08/07/2008 - Süd-Chemie and IMIC establish joint venture for foundry and construction bentonites in Italy

Süd-Chemie AG, Munich, a leading global manufacturer of catalysts and adsorbents, is to significantly expand its leading position on the European market for bentonite-based speciality chemicals for the foundry and construction industries, will found Süd-Chemie IMIC Italia S.r.l., Silvano Pietra/Italien. Süd-Chemie will take over a 75% share in the newly-formed company Süd-Chemie IMIC Italia, a joint venture with IMIC S.p.a. Silvano Pietra/Italy, after IMIC will have transferred its entire foundry and construction bentonite operations to the company. IMIC, a subsidiary of SATEF Hüttenes Albertus SA, Vicenza/Italy, holds the remaining 25% of the company. It was agreed that no details of the purchase price would be disclosed.

The joint venture will produce and market bentonite-based adsorbents and additives for use in the Italian foundry and construction industries. These products, which are produced by processing the natural clay mineral bentonite, are used, among others, as binding agents in order to facilitate production processes in various industries. Süd-Chemie is the world‘s largest manufacturer of bentonite-based specialty chemicals.

Süd-Chemie IMIC Italia rounds off Süd-Chemie's already strong position in the foundry and construction bentonite sector in Europe. IMIC will contribute both its long-standing experience and its key market positions in Italy. Benefiting from the existing customer base and production capacity, it is planned to rapidly increase sales in this important regional market.

Dr. Günter von Au, Chairman of the Managing Board of Süd-Chemie AG, said: "It is our goal to attain the leading position in Italy that we already hold in bentonite markets in other European countries. With the majority stake in the joint venture with IMIC, Süd-Chemie IMIC Italia, we have succeeded in entering the attractive Italian market for foundry bentonites, the second-largest market of this kind in Europe. It also allows us to further strengthen the position we hold with our construction bentonite on the European market for sophisticated civil engineering and tunnelling projects. We are pleased to have found, in the form of IMIC, a familiar partner who is extremely well established on the Italian market."

Munich, 7 August 2008

Enquiries to:

Süd-Chemie AG
Corporate Communications and Board Affairs
Patrick Salchow, Jochen Orlowski
Phone: +49 (0) 89 5110-250/-247

About bentonite-based adsorbents and additives

Bentonite-based adsorbents and additives are used to chemically optimise and upgrade products and processes in a large number of industries, including the food-processing, foundry, detergent, paper and construction and drilling industries. The basic element of these specialty chemicals is bentonite, a natural clay mineral which, due to its individual structure, offers unique properties that are further enhanced following so-called activation during chemical manufacturing processes. Bentonite's most significant property is its ability to bind other chemicals, which is why bentonite-based chemicals are called "adsorbents" (from Latin 'adsorbere' = to bind). In the foundry industry, a key component supplier to the automobile industry, alkaline-activated bentonite is for instance used as a binding agent to add the necessary stability and strength to the moulding-sand mixture that encases metal parts during casting, enabling it to withstand the molten metal. Today, more than 70% of all iron castings, approximately 30% of copper castings and 15% of aluminium castings are manufactured in moulds treated with special-purpose bentonite. In the case of complex building projects, for instance tunnel construction, these specialty chemicals are used to stabilise horizontal boreholes. Due to their specific chemical properties, bentonite additives form a thick suspension with a viscous consistency which both supports boreholes and allows material that has been drilled out to be removed without difficulty.

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 the paper and plastics industries and 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 sales of €1.075 billion in 2007, approx. 80% of these outside Germany. In mid 2008, the group employed more than 6,100 people at 80 sales and production sites worldwide.