Released on June 18, 2008. 

Ashland Inc., Covington, Ky., and Süd-Chemie AG, Munich, Germany, signed a nonbinding memorandum of understanding to form a new global joint venture among Ashland Casting Solutions business group, the metalcasting-related businesses of Süd-Chemie, and Ashland-Südchemie-Kernfest GmbH (ASK) to serve the metal casting industry. In 2007, the three companies together generated sales revenues of approximately U.S. $1.1 billion, with approximately 1,300 employees.

When final agreements are reached, each parent company will hold a 50-percent share of the joint venture, which is planned to be headquartered in Venlo, The Netherlands.

Assets and employees will transfer to the new joint venture upon closing, which is anticipated in early 2009. The transaction depends upon the successful negotiation of definitive agreements and satisfactory completion of due diligence and a number of standard closing conditions, including regulatory review.

Having begun in 1970 with the formation of the existing ASK joint venture in Hilden, Germany, a joint venture operating in Europe, the existing relationship between Süd-Chemie and Ashland will be significantly expanded. Süd-Chemie and Ashland pursue a similar strategy aimed at providing solutions for the rising technological requirements of modern, globally expanding metalcasting facilities and seeking international expansion, especially in developing countries.

“When you consider the rapid industrialization occurring within key markets like China, Eastern Europe, Brazil and India, it is easy to recognize the strong growth opportunities that exist for the metal casting industry,” said James J. O’Brien, Ashland’s chairman and chief executive officer. “Combining these businesses should ultimately result in increased shareholder value and better opportunities for our customers and employees.”

Dr. Günter von Au, managing board chairman of Süd-Chemie AG, said: "Global competition is forcing us to create location networks in all important markets. By forming this new, globally active company, we shall be in a better position to satisfy our customers´ wishes as these become increasingly more sophisticated and more closely aligned on an international scale. We are looking forward to an even closer cooperation between Ashland and Süd-Chemie in the future.”