Comeback in the Heart of Europe -...

Impressive growth is the rule in Slovenska L’upca, Slovakia

Comeback in the Heart of Europe

T H E M A G A Z I N E F O R R A G E M P L O Y E E S 8 / 2 0 0 7

BasketballTips from a Former Pro PlayerPAGE 14

InterviewBonse-Geuking on the Foundation’s LaunchPAGE 16

EN | International Edition

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Basketball AceMehmet Topeli has to go high at work: He’s responsible for ensuring that exhaust gases from the Iskenderun power plant are clean. And nothing’s too high for him in his private life either — the former professional basketball player supports a successful women’s teampage 14

3 Editorial Growth wherever you look

4 A Picture and Its Story On the beach in Italy

6 Magazine Paulínia: Capacity doubled, Superabsorber takes first place, new logistics in Antwerp

8 Cover Story In Slovakia, the Fermas plant produces amino acids to meet the needs of the global market. It’s a key facility for the Feed Additives business unit

14 Employee Portrait Nothing’s too high for Mehmet Topeli

16 Interview Wilhelm Bonse-Geuking talks about the RAG-Stiftung, his roots in the mining sector, and the future challenges facing the energy industry

19 Chemicals RohMax keeps the world moving

Feed AdditivesFormerly a Slovakian joint venture,

Slovenska L’upca is today a key facility for the Feed Additives business

unit. All signs point toward growth at the plant’s laboratories

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Readers with questions and suggestions can contact the editorial office at: [email protected]

The cover picture shows Sona Slobodníková, who works in the lab at Slovenska L’upca. She was photographed by Stefan Wildhirt. Bottom left photo: Karsten Bootmann. Bottom right photo: Yakup Kutuk, STEAG

InterviewWilhelm Bonse-Geuking studied mining engineering and made a name for himself as a manager in the energy and oil industries. He has now been appointed Chairman of the Management Board of the RAG-Stiftungpage 16

MASTHEAD

Publisher: RAG Aktien gesellschaft, Dr. Werner Müller; Editor in Chief: Sven Scharnhorst (responsible according to the press law); Editorial Consultant: Christoph Peck; Art Direction: Wolf Dammann; Managing Editors: Stefan Glowa, Ulrich Raschke; Head of Group Editorial Office: Steffen Henke; Authors in this issue: Anne Böcker (AB), Horst-Oliver Buchholz (HOB), Oliver Driesen (OD), Christof Endruweit (CHE), Ursula Jäger (UJ), Nina Labitzke (NL), Sven Scharnhorst (SVS) Address: Rellinghauser Straße 1, 45128 Essen, P. O. Box 10 32 62, 45117 Essen, tel. +49 / (0)201 / 177-3381, fax +49 / (0)201 / 177-3181, e-mail: [email protected]; Picture Editor: Karsten Bootmann; Design: Martin Bartel, Arnim Knorst (head), Fraisy Manjali, Silke Möller, Sabine Schulz, Nadine Weiler/Redaktion 4, Hamburg; Copy Desk: Wilm Steinhäuser; Translation: TransForm, Cologne; Publishing house: HOFFMANN UND CAMPE VERLAG GmbH, A company of the GANSKE VERLAGSGRUPPE, Harvestehuder Weg 42, 20149 Hamburg, tel. +49 / (0)40 / 441 88-457, fax +49 / (0)40 / 441 88-236; Management: Manfred Bissinger, Dr. Kai Laakmann, Dr. Andreas Siefke; Publication Manager: Dr. Jessica Renndorfer; Production: Claude Hellweg (head), Oliver Lupp; Marketing: Kirsten Beenck, tel. +49 / (0)40 / 688 79-139, fax +49 / (0)40 / 688 79-199, e-mail: [email protected]; Reproduction: PX2, Hamburg; Copyright: ©2007 by RAG Aktiengesellschaft, Essen. Reprinting only with source credit and voucher copy. The content does not necessarily reflect the opinion of the publisher.

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Contents


Growth Wherever You Look Whenever you look at the business section of a daily newspaper, the topic

that always dominates the headlines is the growth of the global economy.

Industrial producers, the service sector, medium-sized enterprises, and trading

companies are all benefi ting equally from this trend. And RAG is no exception,

judging by the reports we‘ve received from Group companies in recent weeks.

Carbon Black is enlarging its capacities in Paulínia, Brazil. In the German state

of Saarland, construction work has begun on a power plant fueled with blast-

furnace gas, a project in which STEAG Saar Energie is playing a key role. RohMax

is investing in a new production plant in Singapore that will enable it to serve

customers in the entire Asia-Pacifi c region. And to complete the series, operations

are starting up in a new isophorone production plant in Herne as well as a new

plant in the Hanau-Wolfgang industrial park that will produce active ingredients

for the pharmaceutical industry. Throughout our entire industrial Group,

which will receive its new name this fall, all the indicators point toward growth.

The coming months will be characterized by the restructuring process our

organization is now implementing. The establishment of the RAG-Stiftung in July

is especially signifi cant. For this issue, we talked with the chairman of the

foundation‘s management board, Wilhelm Bonse-Geuking, about the foundation‘s

mission, his roots in the coal mining industry, and the importance of the

capital market for issues such as retirement planning. And in our cover story we

turn the spotlight on Slovakia, where the Feed Additives business unit

manufactures products for the international market with the help of a team

of experts from all over the world.

Pleasant reading!

Sven Scharnhorst

Sven Scharnhorst,Editor in Chief

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A Picture and Its Story4

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On the Beach in ItalyRimini, Italy, boasts one of the world’s most famous beaches. Although this 15-kilometer stretch of Adriatic coastline was once dominated almost exclusively by German tourists, it is now frequented by visitors from all over the world, who can be found relaxing under the regimented rows of sunshades. Although the big umbrellas offer plenty of cool shade, any unscreened sunrays that make it through can damage the skin of bikini-clad beauties and beer-bellied beachgoers alike. That’s why tourists in Rimini and else-where are relying on sunscreen creams with high sun protec-tion factors. The Degussa business unit Care & Surface Specialties in Rhein-felden produces inorganic, mineral UV filters, which are used for high-quality sunscreen creams manufactured by the leading cosmetics suppliers in western Europe, North America, and Japan. Particularly convenient to use are products made with TEGO Sun, a titanium oxide that is easy to apply and trans-parent, so it doesn’t leave an unsightly white film on the user’s skin. SVS PH

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Superabsorber Takes First PlaceFollowing its success last year, the Superabsorber business unit of the RAG subsidiary Degussa in the Marl chemical park has received a prize for the creativity of its employees. Staff from the acrylic acid plant took first place in the chemicals industry and second place in all industrial sectors overall. A total of 316 companies took part in this year’s ideas competition, which was organized by the German Institute of Business Administration (dib). All in all, 270 suggestions for improve-ment were submitted by the Superabsorber team, and the implementation of these ideas represents a total savings of almost €700,000 for the business unit. On average, more than two improvement suggestions were submitted per employee — a record for the Marl chemical park. Among the service providers, Degussa‘s Infracor subsidiary took sixth place in a field of 25 participating companies. “I’m delighted once again by these great results,” says Susanne Bannasch, head of Acrylic Monomers. “They demonstrate the commitment of the employees, whose ingenuity remains as strong as ever. Their ideas are helping us to continually improve our processes and working procedures.”

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Capacity DoubledRAG‘s Degussa subsidiary has opened a new facility for carbon black in Paulínia, Brazil, that will double carbon black capacity to 100,000 tons per year. The Advanced Fillers & Pigments business unit is now building on its position as the second-largest manufacturer of carbon black, producing around 1.4 million tons annually. Brazil is a core market for the business unit, which is responsible for global business activities with rubber additives and carbon black pigments. On the Brazilian market, 90 per -cent of demand is accounted for by manufacturers of tires and technical rubber items. The remaining ten percent of carbon black is used as pigments in plastics, paints, varnishes, and printing ink.

Degussa produces carbon black at its facility in Paulínia, Brazil

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Protection with PLEXIGLAS“A picture of environmental protection.” That‘s the slogan the Acrylic Sheet business line in the Methacrylates business unit is using to launch a worldwide environmental protection campaign for PLEXIGLAS. Thanks to its heat-insulating properties, PLEXIGLAS is used in greenhouses to cut energy consumption, for example — while auto-matically reducing direct and indirect CO2 emissions of companies that use it. In production facilities, domelights made with PLEXIGLAS HEATSTOP can help to slash energy costs for air conditioning systems. And PLEXIGLAS truLED and PLEXIGLAS EndLighten make it possible to create striking effects in illuminated advertising — also while cutting energy consumption.

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The project team (left to right): Astrid Van Driessche, Dirk Goossens, Theo Waegeman, and Vic Alderweireld. Not pictured: Remy Van Rossem

New Logistics in AntwerpIn Antwerp, an idea that took shape several years ago recently became reality, when Jan Van den Bergh, Managing Director of RAG subsidiary Degussa‘s Antwerp plant, opened a new container site at the location. The objectives at the new site are to make it easier to handle the growing volume of container traffic in Antwerp, to improve traffic safety, and to optimize storage of hazardous substances in accordance with Flemish “Vlarem” environmental regulations. In addition, the container site can help to boost profitability, and the new logistics makes the plant even more flexible than before.

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PLEXIGLAS® is a protected brand of RAG Aktiengesellschaft or its subsidiaries and is written in capitals in the text.

PLEXIGLAS in greenhouses: Just one of many energy-saving applications

7Magazine

Every work day, Andreas Koeters, Bet-tina Tuckow, Melanie Ramacher, and Erika Krüger meet to eat lunch together in the Customer Center of RAG Immobilien in Düsseldorf. The group looks forward to enjoying their bread with cheese, ham or jam, and fresh fruit and vegetables, which they purchase with funds from a shared kitty. The four colleagues like taking time out to talk about all kinds of top-ics, share information about other offices, and discuss work-related issues.

LUNCH IN

Düsseldorf

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No Ordinary Odor

FermentationFermentation processes convert biological material in a reactor (fermenter), using microorganisms which themselves are of natural origin, although partly modified. Although the procedure has been used for centuries for brewing beer, for example, the attendant processes and microbes are continually being improved and tailored to specific applications.

Amino acidsAmino acids are used in the production of compound feed that is optimally tailored to the needs of poultry and hogs. The feed also meets all requirements for ensuring that the animals receive healthy diets that are appropriate for the respective species. Combining feed in line with demand helps prevent the creation of excess nutrients which could otherwise impact the environment in the form of dung or slurry. Degussa is the only manufacturer in the world offering all four key amino acids from a single source: DL-methionine, BIOLYS (L-lysine), L-threonine, and L-tryptophane. These products supplement one another in the formulation of animal feed. Degussa produces the amino acids at six locations in five countries.

BIOLYS® is a protected trademark of RAG Aktiengesellschaft or its subsidiaries and is written in capitals in the text.

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There’s something in the air, a very unusual smell. It’s not a penetrating odor, but vis-itors to the Degussa plant in Slovenska

L’upca clearly notice it. But what kind of smell is it exactly? Well, it’s difficult to describe. “It smells a lot like a bullion cube,” says our photographer. “Really?” comes the chorus, accompanied by du-bious looks. “It does — a little,” he replies.

Juraj Drevojánek, the head of production at the plant, is obviously amused by our attempts to describe the scent. Drevojánek is an Amer-icanized Slovak who spent three years in the United States (more specifically at the Degussa subsidiary Midwest Lysine in Nebraska), which is why he speaks fluent English and has clearly grown fond of the American lifestyle. Drevojánek spreads cheerfulness wherever he goes, and he’s never at a loss for words, despite the fact that his position entails a great deal of responsibility. He supervises 140 employees who produce amino acids for animal feed, which the Feed Additives business unit sells all over the world.

The plant is operated by the Degussa sub-sidiary Fermas, a compound of the words “fer-mentation” and “amino acids.” Since 2004, the company has been headed by Miroslav Havlík,

Is Slovenska L’upca at Europe’s center, or more on its periphery? Well, the answer is largely a matter of perspective — but there’s no doubt that the local Degussa plant is in the heart of Slovakia. It’s also a key facility for the Feed Additives business unit, which produces amino acids at the plant

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Sona Slobodníková does high-precision work in the biotechnology lab. Below:

At the heart of the Slovenska L’upca plant is a large fermentation hall, where

23 fermenters are continuously at work

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a mechanical engineer specializing in chemical facilities. Havlík joined Biotika in 1989, before moving to the new joint venture Fermas in 1992. From 2001 to 2003 he worked in Wesseling, where he first was part of the Methionine proj-ect group, later moving on to the Infrastructure department. “My work was very successful, and it also had a big impact on my private life, be-cause my entire family came with me,” he recalls. Havlík rarely gets worked up, but when talk turns to the geographical location of Slovakia in gen-eral, and of Slovenska L’upca in particular, he be-gins to get agitated. “We have always been in the center of Europe,” he says forcefully (and a quick glance at the map confirms it). “We origi-nally had close links to Western Europe, but po-litical developments after World War II pushed us somewhat to the sidelines.”

The collapse of the Warsaw Pact, however, marked the beginning of a new historic era for the former eastern bloc countries. In a peaceful, mutually agreed-upon process, what had been Czechoslovakia was split into two separate re-publics on January 1, 1993. Many Slovakians are still troubled by this separation, because links to the Czech Republic were — and still are — very close. And the loss of Prague, the “golden city,” as the common capital is still keenly felt. On the other hand, Slovakia now boasts one of the most dynamic economies in Eastern Europe. And, the German news magazine Der Spiegel re-ports, the country is exemplary by virtue of its strong growth rates and declining unemploy-ment. Slovakia’s economy grew by 8.5 percent

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Left: Anna Hrckova has been working in the fermentation area since Fermas commenced operations in 1992. Top right: Lab Director Erika Kohutovicová and her colleague Milan Martinec adapt research results to the needs of production. Bottom right: As head of Environmental Protection and Safety, Miroslav Savolt has a lot to be proud of

“A monocultural environment leads to stand-still; but we want to always keep moving”Miroslav Havlík, Head of Fermas in Slovenska L’upca

in 2006, far surpassing the European Union’s average rate of 2.9 percent.

UpswingThis boom is also very evident in Slovenska L’upca. In its first few years, Fermas was nearly unstoppable thanks to Degussa’s capital, lysine production technology, and marketing network — along with the material, production facilities, infrastructure, and threonine production tech-nology supplied by Biotika. Revenues and pro-duction output rose steadily, with production of threonine, for example, increasing from 600 tons in 1994 to 18,000 tons in 2005. But despite this steady business growth, the plant’s work-force numbers have tended to decline. That’s because the global competitive environment also forces Fermas to increase productivity on a continuous basis. “We have become a Slovakian company with an international background and an international workforce,” explains Havlík.

That sounds logical enough today, but it was an alien concept in Slovakia 15 years ago. “When we formed the joint venture with Degussa in 1992, we created a whole new situ-ation for the country after decades of isolation.” That’s why Havlík is glad that “we also have ex-patriates at this location; they help to get things moving and prevent the creation of a monocul-tural environment.” One of the expats is Ralf Os-termeyer, Commercial Director of Fermas. After working in Wolfgang and Rheinfelden for many years, Ostermayer came to Slovakia in 2005, where he now feels quite at home: “The atmo-

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sphere at the plant is great, and I was fully inte-grated at the facility from day one,” he says. Like many other Fermas employees, Ostermeyer lives only a few kilometers from Slovenska L’upca, in Banská Bystrica. The job does have its drawbacks, though, as Ostermeyer’s family had to remain in Germany. Commuting back and forth between the two countries is no easy matter, since there are only two flights a day: at 11:00 p.m. a plane arrives from Prague, returning to the Czech cap-ital at 5:00 a.m. the following morning.

A special feature of the Slovenska L’upca plant is that it uses biotechnological methods

International culture instead of monoculture at Fermas: Miroslav Havlík favors a global exchange of information

to produce the amino acids. In the past, the facility produced lysine and threonine. Thre-onine is still manufactured there, while lysine production has been consolidated in the U.S. and recently was replaced in Slovenska L’upca by the higher-quality tryptophane. Naturally, there are close links between the production facility in Slovakia and the biotechnology re-searchers in the Westphalian town of Halle-Künsebeck. In short, the products created in Künsebeck are developed to the series-produc-tion stage in Slovenska L’upca. Feed Additives has been conducting research in the fermen-tative production of amino acids for over 20 years, and it has initiated many new technical developments during this period.

Playing a key role at the interface between research and production is Erika Kohutovicová, who heads the biotechnology lab. “We conduct tests for all new processes, which means we adapt the developments of the researchers in Künsebeck,” she says. “Taking new technology from the lab to the production stage is a very ex-citing assignment.” Kohutovicová leads a team of nine employees. The laboratory is equipped with several small reactors ( “baby fermenters”), which enable the staff to conduct lab-scale fer-mentation processes. Kohutovicová enjoys be-ing part of a global network that takes her work beyond the confines of her native Slovakia. Just the previous night, she returned from a meeting with her research colleagues in Westphalia.

Similar adaptation issues are being faced by her colleague Juraj Kasala, who heads the an- >

Temporary storage: Before being

processed into the powdery finished

product, amino acids are stored in

enormous tanks

The Fermas plant

Today a wholly-owned subsidiary of Degussa, Fermas (Fermentation of Amino Acids) was established in 1992 as a joint venture between Degussa (51 percent) and the Slovakian com-pany Biotika a.s. (49 percent). Degussa acquired all of Biotika’s shares in 1998. With its approxi-mately 300 employees, the Fermas plant in Slovenska L’upca uses biotechnology to produce amino acids (L-threonine, and L-tryptophane since May 2007) for animal feed on behalf of the Feed Additives business unit.

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Juraj Kasala, Head of the Analytical Laboratory:“We take on the challenge of having to develop new analytical methods for new products”

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Juraj Drevojánek, Production Director:“We’ve gradually expanded production, and tryptophane is taking us to the next step”

Ralf Ostermeyer, Commercial Director: “The atmo-sphere at the plant is great, and I was fully integrated at the facility from day one”

alytical laboratory. One of the main problems Kasala and his 15 employees face is how to or-ganize the checks of tryptophane samples pro-duced at the plant. “New products call for new methods,” says Kasala. Should difficulties arise, Kasala only needs to call colleagues in Künse-beck for help. After all, international and inter-lingual collaboration is now a common aspect of day-to-day business operations.

FermentationAt the heart of the plant is a tremendous fermen-tation hall, containing rows of 23 reactors (fer-menters). These reactors generate a lot of noise, so earplugs are a must. Inside the reactors, bac-teria help to convert various raw materials (wa-ter, sugar, ammonia, salts, oxygen, and vitamins) into amino acids. Once the fermentation process is complete, the resulting liquid undergoes vari-ous downstream processing steps, such as evap-oration, crystallization, and filtration, before be-ing dried and packaged.

What remains is biomass — with the distinc-tive smell that reminds our photographer of bul-lion cubes. “All waste material generated dur-ing production is biologically degradable,” says Miroslav Savolt, Head of Environmental Protec-tion and Safety at the plant. “The biomass is used as fertilizer,” he adds — and at last we can place the odor. The fermentation area is also the workplace of Anna Hrckova, a machine opera-tor. Hrckova has been working at the plant since 1991, when it still belonged to Biotika. “In my work, it’s essential to understand fermentation

Filter drier used in the production of threonine

Sacks of L-threonine ready for shipment

“Tryptophane is a new amino acid for the plant, a product that has allowed the business unit to expand its portfolio”Juraj Drevojánek, Head of Fermas Production

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Banská Bystrica is located in the heart of Slovakia, only a few kilometers from Slovenska L’upca. The old mining city with a population of 82,000 is on the banks of the River Hron, surrounded by the peaks of the Low Tatra, the Greater Fatra, and the Slovak Ore Moun-

tains. The long Námestie SNP square (square of the Slovak national uprising) is one of the most beautiful plazas in the entire country. From the top of the clock tower at the upper end of the square, visitors can enjoy a spectacular view of the city’s center and the surrounding area.

and the processes we use,” she says. Hrckova en-joys her work, which involves checking to be sure that nothing unusual happens and monitoring the amino acids’ growth in the fermenter.

She works in shifts, with a day shift followed by a night shift and the subsequent two days off. “It’s a great work model,” says Hrckova. She pre-fers the late shift because she likes the night at-mosphere and the fact that it’s quiet and dark outside. Plant manager Milan Jendrisák only works days, although he can be reached at all times. Until recently, he was responsible for two facilities with 56 employees. Although a third fa-cility has now been added to his range of respon-sibilities, Jendrisák still seems very relaxed.

Meanwhile, Fermas continues to expand. The production hall was recently enlarged for pro-duction of tryptophane, which began in late May. A process for manufacturing trytophane was jointly developed by the production unit in Slovakia, the researchers in Künsebeck, and the Process Technology & Engineering service unit. Basic engineering commenced in 2005, when several new structures were built, including a tank pit and a pipe bridge, although most of the system was simply attached to the existing fermentation area. Says Drevojánek: “The new amino acid has brought new procedures and processes to the production location and ex-panded the business unit’s portfolio.”

SafetyThe production plant has also made great strides in terms of environmental protection and occu-pational safety. “We didn’t use to wear helmets, protective goggles, or safety footwear,” says ˇSavolt. New, strict safety standards were grad-ually introduced when Degussa became in-volved in the company, however. It wasn’t easy to change habits that people had acquired over the decades, but the emergence of a new genera-tion of workers is helping to bring about a trans-formation, Savolt points out. There hasn’t been a single accident in Slovenska L’upca for the past 18 months, and the plant had been completely accident-free for three years before that.

When asked about the smell, Drevojánek can only smile. “It’s the smell of money,” he says, with a confidence born of success. CHE PPP

Purity standards: production facilities in Slovenska L’up ca, like this crystallization system, must be regularly cleaned

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Underbody paneling: Bernd Reul (right)

of Degussa’s Process Technology & Engi-

neering service unit, supported by an in-

stallation technician while inspecting

a tryptophane dryer

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Basketball PowerhouseMehmet Topeli is the man for getting things done high up: The process technology engineer at STEAG’s Iskenderun power plant in Turkey is responsible for ensuring that the exhaust gases from the facility’s 150-meter chimney are clean. Topeli, who stands two meters tall, is also a former pro basketball player who still has the knack for sinking baskets with great accuracy

On the ball: Former pro basketball player Mehmet Topeli is a mentor and supporter of the successful women’s

basketball team in the town of Ceyhan


bilities is to ensure that the system’s technology operates smoothly. The Iskenderun facility pro-duces electricity to meet Turkey’s growing en-ergy needs, and it does so in an environmentally friendly and economical manner. Every morning, Topeli looks at a screen to check on the pro-cesses running at the plant, and then makes his rounds with his staff and discusses with them what needs to be done in the course of the day. “One of the things my team is responsible for are all the by-products of electricity generation, like flue dust and gypsum,” says Topeli. The flue ash and gypsum are later used in the cement and plaster industries. Topeli is proud of the facility’s high level of efficiency the facility and its contri-bution to electricity production in Turkey.

Commitment to the regionLike all STEAG projects abroad, the power plant in Iskenderun does more than just pro-duce electricity, however. The RAG energy subsidiary also is dedicated to supporting the region where the facility is located. One bene-

Mehmet Topeli played professional basketball in Turkey’s second league for five years, scoring many points on the court. Success in this sport —

one of the most popular in Turkey these days — requires speed, agility, and team spirit. The affa-ble Topeli had it all, but at some point he was forced to choose between continuing his stud-ies and pursuing his basketball career, as it was becoming increasingly difficult to do both. He ultimately decided to give up basketball shortly before completing his Master degree in Process Technology Engineering. “The away games in Turkey got to be too much for me because the cities here are just too far apart,” he explains. “So I decided to take a break.” After finishing his exams, Topeli had to do his compulsory mil-itary service — where he led the army basketball team to some impressive victories.

Topeli, 32, still can’t keep his hands off the ball today, but now his playing is limited to his time off from work. He can easily pick up the 600-gram ball with one hand, despite the basketball’s circumference of nearly 40 centi-meters — a feat that takes skill, strength, and very large hands.

Topeli likes the teamwork aspect of basket-ball the most: “Each player on the court has a specific function, and the only way to win is for everyone to play well together.” Team spirit, en-durance, and dedication are traits that Topeli — who also has a Master’s degree in Business Ad-ministration — brings to his engineering job as well. He works at STEAG’s Iskenderun power plant, which is right on a beach. In fact, with the shimmering blue sea in the background, bright sunshine, and warm temperatures, it seems the ideal place for the perfect vacation. For Topeli, though, it’s all just part of the routine; he’s spent the last six years working in this seaside town.

The plant where he’s employed is equipped with a state-of-the-art flue gas cleaning system that filters out nearly 100 percent of the dust from the exhaust gases. One of Topeli’s responsi-

ficiary of such support is the women’s basket-ball club from the nearby town of Ceyhan. The team, which plays in Turkey’s premier league, has been sponsored since 2003 by the Isken project company, which operates the Iskend-erun power plant.

Topeli naturally gets involved in all the action as well: During the last European cham-pionship that the team competed in, he was responsible for organizing contacts with the International Basketball Federation (FIBA). He also assisted the team during games and traveled with them to the various venues. The members of the successful women’s basket-ball team have become role models for many in the region: “Today, just about every young person you meet in the area plays basketball, and my colleagues at the power plant have also caught the bug,” reports Topeli.

Topeli’s trips to destinations beyond Tur-key’s borders aren’t limited to his involvement with the basketball team though. As a spe-cialist for water processing and chemical fa-cilities, he also goes abroad on business quite often. Last year, he visited Mindanao in the Philippines, for example. “Besides working at the plant there, I also played basketball with my German and Philippine colleagues,” he says. That’s not surprising, since basketball is the number one sport in the Philippines.

Topeli also knows Germany pretty well, and he has been to Herne, Essen, Munich, and Hamburg, among other places. He even began learning German two years ago, in or-der to make it easier for him to exchange in-formation on technical innovations with his German colleagues.

Topeli got married a little less than a year ago. And — not at all surprisingly — his wife also loves to play basketball. AB PPP

STEAG invested $1.5 billion in its hard-coal power plant on Iskenderun Bay, which is operated by the Turkish project company Isken. The large facility’s two blocks each produce 660 mega-watts of electricity, meeting around six percent of Tur-key’s total energy needs. The location at Iskenderun Bay presented the engineers who built the plant with big chal-lenges. Among other things, a new 800-meter jetty built

for coal deliveries turned out to be too short for docking the coal ships, some whose hulls extend to 18 meters be-low the water. A solution was developed in the form of the Transshipper — the

world’s largest coal-unload-ing crane — which can han-dle more than 30,000 tons of coal a day. Isken employs 300 people — and the plant itself has changed the face of the entire region.

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Topeli’s “office” is the Iskenderun power plant, located directly on the Mediterranean Sea

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15Employee Portrait

Folio 8 | 2007


before that, E.ON started the sell-off of Veba Oel to the BP Group. I was the Chairman of Veba Oel at the time, and BP asked me to stay on board for another year or so until the transi-tional phase was over. You can see what hap-pened then! But to come back to your question about the RAG-Stiftung, I was inspired by the challenge of turning the concept of the foun-dation into reality, especially for the people in the Ruhr region. What’s more, the mining sec-tor has always been important to me. I studied mining engineering and worked in the mines when I was younger. It will be a big challenge to make sure that the implementation goes smoothly and in line with the basic agreement we’ve now reached. I have taken on an obliga-tion, and I intend to fulfill it. After all, I believe you should always do your best in every situa-tion. That’s something I inherited from my fa-ther; he was a Prussian civil servant._So the foundation you’ll be heading, and especially the NewCo, will take on a particular significance…Absolutely. The separation of the energy, chem-icals, and real estate segments, combined with the very well organized recovery of the coal mining sector without any social disruption, is sending a key signal to the entire region. It’s great to be involved in turning RAG’s plans into reality as the head of the foundation._Earlier you referred to your career roots. It’s said that you attach great importance to qualities such as discipline, dedication, and reliability. Is that something you learned from your mining background?

“I Have Taken on an Obligation and I Intend to Fulfill It”

_In spite of your position, it’s surprisingly easy to get in touch with you directly. You have no secretary and no press spokes man, and you reply to your e-mails yourself. Is that the American style of management, or do you simply prefer modern technology?It’s mainly a question of technology. When I was at Veba, I was the first chairman to use e-mail. My colleagues on the Board of Man-agement were surprised when I started typing my notes straight into my palmtop at meet-ings. Modern technology has made tremen-dous strides in the last six years, during the time that I worked for BP._What differences have you noticed between the management styles in Germany and in the UK or the U.S.?There are considerable differences. Everything is much less formal in the U.S. in particular. The fact that people are usually called by their first names helps to break down lots of bar-riers. But that doesn’t mean there’s no such thing as hierarchy, of course. You have to listen very carefully to all the nuances. The relaxed American style basically suits me, because I like to discuss things in a direct, straightfor-ward manner._Most people were surprised by your appointment as Chairman of the RAG-Stiftung. Were you surprised too?Yes, I hadn’t expected to be nominated. In fact, I didn’t hear anything for sure until after Dr. Müller had put my name forward to Angela Merkel, the German Chancellor. Things pro-ceeded very quickly from there._In the past you said you were planning to shift down a gear in your professional life so you could spend more time with your family. Why did you decide to take on this new position as the head of the foundation at the age of 65?There are people who plan their lives, but I’m not one of them. Of course I had certain goals. I was actually planning to retire at 60, but just

The sense of camaraderie in the mines had a tremendous impact on me. Every miner de-pends on the others and can rely on them. For me, that was a fascinating experience that re-mains with me to this day. I can even remem-ber my check number: 1716._You studied mining engineering in Aachen, and as a student you used to go to the Anna mine nearby. Do you know what happened to the site after the mine was closed?Yes, it was turned into an industrial park and a shopping mall. It seems to have worked out well, but a transformation like that would have been unthinkable back in 1963, when I was gaining my experience in the mining sector. _The members of the Foundation’s board have all been appointed now. Gustav Adolf Schröder is an expert in finances, Ulrich Weber is an HR director…Yes, I think we have an excellent team. To-gether with the experts in various fields, we’re now starting to work through all of the tasks we face. And it’s all being done in a pre-cise, objective way. We’re very aware of our responsibilities._You’ve been appointed as the head of the RAG-Stiftung for a five-year term. Is that the right amount of time?Yes. The foundation’ work is set up for the long term, and we’re still in the very early stages. We have some major challenges ahead of us, and we don’t expect everything to be easy._You’ve known Dr. Müller for a long time, and the two of you have great respect for each other. Is that an important basis for your future work?It goes deeper than respect. We’ve often met and shared our experiences in the past. From a distance, I followed with tremendous interest the way he restructured the Group and devel-oped the concept of the foundation — and I’m extremely impressed with what he’s achieved. Now I can say from my own experience that we’ve created a solid basis to build on.

We talked with Wilhelm Bonse-Geuking, the new Chairman of the RAG-Stiftung, about the foundation’s concept, his first career steps in the mining sector, his experiences with the international capital market, and the future challenges facing the energy industry

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Interview 17

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_In your role as an industry manager, what have your experiences with codetermination been like?They’ve been very positive. I’ve always spoken out in favour of codetermination, because the contact I have had with the people in the min-ing sector has played an important role. The key at all times is to reconcile the interests of the employers with those of the employ-ees, and everyone is entitled to have that hap-pen in a fair manner. These interests have al-ways been resolved intelligently in the coal and steel industry. The union leaders have re-tained a healthy sense of proportion and good judgement.

At Veba Oel we had to tackle some ex-tremely difficult restructuring processes, espe-cially after the takeover by BP. It was not de-spite codetermination, but because of it, that we managed to deal with the issues so effec-tively. After comparing the processes to those of its other takeovers in Europe and the U.S., BP said ours ran the most smoothly._After Veba Oel was sold to BP, you moved to a British oil company — first in Germany, and then at the European level. Did you notice any differences concerning the significance of the capital market? I think we Germans have a more distanced at-titude to the capital market than people in the UK or the U.S. do, for example. A company like BP has to be closely aligned with the capital market for the simple reason that more than 15 percent of all pensions paid out in the UK are linked to the profits and the share price of BP. That’s not because there are so many re-tired BP workers, but because the major pen-sion funds hold a large proportion of BP shares. And, just like any other shareholder, the man-agers of funds like these want to see reason-able dividends and a rising share price. Other-wise the pensions can’t be guaranteed. That’s why a publicly listed company needs to oper-ate with short-term success in mind as well as taking a longer-term approach. For many peo-ple all over the world, especially in the Eng-lish-speaking countries, the capital market is of fundamental importance for securing their future once they’ve retired._What do institutional investors such as these pension funds expect from a publicly listed company?The ability to bridge the gap between the interests of both sides. This is a strategy that focuses on the steady flow of dividends as well as on long-term growth. But that’s not actually a new way of looking at things. All responsible entrepreneurs have to keep asking themselves whether their long-term plans can be financed in the short term, and vice versa.

And that holds true even if their companies haven’t gone public._Finally, here’s a question for an oil company manager. How will our cars be powered in 30 years’ time?I’m sure we’ll still be using gasoline and die-sel, perhaps to an even greater extent world-wide than the experts are predicting to-day. After all, highly efficient technologies such as hybrid drives — which are combi-

nations of diesel and gasoline engines — are already going into mass production. But what really needs to concern all of us is cli-mate change. If you look at the developments of the last few years, you’ll see that the aver-age temperature has been rising dramatically since about 1990, compared to the long-term average in correlation with the CO2 content of the atmosphere. This is extremely alarming. At BP we believe that we have to act now rather than waiting for conclusive scientific evidence that CO2 emissions are responsible for the Earth’s climate becoming warmer. If we wait, it might be too late. And secondly, we need to be aware that the demand for energy is going to increase in the threshold and devel-oping countries in particular. In other words, in the future we will have to make our energy consumption as efficient as possible. The less we use, the better. However, we won’t see the end of fossil fuels in our lifetime._Why not?Because there are still such enormous reserves of oil, gas, and coal. But what we do need are new technologies that enable us to use fossil fuels in a way that protects the climate. We need to mobilize renewable energy sources — and we also need nuclear energy. We can’t do without fossil fuels, but we have to use them as efficiently as we can. We must cut emissions of carbon dioxide as much as possible, but we must also keep a close eye on the costs so that we can remain competitive. I’m sure we’ll be able to achieve these goals. It’s never too late to do the right thing._Mr. Bonse-Geuking, we wish you all the best for your work with the RAG-Stiftung. Thank you for your time.You’re welcome. And, as the miners always say, good luck! SVS PPP

“It’s never too late to do the right thing”

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The RAG-Stiftung (founda-tion) has the task of master-ing the adaptation process of the German hard-coal mining sector in a socially compatible manner by 2018 and support-ing the further development of the RAG Group with its chemicals, energy, and real es-tate business areas. As the fu-ture owner of the RAG Group, it will implement the key points approved on February 7, 2007, with regard to the discontinuation of subsidies for coal mining. To this end, the public authorities have agreed to finance the winding

down of active hard-coal min-ing operations, including in-herited liabilities with limited duration (“Altlasten”), and to guarantee the financing of RAG Aktiengesellschaft’s in-herited liabilities with unlim-ited duration (“Ewigkeitslas-ten”) from hard-coal mining activities. In 2012 the Ger-man parliament will review its resolution to phase out hard-coal mining in the light of economic efficiency, reliabil-ity of the energy supply, and other energy policy issues. An-other task of the foundation will be to release RAG Beteil-

igungs-AG from its joint li-ability with RAG Aktienge-sellschaft and float it on the stock exchange as an in-tegrated industrial group with its chemicals, energy, and real estate business ar-eas. The possibility of placing shares in the industrial Group with a third investor before the initial public offering is also in line with the founda-tion’s goals. The foundation will use the proceeds from the capitalization of RAG Beteili-gungs-AG to finance the hard-coal mining liabilities with un-limited duration.

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18


A Global Outlook “To keep the world in motion” is the ambitious goal of RohMax. And the groundbreaking ceremony for the company’s new production facility in Singapore was a major milestone

This 3D model (left) shows how the production plant will look when it goes into operation in early 2008. Breaking ground: Folkmar Stöcker, Dr. Michael Müller-Hennig, Aw Kah Peng, Dr. Dirk Reese, and Dr. Eric Fillod (above, left to right). Dr. Müller-Hennig (below, left) and Dr. Reese look forward to establishing an independent research center as well as the production plant in Singapore

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Asia is the fastest-growing market for lu-bricants, and we now offer our custom-ers a supply platform here that’s tailor-

made to meet the demands of this growth,” said Dr. Eric Fillod, Regional Manager Asia/Pacific at RohMax. Dr. Fillod’s comment came in late May as the cornerstone was laid for the first RohMax production facility in Asia. The plant is located on Jurong Island off the coast of Singapore. Also on hand for the ceremony were Aw Kah Peng of the management of Sin-gapore’s Economic Development Board (EDB) and Folkmar Stöcker, the German ambassador to Singapore. Their presence underscored the importance attached in Singapore to this in-vestment by Degussa.

So why Singapore? “There are several cen-ters of growth in Asia, and we’re focusing on Japan, China, and Korea,” explains RohMax Managing Director Dr. Dirk Reese. “Thanks to its central location, Singapore is ideal.” Singa-pore also has a free trade agreement with all other major countries in Asia, making it even more attractive as a production site. Degussa has invested double-digit millions of euros in the large-scale facility, which is scheduled to go into operation in the second quarter of 2008. It is designed to supply sufficient VISCOPLEX products to the region for at least ten years.

But RohMax wants to do more than manu-facture products on Jurong Island; it’s also aim-ing to position Singapore as its third key pro-duction location, after Darmstadt-Weiterstadt

in Germany and Horsham in the U.S. “In addi-tion to the world-scale production plant, we will also establish an independent new research center in Singapore,” says Dr. Michael Müller-Hennig, head of the Specialty Acrylics business unit. “This center will focus on new projects such as developing additives for biodiesel.”

“In-depth research plays an important role for RohMax,” Reese adds. “Intelligent solutions make it possible to gain an edge over the competition and to achieve further growth in key markets.”

One of the vital tasks over the next few months will be to recruit the highly qualified staff members that are needed. A total of 40

employees will make sure that the plant works safely and effectively. So far, the staff members “come from various continents and have an in-ternational outlook,” reports Reese. “That’s typ-ical for RohMax.” Perhaps the best example is Dr. Dennis Thong: he was born in Malaysia, studied in the UK, worked previously in Marl and Darmstadt, and is now a plant engineer in Singapore. Plant director Bonnie Tully is from the U.S., controller Paul Brown is English, the project manager Denis Schmitt is from France, and Matthias Urban from Germany will be con-tributing his many years of engineering exper-tise to the production plant. That makes for a truly global outlook. CHE PPP

RohMax was founded in 1996 as a joint venture of Röhm&Haas and Röhm. In 1998, Röhm acquired all of the shares in the joint venture and relo-cated, together with the company’s administration and research departments, from Philadelphia to Horsham, Pennsylvania in the United States. Today RohMax has pro-duction facilities in Ger-

many, France, Canada, and the U.S. Under the name of Oil Additives, RohMax is one of the three business lines of Degussa’s Specialty Acrylics business unit. It develops, produces, and markets functional poly-mers, primarily under the VISCOPLEX brand. These polymers are used in the manufacture of high-per-formance oils.

The oil additives help to improve the flow proper-ties of transmission oils, hydraulic fluids, and machine oils. Ever since it was founded, RohMax has continued a course of steady growth, year after year. As Dr. Michael Müller-Hennig, the head of the business unit, notes with pride, “2006 was the best year in our history.”

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VISCOPLEX® is a protected trademark of RAG Aktiengesellschaft or its subsidiaries and must be written in capitals at all times.

Folio 8 | 2007

19Chemicals


Keep it flowing!

One out of every two children in southern Africa does not go to school. Millions of children therefore have no opportunity to get an education. Help us keep the ink flowing. Help us build schools for Africa.

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