euro adhoc: Süd-Chemie AG / Strategic management decisions / Süd-Chemie Concentrates on Core Businesses Sale of Rheological Additives and Carbonless Copying Paper Additives Businesses to Rockwood (E)

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19.10.2005

Süd-Chemie Concentrates on Core Businesses
Sale of Rheological Additives and Carbonless Copying Paper Additives Businesses
to Rockwood

Süd-Chemie AG, Munich/Germany has reached an agreement with Rockwood Specialties
Group Inc., Princeton, New Jersey/USA to sell its Performance Additives Business
Unit, which produces rheological additives for the paints and coatings industry.
The sales contract also includes Süd-Chemie´s additive business for carbonless
copying paper ("Copisil"). The transaction is still subject to approval by the
EU antitrust authorities.

Rockwood, a specialised US-American chemical company, will acquire both the
technology and the brand rights to these activities, as well as the production
facilities for rheological additives. Joint sales of the sold businesses amount
to approximately euro 42 million. It was agreed to keep the purchase price
confidential. The 125 staff in the rheological sector, employed mainly at sites
in Moosburg, Bavaria/Germany and Louisville, Kentucky/USA will be taken over by
Rockwood.

The Performance Additives Business Unit produces rheological additives used in
the paints and coatings industry, as well as the cosmetics sector, to positively
influence the flow properties (rheology) of finished products. The addition of
rheological additives to paints and coatings helps create the right consistency
for the required application, while also enhancing protection against corrosion.
In the case of creams, lotions and lipsticks, rheological additives ensure
optimal application to the skin. Further the additive business for carbonless
copying paper ("Copisil") is part of the transaction.

By selling these operations, Süd-Chemie is optimising its portfolio in order to
focus even more strongly on its core competencies in the sectors of catalysts,
food and feed additives, products for foundries and performance packaging, as
well as energy and environmental technology, thereby promoting systematic
expansion of its leading global positions.

Further inquiry note:
Patrick Salchow
Tel.: +49 (0)89 5110 250
E-Mail: [email protected]

end of announcement euro adhoc 19.10.2005 08:47:39
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emitter: Süd-Chemie AG
Lenbachplatz 6
D-80333 München
phone: +49 (0)89 5110-0
FAX: +49 (0)89 5110-375
mail: [email protected]
WWW: http://www.sud-chemie.de
ISIN: DE0007292005
indexes:
stockmarkets:
sector: Chemicals
language: English

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