Arkema doubles production capacity at its Leuna hydrogen peroxide plant

COLOMBES, France, March 5, 2008 (Press Release) - Arkema, the world’s third leading hydrogen peroxide producer, announces plans to double production capacity at its Leuna site, Germany, to 80,000 ton/year by mid-2010.

With this capacity increase representing a Euro 40 million investment, Arkema clearly reaffirms its ambition to bolster its position among the world’s leading hydrogen peroxide producers with competitive and world-class facilities in each of its geographies.

"Doubling the capacity of our Leuna facility in Germany, which should become effective by mid-2010, will allow Arkema to boost its positions in Europe and continue to meet the growing demand from its customers, in particular the paper industry. The plant, brought on stream in 1997, is ideally located to serve growing markets at the heart of Europe. This investment is part of our European development plan, initiated with the expansion of the capacity of our Jarrie plant, now in operation since Q4 2007", stated Marie-Pierre Chevallier, Group President of Arkema’s Hydrogen Peroxide Business Unit.

Following the expansion in 2005 of its production capacities in North America (+20,000 ton/year), the doubling of capacity at the Shanghai plant, China, due to come on stream in the summer of 2008, and the 10% capacity increase at the Jarrie site, France, Arkema’s global hydrogen peroxide production capacity will reach 440,000 ton/year by mid-2010 when the Leuna expansion becomes operational. Arkema will then be the world’s sole hydrogen peroxide producer with production plants each exceeding a 70,000 ton/year capacity.

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