October 2008

Bayer MaterialScience LLC, the North American subsidiary of Bayer MaterialScience AG, has declared force majeure for a large part of its production in Baytown, Texas, United States.

This affects the Polyurethanes (PUR), Coatings, Adhesives, Specialties (CAS), and Polycarbonates (PCS) business units as well as the Inorganic Basic Chemicals segment. The declaration applies to methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI), polyether polyols and related products, hexamethylene isocyanate (HDI), isophorone diisocyanate (IPDI), modified isocyanates, Desmodur® W and related products, Makrolon®, Bayblend® PC/ABS and Makroblend® PC/PE within North America. Bayer MaterialScience LLC has also declared force majeure for sodium hydroxide solution (50 percent), gaseous and 36-percent hydrochloric acid, sodium hypochlorite and sulfuric acid.

This step was taken in the wake of hurricane Ike, which damaged or destroyed vast swathes of the infrastructure in the Houston, Texas, region at the weekend. Railroad tracks, harbors, roads and other supply channels, as well as some of the energy supply systems, were all affected. Although precautions were taken in good time, so that Bayer MaterialScience’s production facilities in Baytown were virtually unaffected, the current deficiencies in the infrastructure make it difficult, if not impossible, to supply the site with raw materials.

At present it is impossible to foresee how long the production stoppage will last. The company is however confident that the damage will be repaired in the coming weeks, and that any temporary losses in sales can be made up.

About Bayer MaterialScience:
With 2007 sales of EUR 10.4 billion, Bayer MaterialScience is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction, and sports and leisure industries. At the end of 2007, Bayer MaterialScience had 30 production sites and employed approximately 15,400 people around the globe. Bayer MaterialScience is a Bayer Group company.


For more information visit www.bayermaterialscience.com