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GenCorp and PolymerLatex form Strategic Alliance to Serve Global Paper Markets

1 September 1999

GenCorp and PolymerLatex form Strategic Alliance to Serve Global Paper Markets

    FAIRLAWN, Ohio, Sept. 1 -- GenCorp announced today
that its Performance Chemicals business has formed a strategic alliance with
PolymerLatex, a joint venture between Bayer AG and Degussa-Huls AG, to serve
the needs of their global paper customers.
    GenCorp has, in the United States, and PolymerLatex has, in Europe, an
extensive network of manufacturing and technical capabilities.  Both companies
have achieved leading domestic positions in the paper, carpet and textile
industries.
    "This alliance will enable GenCorp and PolymerLatex to more effectively
serve multinational customers who desire single source supply arrangements,"
said Marvin Zima, President of GenCorp Performance Chemicals.  "Since
GenCorp's acquisition of PolymerLatex's U.S. emulsion polymers business last
year, our two companies have developed a strong working relationship.  We have
complementary capabilities and business philosophies which should enhance the
attractiveness of the alliance to customers."
    Strong applications knowledge, along with two independently developed
portfolios of technologies, uniquely positions this new alliance to utilize
approximately 1.5 billion pounds / 700 thousand metric tons (dry) of combined
polymer capacities to deliver differentiated solutions to global customers.
GenCorp Performance Chemicals is a leader in custom engineered polymers and
chemicals used as coatings, adhesives and additives in products for the North
American paper, carpet/textiles and specialty markets.   Performance Chemicals
is a division of GenCorp, a $1.7 billion technology-based manufacturer which
also holds leading positions in markets served by its Decorative & Building
Products and Vehicle Sealing businesses, and its aerospace and defense
segment, Aerojet.
    Customer inquiries should be directed to Jim Hohman, Vice President for
GenCorp's Paper Business (330-628-6582) or Uwe Latsch, Director of Marketing
for PolymerLatex's Paper Business (49-2365-496521).