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2006-09-24 News Release

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New Plastics Polyamide Intermediates Unit

An integrated engineering plastics polyamide provider announces its continuing development in Asia with the construction of a new intermediates unit.

An upstream integrated company providing intermediates for polyamide and other applications, polyamide polymers, as well as a complete downstream range of added value products including engineering plastics polyamide 6.6 and 6 based, industrial polyamide yarns, technical and consumer polyamide fibers and textile yarns, Rhodia, announces the construction of a new polyamide intermediates unit.

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The construction of Hexamethylene Diamine (HMDA) unit in China, as part of its upstream integration in the polyamide chain by Rhodia Polyamide will have an annual capacity of 60kt/p.a. The new unit, to serve the fast growing HMDA merchant market in Asia, will be operational in early 2009.

Rhodia Polyamide, headquartered in Lyon, France, is part of Rhodia, a global specialty chemicals company with its strong technology positions in Performance Materials, Functional Chemicals and the Organics and Services clusters, and partners with companies in the automotive, electronics, pharmaceuticals, agrochemicals, consumer care, tires, and paints and coatings markets.

“This decision is fully in line with the strategy of Rhodia Polyamide to focus on our intermediates and engineering plastics businesses in which we hold leadership positions. Our investment will allow Rhodia Polyamide to provide a better service to its customers in Asia and seize new development opportunities in a market enjoying strong growth,” explained Laurent Schmitt, President of Rhodia Polyamide. "As part of the same industrial logic”, he added, “Rhodia is studying the feasibility of building an adiponitrile (ADN) plant in Asia."

This new unit will strengthen Rhodia Polyamide’s already well-established industrial base, developed over the last 15 years in Asia. This base, comprising an adipic acid plant, two engineering plastics compounding plants and a polymerization facility under construction, is situated in China and South Korea.

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