04/29/2004 - Süd-Chemie acquires foundry supply activities from Degussa

Süd-Chemie AG, of Munich, Germany, has acquired global foundry supply activities from SKW Metallurgie AG, a wholly-owned subsidiary of Degussa AG, Dusseldorf, Germany. The takeover concerns the companies SKW Gießerei-Technik GmbH & Co. KG of Hart, Germany, and Tecpro Corp. of Atlanta, GA, which both mainly engage in the sale of metallurgical products and whose combined turnover lies in the double-digit million range. The manufacture of products for use by foundries will remain a Degussa activity in Hart. Silence has been agreed on the purchase price. Süd-Chemie will be taking on 28 Degussa employees.

Süd-Chemie supplies foundry undertakings all over the world with casting bentonite, which is required, for example, as a foundry sand binder in the production of high-quality cast parts, such as engines for the automotive industry. Above and beyond this, Süd-Chemie also holds a 50-percent stake in the Ashland-Südchemie-Kernfest Group (ASK Group) of Hilden, North Rhine-Westphalia, Germany. The product portfolio of the ASK Group covers foundry requirements ranging from resins to core washes, feeders and ceramic filters. Acquiring the foundry supply activities of SKW Metallurgie AG enables Süd-Chemie to round off its problem-solving competency as a supplier to the foundry and automobile industries, particularly in the area of thin-wall iron casting. The thin-wall casting technique is used in the production of diesel engines, for example. The acquisition makes Süd-Chemie the only all-round supplier of casting chemicals for use in iron casting in Europe.

Degussa had already announced in 2002 its intention to divest its metallurgy operations as part of its concentration on specialty chemicals. The sale of the casting operations is one of the last steps in bringing its extensive divestment program to a successful conclusion.

True to its corporate claim of "Creating Performance Technology", Süd-Chemie is a global leader in the sector of chemistry and physics for surfaces comprising finest-grained inorganic matter. Based on bespoke customer solutions, it secures a leading position for itself in niche markets. With its two divisions of catalysts and adsorbents, it operates worldwide via more than sixty production and sales companies. Further information can be found at www.sud-chemie.com and www.ashland-suedchemie.de.

Degussa is a multinational corporation consistently aligned to highly profitable specialty chemistry. In fiscal 2003, its 47,000 employees generated sales of €11.4 billion and operating profits (EBIT) of €878 million, making it Germany's third-largest chemical company and the global market leader in specialty chemicals. Innovative products and system solutions enable Degussa to play a valuable and indispensable role in the success of its customers, as summed up by our claim “creating essentials”.

Contact:

Patrick Salchow
Süd-Chemie AG
Corporate Public Relations
T +49-89-5110-250
F +49-89-5110-302

Hannelore Gantzer
Degussa AG
Spokeswoman
Corporate Communication
T +49-211-65041-368
F +49-211-65041-527
hannelore.gantzer@degussa.com