Degussa signs further cooperation agreement with Shanghai Chemical Industry Park

Dusseldorf (ots) -

Embargoed until September 14, 1 p.m.

Degussa, the world's leading specialty chemicals company, and
Shanghai Chemical Industry Park Development Ltd., (SCIP) today
concluded a further major cooperation agreement in Berlin. The
contract was signed by Degussa Management Board Member Dr. Manfred
Spindler and the President of SCIP Yanhua Ruan, in the presence of
the Federal Chancellor Dr. Angela Merkel and the Chinese Prime
Minister Wen Jia Bao.

This new cooperation agreement consolidates and expands Degussa's
collaboration with SCIP. Two years ago the partners signed an initial
cooperation agreement. The specialty chemicals company has since
brought production facilities for polyester and colorants on stream
at its multi-user site (MUSC). MUSC is a site where the new
activities of several of Degussa's business units are established.

The signing of the agreement today was occasioned by Degussa's
planned expansion of its multi-user site, which will include the
construction of a large integrated production complex for
PLEXIGLAS(r) specialties and the corresponding intermediate, methyl
methacrylate (MMA).

Plans are for an MMA facility with an annual capacity of 100,000
tonnes, which will practically all be processed into highly-refined
methacrylate specialties and polymers. This world scale facility is
scheduled to come on stream at the beginning of 2009, and will
involve a total investment volume over the next few years in the
region of three-digit million euros. The plans for an MMA facility in
China underscore Degussa's global growth strategy in this market,
consolidating its position as one of the world's leading
manufacturers of methacrylates. These are components used in a wide
variety of products, such as scratch-proof paints, top-quality
adhesives, modern interior trims for cars and numerous plastics
applications.

Degussa regards China as one of the driving forces of the global
economy, and therefore intends to increase its business in this
attractive growth region to around 800 million euros within three
years. Degussa's wide range of products already include carbon black,
rubber silanes, amino acids, polyurethane foam additives, coating
polyesters, pigment pastes, color tinting systems, high-performance
plastics and initiators for plastics manufacture. These products
cater for customers not only in China but in the whole of Asia as
well.

In fiscal 2005, some 2,600 employees in China generated total
sales of more than 320 million euros. In the first half of 2006
Degussa increased its sales in China by more than 50 percent over the
same period of the previous year.

Degussa 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