Chinaplas 2008 LANXESS Technical Rubber Products

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Chinaplas 2008 LANXESS Technical Rubber Products Sweeney Sun Marketing Manager for Business Unit Technical Rubber Products, APAC Press conference in Shanghai, April 17, 2008 The

1 Chinaplas 2008 LANXESS Technical Rubber Products Sweeney Sun Marketing Manager for Business Unit Technical Rubber Products, APAC Press conference in Shanghai, April 17, 2008 The LANXESS Technical Rubber Products Business Unit Technical Rubber Products (TRP) is one of four business units in the LANXESS Performance Polymers business segment with total segment sales of USD 3.21bn in 2007 The successor company of the inventors of synthetic rubber Headquarters in Leverkusen, Germany Over 1,200 employees with over 100 applications specialists Over 200 products, mainly specialties, more than 600 customers all over the world Production sites and Technical Centers worldwide close to the markets with one in Shanghai

The Business Unit Technical Rubber Products operates close to its markets Technical Rubber Products is a global player in the rubber business Seven world-scale production sites perfectly utilizing

2 The Business Unit Technical Rubber Products operates close to its markets Technical Rubber Products is a global player in the rubber business Seven world-scale production sites perfectly utilizing the economies of scale Leading production technology Close proximity to customers results in rapid time-to-market 20% of turnover in APAC Development of a new R&D Center in Qingdao in progress Orange, USA (EPDM, HNBR) Production site Tech Center R & D Center Marl, GER (EPDM) + R&D Dormagen, GER (CR, EVM) + R&D Leverkusen, GER (HNBR) +TC Qingdao, PRC* Shanghai, PRC La Wantzenau, F (NBR, ESBR) + R&D A leading supplier for non-tire applications TRP portfolio EPDM NBR HNBR CR EVM Portfolio / sales (2006) Five product families for applications beyond the reach of classical rubbers Krynac (NBR) and Perbunan (NBR): oil-resistant rubbers for heavy duty belts, sealings and hoses Therban (HNBR): oil-resistant rubber with enhanced lifetime in hot or dynamic challenging applications Picture right side: translucent Levapren lightens up a public bus

High performance elastomers for high-end applications Buna EP (EPM/EPDM): very high weathering resistant rubber, e.g. for sealings Levapren (EVM): low-viscous, robust rubber capable of high filler loads, e.

registered trademark of Bayer AG, Germany Strength lies in diversity Added-value: LANXESS rubber specialties help customers to add value to their products High customer orientation: some TRP product

3 High performance elastomers for high-end applications Buna EP (EPM/EPDM): very high weathering resistant rubber, e.g. for sealings Levapren (EVM): low-viscous, robust rubber capable of high filler loads, e.g. for halogen-free cables Levamelt (EVM): Levapren counterpart for tailor-made adhesive labels Baypren (CR): all-purpose synthetic rubber with excellent cost-property relation Baypren is a registered trademark of Bayer AG, Germany Strength lies in diversity Added-value: LANXESS rubber specialties help customers to add value to their products High customer orientation: some TRP product lines cover more than 50 single specialties, e.g. customer-made grades Leading production technology: supplies unique rubber grades, e.g. for high performance gaskets Strong market position: several LANXESS rubbers are #1 in the market LANXESS an acknowledged technology leader in the technical rubber market

Strong growth in the APAC region driver for future business Expected growth of APAC automotive industry 2008: 6.0% 12 % 3 % 46 % Projected NBR growth APAC: 5.4% Chloroprene: 5.6% EPDM: 5.

4 Strong growth in the APAC region driver for future business Expected growth of APAC automotive industry 2008: 6.0% 12 % 3 % 46 % Projected NBR growth APAC: 5.4% Chloroprene: 5.6% EPDM: 5.3% 5 % 4 % Automotive Footwear Mechanical Engineering Electro Electronics All APAC forecasts above World, Europe, and Americas 15 % Construction Others Plastics 15 % *Source: LANXESS Market Research/ IISRP Advanced heat resistant rubbers raise efficiency Rubber is without alternative even in advanced technology High performance means: higher dynamic load, more heat Heat challenges classic rubber Robust rubbers expand machines lifetime, leading to less waste and lower costs Higher efficiency for lower ecological impact Picture: Mercedes-Benz air cushion made of Baypren

Advanced rubbers offer support for green applications Sustainable fuels such as ethanol deteriorate classic rubbers, but modern Therban

helps to explore new oil resources and to utilize hidden reserves to a maximum LANXESS rubber technology for a clean environment Levamelt

5 Advanced rubbers offer support for green applications Sustainable fuels such as ethanol deteriorate classic rubbers, but modern Therban grades are less affected Buna EP resists urea in denox-catalysts Nanopren reduces abrasion of tires Ultra-robust Therban in drill heads helps to explore new oil resources and to utilize hidden reserves to a maximum LANXESS rubber technology for a clean environment Levamelt adhesive films simplify the manufacturing of solar cells Halogen-free Levapren allows substitution of PVC e.g. in electric cables and makes use of solar energy safer LANXESS uses sophisticated management tools to ensure clean and environmentally friendly rubber production Aluminium Frame Gasket Glass Tedlar Film Levamelt Levamelt Solar Cells Picture: Levapren in solar panels on the LANXESS headquarters in Leverkusen, Germany

High performance rubbers offer significant opportunity at present and in the future High performance rubbers are without alternative in advanced technology Synthetic

6 High performance rubbers offer significant opportunity at present and in the future High performance rubbers are without alternative in advanced technology Synthetic rubbers by LANXESS help to make modern technology more efficient, reliable, and greener Demand is growing especially in Asia! Picture: the TRP Rubber Technology Center in Shanghai

TRP Leading supplier of specialty elastomers for automotive applications

TRP Leading supplier of specialty elastomers for automotive applications Sebastiaan van Gemert Director Sales Africa, Middle East, Eastern Europe and Central America LANXESS Business Unit Technical Rubber