Clean water for a higher quality of life in the futureWater is essential for survival. However, in many regions of the world it is already a scarce commodity. LANXESS embraces its responsibility and is committed to playing an active role in conserving this valuable resource.

One of the key questions facing business, politicians and society today is how to safe-guard the global water supply and improve it in the long term. Factors such as increasing globalization and the needs of a world popu-lation growing by almost 80 million people a year are causing water consumption to skyrocket. More than 50 countries around the world are already experiencing acute water shortages. Around 1 billion people do not have access to clean drinking water and more than 2 billion have no sanitary facili-ties. Every day, thousands of children die of

infections caused by dirty water. The situation is exacerbated by environmental pollution, climate change and wells that are drying up. Soon, water will be as valuable as oil is today.

Sustainable work practices as a corporate principleWater management is a global challenge. Back in 2000, the United Nations (UN) set out its “Action Plan for the 21st Century” with the aim of halving the share of the population with no access to clean and affordable drink-ing water by 2015. In 2010 the UN General Assembly declares the right of clear water a human right. As a global specialty chemi-cals group, LANXESS takes its responsibility for protecting people and the environment very seriously and is committed to taking a

responsible attitude to water usage. For ex-ample, the company works continuously to improve resource efficiency along the entire value-added chain, implementing state-of-the-art systems and optimizing processes in order to reduce consumption. What’s more, LANXESS’s innovative products for water treatment are helping to solve global water problems, while the company’s expertise is being employed in local projects to improve people’s quality of life across the world. You can read more about LANXESS’s commit-ment to water on the following pages.

Global challengePage 02 | 03

Water is fundamental to industry and supports a wide range of processes – from automo-bile construction to the generation of elec-tricity. Companies use water, for example, for heating, cooling, cleaning or as a solvent for chemical reactions and for transporting dis-solved elements. Process and industrial water is mainly taken from rivers, lakes and ground-water. Manufacturing companies worldwide consume 22 percent of the world’s water supply. This figure is even higher in industrial countries, with industry in Germany, for exam-ple, accounting for more than 80 percent of the country’s water consumption.

Foresighted progressTaking a responsible attitude to water usage pays dividends, because environmental pro-tection and lower costs can go hand in hand. Economic and ecological benefits coupled with stricter legal requirements have encour-aged most industrial countries to cut their water consumption substantially in recent years. A few decades ago, for example, up to 100 cubic meters of water was needed to produce one metric ton of steel. Thanks to new production technologies, less than six cubic meters is needed to produce the same

quantity today. Further key factors involved in protecting this natural resource include in-dustrial recycling in closed circuits and the ef-fective removal of harmful substances. In the chemical industry, water is sometimes recy-cled around 28 times before it is treated and cleaned in several stages and then discharged.

The chemical industry as a problem-solverOn a global scale, however, industrial water consumption will continue to rise despite these successes, because industry is grow-ing rapidly in emerging countries. There is still considerable ground to be made up in recycling and water treatment technologies. Today, 70 percent of the industrial water used in developing countries is still disposed of without treatment. The chemical industry can make a valuable contribution to resource protection in this area, because the industry is not just a water consumer – it is also a pioneer of state-of-the-art water technologies. Its products are employed worldwide to pre-pare raw water for industrial use, to remove harmful substances from drinking water and to clean wastewater in a way that is environ-mentally friendly.

Water usage in industryPage 04 | 05

Act responsibly – promote sustainabilityThe chemical industry accounts for a relatively large share of global water consump-tion. However, it also encourages the sustainable use of this resource by developing cutting-edge technologies for water treatment and implementing efficient water management processes.

Water consumption worldwide 1900-2025by region in billion m3 per year

6.000

5.500

5.000

4.500

4.000

3.500

3.000

2.500

2.000

1.500

1.000

1900 1940 1950 1960 1970 1980 1990 1995 2000 2010 2025

500

0

World

Europe

North America

South America

Africa

Asia

Australia and

Oceania

Source: German

Federal Environmental

Agency (2008)

Seals made of special-purpose rubberLeak-tight water pipes are part and parcel of efficient resource protection. Seals made of simple or natural rubber can become brittle over time as they usually comprise a number of components that can be washed out by water, leading to the formation of leaks. Special-purpose rubbers, however, ensure that, for example, water can be transported

from one place to another without any losses and that the door seals of washing machines exhibit a long-lasting, tight seal. The synthetic rubber ethylene-propylene-diene (EPDM) is particularly resistant to alkalis and heat and can be made very elastic. It does not soften at higher temperatures, which means it remains leak-tight for longer than other rubber seals.

Science and industry use a broad range of methods to optimize water quality. These include mechanical processes such as filtration through sand or fabrics, chemical methods such as oxidation or precipitation, and organic and thermal processes. Adsorp-tion and absorption methods play a key role in water treatment. Adsorption removes sub-stances from the water by bonding them to a solid surface, whereas absorption dissolves them in a liquid.

Activated carbon and adsorber resinsThe most common adsorbent is activated carbon – a very fine material based on carbon with a large surface area. This is important because adsorption only takes place at the surface. Activated carbon can be used to remove bacteria, pesticides and organic substances such as pigments, flavorings and fragrances from liquids, gases or vapors. Adsorber resins are even more efficient. They consist of fine, highly porous plastic beads with a large inner surface. Like activated carbon, they can bind nonpolar substances inside themselves.

Ion exchange resin adsorptionIon exchange resins are used predominant-ly to soften, deionize and decarbonate wa-ter. Based on polystyrene or acrylic resin, they can absorb the positively or negatively charged ions of an unwanted substance and release a corresponding quantity of other ions in their place. They selectively remove heavy metals and other harmful substances, such as arsenic, nitrate or phosphate, from drinking water.

Membrane technologyMembrane technology is increasingly win-ning through as an innovative separation method. It is applied in areas where ion exchange resins cannot be used, filtering pesticides, viruses and bacteria, for example, from the water. The chemical composition and structure of the membranes form a selective barrier, allowing certain substances to pass through while holding others back. LANXESS is also investing in this techno-logy, with plans to take a new, pioneering membrane production plant into operation at the Bitterfeld site in Germany in 2011.

Many ways to achieve a single goalThe chemical industry is taking a multi-pronged approach to help solve the world’s water problems. A wide range of technologies is available for making water drink-able, disposing of wastewater in a way that is environmentally friendly and ensuring that not a single drop of water is wasted.

TechnologiesPage 06 | 07

Ion exchange resins have proven to be very versatile and powerful. The plastic beads, just a few millimeters in size, are able to bind spe-cific ions – tiny, electrically charged particles – from solutions and to replace them with other, safer particles. For example, they can remove heavy metals from water, soften water and free it from harmful organic substances. This makes the beads ideal for use in all kinds of applications.

Essential in industry and everyday lifeKey areas of application for ion exchange resins in industry include the treatment of process water for power plants, cleaning and

rinsing processes in production and the ex-traction of metals in the mining industry. The microchip and pharmaceutical industries, for example, need ultrapure water for sterile ap-plications. In these cases, ion exchange resins remove any foreign molecules from the water.

These powerful beads also play an important role in domestic applications. For instance, they are used in dishwashers to prevent the buildup of limescale on glasses and dishes and in filter cartridges to improve the qua-lity of drinking water. Ion exchange resins are also used in production processes for a wide range of foodstuffs. For example, they ensure

that brown, salty raw sugar is turned into the sweet white product that we know and love. Specialty grades desalinate the raw solution and remove the yellow-brown substance that gives raw sugar its color.

Innovative technology for the toughest requirementsLANXESS is one of the world’s leading sup-pliers of ion exchange resins, marketed under the name Lewatit®. The company operates the biggest and most state-of-the-art facility for the production of monodisperse ion exchange resins at its site in Bitterfeld. With this method, the individual polymer beads that make up the

ion exchange resins are produced in exactly the same size, thus making the product even more effective. It offers the ideal solution for complex material separation and provides valuable support in the treatment of drinking water worldwide. In addition to its two exis-ting ion exchange resin plants in Leverkusen and Bitterfeld, LANXESS is currently inves-ting in another highly modern production plant in Jhagadia in India. From the end of 2010, the specialty chemicals group will use this site as a base for supplying customers across the globe with its products for ion ex-change resins, which are used, for example, in a wide range of water treatment applications.

Small beads with a big impact Demand for technologies that remove harmful or unwanted substances from water is extremely high. Options range from industrial water treatment, cleaning of drinking water and wastewater to the manufacture of ultrapure water for high-tech products.

Ion exchange resinsPage 08 | 09

Search for a problem solverMedical studies document the chronic ill-nesses suffered by those who drink water contaminated with arsenic over longer pe-riods, such as abnormal skin conditions, damage to internal organs and various forms of cancer. Based on recommenda-tions from the World Health Organization (WHO) in 1992, many countries set out strict, legally binding thresholds for the level of arsenic in drinking water. But how did they plan to enforce these thresholds?

Experts at LANXESS set themselves the challenge of developing a reliable and cost-effective means of protecting drinking water against arsenic contamination. Scientists in this field had long known that iron hydro-xide worked as an “antidote” to arsenic. In the 19th century, the German chemist Ro-bert Bunsen discovered that this substance bound arsenic securely and relieved the symptoms of poisoning. However, the con-ventional preparations in the form of pow-dered pigments were not suitable for treat-ing drinking water.

Solid bed of iron oxide beadsThe solution developed by LANXESS is known as Bayoxide® E 33 – an innovative

product comprising stable beads that do not dissolve in water and that enable the removal of arsenic from drinking water and wastewater on a large scale. The filter bed is made up of beads with finely structured sur-faces that adsorb the arsenic when the wa-ter flows over them. Today, LANXESS pro-duces several hundred metric tons of iron oxide beads a year, so far primarily for key consumer markets in the United Kingdom and the United States.

Ion exchange technology is also used in the fight against arsenic, with the hybrid adsor-ber Lewatit® FO 36 being employed along-side Bayoxide® E 33 for arsenic filtration. The product, which comprises a plastic-based anion exchange resin and an iron oxi-de with a special surface, selectively binds arsenic while allowing other – sometimes valuable – minerals to remain in the drink-ing water.

There is also high demand for cutting-edge water treatment technologies for protec-tion against arsenic in the many regions of Asia affected by this semi-metal. Here, too, LANXESS products can help safeguard the supply of clean drinking water and improve the quality of life of the people living there.

Around 50 years ago, scientists disco-vered an invisible threat – they found that the groundwater in many regions of the world is contaminated with arsenic. This highly toxic semi-metal is usually found in salts and minerals. However, in unfavorable

circumstances, it is washed out and can seep into the subsoil. Very high concentra-tions of arsenic occur in the groundwater of parts of the United States, South America and Asia, but also in European countries such as the United Kingdom.

Effective protection against arsenic Arsenic pollution is one of the most dangerous forms of drinking water contami-nation because arsenic is a poison that man cannot smell or taste. However, this harmful substance can be filtered out of the water through iron oxide beads or special hybrid adsorbers.

Iron oxidePage 10 | 11

Countries with arsenic overload

Western USA

Mexico

Great Britain

Romania

NepalBangladesh

Thailand

Chile

Argentina

Hungary

Taiwan

Mongolia

Vietnam

Wherever water is required – in industry or in the home – chemical additives help en-sure it is used efficiently. The future belongs to solutions combining efficiency, cost-effec-tiveness and environmental sustainability. The Bayhibit® and Baypure® products from LANXESS meet these requirements.

Unlike ion exchange resins, these products do not filter out substances from the water but instead prevent metal ions, such as calcium or magnesium, from forming salts that are insoluble in water and which can cause scale build in boilers and pipes. Bayhibit®, for example, has been used as a fundamental scale inhibitor in industrial cooling water additives and cleaning agents since the 1970s. This phosphonocarboxylic acid prevents the build-up of lime, stops the formation of crystals, reduces corrosion and has a dispersing effect. In other words, it enables the fine distribution of solid particles in liquids.

Inspired action from natureIn developing the biodegradable disper-sion agent Baypure® DS 100, chemists at LANXESS drew inspiration from the natural

world. Mussels and shellfish have a certain combination of aspartic acids that regulate their calcium levels to prevent the build-up of lime when they filter sea water in search of nutrition. Baypure® DS 100 works along the same lines, e.g. for softening water in laun-dry and dishwasher detergents. It envelops the calcium and magnesium ions dissolved in water, thus preventing the build-up of salts that are not readily soluble. Polyaspartic acid also plays a part in ensuring that clothes are cleaned effectively – it prevents any dirt extracted from the clothes returning to the fibers and thus coating them with a gray film.

Water treatment products from the Baypure® product family offer an environmentally friendly alternative for numerous applica-tions. For example, Baypure® CX 100 is also used to stabilize bleaching agents in the pa-per and cotton industries. It exhibits superior biodegradable qualities over conventional complexing agents – a sustainable innova-tion that has received, among other honors, the “Presidential Green Chemistry Chal-lenge Award” in the United States, which is presented in recognition of environmentally friendly technologies.

Water conditionersPage 12 | 13

Tough action, kind to the environmentBrilliant results. Special products for treating water, improving the cleaning power of detergents and cleaning agents, preventing the buildup of limescale and that are readily biodegradable – intelligent chemistry that has been honored with numerous awards.

Investing in the futureWhether it is in Brazil, France, China or India, conserving resources is always a top prior-ity for LANXESS. With innovative processes for wastewater treatment, the specialty chemicals group is setting standards worldwide in environmentally friendly production.

Sustainable sitesPage 14 | 15

India – state-of-the-art treatment technology The Indian site in Jhagadia is equipped with innovative technologies. All wastewater is tho-roughly pre-cleaned before it is released into the large site treatment plant at the Chemical Park. LANXESS’s separate treatment plant ensures that all used water is already close to drinking water quality when it leaves the company premises. At Nagda site LANXESS also collects wastewater from the surrounding area in order to clean it and use it as process water. For its water resource management, LANXESS was presented with the ICC Award by the Indian Chemical Council in 2009.

China – exemplary wastewater treatmentThe iron oxide production facility opened at the Jinshan site in China in 2007 is one of the first plants in China to be equipped with its own cutting-edge wastewater treat-ment system connected upstream of the industrial park’s external treatment plant. As a result, the plant meets LANXESS’s international requirements, which are more stringent than the pertinent legal regulations in many countries. By using innovative water management technologies, LANXESS saves up to 1.5 million liters of water a month in Jinshan by recycling cooling water.

Brazil – win-win situation for the environment and the companySuccessful ecological concepts: As part of the “Retro Washing Project”, LANXESS has analyzed its entire production process in Por-to Feliz in Brazil and made it more efficient. An optimized process for the production of iron oxide pigments has cut water consump-tion by around half and reduced the volume of wastewater considerably. This, in turn, has cut the cost of wastewater treatment. What’s more, a highly efficient cogeneration plant was installed here in March 2010 to gene-rate steam and electricity in a way that is kind on the environment and resources.

France – improved resource protection It’s not just in the research and development of synthetic rubber products that the French LANXESS site in La Wantzenau plays a leading international role. The production site in Alsace also leads the way in terms of resource conservation. The specialty chemi-cals company started modernizing its waste-water treatment processes there as early as 2006. Overall the company has invested around EUR 5.5 million in pioneering tech-nologies, thereby reducing the amount of suspended particles in wastewater by some 40 percent.

LANXESS is using its expertise to develop innovative products specifically designed to help people improve their quality of life and sometimes even open up completely new prospects for the future. In Bangladesh in South-East Asia, for example, the drinking water in many parts of the country is heavi-ly contaminated with arsenic. In these re-gions, it is not unusual for measurements containing several milligrams of arsenic per liter to be recorded.

The WHO recommends that water should contain no more than 10 micrograms – a concentration one thousand times weaker. Every day the population is exposed to the health risks associated with this toxic semi-metal. However, the lack of infrastructure means that the problem can only be solved locally because the central water supply is not even sufficient for the cities. Around 13 million people live in the capital Dhaka alone – almost half in slums. The situation is exacerbated by the fact that there are no

water pipes in the countryside, where the arsenic contamination is highest.

Fast, simple, affordableThe mobile “blue barrel” filter system deve-loped by LANXESS in cooperation with stu-dents at the University of Cottbus is a highly promising solution. The big blue plastic drums are fitted with a tap and a filter. The iron oxide Bayoxide® E 33 contained there-in cleans around 100 liters of water a day.

Field tests conducted in a village south of Dhaka have shown that the adsorber filling keeps the arsenic content down below 10 micrograms per liter for around two years. The system is easy to operate, requires no maintenance and filters the water quick-ly and cost-effectively. In fact, it makes a considerable contribution to improving the quality of life for local people. In coopera-tion with local partners and aid organiza-tions, it should be possible to launch the concept on a wider scale in future.

Quenching thirst safely LANXESS is helping to supply people in Bangladesh with clean drinking water with a simple yet effective solution – mobile filter systems for domestic use remove arsenic impurities from the water.

Commitment in BangladeshPage 16 | 17

It is not just the lack of clean drinking water in many parts of Africa that is still causing high disease and mortality rates today. In many cases, people do not understand the links between health and hygiene. In Tanzania in Eastern Africa, LANXESS is helping people to improve their quality of life in the long term. In cooperation with the African Medical and Research Founda-tion (AMREF), the company is equipping 25 schools in the Mkuranga district with rainwater treatment systems, cement wash

basins and new toilets. In future, some 10,000 children will benefit from improved water supplies and more hygienic facilities.

Prevention through educationIndividual responsibility is key, particularly when it comes to matters of health. En-couraging children, teachers and parents to change their habits is at least equally im-portant as any technical innovations. In the past, elementary school children in particu-lar drank from sanitary facilities, owing to

the lack of drinking water. Another problem was the superstition that evil spirits lived in toilets. To encourage appropriate water us-age, a new program on health and hygiene has been incorporated into the children’s lessons. And teachers have been given special training to help increase aware-ness through the use of clear information material. For example, posters encourage children to wash fruit before eating it. The use of pictures and illustrations encourag-es the target audience to take action – and

ensures those who are unable to read or write still get the message.

Ways to self-dependenceOther measures implemented by AMREF in the schools include first aid training and information on the symptoms of disease and the risk of infection. AMREF also established contact with hospitals in the region to ask that they monitor the health and hygiene conditions in the schools in future.

Clean water in Africa With support from LANXESS, 25 schools in Tanzania with around 10,000 children are being fitted with water supplies and new sanitary facilities in a bid to improve hygiene and health. At the same time, the children and teachers are also being taught how to prevent illnesses more effectively.

Commitment in AfricaPage 18 | 19

Simply turn the tap on and you have a seemingly inexhaustible supply of fresh clean water. On average, every person in Germany uses some 122 liters a day. While three to six liters are drunk or used in cook-ing, most is used in the bath, shower and lavatory. Germany’s water resources are big enough that personal demand can always be met. However, what many people don’t realize is that their lifestyle also impacts on the global usage and distribution of this vital resource.

2,400 liters of water for a hamburger “Virtual water”, a term coined by British sci-entist John Anthony, refers to the “hidden” quantities of water that are consumed dur-ing the production of foods and consumer goods. According to Anthony’s calcula-tions, every cup of coffee contains 140 liters of virtual water that has been used during the cultivation, processing, packag-ing and distribution of the beans. 16,000 liters are needed to produce a kilogram of beef. Around the world, some 70 percent of water consumption is accounted for by food production. In many cases, approaches such as improving the efficiency of irrigation

methods could help save huge volumes of this precious raw material.

Open your eyes and develop your ideasThroughout the world, mankind needs to develop new levels of awareness and innovative solutions for how it uses water. That is why LANXESS is helping to develop scientific skills and organizing educational projects at its sites in Germany. In 2009, around 200 high school students attended LANXESS’s Water Workshops. Over several days, the students took part in numerous activities such as calculating current levels of global water consumption and investi-gating how people in other countries and cultures use water. A representative from the aid organization the African Medical and Research Foundation (AMREF) also spoke to them about the living conditions of children in Tanzania. Finally, the young peo-ple developed their own ideas and visions for how the world’s water situation could be improved. This concept is fun, encour-ages students to adopt a more responsible approach to how they use water and will continue to teach an important lesson.

An important lesson in water usage While some see it as a luxury, others take it for granted. The scarcity of water is certainly not an issue in Germany’s schools. Or is it? As part of its education initiative, LANXESS is encouraging young people to adopt a more responsible approach to how they use water.

Education initiativePage 20 | 21

Forward-looking statementsThis brochure may contain forward-looking statements based on current assumptions and forecasts made by LANXESS AG management. Various known and unknown risks, uncer-tainties and other factors could lead to material differences between the actual future results, financial situation, devel-opment or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Bayferrox®, Baypure® and Bayhibit® are registered trademarks of Bayer AG, Leverkusen, Germany.

This information and our technical advice – whether verbal, in writing or by way of trials – are given in good faith but with-out warranty, and this also applies where proprietary rights of third parties are involved. Our advice does not release you from the obligation to verify the information currently provid-ed – especially that contained in our safety data and techni-cal information sheets – and to test our products as to their suitability for the intended processes and uses. The applica-tion, use and processing of our products and the products manufactured by you on the basis of our technical advice are beyond our control and, therefore, entirely your own respon-sibility. Our products are sold in accordance with the current version of our General Conditions of Sale and Delivery.

Sources of water on Earth• There are 1.4 billion cubic kilometers of water on Earth.• Of this, only 35 million cubic kilometers are freshwater. • Man has easy access to less than 1 percent of freshwater.• Man uses 2 percent of the available water each year for personal consumption.• On average, a U.S. citizen uses around 300 liters of drinking water a day.• On average, a European citizen uses almost 200 liters of drinking water a day.• Virtual water consumption* is over 30 times higher: - Approximately 75 liters for a glass of beer* - 140 liters for a cup of coffee* - 2,400 liters for a hamburger* - 11,000 liters for a pair of jeans*

* Source: Arjen Y. Hoekstra, Ashok K. Chapagain: Water Footprints of Nations. Water Use by People as a Function of Their Consumption Pattern. Springer Netherlands, Dordrecht NL 2006,

LANXESS and the water business• LANXESS has over 70 years’ experience in developing and manufacturing innovative products and technologies for water treatment.• More than 600 employees at LANXESS are involved in the development and manufacture of cutting-edge products and technologies for water treatment and conditioning.• During its “Water Year 2010”, LANXESS is investing around 25 percent of the turnover generated from its water business in new technologies and systems for water treatment.• LANXESS has over 160 products in its portfolio for removing unwanted or harmful substances from groundwater and process water.

Facts and figures on H2O, the elixir of life