Rhodia CEO Underscores Growth Plans in China, Far East

Business Wire, March 19, 2008

NEW YORK -- China and the Far East will become the world's largest chemicals market in less than 10 years and specialty chemical producer Rhodia expects its Asia Pacific growth to boost its performance through this decade and beyond.

Rhodia Chairman and Chief Executive Officer Jean-Pierre Clamadieu outlined the company's planned and existing investment in China and neighboring countries in an address today before industry executives and financial representatives at the Societe de Chimie Industrielle luncheon at the Yale Club.

Summarizing Rhodia's urgency in expanding in the region, Clamadieu described the company's strategy to "Go East, quickly!"

He noted that Rhodia was one of the first global chemical producers to invest in China. The company established its first presence there in 1980 and has steadily built its operations to include 16 sites, employing 2,300 people in production, research and business functions.

Expansion plans include a new production plant for highly dispersible silicas. A new diphenol plant opened in November, 2007, and a new corporate research center in Shanghai is expected to open in 2008.

Beyond new facilities, Clamadieu explained that Rhodia is also investing in the region's human resources. More than 95 percent of the company's middle and top management in China is Chinese and more than 30 percent of its management there is female.

The company has also achieved ISO 14001/9000 certification in all its plants in China, utilizing best available technology to increase competitiveness while using eco-friendly processes. Rhodia also introduced its environmental and social reference framework in China last year. The "Rhodia Way" prescribes corporate decision-making that considers impacts on environmental, economic and social priorities while providing transparency on the company's environmental and social performance.

Rhodia is an international chemical company resolutely committed to sustainable development. A leader in its businesses, the Group aims to improve its customers' performance through the pursuit of operational excellence and its ability to innovate. Structured around seven Enterprises, Rhodia is the partner of major players in the automotive, tire, refining, electronics, perfume, health & beauty and home care markets. The Group employs about 15,500 people worldwide and generated sales of 5.1 billion euros in 2007. Rhodia is listed on Euronext Paris.