China: RAG's subsidiary Degussa constructs methacrylate Verbund production

Dusseldorf (ots) - Degussa AG, Dusseldorf, plans to construct a
major Verbund production (integrated production network) in Shanghai
to manufacture methyl methacrylate (MMA) and methacrylate
specialties. The Degussa Supervisory Board has now given the go-ahead
for this facility to be constructed. The investment volume for the
entire plant including all intermediates is around 250 million euros,
making it Degussa's second-largest single investment. The world-scale
facility is scheduled to come on stream in 2009 on completion of the
construction phase, which should last approximately two years.

Dr. Klaus Engel, Chairman of the Board of Management of Degussa AG
and Member of the Board of Management of RAG Aktiengesellschaft,
comments: "The new MMA Verbund facility in China underscores our
global growth strategy. We see an attractive market development in
Asia, and this investment reinforces our position as one of the
world's leading methacrylate producers."

Once all the approvals have been obtained from the Chinese
authorities, Degussa will construct an MMA facility with an annual
capacity of 100,000 tonnes, which will practically all be processed
into highly-refined methacrylate specialties and polymers. These are
components used in a wide variety of products, such as LCD screens,
scratch-proof paints, top-quality adhesives, modern interior trims
for cars and numerous plastics applications.

The facility will be built at Degussa's multi-user site at
Shanghai Chemical Industry Park Development Ltd., (SCIP), where the
world's leading specialty chemicals company has already established
several new operations. In June 2006, for example, a polyester and a
colorants plant came on stream at the site. In view of the upcoming
construction of the MMA Verbund production, Degussa secured SCIP's
collaboration through a further cooperation agreement in September
2006.

Degussa regards China as one of the driving forces of global
economic growth, and as such intends to increase its business in this
attractive growth region to around 800 million euros within three
years. In fiscal year 2005 more than 2,200 employees generated sales
of 275 million euros, based on continuing operations. In the first
nine months of this year Degussa increased its sales in China by more
than 50 percent over the same period the previous year.

Degussa has been producing specialty chemical products in China
since the early nineties, with wide-ranging trading relations already
in place prior to this. The Group now owns more than 18 companies in
the country, with production sites in Anqiu, Changchun, Jining,
Liaoyang, Nanning, Nanping, Qingdao, Rizhao, Shanghai and Yingkou.
Its broad product portfolio - comprising precipitated silica, carbon
blacks, rubber silanes, amino acids, polyurethane foam additives,
coating polyesters, pigment pastes, color tinting systems,
high-performance plastics and initiators for plastics manufacture -
caters for customers in China and throughout the whole of Asia.

Degussa-a wholly owned subsidiary of the RAG Group-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.

Originaltext: Degussa AG
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ISIN: DE0005421903

Contact:
Hannelore Gantzer
Spokeswoman
Corporate Communications
T +49-211-65041-368
F +49-211-65041-527
hannelore.gantzer@degussa.com