods and many other diversified industries.

Bayer AG announced that due to the planned manufacturing joint venture with DuPont, Bayer will withdraw from a previously announced feasibility study with DSM and Ticona for PBT production.