Nalco Targets Growth in China With Opening of New Manufacturing Plant and Research Center: Financial News

Nalco Targets Growth in China With Opening of New Manufacturing Plant and Research Center
Wednesday October 29, 2008 8:00 am ET

NAPERVILLE, Ill., Oct. 29, 2008 (GLOBE NEWSWIRE) -- Nalco Company (NYSE:NLC - News), the global leader in water, energy, air and process technologies and services that deliver savings for customers and improve the environment, announced the opening of two new facilities to better serve the rapidly growing Chinese market. The expansion includes a recently completed $25-million manufacturing plant in Nanjing and the dedication of a new research and development center at its existing site in Suzhou, near Shanghai.

``China is a very important market for Nalco,'' said Erik Fyrwald, Nalco Chairman, President and Chief Executive Officer. ``These new facilities allow us to provide better services and newer technologies to our customers faster and better than any of our competitors.''

The new 240,000 sq. foot (22,300 square meter) plant in the Nanjing Chemical Industry Park has 29 employees and an annual production capacity of 37,000 metric tons. The existing facility has space to expand to 75,000 metric tons per year and the 15-acre (60,000 square meter) site is designed to allow double that capacity for a potential total production of 150,000 metric tons per year.

This facility becomes one of eight worldwide core manufacturing plants for Nalco. It will be capable of producing all key technologies in the Nalco product line. ``The overall design incorporates best-in-class features in process safety and control and lean manufacturing concepts, making the site safe for the community and a very productive site for Nalco and our customers,'' said Rick Lijana, Division Vice President, Global Manufacturing. ``Our Nanjing project team, with tremendous support from the Nanjing Chemical Industry Park, has brought this new plant to reality safely and quickly. The Nanjing employees will provide best-in-class service for our customers while operating a safe and environmentally sound plant.''

The new research center in Suzhou will provide technical support throughout Northern Asia and allow Nalco to more quickly deploy new technologies in the region. The 16 scientists and engineers currently working in the center are focused on paper process chemicals and industrial water treatment. This center is developing additional capabilities in membranes, mining and petroleum refining and processing.

``Our Suzhou team has talent, academic accomplishments, dedication and commitment to technical superiority, as well as the strong will to deliver growth through innovation,'' said Dr. Manian Ramesh, Nalco Vice President and Chief Technology Officer.

Investing in growth in China is one of Nalco's top priorities, part of a focus on expanding in the BRIC+ countries (Brazil, Russia, India, China, the Middle East and Caspian Sea area). In addition to these new facilities, this strategy includes hiring sales engineers and other technical personnel, bringing total employment in China to more than 500 as of this past June.

``Even in today's uncertain global economy we expect China to be a source of continuing strong growth for Nalco,'' Fyrwald said.

About Nalco

Nalco is the world's leading water treatment and process improvement company, delivering significant environmental, social and economic performance benefits to our customers. We help our customers reduce energy, water and other natural resource consumption, enhance air quality, minimize environmental releases and improve productivity and end products while boosting the bottom line. Together our comprehensive solutions contribute to the sustainable development of customer operations. Nalco is a member of the Dow Jones Sustainability World Index. More than 11,500 Nalco employees operate in 130 countries supported by a comprehensive network of manufacturing facilities, sales offices and research centers to serve a broad range of end markets. In 2007, Nalco achieved sales of more than $3.9 billion. For more information visit http://www.nalco.com.

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This news release includes forward-looking statements, reflecting current analysis and expectations, based on what are believed to be reasonable assumptions. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from those projected, stated or implied, depending on many factors, including, without limitation: ability to generate cash, ability to raise capital, ability to refinance, the result of the pursuit of strategic alternatives, ability to execute work process redesign and reduce costs, ability to execute price increases, business climate, business performance, economic and competitive uncertainties, higher manufacturing costs, reduced level of customer orders, changes in strategies, risks in developing new products and technologies, environmental and safety regulations and clean-up costs, foreign exchange rates, the impact of changes in the regulation or value of pension fund assets and liabilities, changes in generally accepted accounting principles, adverse legal and regulatory developments, including increases in the number or financial exposures of claims, lawsuits, settlements or judgments, or the inability to eliminate or reduce such financial exposures by collecting indemnity payments from insurers, the impact of increased accruals and reserves for such exposures, weather-related factors, and adverse changes in economic and political climates around the world, including terrorism and international hostilities, and other risk factors identified by the Company. Accordingly, there can be no assurance that the Company will meet future results, performance or achievements expressed or implied by such forward-looking statements. This paragraph is included to provide safe harbor for forward-looking statements, which are not generally required to be publicly revised as circumstances change, and which the Company does not intend to update.