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

18.06.2008

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

end of announcement euro adhoc
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ots Originaltext: Süd-Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

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