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GenCorp and Thailand's C.P. Group Form Joint Venture Company

4 August 1999

GenCorp and Thailand's C.P. Group Form Joint Venture Company to Serve Asia-Pacific Decorative Product Markets

    FAIRLAWN, Ohio, Aug. 4 -- U.S.-based GenCorp Inc.
and Thailand-based ChareonPokphand Group (C.P. Group) announced they have
formed a joint venture company in Thailand to serve decorative PVC film and
fabric markets in the Asia-Pacific region and provide expanded product lines
to North America and Europe.  The new joint venture company is called CPPC
Decorative Products Co., Ltd.
    The joint venture company, with current annual sales of $25 million, draws
resources from GenCorp's Decorative & Building Products business unit and C.P.
Group's wholly-owned subsidiary, CP Petrochemical Co., Ltd. (CPPC).  It will
operate from two current manufacturing facilities at CPPC's large industrial
site in Eastern Thailand's Rayong Province, about 2-1/2 hours drive from
Bangkok.  As part of the joint venture agreement, CPPC will provide the two
plants, equipment assets, approximately 300 employees, and existing products
and customers, while GenCorp will infuse product and process technology and
marketing know-how plus an undisclosed amount of cash to the business.
GenCorp will have just over 50% ownership in the venture, with an option to
acquire up to 10% additional ownership.  In a related agreement, GenCorp also
has an option to purchase up to 50% interest in CPPC's Shanghai, China plant.
    "By combining efforts with one of Asia-Pacific's largest and most
respected companies, we have positioned ourselves to be a major player in the
region," said John Yasinsky, GenCorp Chairman and CEO.  "It opens
opportunities for us right now and will give us a platform for continued
value-added growth as Asia's economy rebounds."
    The new joint venture company will initially focus on coated fabrics and
decorative film laminates used in the furniture, home furnishings, outerwear,
luggage and vinyl accessories markets.  GenCorp produces high quality
printed/decorative coated fabrics and vinyl and paper laminates in the United
States, while CPPC has traditionally served its markets with attractive
products containing less decorative content.  CPPC's state-of-the-art
calendering and processing facilities have a low cost position and are ideally
suited to manufacturing a variety of decorative products for current and
targeted markets.
    "This is really a complementary arrangement," said Kevin McMullen,
President of GenCorp's Decorative & Building Products business unit.  "Our
technology, sales and marketing expertise can improve productivity and add
value to the CPPC product lines and open wider distribution channels for these
products in North America and Europe.  CPPC brings strategically located
manufacturing assets, a great reputation, an understanding of the Asian
marketplace and instant access to the region for GenCorp's products."
    The joint venture company will manufacture a broad range of medium-to-high
end coated fabrics and decorative films at the Thailand facilities for
distribution in Asia-Pacific and around the world.  The joint venture also
provides a platform for the introduction or increased distribution of other
GenCorp decorative products and technologies in the region, such as commercial
wallcoverings or heat-transfer printing.
    The joint venture will become part of GenCorp's planned spin-off company,
OMNOVA Solutions Inc., upon expected completion of the spin-off this Fall.
    C.P. Group is a leading diversified $9 billion company based in Thailand
with businesses in petrochemicals, agriculture, aquaculture, wholesale and
retail marketing and distribution, international trading, real estate,
automotive and industrial products and telecommunications.
    GenCorp's Decorative & Building Products business unit produces coated
fabrics, woodgrain and decorative laminates, commercial wallcoverings, heat-
transfer prints, industrial films, and commercial roofing membranes used in
the furniture, home electronics, home furnishings, apparel, hospitality,
healthcare, marine, transportation and construction industries.
    GenCorp Inc. is a $1.7 billion technology-based manufacturer with leading
positions in numerous markets served by its Decorative & Building Products,
Performance Chemicals and Vehicle Sealing businesses, and its aerospace and
defense segment, Aerojet.