Supply of APYRAL^(R) 40 CD; Nashtec's situation; the announced closure of Sherwin Alumina

Schwandorf, 12 August 2016 - Sherwin Alumina LLC, the raw materials supplier and cooperating partner of the Nashtec LLC joint venture, announced in a press release on 1 August 2016 that it plans to discontinue production. Production is to be discontinued through the end of August 2016.

As a result, Nashtec will lose its current supplier of raw materials and will also have to temporarily halt production commencing from September. The plan is for Nashtec to continue to operate in the future on a stand-alone basis, but this will require the agreement of the joint venture partner and implementation of an investment package which has already been planned. Once this is accomplished, Nashtec will be able to produce chemical grade aluminum hydroxide-based APYRAL^(R) 40 CD as Nabaltec AG has done in Schwandorf for decades.

By taking various measures, Nabaltec has been able to increase capacity for fine precipitated aluminum hydroxide at the Schwandorf site in recent months, which will allow Nabaltec to continue to supply all of its customers in the accustomed quality. Nabaltec will take advantage of the time until the production stoppage in Corpus Christi in order to build up safety stocks and fill the supply chain so that Nashtec's customers need not be concerned about limited supply.

Nabaltec's sales team and the commercial agents will stay in close contact with their customers in the coming weeks in order to keep them informed about current developments and coordinate supply with them.

About Nabaltec AG:
Nabaltec AG, with registered office in Schwandorf, a chemicals business which has received multiple awards for innovativeness, manufactures, develops and distributes highly specialized products based on aluminum hydroxide ("ATH") and aluminum oxide, as well as other raw materials, on an industrial scale through its "Functional Fillers" and "Technical Ceramics" divisions. The company's product range includes halogen-free flame retardant fillers and eco-friendly additives for the plastics industry. Flame retardant fillers are used e.g. in cables in tunnels, airports, high-rise buildings and electronic devices, while additives replace stabilizers containing heavy metals in PVC processing. Nabaltecalso produces base materials for use in technical ceramics, the refractory industry and catalysis. Unlike halogenated flame retardant fillers, the products manufactured by the company's "Functional Fillers" division contain no hazardous substances and do not require separate disposal. Rather, the company's flame retardant fillers actually decrease the development of fumes hazardous to human health and the environment in the event of fire. Nabaltec maintains production sites in Germany and the US and plans to continue to develop its market position by expanding capacity, further optimizing processes and quality and making strategic extensions to its product range. On the strength of its specialty products, the company strives to attain the market leadership in each segment.

Contact:
Marina Fuchs
Nabaltec AG
Phone: +49 9431 53-205
Fax: +49 9431 53-203
E-mail: mfuchs@nabaltec.de

Frank Ostermair
Better Orange IR & HV AG
Phone: +49 89 8896906-14
Fax: +49 89 8896906-66
E-mail: frank.ostermair@better-orange.de