openPR Logo
Press release

Süd-Chemie and Ashland agree on expanded joint venture serving foundry chemical sector

07-16-2010 10:04 AM CET | Industry, Real Estate & Construction

Press release from: SÜD-CHEMIE AG

SÜD-CHEMIE AG

SÜD-CHEMIE AG

Munich, 15 July 2010. Süd-Chemie and Ashland to merge worldwide foundry chemical activities under the name ASK Chemicals.

Süd-Chemie AG, Munich (Germany), and Ashland Inc. (NYSE:ASH), with headquarters in Covington, Kentucky (USA), have reached contractual agreement on the formation of a global joint venture to merge their business activities in the foundry chemicals sector. The joint venture will be known as ASK Chemicals GmbH and will be headquartered in Hilden, Germany. Süd-Chemie and Ashland will each hold a fifty-percent share in ASK Chemicals, while the operational management leadership will lie with Süd-Chemie.

This joint venture will employ approximately 1,300 people. Were it to have been in operation through the first six months of calendar year 2010, it would have generated total sales of about €240 million, or around $300 million – numbers reflecting that while the global foundry market saw moderate activity in Q1, it gained considerable momentum in Q2.

Süd-Chemie and Ashland are currently partners in Ashland-Südchemie-Kernfest GmbH, a foundry chemicals company operating successfully in Europe since its formation in 1970. The global joint venture will be comprised of three parts: Ashland-Südchemie-Kernfest, substantially all assets and employees of Süd-Chemie´s business unit for Foundry Products and Specialty Resins and Ashland´s Casting Solutions business unit. The transaction is expected to close towards the end of calendar year 2010, subject to customary closing conditions including regulatory reviews.

The expanded joint venture will combine Süd-Chemie´s and Ashland´s sales and marketing, product development units and production assets with those of the Ashland-Südchemie-Kernfest joint venture. The new joint venture will have considerable growth potential as a result of uniting the foundry know-how of the partners and expanding the use of existing distribution channels and market synergies in Europe, the Americas and Asia. The joint venture will systematically pursue elements of the partner´s existing strategies aimed at expanding and strengthening market positions based on high-quality, full-service solutions to meet the rising global demands of modern-day foundries.

When established, the joint venture will be able to offer its customers holistic solutions and customized innovative consultancy services. It will demonstrate a high degree of customer orientation and specific knowledge of customers’ production processes, coupled with proven expertise in research and development and application engineering for foundry chemistry. The product range will include resins, binding agents, finishing tools, additives, feeder heads, filters, separating agents, metallurgical additives and cores. In addition, the joint venture will continue the partners’ demonstrated success as an innovator of environmentally-friendly, i.e. emission-free and emission-reducing, moulding processes.

Dr. Günter von Au, managing board chairman of Süd-Chemie AG, said: "Amalgamating Süd-Chemie´s foundry chemical operations with those of our long-standing partner, Ashland, will enhance our mutual service capabilities not only in established markets in Europe and North America, but also in newly industrializing countries recording dynamic growth, such as China, India and Brazil. Together, we shall be in a better position to meet the high technological demands of our worldwide customers based on innovative solutions and targeted efficiency enhancement. As a result, we will benefit more quickly from the growth potential offered in the foundry sector."

Said James J. O'Brien, Ashland chairman and chief executive officer, “Today’s step to globally expand the longstanding joint venture partnership of Ashland and Süd-Chemie creates significant opportunities for both partners. The product offerings and geographic footprints of these companies are very complementary to one another, giving this new joint venture the benefit of well-established channels to market and a much more comprehensive portfolio of metal casting additives and consumables with which to serve customers worldwide."

Operations merging into the ASK Chemicals GmbH joint venture are the Casting Solutions business unit of Ashland Inc., including assets in the United States, Canada, Mexico, Brazil, China, Japan, the UK, Spain, Portugal, Italy, India and Korea; Süd Chemie's Foundry Products and Specialty Resins business unit including the Süd-Chemie subsidiaries SKW Giesserei GmbH, WD-Giesserei-Technik GmbH, Tecpro Corporation Inc., Süd-Chemie Hi-Tech Ceramics Inc., Ajay Metachem Süd-Chemie Pvt. Ltd., parts of Jiangsu Süd-Chemie Chemical Materials Co., Ltd. and the companies belonging to the existing joint venture, Ashland-Südchemie-Kernfest GmbH, and its subsidiaries (AS Group).

About Süd-Chemie
Süd-Chemie (www.sud-chemie.com) is a publicly quoted (Security Identification Number ISIN: DE 0007292005; WKN: 729200) 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 Süd-Chemie products and services is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. The Süd-Chemie Group generated sales of approx. EUR 1.1 billion in 2009, about 85% of these outside Germany. At the end of December 2009, the group employed some 6,500 people in more than 80 sales and production companies worldwide.

About Ashland
Ashland Inc. (NYSE: ASH) provides specialty chemical products, services and solutions for many of the world’s most essential industries. Serving customers in more than 100 countries, it operates through five commercial units: Ashland Aqualon Functional Ingredients, Ashland Hercules Water Technologies, Ashland Performance Materials, Ashland Consumer Markets (Valvoline) and Ashland Distribution. Ashland Casting Solutions, a business unit of Ashland Performance Materials, is a leader in supplying products, processes, services and technologies to the global metal casting marketplace. To learn more about Ashland, visit www.ashland.com.

Süd-Chemie AG
Lenbachplatz 6
80333 München
Corporate Communications
Patrick Salchow, Jochen Orlowski
Ph. +49-(0)89-5110-250, -247
jochen.orlowski@sud-chemie.com
www.sud-chemie.com

Ashland Inc.
Media Relations: James E. Vitak
Ph. 001 614 790-3715
Investor Relations: David Neuberger
Ph. 001 859 815-4424
www.ashland.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Süd-Chemie and Ashland agree on expanded joint venture serving foundry chemical sector here

News-ID: 138560 • Views:

More Releases from SÜD-CHEMIE AG

Süd-Chemie donates drinking water facility as humanitarian aid for Pakistan
Süd-Chemie donates drinking water facility as humanitarian aid for Pakistan
Süd-Chemie AG, Munich, is donating a mobile drinking water purification facility as humanitarian aid for the flood disaster victims in Pakistan.Süd-Chemie AG, Munich, is donating a mobile drinking water purification facility as humanitarian aid for the flood disaster victims in Pakistan. Based on estimates by the United Nations, 20 million people in Pakistan are affected by the disaster. About one quarter of these are still waiting for emergency aid. Up to
Süd-Chemie to build Germany´s largest plant for the biotechnological production of biofuels from straw
Süd-Chemie to build Germany´s largest plant for the biotechnological productio …
Munich, 21 July 2010. Sustainable project to be subsidised by Bavarian State Government and BMBF. Süd-Chemie AG, one of the world´s leading specialty chemical companies for catalysts and adsorbents based in Munich is to build Germany´s largest plant to date for the production of climate-friendly, second-generation bioethanol, so-called cellulose ethanol, based on biotechnological processes. The total project has a volume of altogether €28 million and comprises an investment volume of some
Süd Chemie invests EUR 60 million in production of the lithium iron phosphate for e-mobility
Süd Chemie invests EUR 60 million in production of the lithium iron phosphate f …
Munich/Germany, 12 July 2010. World’s largest production plant using a new high-quality production process for lithium iron phosphate for a new battery generation for electric vehicle drives to be established. Süd-Chemie AG, a worldwide leading specialty chemical company based in Munich/Germany, is investing approximately EUR 60 million in the production of lithium iron phosphate (LFP), a high performance energy storage material used in batteries for electric vehicle drives and other applications.

All 5 Releases


More Releases for Ashland

Pharmaceutical Solvents Market is Booming Worldwide |Ashland,Solvay,Aceto
HTF MI just released the Global Pharmaceutical Solvents Market Study, a comprehensive analysis of the market that spans more than 143+ pages and describes the product and industry scope as well as the market prognosis and status for 2025-2032. The marketization process is being accelerated by the market study's segmentation by important regions. The market is currently expanding its reach. Major Manufacturers are covered: ExxonMobil, Ashland, Honeywell, Lonza, Arkema, INEOS, Jubilant
Algal Polysaccharides Market | Ashland, BAKERpedia, BASF, Chemyunion
Introduction: The introduction to the report serves as a gateway into the comprehensive world of the algal polysaccharides market. As industries continue to evolve and adapt to changing consumer demands and technological advancements, understanding the market dynamics becomes paramount for industry stakeholders. The report takes on the responsibility of offering a profound and all-encompassing analysis of the algal polysaccharides market, catering to the needs of a diverse audience that includes manufacturers,
Cosmetic Synthetic Materials Market | Ashland, BASF, Clariant, Croda
The global cosmetic synthetic materials market report is a comprehensive report that provides a detailed analysis of the current status and future trends of the cosmetic synthetic materials market worldwide. This report provides valuable information to industry stakeholders by offering an in-depth perspective on market dynamics, competitive landscape, growth opportunities, and key challenges faced by industry participants. From the perspective of market dynamics, this report explores the factors driving the growth
Octyldodecyl Stearate Market 2021: Regional Insights, Trends & Growth Forecast T …
LOS ANGELES, United States: The research study presented in this report offers complete and intelligent analysis of the competition, segmentation, dynamics, and geographical advancement of the global Octyldodecyl Stearate market. It takes into account the CAGR, value, volume, revenue, production, consumption, sales, manufacturing cost, prices, and other key factors related to the global Octyldodecyl Stearate market. The authors of the report have segmented the global Octyldodecyl Stearate market as per
Epoxies Market Development 2019 - Ashland, 3M, Dymax, Adhesive Systems
Epoxies Market Research Report Formulates with historic data up to 2019 and gives a forecast for 2019-2024. The report gives a comprehensive outlook of the market including the current market status, historic, and expected way forward for the global Epoxies market. The report inspects market size, key trends, technologies, challenges, product scope, industry revenue, and growth opportunities. The report delivers data on the drivers and restraints positively and adversely impacting
What is the Food Thickeners Market expansion growth strategy? Key Companies DowD …
Global Market Insights, Inc. added research on food thickeners market is a detailed analysis of this business space inclusive of the trends, competitive landscape, and the market size. Encompassing one or more parameters among product analysis, application potential, and the regional growth landscape, market also includes an in-depth study of the industry’s competitive scenario. Germany food thickeners market from bakery & confectionery application is anticipated to observe gains of over 4.5%