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Global Market Leader in Specialty Chemistry Aims to
Double Sales in Eastern Europe by 2010
"Europe's growth markets are in the East, where Degussa has
set up a powerful organization. We will continue to step up the expansion
of our business to exploit the growth potential of this large and attractive
region," said Dr. Klaus Engel, chairman of Degussa GmbH's management
board and member of the management board of RAG Beteiligungs-AG, at the
Degussa press conference of Khimia, the largest chemicals trade fair in
eastern Europe. "We want to double our eastern European sales by
2010 through organic growth, cooperative arrangements, and targeted acquisitions.
The excellent business development in the region, this year too, shows
that we are on the right road," he continued.
Dr. Roman Odvarko, regional president for eastern Europe: "The economic
development of Degussa in eastern Europe is very pleasing. In the first
six months, we were again able to increase our sales compared to the same
period in the previous year by more than 20 percent to nearly 200 million
euros. Thanks to our new service center in Prague, which began its work
on August 1, 2007, we can now serve our customers in the region even better
and optimally support the local sales companies."
Eduard Albrecht, president for Russia, said "Russia will play a
key role within the eastern European business in the next few years. There
is a high demand for Degussa's products in many markets, especially in
the automotive and tire industries, in paint and coating systems, in agriculture
and in the electronics industry. We see a big market, particularly in
the nanotechnology sector, where Degussa occupies a top position."
The presence in eastern Europe is of strategic importance for Degussa.
In addition to the growth markets in Asia and Latin America, eastern Europe
is, because of the geographic proximity, among other reasons, the focus
of attention for the company.
In 2006, around 600 East Europe Region employees earned sales of €340
million. Degussa is represented by all 12 business units in the region,
with production sites in Poland, Slovakia, Hungary, and Russia. Of Degussa's
total eastern European sales, Poland currently accounts for the highest
proportion, that is, 30 percent, followed by the Czech Republic, with
24 percent, and Russia with 15 percent. However, Russia shows the strongest
growth and will be further developed to become the biggest mainstay of
sales in eastern Europe in the near future.
In total, the Chemical Business Area's growth of RAG Beteiligungs-AG,
embodied by Degussa, was excellent. In the first six months of 2007, sales
climbed to €5,483 million. Adjusted by currency and consolidation
effects, this constitutes a growth of 9 percent. Operating profits (EBIT)
improved considerably in the same period by 38 percent to €546 million.
About Degussa
Degussa - a wholly owned subsidiary of the RAG Group
- is one of the global market leaders in specialty chemicals. Our business
is creating essentials - innovative products and system solutions that
make indispensable contributions to our customers' success. In fiscal
2006 around 36,000 employees worldwide generated sales of 10.9 billion
euros and operating profits (EBIT) of more than 870 million euros.
Source: Degussa
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