05/09/2005 - Süd-Chemie set for expansion

Munich, 9 May 2005 – At today´s Annual Press Conference held by Süd-Chemie AG, Munich, the Managing Board was able to report on a successful year in 2004. In spite of a highly-competitive environment, both the Group and the Company were able to record significant rises in sales, operating result (EBIT) and net income, reported Dr. Günter von Au, Managing Board Chairman since June 2004.

In the Süd-Chemie Group, it was possible to increase the previous year´s sales by a substantial €99.2 million (+13%) to €862.2 million. This strong rise was largely the result of acquiring worldwide trading activities in the sector of metallurgical additives for the foundry industry. Both the operating result (EBIT) of €51.0 million (+14% compared with 2003) and net income of €19.8 million (+32% compared with 2003) rose even faster than sales. Süd-Chemie AG´s performance was rated as especially encouraging by Dr. von Au. In addition to climbing sales, the Company was also able to report a marked rise in its operating result (EBIT) to reach €4.7 million (2003: -€1.6 million). Net income at Süd-Chemie AG rose from €9.5 million to €10.4 million.

In addition to an improved economic environment, especially during the second half of 2004, Süd-Chemie´s positive performance was due mainly to systematic expansion of the leading positions held in its fast-growing markets, coupled with internal measures to enhance efficiency.

In the sector of foundry products and specialty resins, Süd-Chemie took over global trading operations in the sector of metallurgical additives for the foundry industry from SKW Metallurgie AG, Unterneukirchen. This acquisition enabled Süd-Chemie to round off its product portfolio for the foundry industry, one of the most important areas of application for bentonite products and specialty resins. As a result, Süd-Chemie is now the only full-service provider of foundry chemicals for iron castings in Europe.

In recent years, the Middle East has proved to be the world´s fastest-growing region for petrochemical and refining operations. Forming the joint-venture company Süd-Chemie Qatar W.L.L. in the spring of 2004, Süd-Chemie increased its presence in this country, which owns the third-largest reserves of natural gas in the world, after Russia and Iran. The joint venture, in which Süd-Chemie holds a majority share, will be producing catalysts used to convert natural gas into high-grade petroleum products and also into primary and intermediate petrochemical products.

Outlook
During the current financial year, measures to consistently increase the Group´s lead and enhance efficiency are being implemented according to plan, thereby strengthening its market position even further. Sales, earnings and profitability will continue to rise. In the mid-term, self-generated growth is expected to boost sales to over one billion euros.

Enquiries:
Süd-Chemie AG
Corporate Public Relations
Tel. +49-(0)89-5110-250
Fax +49-(0)89-5110-302

Süd-Chemie (www.sud-chemie.com) is an independent specialty chemical company headquartered in Munich and operating on a worldwide scale. Key markets served by its Adsorbents Division include the consumer-goods, packaging and foundry industries, as well as the paper and plastics industries. Products manufactured by the Catalysts Division offer solutions for water treatment, petrochemicals processing, energy storage and hydrogen production, as well as off-gas purification. The common denominator of all its products and innovations is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. Sales of €862 million were generated in 2004, 80% of these outside Germany. Süd-Chemie employs more than 5,100 people at its 62 sales and production sites around the world.