Rhodia adds silica plant, celebrates 30 years in China

Shanghai, China - Rhodia is celebrating its 30th anniversary of its presence in China, as its silica unit added a 72 000 tonnes per year plant for making the high-performance silicas used in tyre manufacture in Qingdao, China's third largest seaport in Shandong province.

China is spearheading Rhodia's development in Asia-Pacific - the French firm said in a 20 Oct announcement. The region, which Rhodia is targeting for growth, currently accounts for 28 percent of the Group's sales and 21 percent of its workforce, the announcement added.

"China benefits from one of the highest potentials for economic growth. With 30 years' experience in this market, an efficient industrial network and a dedicated research & development hub, Rhodia has all the key assets it needs to take full advantage of this source of new growth”, said Jean-Pierre Clamadieu, chairman and CEO of the Rhodia Group. He was speaking, together with Tom Benner, president of Rhodia Silica, at the inauguration of the new plant, in the presence of the Chinese authorities.

Certified by major tyre manufacturers worldwide and marketed under the brand name Zeosil, Rhodia's highly dispersible silica is used principally in the production of energy efficient tyres. This technology decreases the tread's rolling resistance, resulting in a 5-7-percent reduction in fuel consumption by light vehicles.

Located on a seven-hectare site, the new plant adds more than 30 percent of additional capacity to Rhodia's silica production network allowing it to meet anticipated growth in volumes.

“We provide our customers with a unique technology and the corresponding volumes required to meet the increasing regulatory demands for tyre labelling around the world”, commented Benner, adding ”the site will enable us to profit fully from Asia's significant development potential and reinforce our leadership position in this market”.

The Rhodai Group's activities in China are concentrated in three sectors:

* Automotive, with silicas for tyres, engineering plastics and catalysis technology;

* Cosmetics and detergents; and

* Electronics, specifically rare earth-based formulations.

The firm points out that it further strengthened its leading position in the supply of specialty surfactants ctivitieswith the acquisition of Feixang Chemicals.

The Group is also developing its expertise in China in the field of renewable sources of energy, the statement added.

Rhodia strong local presence comprises 2,000 employees - 86 percent of managers are of Chinese origin - and 13 production sites.

These facilities constitute a powerful network that is being reinforced with capital spending projects on the Zhengjiang platform, near Shanghai, and the launch of a new silica plant in Qingdao.

The Group also runs a worldwide R&D centre in Shanghai where a team of 100 research scientists develop innovative solutions specifically designed for the Chinese or Asian markets. In 2009, the centre filed 15 patents and launched 32 new products.

Rhodia is recognised in China as a responsible manufacturer - another major advantage enjoyed by the Group against a background of increasingly stringent regulatory and environmental requirements in the country. In 2010 it received the '2010 Corporate Social Responsibility Special Award' at a conference in Beijing devoted to the contribution of multinational corporations to China's sustainable development.

RhodiaGroup employs around 13 600 people worldwide and generated sales of €4.03 billion ($5.6 billion) in 2009. Rhodia is listed on Euronext Paris.

For further information, please visit our corporate website at http://www.rhodia.com