04/14/2009 - Süd-Chemie commences environmentally-friendly process in Moosburg for the production of casting cores for BMW

New INOTEC® production plant of the Süd-Chemie subsidiary WD-Giesserei-Technik accomplishes emission-free series production of cores for BMW engines

Süd-Chemie AG, based in Munich, has today inaugurated in Moosburg the new production plant of its Fuldabrück-based subsidiary, WD-Giesserei-Technik GmbH, for the environmentally-friendly production of casting cores with the newly developed INOTEC® process. Through this powerful eco-friendly innovation, the speciality chemicals company for adsorbents and catalysts is thus consolidating its position as the market and technology leader in Europe for casting chemicals and tools.

From May 2009, the new plant is expected to commence series production of a core package consisting of various cores, including those to be used for the casting of cylinder blocks for BMW's new highly efficient 6-cylinder diesel engine, which will also be installed in the new BMW 7 series. In the next two years, this core production plant, in which Süd-Chemie has already invested in a low single digit million euro range and which is now the second plant alongside the main plant in Fuldabrück, will create new jobs in double-digit numbers at the Süd-Chemie location in Moosburg.

The inauguration of the production plant took place today on the premises of Süd-Chemie in Moosburg in the presence of representatives from the worlds of politics and economics, including the first Mayoress of the city of Moosburg, Ms Anita Meinelt, the head of the district authority of Freising, Mr Michael Schwaiger, the member of the German Parliament, Mr Franz Obermeier, and the member of the Bavarian State Parliament Dr Florian Herrmann.

The INOTEC® binding system, a unique, inorganic and thus emission-free version of core binders based on silicate for the casting industry, in particular aluminium casting, was developed and patented by Ashland-Südchemie-Kernfest GmbH, a joint venture between Süd-Chemie and Ashland Inc., and optimized for automotive series production casting in close collaboration with the BMW casting house in Landshut.

The environmental benefit is that the inorganic binding agents used in the process emit virtually no emissions which have a negative impact on the environment, unlike many organic binding agents. For this reason, core production can dispense with expensive and time-consuming processes such as air extraction and amine washing. The task of a binding agent system is to bind the quarry sand used in the production of casting cores so stably that it can withstand the extreme temperatures of up to 900° encountered in aluminium casting. This enables precise and faultless casting of complex mouldings such as cylinder heads and water cooling jackets. In the casting process, the casting cores represent the cavity model of the cast part to be produced. BMW, as the first OEM in automotives, has set itself the goal of gradually reducing the use of organic binding agents and using only inorganically bound cores from 2010 onwards.

In Moosburg, the Süd-Chemie subsidiary WD-Giesserei-Technik has accomplished, in just a short space of time, the production of foundry cores for BMW on the basis of the INOTEC® environmentally-friendly inorganic binding system in technically ultra-modern series production with 3-shift operation.

With the INOTEC® binder system, Süd-Chemie further strengthens its broad green chemistry portfolio consisting of process and environmental catalysts, bentonite based additives, water treatment, catalysts for second generation biofuels, and heavy metal free plastic additives.

Dr Hans Jürgen Wernicke, Deputy Chairman of the Managing Board of Süd-Chemie AG, commented at today's inauguration: "With the development of core production, hitherto unique in this form, optimized to the INOTEC® binding agents, we make a significant step forward to realizing our vision of emission-free foundry processes in the automotive industry. We are consolidating our leading position in Europe as a partner to the casting industry and further strengthen our Group's Moosburg location. Above all, this is a positive signal that Süd-Chemie, as an innovative and research-based company, can bring new environmentally-friendly processes, which are also highly attractive in economic terms, onto the market even in difficult economic times. I would like to especially thank our development partner and exclusive customer, BMW, for its belief and entrepreneurial courage to support innovation in these times."

Munich and Moosburg, 14 April 2009

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. Key markets served by its Adsorbents Division include the consumer-goods, packaging and foundry industries, as well as water treatment. Products manufactured by the Catalysts Division offer solutions for the chemical, petrochemical and refinery industries, for 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. Süd-Chemie generated group sales of €1.191 billion in 2008, approx. 80% of these outside Germany. At the end of 2008, the group employed more than 6,500 people at 80 sales and production companies worldwide.

About WD-Giesserei-Technik

WD-Giesserei-Technik GmbH, headquartered in Fuldabrück, produces sand cores for the casting industry. These tailor-made products are required by casting houses for the design of cavities in casting amongst other things, in order to produce high-quality products which are primarily used in the automotive industry and machine construction. Customers include major casting houses as well as global leaders in car and commercial vehicle manufacturer. The current workforce at WD-Giesserei-Technik GmbH numbers over 90. The company has been a part of Munich-based Süd-Chemie AG since the start of 2006.