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02-29-2008

Rhodia: New Silica Plant in China

Rhodia is going to construct a major new plant for the production of high-performance silica in China. The new facility will be located in he city of Qingdao where Rhodia already operates a silica plant. The new world-scale plant will focus on producing high-performance silica notably used in low rolling resistance tires. These generate more than 5 % fuel savings thus reducing emissions of CO2 from vehicles.

Rhodia will form a new company to manage the construction and subsequent operation of the new silica plant. The new legal entity will be a wholly owned subsidiary of Rhodia. To be known as RSQC (Rhodia Silica Qingdao Chengyang), the company will have an initial share capital of approximately EUR 16 million.

The start-up of the new plant is scheduled for July 2009.

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