10/27/2005 - Süd-Chemie expands catalyst business

Joint Venture for polypropylene catalysts formed in China

Süd-Chemie AG, Munich, has taken a majority interest in a joint venture with local partners in China to produce, further develop and distribute polymerization catalysts. This joint venture marks Süd-Chemie’s entry into the market for catalysts used in the manufacture of polypropylene, a plastic that is used in a wide variety of applications. This market is growing at an annual rate of around 6%. The future Shanghai Süd-Chemie Jinhai Catalyst Co., Ltd. has a modern production and research facility near Shanghai.

Süd-Chemie has had close trading relationships with China for three decades. In 2002 Süd-Chemie was the first Western company to invest in a joint venture to produce synthetic gas catalysts for the chemical and petrochemical industry. Shanghai Süd-Chemie Jinhai Catalyst will further strengthen Süd-Chemie’s position as the world leader in the field of catalysts to produce and condition source materials for plastic.

“The market entry of the so-called Ziegler-Natta catalysts will strengthen Süd-Chemie’s position as the world leader in the field of catalytic operations for manufacturing source materials for plastic products. We are building on the integration of the new company in our worldwide research and distribution organization as well on our longstanding and trustful customer relationships,” says Dr. Hans Jürgen Wernicke, a member of the Süd-Chemie AG managing board and responsible for the group operations.

By investing in the joint venture company, which has been active in the Chinese market since 2003, Süd-Chemie will also tap attractive markets outside China in the future. “We will build up the local business quickly, at the same time as we develop the export market. With innovative products we will focus on key customers in the coming years,” says Dr. Günter von Au, Chairman of the Süd-Chemie AG Managing Board.

Munich, 27 October 2005

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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 for all its products and innovations is the efficient and sparing use of natural resources to enhance the quality of life for both 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.