Degussa Brings New Polyether Facility On-Stream in the USA

13-May-2004
Degussa AG, Dusseldorf, today commenced operation of a new polyether manufacturing facility at the Hopewell, Virginia site. In total, Degussa invested approx. EUR25 million (approx. $30 million US) in Hopewell over the past two years. The new plant has a production capacity of 14,000 metric tons per year. The facility strengthens Degussa's activities in the fields of polyurethane additives, industrial specialties, coating and ink additives and personal care. Degussa Management Board Chairman Prof. Utz-Hellmuth Felcht stated, "The new facility is the latest in a series of strategic investments at the Hopewell site. Together with the new Sales, Marketing and Technology Center, and the new North American Polyurethane Additives Competence Center, we are now able to offer our tailor-made system solutions to NAFTA customers more efficiently throughout North America." In fiscal year 2003, Degussa generated sales in the NAFTA region of around EUR2.6 billion (approx. $3.1 billion US) with more than 6,200 employees. This is the equivalent of 23 percent of the group's global sales. Prof. Hans-Joachim Kollmeier, Division Head Performance Materials, noted, "Degussa now possesses the full vertical range of manufacturing capabilities for specialty siloxanes in the NAFTA region and in Europe. Previously we could offer this only at our Essen, Germany site. This will provide sustained strength to the market position of our two business units Oligomers & silicones and Care Specialties in North America." Degussa supplies innovative products and system solutions from Hopewell to the polyurethane foam industry, the coating and ink industry, the cosmetics industry and to manufacturers of agricultural products. The Hopewell site, a part of Degussa's wholly owned subsidiary Goldschmidt Chemical Corporation, employs approx. 210 people. With the recent investments, an additional 25 jobs are being created. The polyethers being manufactured in Hopewell are key ingredients of surfactants. These surfactants can provide compatibility between oil and water in emulsions, or gases and liquids in foams. In Hopewell, polyethers are produced by polymerization of ethylene oxide and/or propylene oxide, as well as low molecular weight alcohols. They are then chemically bonded with siloxanes which form silicone organic compounds. This enables the properties of both molecular components to be combined, resulting in tailor-made solutions that can be offered to customers in a variety of markets. Polyethers are environmentally friendly and biologically degradable.

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