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New R&D Investments Announced in Asia Pacific

Technical innovation continues to be a driving force for Nalco’s growth and a key differentiator that our customers value. Nalco recently announced the development of two world-class laboratories in Shanghai, China, and Pune, India. Shanghai is expected to open in November 2009 and Pune in January 2010.

“The creation of these two laboratories should be a matter of great pride to us here in Asia Pacific,” said Narasimha Rao, Global Technology Leader. “It is an acknowledgement that the Asia Pacific region is a critical growth vehicle for Nalco, and it is a recognition of Asia's tremendous human resource advantages. With this investment, we will bring cutting-edge innovations to the market faster, enhance technical and sales support in the region, showcase world-class R&D facilities to our customers and better address this region's unique needs. We believe the R&D investments in Pune and Shanghai will be a tremendous boost to our effort to grow sales profitably in Asia Pacific.”

The ultimate vision for the two laboratories is not only to serve the innovation and technical support needs of the Asia Pacific region, but also to serve as innovation and knowledge centers in specific areas of expertise for all of Nalco.

“We are certain that R&D would better serve Nalco’s growth objectives by establishing infrastructures closer to our customers to meet their needs, matching the availability of extraordinary talent with business opportunities,” said Eric Melin, Executive Vice President and President, Asia Pacific. “Our customers and our customer's customers expect us to be available near their operations so we can deliver valued solutions in a timely manner. This investment provides us the opportunity to improve cost position due to faster localization of raw materials, localization of manufacturing and faster time to market for innovative solutions.”

Both Pune and Shanghai laboratory operations will be conducted in full coordination and collaboration with our global R&D organization.

“Nalco R&D is a single function and will work on one global technology portfolio,” said Mani Ramesh, Chief Technology Officer. “Our new research centers will serve Nalco’s global customers. We will allocate resources on a global basis for all projects while having our regional teams lead projects that focus on local market needs. We will continue to establish global virtual centers of excellence and collaborative research projects that allow team members from different laboratories around the world to work toward a common goal with a sense of utmost urgency.”