Specialty Chemicals are essentials to the F1 Grand Prix and accelerate China’s Automotive Industry’s development

Degussa Creating Essentials for the Automotive Industry

September 13, 2004

With the first ever Chinese Formula One Grand Prix nearing debut, Chinese automotive fans have good cause to celebrate. Although Degussa is not an official sponsor of the Grand Prix, through its chemical innovations it has made its own vital contributions. In order to introduce the invisible essentials Degussa contributes, it has hosted a “Degussa China automotive day” workshop in Shanghai on 13th of September. The workshop highlighted the relationship between the automotive and specialty chemicals industry during this once-in-a-lifetime F1 opportunity. The theme of the event is entitled “Accelerate the Development of the China Automotive Industry - Creating Essentials for the Automotive Industry”. Based on the foundation of “what specialty chemicals contribute to the automotive industry”, the aim of the event is to demonstrate how Degussa’s specialty chemicals’ expertise and innovation contribute to automobiles by making them more beautiful, more ecological, more efficient and safer.

Degussa's activities are aligned with the vision that "Everybody benefits from a Degussa product - every day and everywhere". Degussa’s chemical products are widely used by construction industry, manufacturing industry, automotive industry, pharmaceutical industry, and B&F industry, to name but a few. For the financial year 2003, Degussa’s global sales in the automotive industry reached 1.3 billion Euros, and accounted for over 11% of its global total sales of 11.4 billion Euros. Automotive products have since become the third largest consumer-end market for Degussa, led by construction chemicals and personal care products.

For instance, Degussa’s carbon black is widely used in tires. The small black particles are essential to tires of F1 racing cars and road cars alike. Carbon black is vital for the fine-tuning among traction, abrasion resistance and rolling resistance. By improving the performance of tires, more effective braking and less braking distance can be realized. As the second-largest manufacturer of carbon black in the world, Degussa’s Advanced Fillers & Pigments Business Unit distributes 85% of its total annual output to the rubber industry. With a production capacity of 160,000 metric tones, the Hürth-Kalscheuren site (Germany) is the most important production site for industrial carbon black in Europe. It is the only plant in the world to use three different manufacturing processes to produce specialty carbon black. In China, Qingdao Degussa Chemical Co., Ltd. (QDCC) operates a carbon black plant with an annual capacity of 50,000 metric tons. QDCC is increasing its annual production capability by over 20,000 metric tons by the end of 2004.

In all, products from 9 out of 21 of Degussa business units are used by the automotive industry. Degussa’s chemical products make cars look more beautiful, more ecological, more effective and safer:

• Pigment carbon blacks from Degussa – so-called “gas blacks” – are used to achieve a highly-fashionable, deep black colour that gives cars a trendy appearance. Varnishes with Degussa gas blacks have the deepest black combined with a visibly elegant blue shade, which is highly popular.
• Degussa has developed a new type of high-tech refractory oxide material which contributes to the break-through technology of fuel cell. By applying an oxide powder on the cell coating, the density of the cell will substantially decrease, and also the working temperature. The car can be more ecological with these technologies.
• SIVO^®Clear clears the water off the windscreen and providesbetter visibility when driving in the rain. Cars are thus made safer.
• SEPARION ceramic separators allow greater use of lithium rechargeable batteries as power sources in modern electric and hybrid vehicles and thereby make cars more efficient.
• Rheobuild 1100 and Pozzolith 621, two products by Degussa Construction Chemicals division, met the demanding requirements and accordingly made a significant contribution to the construction of a smooth and even race track for the Shanghai F1. The products add to the safety and speed of the track.

Mr. Eric Baden, President of Degussa (China) Co., Ltd., said, “Degussa’s mission for China is to become its most committed partner in specialty chemicals by means of strong relationships deeply rooted in research and development. It is Degussa’s privilege to support China’s automotive industry’s rapid development over the past a few years and Degussa wishes to do more to assist the Chinese automotive industry through its own strength in Research & Development in the area of applications of new technologies and new materials.

Degussa (China) Co., Ltd. was founded in November, 2002. It is to unite and expand Degussa’s activities in the China region. Today, Degussa operates in China a total of seventeen companies with production sites in Beijing, Guangzhou, Nanning, Qingdao, Shanghai and Hongkong. In China, Degussa now has a workforce of more than 1,200 employees. In fiscal 2003, the Group generated total sales of EUR 280 million in China. Degussa’s mission for China is to become its most committed partner in special chemicals.

Degussa is a multinational corporation consistently aligned to highly profitable specialty chemistry. In fiscal 2003, its 47,000 employees generated sales of € 11.4 billion and operating profits (EBIT) of € 878 million, making it Germany's third-largest chemical company and the global market leader in specialty chemicals. Innovative products and system solutions enable Degussa to play a valuable and indispensable role in the success of its customers, as summed up by our claim “creating essentials”.

Contact:
Sophie Lee
Communications
Degussa (China) Co., Ltd.
Phone: +86-10-85 27-64 00 ext. 318
Fax: +86-10-85 27-59 87
E-mail: sophie.lee@degussa.com

Photos are available here.