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Degussa Increases Carbon Black Production (posted 7/10/07)

July 10, 2007
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Degussa GmbH has doubled its production plant capacity for carbon black in Paulinia, Brazil, to 100,000 tons per year.

Degussa GmbH, a subsidiary of the RAG Group, has doubled its production plant capacity for carbon black in Paulinia, Brazil, to 100,000 tons per year. With this capacity expansion, Degussa is reportedly augmenting its position as the world’s second-largest manufacturer of carbon black (approximately 1.4 million tons per year). Brazil is a core market for the Advanced Fillers & Pigments Business Unit, which is responsible within Degussa for global business with rubber additives and carbon black pigments. In the Brazilian market, around 90% of the demand for carbon black comes from the tire and technical rubber articles industry, while 10% is used as pigment in plastics, dyes, enamels and print inks.

“Carbon black is one of the strategic growth areas that we are systematically expanding,” said Klaus Engel, Ph.D., chairman of Degussa’s board of directors. “This capacity enhancement allows us to serve the demand of our customers in the tire and technical rubber products industry even better. We are very optimistic overall regarding future growth in the rubber industry. We are highly equipped to meet this demand with our modern plant in Paulina. We have invested a total of €65 million ($85 million) in Brazil.”

According to Thomas Hermann, head of the Advanced Fillers & Pigments Business Unit, “South America is particularly interesting for the Business Unit as a growth region. The automotive industry, and particularly the tire industry, are growing continuously there, and export volumes are also growing. Many tire manufacturers even export most of their production, particularly to the North American market. To this extent, we regard this region, along with Asia, as the focus of our investment activities.”

Degussa’s website is located at www.degussa.de.

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