News

Ashland, Süd-Chemie to Merge Metalcasting Divisions.

Issued at 2010-07-26



Süd-Chemie AG, Munich, Germany, and Ashland Inc., Covington, Ky., have agreed to form a global joint venture that will merge their business activities in the metalcasting 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 50% share in the venture. Süd-Chemie will maintain operational management. The joint venture will employ approximately 1,300.

The two companies currently are partners in Ashland-Südchemie-Kernfest GmbH, a metalcasting chemicals company operating in Europe since 1970. The new global joint venture will be comprised of three parts: Ashland-Südchemie-Kernfest, the assets and employees of Süd-Chemie’s business unit for metalcasting and resins, and Ashland’s Casting Solutions business unit. The transaction is expected to close toward the end of 2010.

The expanded joint venture will combine the companies’ sales and marketing, product development units and production assets with those of the existing joint venture.
 
“Today’s step to globally expand the longstanding joint venture partnership of Ashland and Süd-Chemie creates significant opportunities for both partners,” said James O'Brien, Ashland chairman and chief executive officer. “The product offerings and geographic footprints of these companies are complementary.”

Süd-Chemie is a specialty chemicals company that serves the consumer goods, packaging and water treatment industries, in addition to metalcasting. Ashland also provides specialty chemical products to a variety of industries.


Source: Modern Casting



Related News