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RAG Subsidiary Degussa at the Khimia, Eastern Europe's Largest Chemicals Trade Fair

Published on 2007-09-07. Author : SpecialChem

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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