WACKER and Dow Corning start raw material production at China´s largest integrated silicone site

Joint press release of WACKER and Dow Corning

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Zhangjiagang (euro adhoc) - November 14, 2008 - Today, WACKER Chemie
AG and Dow Corning Corporation officially started production in the
first stage of their new pyrogenic silica and siloxane plants in
Zhangjiagang (China). The new plants are key facilities of an
integrated silicone manufacturing site developed by both companies to
produce materials used extensively in industries including
construction, beauty and personal care, power and automotives. Total
investment from both companies for the site is estimated at
approximately 1.2 billion U.S. dollars. Covering an area of 1 million
square meters, the site located in the Jiangsu Yangtze River Chemical
Industrial Park, Zhangjiagang City, Jiangsu Province, is China´s
largest facility of this kind and among the world´s largest and most
advanced integrated production complexes for silicones.

The combined capacity for siloxane and pyrogenic silica is planned to
be approximately 200,000 metric tons per year. It is expected that
full operational capacity will be phased in by the end of 2010.
Through their Zhangjiagang production complex, WACKER and Dow Corning
intend to serve growing customer demand for silicone materials in
China and throughout the Asian region.

Siloxane and pyrogenic silica are key intermediates for the
manufacturing of finished silicone products. Key application
industries include: construction, automotive, electronics, beauty &
personal care, healthcare, power & utility, solar, textile, and
paper. The new upstream production facilities are jointly operated
by WACKER and Dow Corning. At the site, both companies are also
manufacturing finished silicone products. These production plants are
owned and operated separately with independent marketing and sales by
Dow Corning and WACKER.

During an opening ceremony held in Zhangjiagang today, Dr. Rudolf
Staudigl, President and CEO of Wacker Chemie AG, and Dr. Stephanie
Burns, Chairman, President and CEO of Dow Corning Corporation, both
emphasized the strategic importance of the new facilities. "Today´s
inauguration of our joint production plants for siloxane and
pyrogenic silica marks a key milestone in setting up this world-class
integrated silicone manufacturing site. They enable us to serve our
customers´ needs, to drive the development of the silicone industry
in China, and to contribute to the further development of China´s
circular economy, which is an important part of China's effort toward
sustainable development," Staudigl said.

Dr. Stephanie Burns also commented in her speech: "This is an
exciting day for Dow Corning, for our customers and the people of
China. Throughout China and in many other parts of Asia, we see more
and more manufacturers wanting to use silicones to help them improve
the performance of their own products. Our investment in this site
significantly enhances our ability to meet that need and to help spur
the growth of many key industries in this region. It also
demonstrates our commitment as a company to sustainable development,
using our long history of expertise and technology know-how to create
environmental, economic and social benefits wherever we operate."

The first phase of siloxane and pyrogenic silica production
facilities, which now has been successfully completed, is an
important step toward integrated production loops at the Zhangjiagang
site. The siloxane plant will supply chlorosilane for the production
of pyrogenic silica as raw material, while the pyrogenic silica plant
will send back its by-product hydrogen chloride (HCL) for the
production of siloxane. This integrated production approach not only
plays an important role in reducing emissions, but also helps to
reduce logistical flows. This, in turn means less transportation
traffic, benefitting the local community and improving production
efficiency.

At their integrated Zhangjiagang site, WACKER and Dow Corning apply
global standards to ensure high product quality and bring in
state-of-the-art production processes and technology. This includes
advanced processes for raw material efficiency, a highly energy
efficient design and environmental control technology. These
tried-and-tested technologies have been in use in similar
manufacturing plants in the U.S. and Europe, and have proven to
produce high yields and quality output in a safe and
environmentally-responsible way.

WACKER and Dow Corning are fully committed to sustainable production
in China. Like their other facilities across the world, the
integrated site actively implements the concept of sustainable
development. Its environment, health, safety and security (EHSS)
management system accords with strict international standards. Both
WACKER and Dow Corning are members of the Association of
International Chemical Manufacturers (AICM), China's first
international association to deal with global chemical issues. They
committed to continually improving the performance of EHSS, sharing
best sustainable production practices with their Chinese peers and
providing professional solutions to major issues facing China´s
society.

About Siloxane and Pyrogenic Silica Siloxane is a key starting
material for the production of silicones. Major silicone application
industries include: construction, automotive, electronics, beauty &
personal care, healthcare, coating, power & utility, solar, textile,
and paper. Pyrogenic silica is used as an active filler in silicone
elastomers, as a viscosity-adjusting agent in coatings, printing
inks, adhesives, unsaturated polyester resins and plastisols or as a
flow aid, for example in the cosmetics, pharmaceutical and
food-processing industries.

About WACKER WACKER (www.wacker.com) is a globally operating chemical
company headquartered in Munich, Germany. With a wide range of
state-of-the-art specialty products, WACKER is a leader in numerous
industrial sectors. Its products support countless high-growth
end-user sectors such as photovoltaics, electronics, pharmaceuticals
and household/personal care products. The WACKER Group posted sales
of around EUR 3.78 billion in 2007, of which some 80 percent were
generated outside Germany. WACKER employs around 15,000 people at 27
production sites in Europe, the Americas and Asia, and about 100
sales offices worldwide. Wacker Chemie AG is listed at the Frankfurt
(Germany) Stock Exchange (ISIN: DE000WCH8881).

About Dow Corning Dow Corning (www.dowcorning.com) provides
performance-enhancing solutions to serve the diverse needs of more
than 25,000 customers worldwide. A global leader in silicones,
silicon-based technology and innovation, Dow Corning offers more than
7,000 products and services via the company´s Dow Corning® and
Xiameter® brands. Dow Corning is a joint venture equally owned by The
Dow Chemical Company and Corning, Incorporated. More than half of Dow
Corning´s annual sales are outside the United States.

Note for editors:
Photos are available for download at
http://www.wacker.com/pressreleases

end of announcement euro adhoc
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ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Wacker Chemie AG

Christof Bachmair (Europe and U.S.)

Phone: +49 (0)89 6279 1830

E-Mail: christof.bachmair@wacker.com

Dow Corning Corporation

Karen Heenan-Davies (Europe

Phone: +44 1446 723498

E-mail : karen.heenan_davies@dowcorning.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard