Degussa AG's Coatings & Colorants Business Unit has announced that construction of two new production plants in China for colorants and polyesters is on schedule. The first colorants and coating and adhesive polyesters from the multi-user site (MUSC) in Shanghai Chemical Industry Park are expected in early 2006. The first reactors and tanks have already been set up, pumps have been installed, and work on the piping is proceeding rapidly just one year after construction at the site began in December 2004. Through these state-of-the-art investments, Degussa will now provide Chinese coatings and colorants manufacturers with high-quality products and solutions locally. With this development, the Coatings & Colorants Business Unit also affirms its confidence in the dynamic growth of the Chinese market while honoring its own commitment to support its customers all over the world.

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