Borden Chemical Selects Exel To Provide Supply Chain Services

Business Wire, March 12, 2001

Business Editors

COLUMBUS, Ohio--(BUSINESS WIRE)--March 12, 2001

Borden Chemical, Inc. has selected Exel, the world's largest supply chain management company, to manage packaging and warehousing services for its industrial resins operation in Louisville, Ky. In a separate contract, Borden Chemical has also chosen Exel's Global Freight Management Group to manage transportation services from the Louisville site.

At the Louisville location, Exel will manage mixing and packaging services for industrial resins. Industrial resins are used in more than 20 major industries, including automotive, aerospace, electronics, construction and composites.

Exel's Global Freight Management Group, which provides global transportation and logistics management services, will manage Borden Chemical's outbound domestic ground transportation from 30 locations nationwide (including the Louisville site), tracking and tracing, freight management and optimization services.

According to Ed Huller, vice president, global supply chain for Borden Chemical, a primary reason Exel was selected was its global presence.

"Borden Chemical is working to create an operationally excellent supply chain that is efficient and effective for our customers. By outsourcing where it makes sense, we can focus our internal resources in other key areas," said Huller. "By partnering with a company of Exel's size, scope and expertise, we can quickly achieve these goals."

Huller added that Exel's depth of experience in the chemical industry, including its acceptance to the American Chemistry Council's Responsible Care(R) initiative, was another important factor in its decision. Exel is among the first global third-party logistics organization accepted into this exclusive program.

The Responsible Care initiative is designed to help the chemical industry and those who are involved with its products and processes improve their performance in health, safety and environmental performance.

Gary Williams, president, Exel Chemical Americas, said the partnership with Borden Chemical is evidence that companies want a provider who can consistently deliver operationally excellent service and world-class solutions.

"Customers want a process-focused provider who can leverage core logistics and transportation capabilities to reduce costs in the supply chain, ensure safety and environmental compliance and improve resource utilization," said Williams. "Exel's capabilities are a good match for Borden Chemical's local and global objectives."

The Borden Chemical-Exel relationship began in 1999 when Borden Chemical embarked on a long-term commitment to improving its processes. After reviewing some components of its manufacturing operations, Borden Chemical appointed Exel to conduct a three-month study of its plant packaging and warehouse operations in Louisville.

Based on study results, Borden Chemical streamlined its processes, then hired Exel to staff and manage the packaging and warehouse operations in Louisville. The recent contract is seen as a first step toward earning additional outsourcing assignments from Borden Chemical.

"Because the Exel team was continually on location during its assessment, they gained detailed insights about our operations. One key reason we selected Exel is its in-depth understanding of the chemical industry's unique requirements and our specific needs," said Bob Orth, director, global supply chain deliver process, Borden Chemical.

About Borden Chemical

Borden Chemical, Inc. (BCI; www.bordenchem.com) is a leading global source for adhesives, resins, formaldehyde, melamine, and specialty UV-cure coatings serving a broad range of markets including the forest, foundry, automotive, construction, composites, electronics and oilfield industries. The company operates 50 manufacturing sites in 11 countries, serving most global markets.

About Exel

Exel is a global leader in supply chain management, providing customer focused solutions to a wide range of manufacturing and retail industries. Exel's comprehensive range of innovative logistics solutions encompasses the complete supply chain from design and consulting through freight forwarding, warehousing and distribution services to integrated information management and e-commerce support for business-to-business and business-to-consumer markets.

Exel, a UK-listed company, had sales of $6.6 billion in 2000 and employs 55,000 people in 1,300 locations in more than 120 countries around the globe. Exel's customers include over two-thirds of the world's largest nonfinancial companies. More information is available at www.exel.com.

(R) Responsible Care is a registered servicemark of the American Chemistry Council.