01/18/2008 - Süd-Chemie to expand catalyst business in Russia and Ukraine

Süd-Chemie AG, Munich, one of the world's leading specialty chemical enterprises in the field of catalysts and adsorbents, and ALVIGO AS, Tallinn, Estonia, the leading manufacturer of catalysts in Russia and former Soviet Union countries, have jointly formed Süd-Chemie Alvigo Catalysts GmbH. Based on the financial investment contributed by Süd-Chemie, Süd-Chemie holds a 60% share in the joint venture, which has taken over ALVIGO's entire catalyst business. The main activities acquired include the catalyst production site and related research operations in Severodonetsk, Ukraine, and the sales office in Moscow, with a total of more than 300 employees. It was agreed that the purchase price would not be disclosed.

Main part of the joint venture‘s product portfolio will be syngas catalysts, which are required in the chemical processing of natural gas and coal. They are used for instance in the production of ammonia – one of the key base chemicals for the fertiliser industry – and of methanol and hydrogen. Methanol and hydrogen markets are dynamically expanding and have high growth potential, driven in particular by new technologies in the fuel sector including DME, gas-to-liquid (GTL), coal-to-liquid (CTL) and biomass-to-liquid (BTL) processes as well as in the petrochemicals industry including methanol-to-propylene (MTP®) conversion.

As oil becomes increasingly scarcer and more expensive, the demand for syngas catalysts is rising rapidly, especially in countries and regions with high deposits of natural gas and coal, such as Russia, China, the United States and the Middle East.

Süd-Chemie is the world's leading producer and developer of syngas catalysts, already operating production plants in Europe, the US, India, Indonesia and, since 2002, also in China. Süd-Chemie Alvigo Catalysts will not only strengthen Süd-Chemie's catalyst business in Russia and Ukraine, but this joint venture will also form a basis for expanding business into the remaining countries of former Soviet Union.

Dr. Hans-Joachim Müller, a member of Süd-Chemie AG's Managing Board, said, "Süd-Chemie Alvigo Catalysts provides us with another strategic cornerstone that will open up the attractive catalyst market in Russia and Ukraine and at the same time create a basis for business expansion in Eastern Europe and Central Asia. We are delighted that with Alvigo we have gained the region‘s established market leader as our partner."

Viktor Polozov, ALVIGO's majority owner and Chairman of the Board said, "I am very pleased to be joining forces with Süd-Chemie, a world-leading catalyst manufacturer with a strong research base. We now have an even larger range of products and technology, as well as the required strength for sustainable expansion in future. I am confident that we will not only be able to bring our product portfolio to other regions with the help of Süd-Chemie's strong distribution network, but also to expand our leading position in our home markets even further."

Munich and Tallinn, 18 January 2008

Enquiries:

Süd-Chemie AG
Corporate Public Relations
Patrick Salchow, Jochen Orlowski
Tel. +49 (0) 89 5110-250, -247

Süd-Chemie Alvigo Catalysts
Olga Zakharova
Email: olga.zakharova@sud-chemie.com

ALVIGO
General Manager Alvigo M
Vladimir Dovganyuk
Tel: +7 495 232 1465

About Süd-Chemie

Süd-Chemie AG (www.sud-chemie.com) is a publicly quoted (Security Identification Number ISIN: DE0007292005; WKN: 729 200) specialty chemicals company headquartered in Munich, Germany and operating on a worldwide scale. The common denominator of Süd-Chemie‘s products and innovations is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. Key markets served by the company‘s Adsorbents Division include the consumer-goods, packaging and foundry industries, as well as the paper and plastics industries and water treatment. Products manufactured by the Catalysts Division offer solutions for the chemicals, petrochemicals and refinery industries, for energy storage and hydrogen production as well as off-gas purification. Süd-Chemie generated group sales of just over €1 billion in 2006, approx. 80% of these outside Germany. At the end of 2007, the Group employed some 5,000 people at its 70 sales and production sites worldwide.

About ALVIGO

ALVIGO (www.alvigo.ee) is a multi-national scientific and production Group, which focuses its main activities on the chemical and petrochemical industries. ALVIGO incorporates manufacturing, research, engineering and trading companies in Russia, Ukraine, Estonia and Uzbekistan, with a total of more than 1,300 people employed. The priority business directions of ALVIGO are development and production of industrial catalysts for chemical and petrochemical processes, with a complete range of related technical service, plant revamps, development of new technologies for chemical industry, cleaning of technological equipment with recovery of platinum group metals, jewelry production. ALVIGO's strategic goal is to provide the customers with high-quality catalysts, services and new technologies.