January 18, 2018

ARLANXEO TO EXPAND PRODUCTION CAPACITIES

FOR CHLOROPRENE RUBBER

- Expansion of production in Dormagen, Germany
- Capacity to be expanded up to 70,000 metric tons per year
- Strong demand for chloroprene rubber worldwide
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Maastricht / Dormagen – ARLANXEO, one of the world’s leading suppliers of synthetic elastomers, is expanding its global chloroprene rubber (CR) production at the site in Dormagen, Germany. The production capacity there will be increased to as much as 70,000 tons per year overall that will be available to the market already during the first quarter of 2019. ARLANXEO is investing an upper single-digit million in the expansion project overall.

“The strong global demand for our chloroprene rubbers willcontinue in the coming years,” said Stefan Rittmann, head of theARLANXEO business line that produces CR and ManagingDirector of ARLANXEO Deutschland GmbH. Demand forchloroprene rubbers is growing by about four percent per year,particularly in Asia and especially in Greater China. Products withspecial properties are in particularly strong demand worldwide. “Atthe same time, this expansion represents a clear commitment toour biggest German site, Dormagen, from which we serve theglobal demand,” explained Rittmann.

The capacity expansion will be undertaken starting at Q2 2018.Within the expansion a production line will be renewed andequipped with new reactors, having a higher capacity. Thisensures ARLANXEO to optimize its existing processes and makeits production processes more flexible.

ARLANXEO produces and markets its chloroprene rubbers underthe Baypren and Baypren ALX brands. They are used, forexample, in the production of cable sheathing, belts, conveyorbelts and wetsuits, as well as in adhesive applications, and featurehigh weather, UV and oil resistance. Chloroprene rubbers areproducts of ARLANXEO’s High Performance Elastomers businessunit.

About ARLANXEO

ARLANXEO is a world-leading synthetic rubber company with sales of around EUR 2.7billion in 2016, about 3,800 employees and a presence at 20 production sites in ninecountries. The company’s core business is the development, manufacturing and marketingof high-performance rubber for use in, for example, the automotive and tire industries, theconstruction industry, and the oil and gas industries. ARLANXEO was established in April2016 as a joint venture of LANXESS and Saudi Aramco.