Ashland, Sud-Chemie to form metal castings JV
Wednesday June 18, 8:24 am ET
Ashland, Sud-Chemie forming joint venture to supply foundries and metal casting businesses
COVINGTON, Ky. (AP) -- Chemical company Ashland Inc. said it signed an agreement Wednesday with Germany's Sud-Chemie AG to form a joint venture to supply foundries with metal casting products.
Ashland expects closing on a definitive agreement for the 50-50 venture, which will be based in Venlo, The Netherlands, early next year.
The venture, which has yet to be named, will include Ashland's Casting Solutions business plus the foundry-related businesses of Sud-Chemie and Ashland-Sudchemie-Kernfest GmbH.
The nonbinding memorandum of understanding signed Wednesday calls for the venture to supply resins and coatings to foundries and metal casting customers in an operation that includes sales, marketing, technology and manufacturing.
Metal casting entails using sand blended with assorted chemicals, like resins and coatings, to form molds into which molten metal is poured and then hardened. Foundries make metal castings.
Had the venture been formed last year, it would have had estimated revenue of about $1.1 billion and 1,300 employees.
"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," James J. O'Brien, Ashland's chief executive, said in a statement.
Shares of Ashland fell 22 cents to $54.04 in premarket trading.
Source: Associated Press
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