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Rhein Chemie Closes Deal for Elastochem Assets

24 January 2000

Rhein Chemie Closes Deal for Elastochem Assets, Plans $2.5 MM Manufacturing Investment

    TRENTON, N.J.--Jan. 21, 2000--Rhein Chemie Corporation, which announced in September 1999 its plans to purchase substantially all of the assets of Elastochem, Inc., completed the acquisition on October 31, 1999.
    Today, Rhein Chemie announced that, as part of its first phase of investments, it will spend $2.5 million this year to enhance its Trenton, N.J., and newly acquired Chardon, Ohio, facilities.
    Rhein Chemie, which manufactures additives and specialty products for the rubber, plastics and polyurethane, and lubricant oil industries, has acquired two manufacturing facilities at the Elastochem site in Chardon in addition to its Trenton facility. Wolfgang Kober, president of Rhein Chemie Corporation, said Rhein Chemie will invest the majority of the $2.5 million in the Chardon units.
    "We're quickly and actively pursuing ways to improve the capacity and flexibility of the Chardon manufacturing units, as well as further enhance our Trenton facility," Mr. Kober said. "It's an investment that will have a direct, positive impact on customers of Elastochem and Rhein Chemie -- in terms of improved responsiveness and increased customer satisfaction."
    Rhein Chemie Corporation is a wholly owned subsidiary of Bayer Corporation, headquartered in Pittsburgh, Pennsylvania. Globally, Rhein Chemie operations encompass 120 countries with international headquarters based in Mannheim, Germany.
    Bayer Corporation is a research-based company with major businesses in health care and life sciences and chemicals. The company had 1998 sales of $8.1 billion and employs more than 23,000 people. Bayer Corporation is investing $15 billion in capital expenditures and research and development from 1995 through the year 2004. 1999 capital investment and R&D expenditures are projected to total $1.6 billion. Bayer Corporation, with headquarters in Pittsburgh, is a member of the worldwide Bayer Group, a $31 billion international life sciences, polymers and specialty chemicals group based in Leverkusen, Germany.