LANXESS Corp. Announces Restructuring of LANXESS Inc. Sarnia Site to Maintain Competitive Leadership in Global Rubber Industry


PITTSBURGH - February 1, 2008 - LANXESS Corporation today
announced three business initiatives at the LANXESS Inc. Sarnia Site
aimed at strengthening LANXESS' business in the global rubber industry.
LANXESS Inc. will restructure its Sarnia, Canada operations; LANXESS
AG will consolidate global NBR production at its La Wantzenau, France
facility; and LANXESS Inc. plans to move its Canadian research activities
from Sarnia to an interdisciplinary university setting in Ontario.

Sarnia butyl operation restructures
At the site of the company's recently completed $100 million butyl plant
expansion, LANXESS Inc. is implementing a 24 month restructuring
aimed at improving the global competitiveness of its butyl products. The
move is aimed at removing increased operating expenses due to higher
energy and raw material costs in addition to the impact of the Canadian
dollar on labor.

The expansion of the Sarnia butyl plant made it the largest, most modern
facility of its kind in the world. By December of 2008, total production
capacity will be 150 thousand metric tonnes. Together with today's
announced site restructuring, the plant modernization will improve the
plant's productivity. Over the next 24 months the site will reduce its
manpower operating requirements by approximately 270 positions.

Global NBR production consolidated
LANXESS AG will consolidate global NBR production in La Wantzenau,
France over the next few months. The process will involve closing a 64
year old nitrile butadiene rubber production facility located in Sarnia,
Canada by the end of May, 2008. While many customers in the NAFTA
region are already receiving LANXESS NBR grades manufactured at the
La Wantzenau plant, LANXESS Corporation sales and technical support for
Technical Rubber products will work closely with customers during the
consolidation process to ensure a smooth transition. LANXESS NBR is
marketed under the tradenames KRYNAC® NBR, PERBUNAN® NBR and
BAYMOD® N.

Global butyl research to be relocated to university setting
In an initiative aimed at global growth and innovation of both pure and
applied polymers research, LANXESS Inc. is actively searching for an
appropriate Ontario, Canada university site that can accommodate
relocation of its global butyl research functions from the Sarnia production
site. By locating LANXESS Inc. researchers closer to their peers in a
multidisciplinary environment, the company is gearing for a significant
increase in both pure and customer research.

Butyl Rubber
The biggest market for LANXESS butyl rubber and halobutyl rubber is the
tire industry, but its remarkable properties make it a key polymer for a
variety of technical rubber applications. Butyl offers an attractive range of
properties including low permeability, high damping, good resistance to
ozone and weathering and chemical resistance. LANXESS Inc.'s Sarnia
Site produces both regular butyl and halogenated butyl grades for
customers around the world.

LANXESS halogenated butyl rubber products are also widely used in
pharmaceutical products, such as closures for infusion containers, injection
vials, lyophilization, and blood collection tubes. They are also used as Orings
and gaskets in a variety of aerosol containers and inhalers and as
plungers for applications such as infusion pumps, pre-filled syringes, insulin
injectors and dental anesthetics.

Chewing gum is one of the most interesting applications of LANXESS food
grade butyl which is also manufactured in kosher grades. LANXESS
applies the most stringent quality control standards for this grade consistent
with national and international food regulations and standards to this
application.

LANXESS KRYNAC® NBR and PERBUNAN® NBR
KRYNAC® is the trade name of a series of oil-resistant acrylonitrilebutadiene
rubbers (NBR) manufactured by emulsion polymerization.
KRYNAC® is used for hydraulic hoses, fuel and oil supply hoses, seals,
rollers, drive belts, fabric linings and gaskets. Other applications are shoe
soles (sport shoes and safety footwear) and flooring. In addition, KRYNAC®
(or BAYMOD® N) is the base polymer for several automotive applications,
such as hoses, oil seals and friction linings.

PERBUNAN®, makes it possible to obtain oil-resistant vulcanizates that can
resist extremely low temperatures. In comparison with vulcanizates based
on other NBRs, PERBUNAN® vulcanizates show better physical properties,
heat aging resistance and abrasion and wear behavior. It is widely used in
the automotive industry for oil filter seals, torsional vibration dampeners,
membranes, membranes in fuel injection systems, fuel and oil pipes, and
hydraulic hoses.

About LANXESS
LANXESS is a leader in specialty chemicals with 2006 sales of EUR 6.94
billion and more than 16,000 employees in 21 countries. The company is
represented at 47 production sites worldwide. The core business of
LANXESS is the development, manufacture and sale of specialty
chemicals, plastics, rubber and intermediates.

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