What's New at Vi-Chem Corporation:

Vi-Chem Adds New Equipment, Expands Capacity
Manufacturer Invests in Grand Rapids Facility, Adds New Employees, Eyes Additional Growth

Grand Rapids, Michigan, May 2, 2005

In order to meet double-digit demand for its line of custom plastic compounds, Vi-Chem Corp. has invested in new capital equipment to expand its manufacturing capacity.

The Grand Rapids, Mich. manufacturer of engineered vinyl and thermoplastic elastomer compounds and alloys recently completed installation of an additional compounding line designed to manufacture its proprietary line of products, including Sevrene®, Sevrite™ TPEs and Interion® TPOs. Vi-Chem invested $750,000 in the new equipment and plans to hire five new employees to handle the growth.

Len Slott, president of Vi-Chem, said the Company is already looking at the need to add another compounding line over the next 18 months. The new extrusion line will give Vi-Chem an additional nine million pounds of capacity of its custom TPE and TPO products for both automotive and non-automotive applications.

“These new product lines have been extremely well-received since we introduced them six years ago,” Slott explained. “They have allowed us to add new customers and to increase our sales with current customers, leading us to post annual growth of 15-20 percent despite the lackluster economy. Our plan is to continue to pursue new opportunities in a wide range of markets.”

Vi-Chem has been supplying the automotive industry and other markets with pre-colored, engineered vinyl and TPE compounds for more than two decades. The addition of the Sevrene, Sevrite and Interion lines allows the Company to offer its customers increased capability to mold both large components, such as instrument panels, floor mats and large arm rests, as well as critical appearance items due to enhanced moldability. There are also grades of compounds that provide tailored feel for a variety of applications.

The introduction of these new product lines has allowed Vi-Chem to secure significant contracts with new automotive suppliers, including aftermarket manufacturers, as well as expand its offerings to current customers. Additionally, the Company has added many customers in markets such as consumer products, furniture, food packaging and sealing.

“The growth of our Sevrene TPE product line has been tremendous due to high customer demand in a variety of markets,” said William Greer, sales and marketing manager. “Unlike more traditional compounds, which offer a rubbery feel, our new products can be tailored to provide a feel that is more like leather. This has proved extremely popular with our automotive customers, especially for interior arm rests and consoles.

“Consumers increasingly demand more from automakers, particularly in terms of look and feel. Automotive interiors remain one of the key areas where vehicle manufacturers can distinguish themselves. Vi-Chem will continue to partner with our customers to deliver innovative products that meet and exceed consumer demand.”

About Vi-Chem
Vi-Chem Corp. is a leading producer of thermoplastic elastomers and vinyl compounds for the automotive, office furniture, building and construction, and other industries. Additional technical information on Vi-Chem is available at www.vichem.com or by contacting Vi-Chem’s customer service department at either custserv@vichem.com or (800) 477.8501.
 

For Further Information Contact William K. Greer at Vi-Chem: wgreer@vichem.com

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