Rhodia to construct new high performance Silica plant in China

Shanghai, China, November 16, 2007 – Rhodia today announced its intention to construct a major new plant for the production of high performance silica in China.

The new facility will be located in the city of Qingdao where Rhodia already operates a Silica plant. This world scale plant will focus on producing high performance silica notably used in low rolling resistance tires. These generate more than 5% fuel savings thus reducing emissions of CO2 from vehicles.

Using a modular design to build the plant will enable it to be easily expanded to support this rapidly growing market. A number of Rhodia’s existing major customers are supporting the project. Rhodia already operates seven precipitated silica plants around the world in France, Italy, Venezuela, Brazil, Korea, China and the USA.

“This investment will allow Rhodia to respond to rapidly growing demand in the Asian region,” said Jean-Pierre Clamadieu, CEO of Rhodia, adding “this move fits perfectly within our strategy to develop businesses in which we have a strong and sustainable leadership position and prioritize investment in China.”

President of Rhodia’s Silcea enterprise, Eric Noyrez, commented that “With this new facility, Silcea will reinforce its worldwide leadership in the production of high performance Silica while demonstrating its commitment to respond to increasing customer demand for products which are more environmentally sustainable.”

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