Expansion: Degussa Expands Silane Capacity-New Production Plant for Solar Silicon

Dusseldorf (ots) - Degussa AG, Dusseldorf, is significantly
expanding its silane capacity with the construction of a monosilane
plant in Rheinfelden, Germany. In a parallel project, Joint Solar
Silicon GmbH & Co. KG (JSSI), Freiberg, a joint venture of Degussa AG
(51 percent) and SolarWorld AG, Bonn, will be building a production
plant-also in Rheinfelden-for manufacturing solar silicon from
monosilane. The plant will be based on a proprietary manufacturing
process that allows inexpensive industrial production of solar
silicon from silane gas. Production will begin in 2008 starting with
an annual capacity of 850 metric tons of solar silicon. The
investment volume will range in the double-digit millions of euros.

With the currently announced JSSI construction project, Degussa
and SolarWorld are broadening the partnership they began in 2002. In
addition, the partners have concluded a ten-year supply agreement for
the solar silicon manufactured in Rheinfelden. A pilot plant for
production of solar silicon commenced operation in Rheinfelden last
year. The knowledge gained through this plant is now being used in
industrial production.

In the ongoing international demand for solar energy products,
Degussa and SolarWorld see good opportunities for the new and now
application-ready technology developed by their joint venture JSSI in
cooperation with leading universities. According to Dr. Dietmar
Wewers, head of Degussa's Silanes Business Line and chairman of the
JSSI supervisory board , the cooperation also "offers Degussa the
opportunity to supply and develop suitable products from its broad
range of silane raw materials for the manufacture of polycrystalline
solar silicon."

Solar silicon is the most important raw material for the solar
industry. "Currently," explains JSSI managing director Dr. Raymund
Sonnenschein, "growth in the solar industry is restrained due to a
shortage of raw materials." He adds that the new production facility
will bring Joint Solar Silicon significantly closer to its goal of
satisfying this demand bottleneck, and supplying the SolarWorld
Group-and, later, the global industry-with high-quality and
cost-effective solar silicon.

As a leading producer of fumed silicas and other metal oxides,
marketed under the AEROSIL(R) brand name, Degussa has production
sites in Rheinfelden and Leverkusen (Germany), Antwerp (Belgium),
Roussillon (France), and also in the U.S. in Mobile (Alabama) and
Waterford (New York). The Asian region is supplied by Yokkaichi
(Japan) and Map Ta Phut (Thailand).

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:
Michael. H. Hoffmann
S-COM
T +49-69-218-3583
F +49-69-218-3849
michael.hoffmann@degussa.com