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2006-10-15 News Release

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Lanxess beverage industry biz in South America and Scandinavia

Multi partner collaboration in Europe and South America for LANXESS beverage stabilizer represents an ideal addition to their range of services for the beverage industry.

LANXESS is pressing ahead with expansion of the beverage stabilizer business by concluding sales agreements for Velcorin (dimethyl dicarbonate) with area-wide service networks in South America and Scandinavia. The demand and market development in these areas points towards good opportunities for growth for Lanxess.

Find Information and Suppliers of beverage flavorings.

Dohler America Latina Ltda in Limeira, Brazil, will take over sales activities and technical support for the LANXESS beverage stabilizer in South America with immediate effect. In South America, Velcorin*, which has recently also been licensed in Mercosur (Mercado Comun del Sur), will be sold in Brazil, Argentina, Chile and Colombia in particular.

The Dohler Group is one of the leading suppliers of raw materials and flavorings for the beverage industry in the Latin American region. For Ingo Broda, head of Beverage Technologies in the Material Protection Products business unit at LANXESS, the signing of the agreement marks a further milestone in the rigorous implementation of the Velcorin marketing strategy: "With our successful registration in Mercosur, the whole South America region is now accessible. Considering the way demand and business is developing, we can see good opportunities for growth in this region. With its extensive expertise and resources Dohler is an ideal sales partner to support us in the fields of marketing and customer care."

The LANXESS beverage stabilizer Velcorin protects against damaging micro-organisms. Click Go for High resolution image. photo: LANXESS AG

The LANXESS beverage stabilizer Velcorin is added to beverages and protects, wine, fruit-juice spritzers, soda, flavored water, iced tea and other alcohol-free refreshments very effectively against damaging micro-organisms, without affecting the taste, aroma or color of the drink. The stabilizer prevents germs, bacteria, yeast or fungi spoiling the drinks, which consist of natural ingredients. -> ->

Martin Tolksdorf, Managing Director of Dohler America Latina, says: "The collaboration with LANXESS represents an ideal addition in our range of services for the beverage industry. We can use our collective experience and help beverage manufacturers to access innovative products and concepts which they have been unable to consider up to now using conventional stabilization methods."

At the same time, a sales agreement for Velcorin was signed for Scandinavia with the company R&M E.M.S. GmbH Engineering Maintenance Services in Cloppenburg. The subsidiary company of Reinhold & Mahla AG includes among its customers companies from the chemical industry, as well as from the food and beverage industry. "That was the last piece of the puzzle. Now, in addition to South America, the continent of Europe is also covered completely with a service network for Velcorin. And as our stabilizer is now produced on two sites, we can ensure that the demand of both our regular customers and potential new customers can be covered on a worldwide basis, in line with our expectations," remarks Broda.

Velcorin protects alcohol free refreshments and wine very effectively against damaging micro-organisms, without affecting the taste, aroma or color of the drink. The LANXESS stabilizer is added to the finished beverage directly before filling. It immediately performs its disinfectant function and then degrades into tiny amounts of methanol and carbon dioxide, which are natural components of fruit juices and fruit juice-based drinks.

The Material Protection Products business unit, one of the leading manufacturers and suppliers of biocidal active ingredients and formulations for wood protection, industrial applications, disinfection and preservation, is part of the Performance Chemicals segment. This segment achieved sales of EUR 1.977 billion in fiscal 2005.

Find more information about Lanxess AG.

Read a recent press release about - LANXESS explains, the continuing high cost of raw materials and the steep rise in energy and transport costs are the reasons for the plastics, resins and rubber price increases.

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