Bayer Corporation stretches to serve U.S. market: Delivers with new Dorlastan spandex facility; Advanced Bushy Park, S.C. plant primed for quality domestic spandex production.

CHARLESTON, S.C.--(BUSINESS WIRE)--May 18, 1995--Bayer Corporation today celebrated the grand opening of its new Dorlastan spandex facility in Bushy Park, S.C., with a series of events attended by customers, local officials, employees and press. The new state-of-the-art plant--the largest single investment made in the U.S. by Bayer--represents a $170 million piece of Bayer's $1 billion capital investment in the U.S. and has created approximately 100 new jobs in the community.

The Bushy Park plant is equipped with the most technologically advanced fiber production equipment in the world, and is scheduled initially to produce an annual capacity of eight million pounds of Dorlastan spandex in a full range of deniers from 15 to 840, in both dull and clear lusters. With the addition of the new Dorlastan spandex facility, Bayer becomes the number-two producer of spandex in both the U.S. and Europe.

"We consider the NAFTA region--the United States, Canada and Mexico--our home market for Dorlastan. But, we also will export a significant portion of our spandex production to South America and the Far East," said Bayer Corporation President and CEO Helge H. Wehmeier. "These are increasingly important markets. And the decision to locate our Dorlastan operation at Bushy Park is evidence of our belief that we can manufacture spandex here with the high quality and efficiency and at the low cost required to compete in markets not only throughout the Americas, but also in Asia."

"In response to our customers' needs and the dynamic growth we see in the spandex market--particularly in areas such as hosiery, intimate apparel, active wear and swimwear--Bayer is making this significant investment in fiber technology in the U.S. market," said Dr. Richard L. White, president of Bayer Corporation's Fibers, Organics and Rubber Division. "The Bayer Dorlastan facility sets a new quality standard for spandex production in the United States."

CUSTOMER FOCUS

Bayer's broad product offering will be custom packaged to meet individual mills' needs--whether for spools, rewound material or made-to-order beamed sets of various sizes. The plant is equipped with full-scale knitting and finishing equipment typically found only at mill sites including the Karl Mayer Tricot Knitting and Raschel Knitting Machines, the Lonati Hosiery Knitting Machine and the Monarch Single Jersey Circular Knit Machine, among others.

This equipment allows Bayer to knit its fiber on-site and test samples in real time as the fiber is being produced. Bayer is then able to ship pre-tested, high-quality fiber that performs exactly the way the customer expects--something unique in the industry.

Industry estimates put the spandex market at approximately 800,000 metric tons annually with growing applications in hosiery, intimate apparel, active wear and swimwear. And, experts forecasts a yearly growth rate of more than 7%.

"We listened to market and customer demand for an alternate producer of quality spandex able to deliver whenever and however customers needed. We believe our flexible, customer-driven approach and high-quality product offerings will enable us to meet this challenge," said James F. Heslep III, director of of Dorlastan Marketing. "The new Bushy Park Dorlastan facility is truly world-class--another example of how Bayer is stretching to serve its customers and fit their needs."

WORLD CLASS FACILITY

Modeled on Bayer AG's technologically advanced Dormagen, Germany plant, the new Bushy Park facility is outfitted with equipment designed by Bayer in keeping with its exacting standards. Bayer has also paired its American technological experts with their German counterparts to share skills. "We matched Europeans with hands-on knowledge about how the equipment works with U.S. counterparts, so we could transfer practical information as we went along--not correct problems after the fact," added Heslep.

Processing spandex of consistently high quality is extremely difficult and very few companies in the world can accomplish it. This unique pairing concept helps to ensure the Dorlastan spandex delivered will be of the highest quality.

"Bayer is not new to the American textile industry or to Bushy Park--we've been here for 25 years," continued Heslep. "Although our Dorlastan plant's opening will mark the first time the company has produced U.S.-made spandex, Bayer AG has been producing spandex since 1964 to satisfy the extremely demanding European market."

Bayer Corporation, the U.S. subsidiary of the international chemical and health care company, Bayer AG, Germany, is a research-based company with major businesses in health care and life sciences, chemicals and imaging technologies. Headquartered in Pittsburgh, Penn., Bayer employs 24,000 people and had sales of $7.1 billion in 1994.

CONTACT: Bayer Corporation

Mary Greenway, 412/777-7739

Michele Macauley, 212/715-1675