Goldschmidt Chemical To Increase Tin Catalyst Prices In North America

HOPEWELL, Va., October 18, 2007 – Effective December 1, 2007, or as contracts allow, the Polyurethane Additives business line of Goldschmidt Chemical Corporation will increase prices for tin catalysts, including all dilutions of KOSMOS 29R - by 15%.  

The cost of tin metal continues to rise rapidly, said Dr. Reinhold Brand, President of Goldschmidt Chemical Corporation, a wholly owned subsidiary of Evonik Degussa Corporation and part of the Evonik Industries group -- and General Manager, North America Care & Surface Specialties business unit.  

“Despite our best efforts to control production expenses, we cannot continue to absorb these ever escalating costs,” said Brand. “We have done as much as we can to mitigate the impact of rising transportation and energy costs.  But we need to increase prices to continue to meet our customers’ supply requirements and maintain a healthy business.”  

Tin catalysts are used in the manufacture of flexible foam, a key component of car seats, furniture and home interiors.

Company information

Evonik Industries AG is the creative industrial group which operates in three highly profitable, promising business areas: Chemicals, Energy and Real Estate. Evonik is a global leader in specialty chemicals, an expert in power generation from hard coal and renewable energies, and one of the largest private residential real estate companies in Germany. Our strengths are creativity, specialization, continuous self-renewal, and reliability.  

Evonik Industries is active in over 100 countries around the world. In fiscal 2006 around 43,000 employees generated sales of €14.8 billion and operating profit (EBIT) of over €1.2 billion. Evonik plans to enter the capital market in the first half of 2008.  

Disclaimer

In so far as forecasts or expectations are expressed in this press release and where our forward-looking statements concern the future, these forecasts, expectations and statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Evonik Industries AG assumes no obligation to update the forecasts, expectations or statements contained in this release.  

For more information, contact:
Steven P. Snead-Smith Business Line Director, NAFTA
Goldschmidt Chemical Corporation
Polyurethane Additives
Phone:804-452-5774

Steven_p.snead-smith@degussa.com