Rhodia expands its production capacity for engineering plastics in Europe

18-Oct-2000

Paris, October 12, 2000 -- Rhodia announced a capital spending program for a total of 23 million euros designed to expand the Group's production capacity for engineering plastics by almost 20% in response to extremely strong growth in demand on the European, North American and Asian markets.

This program involves the reorganization of Rhodia's production sites in France, Italy, and Poland, an increase in its compounding and polyamide polymerization capacity as well as the reallocation of products to the Group's different production facilities in Europe. When this industrial reorganization is complete, each listed product will be manufactured according to its optimum production path in terms of both quality and cost, with each site focusing on its particular area of excellence.

After the launch of TechnylstarTM, a new polyamide derived from Rhodia's patented polymerization and compounding technology that boasts an extremely high degree of fluidity and outstanding levels of performance, the Group signed an agreement this year with GE Polymerland for the worldwide distribution of polyamide engineering plastics, the first phase of which became effective on October 1st, 2000.

Rhodia, one of the world leaders in engineering plastics, is thus continuing to implement its strategy based on innovation and on the expansion of its production capacity. Engineering plastics are used to make parts that must stand up to high operating temperatures in such industries as automobiles and electrical equipment, or high stress, as in sports equipment.

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