Rhein Chemie continues expansion despite downturn

ERJ staff report (RD)

Mannheim, Germany - The Rhein Chemie Group, a chemical supplier to the rubber industry, is continuing expansion plans despite reporting a Euro 14 million drop in sales revenue in 2008, the company said recently.

Anno Borkowsky, Rhein Chemie chairman and ceo said that the company's good performance in the first three quarters of 2008 was marred by a significant fall in sales in the fourth quarter due to the general economic crisis. The marked downturn in the automotive industry “had a particularly heavy impact on the company's business,” the statement said.

Despite the economic downturn and lower sales, the company is continuing its growth strategy by starting up new production facilities at the company's headquarters in Mannheim, Germany, and in Qingdao, China, totalling an investment of around Euro 12 million. The company has been manufacturing its Rhenogran product line, a range of polymer-bound rubber chemicals used in the manufacture of tyres and seals, at the Mannheim production facility since the end of 2008.

In February, Lanxess AG, Rhein Chemie's parent company, had attempted to lower costs with a package of “structural improvements and HR-related measures” designed to lower costs by a single-digit million euro amount, the company added.

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Press release from Rhein Chemie Rheinau GmbH