05/26/2008 - Süd-Chemie acquires major stake in leading manufacturer of foundry additives in India, Ajay Metachem

Süd-Chemie AG, Munich, a worldwide leading specialty chemicals company for adsorbents, additives and catalysts, has acquired a major stake in India‘s leading supplier of foundry additives, Ajay Metachem Pvt. Ltd., Pune.

Ajay Metachem supplies high-grade chemicals and other materials for foundries in the Indian market. The company operates three production sites and several sales offices in the centres of the Indian foundry industry. Ajay Metachem‘s products and related services include resins, coatings, additives and feeders and represent a perfect addition to Süd-Chemie‘s product portfolio for the foundry industry.

The Indian market for high-grade foundry additives and products today makes up approximately a third of the respective market volume in Germany (150 million euros). This market in India is growing at approximately 30 percent a year in the wake of continuous strong growth in the Indian automobile industry and the breakneck rise in demand for cast iron components. India already has the fourth largest automobile market in Asia and the fifth largest commercial vehicle market in the world.

Dr. Hans Jürgen Wernicke, Deputy Chairman of the Managing Board of Süd-Chemie AG, said: “With this investment in Ajay Metachem and together with our new partner we are able to enter one of the most attractive future markets for foundry chemicals and additives. This cooperation is for Süd-Chemie a strategic milestone with high synergy potential for the supply of high grade products, technology and services to the customers of these markets. We welcome our new partnership with full confidence that we will strongly participate as a reliable, customer-focused supplier and partner in the vast growing Indian foundry industry.

Munich, 26 May 2008

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Süd-Chemie AG (www.sud-chemie.com) is a publicly quoted (Security Identification Number ISIN: DE0007292005; 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 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. 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 sales of about €1.1 billion in 2007, approx. 80% of these outside Germany. At the end of 2007, the group employed over 5,000 people at its 75 sales and production sites worldwide.