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Bayer and Videolar enter into a co-branding agreement

Bayer MaterialScience AG : 20 April, 2005  (Company News)
Bayer MaterialScience AG, a subgroup of Bayer Group, has announced a co-branding agreement with Videolar, one of the leading companies in the Latin American market for optical data storing media.
The contract was signed at BrasilPlast 2005, International Plastic Industry Fair, which was held on April 4 through April 8 in Săo Paulo (Brazil).

As a result of the agreement, all Videolar’s Nipponic and EMTEC products for CD-R and DVD-R applications will be manufactured with Bayer MaterialScience’s Makrolon® (Polycarbonate) high-tech plastic, containing a Makrolon® logo as a quality evidence.

This is the first time Bayer MaterialScience has entered into a co-branding agreement in Brazil. The intention is to add additional value to Videolar’s end products by applying Bayer’s quality logo, as well as to promote Makrolon® brand, which is one of Bayer Group’s largest product lines in the world. This strategy is widely used by the Company in Europe, such as with UVEX’s sports helmets and glasses. In 2004, Bayer MaterialScience’s business unit Polycarbonates accounted for about EUR 2 billion worldwide.

Videolar was founded in 1988 and today is known as a blank or recorded digital and magnetic media supplier, in addition to providing services as well. Today the company’s core business, as for recorded products, is its DVD manufacture with in-place capacity of 5,5 million units a month, and its CD manufacture with in-place capacity of 9 million units a month.

Videolar expects to enhance their DVD production to reach 8 million units per month in 2005, which will be distributed throughout Brazil and Latin America. Videolar today holds a 70% share in the Brazilian DVD manufacturing market and 30% for CDs. It employs about 3,000 people in six units: four in Brazil and two in Argentina.

“Bayer is Videolar’s important partner and has actively taken part in all our optical media designs”, said Elie Waitzberg, Videolar’s technical director.

“We want to highlight the quality of the products made of Makrolon® and, as a consequence, provide our clients’ products with one more positive element that will be the principal factor in the consumers´ purchasing decision”, stated Dennis McCullough, in charge of Bayer MaterialScience’s Polycarbonate Marketing for Europe and Latin America.
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