Ashland, Sud-Chemie to combine metal casting ops

18 June 2008 14:25  [Source: ICIS news]

TORONTO (ICIS news)--US chemicals producer Ashland and Germany’s Sud-Chemie plan to combine their global metal castings and foundry chemicals businesses into a new 50:50 joint venture, they said on Wednesday.

 

The companies signed a nonbinding memorandum of understanding to form the joint venture, which would be located in Venlo, the Netherlands, they said.

 

It would combine Ashland's casting solutions business group, the foundry-related businesses of Sud-Chemie and an existing joint venture, Ashland-Sudchemie-Kernfest (ASK), they said.

 

The three businesses generated combined sales of $1.1bn (€715m) last year and employed 1,300 people worldwide.

 

"When you consider the rapid industrialisation occurring within key markets like China, Eastern Europe, Brazil and India, it is easy to recognise the strong growth opportunities that exist for the metal casting industry," said Ashland CEO James O'Brien.

 

“Combining these businesses should ultimately result in increased shareholder value and better opportunities for our customers and employees."

 

The companies expected to close the transaction in early 2009, subject to a definitive agreement, regulatory review and other closing conditions, they said.

 

($1 = €0.65)

 

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