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Borden Chemical Plans Brazil Expansion
Monday February 21, 11:00 am ET

Announces Intent to Build Resins and Formaldehyde Manufacturing Complex in Rio Grande do Sul

COLUMBUS, Ohio--(BUSINESS WIRE)--Feb. 21, 2005--Borden Chemical, Inc. announced today that its Brazilian subsidiary, Borden Quimica Industria e Comercio S.A., intends to build a formaldehyde and resins manufacturing complex to serve the rapidly growing engineered wood products market in southern Brazil and northern Uruguay.

Borden Chemical's board of directors has approved a plan to build a world-scale formaldehyde plant with a rated annual capacity of 125,000 metric tons, as well as a resins facility with a rated annual capacity of 170,000 metric tons. Both phenol formaldehyde resins and urea formaldehyde resins will be produced. The facility will include manufacturing technology enabling it to produce leading-edge resins that meet the highest environmental requirements, such as the E-1 and E-0 standards for low-emitting resins. The manufacturing complex will be located in the state of Rio Grande do Sul. In addition, the company will build a resins blending facility in northern Uruguay to serve customers in that market with complete, ready-to-use resin systems.

"Borden Quimica is a recognized market and technology leader in forest product resins, and this expansion will enable us to efficiently serve our customers as they grow and expand their operations," said Luiz Cintra, vice president, Latin America for Borden Chemical.

Manufacturing of forest products such as particleboard and MDF for furniture and plywood for structural applications is expected to grow rapidly in southern Brazil and northern Uruguay over the next five years, Cintra said. Building formaldehyde and resins production capability in the region will enable Borden Chemical to supply resin systems critical to making those products while significantly reducing shipping costs, he added.

Borden Chemical currently has three other plants in Brazil, located in Curitiba, Cotia and Boituva. The company expanded its Curitiba complex in 2001, adding a formaldehyde plant and additional resin capacity. Overall, the company operates 48 manufacturing facilities serving North & South America, Europe and the Asia-Pacific region.

Borden Chemical is a leading global producer of binding and bonding resins, performance adhesives, and the building-block chemical formaldehyde for various wood and industrial markets. The company is owned by the investment firm Apollo Management, L.P. and is based in Columbus, Ohio. More information on Borden Chemical can be found on its website at www.bordenchem.com .

Source: Borden Chemical Inc.

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