10/19/2005 - 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.

Munich, 19 October 2005

Enquiries:
Süd-Chemie AG
Patrick Salchow
Head of Corporate Public Relations

Tel. +49-(0)89-5110-250
Fax +49-(0)89-5110-302

Süd-Chemie 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, almost 80% of these outside Germany. Süd-Chemie employs more than 5,100 people at its 62 sales and production sites around the world.