Reichhold & Spolchemie Polyester Production in Czech Republic

19 February 2006

Reichhold and Spolchemie have jointly announced the signing of a long-term agreement for the production of unsaturated polyester resins and gel coats for Reichhold’s composites customers in Europe.

Spolchemie has completed construction of a new state-of-the-art plant in Ústí nad Labem, Czech Republic designed to supply Reichhold’s customers in both Eastern and Western Europe. This new plant will produce a wide range of unsaturated polyester resins and gel coats for Reichhold.

Reichhold and Spolchemie have a relationship that dates over 15 years to when Jotun Polymer, which was acquired by Reichhold in 1987, first began marketing in cooperation with Spolchemie unsaturated polyester resins made by Spolchemie. Since the acquisition, Reichhold has continued a close relationship with Spolchemie.

This long-term relationship has been beneficial for both parties. Reichhold has achieved a leadership position in the Eastern European polyester resin market, and Spolchemie has been able to build an expanded and modernized manufacturing facility which will enable growth for the company and investment for the local economy.

John Gaither, Reichhold President and CEO, stated “We are very excited about this new phase in our relationship with Spolchemie. We are pleased to continue building on our successful relationship to give our business the capacity and service capability to grow with our customers in the rapidly expanding Eastern European market.” Martin Procházka, Spolchemie Chairman of the Board added, “Spolchemie looks forward to expanding our business with Reichhold and extending our long-term relationship.”

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