Rhodia Gulf Sites Resume Operations; Aid Refinery Recovery

CRANBURY, N.J.--(BUSINESS WIRE)--Sept. 28, 2005--Specialty chemical producer Rhodia Inc. (NYSE:RHA) is proceeding to restart or increase production at its U.S. Gulf Coast sites impacted by Hurricane Rita, aiding the recovery of major refineries and other customers.

Rhodia's sites in Houston and Baytown, Texas and Baton Rouge, Louisiana, produce and regenerate sulfuric acid used in gasoline refining. The storm inflicted only minor damage at these plants.

“At a time when continued fuel supplies are absolutely essential for the nation's economy, we want to do all we can to help the region's energy infrastructure return to normal operation.”

The Baton Rouge site continued operating at a reduced rate through the weekend, while company sites in Houston and Baytown were shut down in advance of the storm. All three are expected to return to full operation this week.

"We count on our network of production sites, and our supporting network of suppliers to ensure availability and reliability for our customers, even through adverse circumstances," explained Jim Harton, president of Rhodia Inc., and Rhodia Eco Services, the enterprise most affected by Hurricane Rita. "At a time when continued fuel supplies are absolutely essential for the nation's economy, we want to do all we can to help the region's energy infrastructure return to normal operation."

Rhodia's Eco Services supply chain and plant staff members are currently assessing the storm's impact on refineries and major chemical customers, coordinating service with these partners. "Our teams in the Gulf were well-prepared to secure our facilities and return them to production," Harton said. "Now we're working with our customer partners to ensure reliable service as they resume operation in the coming days and weeks."

Reliable service extends to new logistics arrangements required to serve certain customers whose truck, rail or barge transportation has been temporarily hampered by the storm. Securing available tank trucks, drivers and gasoline are major challenges as the Gulf region begins its recovery.

A fourth Rhodia site in the Gulf region, at Freeport, Texas, also incurred little damage from the hurricane. The Freeport plant primarily processes rare earths used in a wide variety of applications including phosphors for color television tubes, X-ray systems, automotive catalytic converters, and high strength magnets. Organic production at Freeport includes polyisocyanates which are used in the coatings industry and other applications.

Rhodia is a global specialty chemicals company recognized for its strong technology positions in applications chemistry, specialty materials & services and fine chemicals. Partnering with major players in the automotive, electronics, fibers, pharmaceuticals, agrochemicals, consumer care, tires and paints & coatings markets, Rhodia offers tailor-made solutions combining original molecules and technologies to respond to customers' needs. Rhodia subscribes to the principles of Sustainable Development communicating its commitments and performance openly with stakeholders. Rhodia generated net sales of EUR 5.3 billion in 2004 ($7.2 billion using the Dec. 31, 2004 USD/Euro exchange rate of 1.3621) and employs 20,000 people worldwide. Rhodia is listed on the Paris and New York stock exchanges.