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

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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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

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

end of announcement euro adhoc
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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: info@sud-chemie.com
WWW: http://www.sud-chemie.com
sector: Chemicals
ISIN: DE0007292005
indexes: CDAX
stockmarkets: free trade: Börse Hamburg, Börse Frankfurt, regulated dealing:
Börse Berlin, Börse München
language: English

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