MANNHEIM, Germany (April 9, 2009)—Rhein Chemie Rheinau GmbH, a chemical supplier to the rubber industry, said it is continuing expansion plans despite reporting an $18.5 million drop in sales revenue in 2008.
Anno Borkowsky, Rhein Chemie chairman and CEO, said that the company's good performance in the first three quarters of 2008 was marred by a significant fall in sales in the fourth quarter. The marked downturn in the automotive industry "had a particularly heavy impact on the company's business," the firm said.
However, the company is continuing its growth strategy by starting up new production facilities at the company's headquarters in Mannheim, Germany, and in Qingdao, China, totaling an investment of about $15.8 million.
Rhein Chemie has been manufacturing its Rhenogran product line, a range of polymer-bound rubber chemicals used in the manufacture of tires and seals, at the Mannheim production facility since the end of 2008.