Süd-Chemie AG

euro adhoc: Joint Ventures/Cooperation/Collaboration
Süd-Chemie and Ashland to combine global business activities in the metal casting industry

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Global Expansion


Süd-Chemie AG, Munich, and the US company Ashland Inc. headquartered in Covington, Kentucky, today signed a non-binding memorandum of understanding to form a new, global joint venture to serve foundries and the metal casting industry. When final agreements are reached, each parent company will hold a 50-percent share of the joint venture, which is planned to be headquartered in Venlo, The Netherlands.

Assets and employees would transfer to the new joint venture upon closing, anticipated by early calendar year 2009. The transaction is dependent upon the successful negotiation of definitive agreements, and closing will be dependent upon satisfactory completion of due diligence and a number of standard closing conditions, including regulatory review.

The new enterprise would combine three businesses: Ashland´s Casting Solutions business group, the foundry-related businesses of Süd-Chemie, and Ashland-Südchemie-Kernfest GmbH. Had it existed in 2007, this new company would have generated sales of almost EUR700 million or approximately US$ 1.1 billion with a total of more than 1.300 employees, making it a worldwide leading company in this area.

Having begun in 1970 with the formation of Ashland-Südchemie-Kernfest GmbH (ASK) in Hilden, a highly-successful joint venture operating in Europe, the existing relationship between Süd-Chemie and Ashland in the area of foundry chemicals would now be significantly expanded. The new organization would unite the foundry-related sales, marketing, technology and certain manufacturing operations of both parent companies with those of ASK.

Süd-Chemie and Ashland pursue a similar strategy aimed at providing solutions for the rising technological requirements of modern and worldwide expanding foundries and seeking international expansion, especially in developing countries. In combination, the complementary business positions will enjoy well-established channels to serve the European marketplace, the Americas and Asia.

The industrial concept is based primarily on exploiting high growth potential by combining the foundry and metal casting know-how offered by both enterprises.

Süd-Chemie Aktiengesellschaft The Managing Board

Munich, 18 June 2008

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ots Originaltext: Süd-Chemie AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Patrick Salchow
Tel.: +49 (0)89 5110 250
E-Mail: patrick.salchow@sud-chemie.com

Branche: Chemicals
ISIN:      DE0007292005
WKN:        729200
Index:    CDAX
Börsen:  Börse Hamburg / free trade
              Börse Frankfurt / free trade
              Börse Berlin / regulated dealing
              Börse München / regulated dealing

Weitere Meldungen: Süd-Chemie AG

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