Ciba Specialty Chemicals extends Cooperation with Metrochem

· Agreement renewed
· Cooperation enables Metrochem to make fuller use of Baroda Plant.

Ciba Specialty Chemicals (Ciba), a leading worldwide supplier of textile dyes and chemicals, and Metrochem, which supplies Ciba with a selected range of Intermediates and dyes, have extended their cooperation agreement. The strengthened cooperation will allow Metrochem to exploit the capacity of its plant in Baroda more fully.

Metrochem supplies Ciba Specialty Chemicals with key intermediates for reactive dyes to cover worldwide requirements and with a selected range of acid, disperse, direct and reactive dyes for sale in specific markets. Ciba markets and sells the products. Metrochem focuses on manufacturing excellence, receiving support and advice from Ciba on the technology required to meet worldwide product standards.

Christoph Biedermann, Global Head of Ciba's Textile Effects Segment, commented: "We have been cooperating with Metrochem since 1992 and highly value the company as a reliable partner."

"The extended agreement will allow us to maximize capacity utilization, which can be substantially increased with minimal investment, " said Gautam Jain Managing Director of Metrochem. "Eighty acres of land are available for further capacity expansion that would make Baroda one of the largest dyes manufacturing plants in the world."

Construction of the Baroda facility began in 1995. The plant now includes a complete, state-of-the-art, three-stage effluent treatment plant and an incinerator. Metrochem is a member of the Effluent Canal project (ECP), which ensures waste water disposal in accordance with marine environmental health and safety standards. The Narmada River Canal will shortly provide the plant with a constant source of soft water. A power generation unit will be commissioned shortly making Metrochem less dependent on national energy. The dye production plant allows synthesis of reactive, disperse, acid, mordant and direct dyes. The finishing plant comprises milling, concentration, spray drying, standardization and packing.

Ciba Specialty Chemicals placed its first orders with Metrochem in 1992; since then volume has consistently and substantially increased, continuing to do so even in today's critical economic environment. In 1998 an initial strategic agreement between the two companies was signed. Ciba Specialty Chemicals and Metrochem have both time and again won export and other awards from the Ministry of Commerce and other organizations.

Ciba Specialty Chemicals (SWX:CIBN, NYSE,CSB) is a leading company dedicated to producing high-value effects for its customers' products. Our specialty chemicals, added in small quantities, enhance the performance, look and feel of the final product. Business success is driven by our long-term strategy of innovation and continuous operational improvements. Ciba brings new and creative thought to the processes and products of our customers in more than 120 countries. Ciba's continuing operations generated sales of CHF 7.4 billion in 2001 and CHF 276 million was spent on R&D to foster innovation across the company.

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