Sumitomo Bakelite Acquires Swiss Manufacturer of Long Fiber Thermoset Composites

The Sumitomo Bakelite Group announces the acquisition of Neopreg AG, a Swiss producer of long fiber thermoset composites marketed under the trade names Kinel and Neonite. Neopreg, based in Gelterkinden, has unique technology for producing these composites that complements technologies used by Sumitomo's existing specialty composites business. Neopreg will be integrated into Vyncolit N.V., Sumitomo's subsidiary that produces moldable composites in Europe, but will retain its name. Henny van Dijk, President of Vyncolit N.V., has assumed leadership since February 19, 2007.

Shigeru Hayashi, Senior Managing Executive Officer for Sumitomo Bakelite's High Performance Plastics division, stated, "This acquisition signals Sumitomo's commitment to further develop our specialty composites business to take advantage of new market opportunities. Neopreg technology provides a strong platform for global growth in this sector. Our customers will benefit from the synergies between the two product lines, which will also spark new materials innovation."

Through Sumitomo Bakelite's global marketing, sales and distribution infrastructure, customers will receive greater access to long fiber products, produced with Neopreg's unique and environmental friendly production technology ensuring consistent high quality. Combining Sumitomo Bakelite's expertise, and R&D capability, with Neopreg's technology, will result in a wider product portfolio offering customers additional choices.

Further, Neopreg customers will be able to take advantage of a complete package of technical services offered by Sumitomo Bakelite and Vyncolit. This support, from initial design through to prototyping and testing, is delivered by a state-of-the-art Technical Market Development Centers (TMDC); in Gent, Belgium, Detroit, USA and Shizuoka, Japan.

Neopreg specializes in long fiber reinforced epoxy and bis-maleimide (BMI) compounds with outstanding mechanical and thermo-mechanical properties. Neonite epoxy molding compounds offer excellent dimensional stability at high temperatures and high resistance to cracking. Applications include high-voltage equipment, switches and contact terminals. Kinel polyimide molding compounds provide outstanding high-temperature performance and mechanical properties for aerospace applications, for example jet engine intakes and blades. In addition these products can be used for automotive applications and capital goods to manufacture finished products, such as film stretch machines.

According to van Dijk, "This is an important strategic move that will add exciting new products in addition to our phenolics portfolio. These technologies will allow us to leverage new growth opportunities in the automotive and aerospace markets as well as capital good sector, including machinery for processing plastics. Vyncolit is a very strong marketing company, and the Neopreg portfolio will enable us to direct our marketing efforts to customers with specialized requirements. We view this as the first of many steps in the direction of becoming a leading specialty composites company."

Theo Staeheli, the former President of Neopreg, will serve as a Consultant to Sumitomo Bakelite. "I am happy that Neopreg is in good hands and look forward to working with the new team to expand the long fiber composite business," he said.

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