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General Chemical Establishes Joint Venture in China Agreement Increases Calcium Chloride Production in Asia

3 August 2000

General Chemical Establishes Joint Venture in China Agreement Increases Calcium Chloride Production in Asia

    HAMPTON, N.H., Aug. 3 General Chemical Group Inc.
, through its General Chemical Canada Ltd. subsidiary, today
announced it has signed a letter of intent to establish a joint venture with
Tangshan Sanyou (Alkali) Group Ltd. to produce, market and sell calcium
chloride, and to market and sell soda ash throughout Asia.
    The joint venture plans to have production capacity for 100,000 metric
tons of calcium chloride annually at Tangshan's existing soda ash facility in
Tangshan, Hebei province, China.  The calcium chloride will be sold within
China, as well as exported to other countries in Asia. General Chemical will
provide the technology to build and operate the calcium chloride facility, as
well as marketing and sales management.  Tangshan will contribute its existing
calcium chloride plant and business.
    General Chemical Group Inc., headquartered in Hampton, N.H., is a
manufacturer of industrial chemicals with operations in the U.S., Canada and
Asia. It is one of the top five producers in the world of soda ash, and top
three global producers of calcium chloride.
    Tangshan Sanyou is a diversified manufacturer of chemicals, polyester
fibers and silk fabric.  It is one of the top three China soda ash producers
and exporters, exporting soda ash to more than 20 countries.
    This announcement includes forward-looking statements. General Chemical
has these forward-looking statements on its current expectations and
projections about future events.  Although General Chemical believes that its
assumptions made in connection with the forward-looking statements are
reasonable, no assurances can be given that its assumptions and expectations
will prove to have been correct.  These forward-looking statements are subject
to various risks, uncertainties and assumptions. General Chemical undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. In light
of these risks, uncertainties and assumptions, the forward-looking events
discussed in this announcement might not occur.