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HERCULES EXPANDS PRESENCE IN CHINA
Acquires Remaining Interest in Paper Technologies Joint Venture


 

WILMINGTON, DELAWARE, April 25, 2006 . . . Hercules Incorporated (NYSE: HPC) has reached an agreement to acquire the remaining 40% ownership interest of its consolidated joint venture, Shanghai Hercules Chemicals Company LTD. from its partner Shanghai Chlor-Alkali Chemical Co. Ltd (China). Effective immediately, Hercules will assume day-to-day operations. Completion of the acquisition is subject to normal clearance from the appropriate Chinese government and regulatory agencies. Terms of the transaction were not disclosed.

"This investment will enable Hercules Paper Technologies to better serve the needs of the growing paper industry in China. Hercules intends to actively consider an expansion of Shanghai Hercules' existing manufacturing capacity and product line as well as installation of new facilities to support technical applications, product development and training for the paper chemicals markets in Asia,” stated Paul Raymond, President, Hercules Paper Technologies and Ventures.

Craig A. Rogerson, President and CEO of Hercules, commented, “China represents an important growth market for Hercules and we are excited about the opportunity this acquisition provides to expand our manufacturing and technical presence in this fast growing region. We thank our long term partner Shanghai Chlor-Alkali Chemical Co. for their support over the years."

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Hercules manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. For more information, visit the Hercules website at www.herc.com.

This news release includes forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, reflecting management's current analysis and expectations, based on what management believes 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 such factors as: ability to generate cash, changes resulting from ongoing reviews of tax liabilities, ability to raise capital, ability to refinance, ability to execute productivity improvements and reduce costs, ability to execute and integrate acquisitions, ability to execute divestitures, ability to increase prices, business climate, business performance, changes in tax laws or regulations and related liabilities, changes in tax rates, economic and competitive uncertainties, higher manufacturing costs, reduced level of customer orders, changes in strategies, risks in developing new products and technologies, risks in developing new market opportunities, environmental and safety regulations and clean-up costs, foreign exchange rates, asset dispositions, the impact of changes in the 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, the financial capacity of settling insurers, the impact of increased accruals and reserves for such exposures, the outcome of litigation and appeals, and adverse changes in economic and political climates around the world, including terrorist activities, international hostilities and potential natural disasters. Accordingly, there can be no assurance that the Company will meet future results, performance or achievements expressed or implied by such forward-looking statements. As appropriate, additional factors are contained in other reports filed by the Company with the Securities and Exchange Commission. 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.

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Media Contact: Investor Contact:
John Riley
jriley@herc.com
(302) 594-6025
Stu Fornoff
sfornoff@herc.com
(302) 594-7151


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