By selling its Clevios business, H.C. Starck has completed a further step towards focusing on the company’s core areas of business, namely “Refractory Metals” and “Advanced Ceramics”. The company is one of the world’s leading suppliers in both areas which offer above-average growth potential in high-tech industries such as telecommunications, medical engineering, power engineering, aerospace and automotive engineering.

With its Precious Metals Business Group, Heraeus has seen many decades of success with metallic materials in the fields of electronics and semiconductor technology. By purchasing Clevios, Heraeus makes a targeted addition to its product portfolio and further expands its position as a leading global supplier of high-quality coating materials used in the electronics industry, among others.

“By selling our Clevios business, we shift the focus of our resources to our core areas of expertise, which will allow us to realize above average growth in these markets. As a market leader in both technology and quality with a global manufacturing structure, we are extremely well-positioned for the future,” says Dr. Andreas Meier, CEO of the H.C. Starck Group. “In Heraeus, we have found a reliable new owner for Clevios, who will not only take on the  global Clevios staff of almost 80 employees and continue the facility in Leverkusen, but will also support the long-term development of the business,” he continues.

“By incorporating the conducting polymers of Clevios into our range of products, we open up completely new approaches in the important growth markets of the electronics industry. Heraeus plans to make continuous advancements to its product portfolio and provide innovative and unique metallic and non-metallic materials to the market. Clevios represents an essential component in the long-term expansion of Heraeus’ leading technological position in the market,” explains Dr. Roland Gerner, CEO of Heraeus’ Precious Metals Business Group.

About H.C. Starck
The H.C. Starck Group is a leading global supplier of refractory metals, technical ceramics, and conductive polymers, and serves growing industries such as the electronics, chemicals, automotive, medical technology, aerospace, energy technology, and environmental technology industries, as well as mechanical engineering and tool manufacturers. H.C. Starck has its own manufacturing facilities located in Europe, America, and Asia, and has close to 3,000 employees worldwide. This and further news is available at: www.hcstarck.com/press

About Heraeus
Heraeus, the precious metals and technology group headquartered in Hanau, Germany, is a global, private company with over 155 years of tradition. Our businesses include precious metals, materials and technologies, sensors, biomaterials and medical products as well as dental products, quartz glass, and specialty light sources. With product revenues of € 2.6 billion and precious metal trading revenues of € 13.6 billion, as well as more than 12,300 employees in over 110 subsidiaries worldwide, Heraeus holds a leading position in its global markets. www.heraeus.com

Contacts:

H.C. Starck GmbH
Gerald Baehnisch
Company Spokesman & Manager e-Communications
38642 Goslar
T: +49 (5321) 751 3230
gerald.baehnisch@hcstarck.com

Heraeus Holding GmbH
Martina Rauch 
Vice President Corporate Communications
Heraeusstr. 12-14 
63450 Hanau / Germany
T: +49 (0) 6181 / 35-5100
martina.rauch@heraeus.com

Kerafol Keramische Folien GmbH
Isabell Koppe
Marketing Director
92676 Eschenbach/Germany
T: +49-964-588-300
F: +49-964-588-390
isabell-koppe@kerafol.com

H.C. Starck initiated the development and implementation of RSCM independently in order to emphatically refute claims of the use of “illegal” materials and to show that it is possible to practice a socially and ecologically acceptable raw material policy throughout the industry. The Electronic Industry Citizenship Council (EICC) is also demanding a sustainable and reliable sourcing of raw materials for the electronic industry.

As the first company in its sector, H.C. Starck has introduced a sourcing process based on RSCM. In addition to the internationally recognized standards such as ISO 9001, ISO 14001 und SA 8000, it takes into account traceability, transparency and the far-reaching ethical, social and environmentally friendly principles of raw material sourcing. The international launch of RSCM at H.C. Starck was tested and corroborated in an extensive review carried out by an independent expert, BUREAU VERITAS Certification.

 “H.C. Starck sets new international standards with the raw material management system that we have initiated of our own accord,” says Chairman of the Executive Board Dr. Andreas Meier. “Our RSCM activities are unique in our sector and have received international acclaim, as evidenced by the fact that H.C. Starck was recently nominated by the World Trade Group for the Sourcing Excellence Award in recognition of its sustainable RSCM commitment.”

One core element of RSCM are supplier audits, through which the proof of origin of the raw materials and thus the relevant documentation of traceability are verified. The standards defined in the RSCM system are also assessed, especially in connection with the sourcing of raw materials from mines. Here H.C. Starck can draw on its extensive pool of data and years of experience in the evaluation of raw material sources to check the plausibility of the assessment. Only those sources that are able to pass such an audit will be able to supply H.C. Starck. The company has already successfully conducted the first test audits with suppliers.

With nearly 3,000 employees at 13 sites around the world, the H.C. Starck Group is a leading supplier of refractory metals, technical ceramics and conductive polymers.

Download RSCM Confirmation (english language)

Download RSCM Confirmation (japanese language)

Contact:
H.C. Starck GmbH
Gerald Baehnisch
Company Spokesman & Manager e-Communications
38642 Goslar/Germany
T:  +49 (5321) 751 3230
F:  +49 (5321) 752 4230
M: +49 160 747 95 67
gerald.baehnisch@hcstarck.com

URS Deutschland GmbH and Connexis AG supported H.C. Starck in developing and implementing the Responsible Supply Chain Management (RSCM) System.
URS is one of the world's leading engineering and environmental consultants with 47,000 people in more than 30 countries worldwide, and more than 20 years of experience in environmental and sustainability consulting for industrial clients, e.g. in the areas of environmental, social and governance due diligence assessments, carbon footprint studies and green buildings. Connexis AG provides strategic sustainability advice for the financial and industrial sector, focusing on Corporate Governance, management systems and reporting of sustainability performance.

Contact:
H.C. Starck GmbH
Gerald Baehnisch
Company Spokesman & Manager e-Communications
38642 Goslar/Germany
T:  +49 (5321) 751 3230
F:  +49 (5321) 752 4230
gerald.baehnisch@hcstarck.com

The agreement justifies ongoing high investment in R&D, now unhindered by the rights of the other party.

For both Agfa-Gevaert N.V. and H.C. Starck Clevios GmbH the first steps into the technology of the electro conductive polymer PEDOT:PSS dates from when both companies were owned by Bayer AG. Bayer AG originally developed the material in 1988 and its first application was an antistatic in Agfa’s photographic film. For over 10 years the material has been marketed under the trade name of Orgacon™ from Agfa-Gevaert N.V. and Clevios™ (formerly Baytron) from H.C. Starck Clevios GmbH. 

Dr. Aloys Eiling, CEO of  H.C. Starck Clevios GmbH commented  ‘The settlement of intellectual property disputes between Agfa and H.C. Starck will ensure access to this cutting edge technology and allow the accelerated application of PEDOT:PSS into emerging technologies such as printed electronics.’

The settlement is of particular and lasting interest as it relates to a number of patents, effective until beyond 2020, which will enable emerging technologies to be based on PEDOT:PSS.

About H.C. Starck Clevios GmbH

H.C. Starck Clevios GmbH is a 100% daughter company of H.C. Starck GmbH, Goslar, Gemany. The company supplies conductive materials to the capacitor, antistatic, conductive films, printed electronics, and P-OLED industries. Technology is delivered via extensive research and technical application laboratories in Leverkusen, Germany and Mito, Japan.

 

Contact

John Bayley, Sales Manager
H.C. Starck Clevios GmbH
T: +49 214 30 26718
john.bayley@hcstarck.com

Ontario’s Minister of Economic Development and Trade, Sandra Pupatello, attended a ceremony at the H.C. Starck facility in the Sarnia, Ontario Chemical Valley, where details were announced.

“Helping Ontario companies transition to more advanced technologies and manufacturing processes is the key to success in today’s modern economy. We’re proud to support H.C. Starck Canada’s investment which will spur the company’s future growth and create new high-value jobs for Ontario families”, said Sandra Pupatello, Minister of Economic Development and Trade.

Dr. Axel Westerhaus, member of the Executive Board of H.C. Starck GmbH in Germany, the parent company of H.C. Starck Canada, added: “We want to thank the Province of Ontario for making an AMIS loan available to H.C. Starck Canada. The installation of innovative technologies in the Sarnia facility enables us to diversify our manufacturing site, bringing the production of innovative powder products closer to the North American Customers. Sarnia, Lambton is the location of choice for this investment due to the excellent local infrastructure and availability of a skilled workforce. Support through the AMIS program facilitated our decision making process and made the Sarnia investment interesting and attractive for us despite recessionary times.” 

H.C. Starck is a leading producer of intermediates for the Hardmetal industry. Production of these powders in Sarnia began in 1997. Now, there is a particular focus on providing high tech powders to the drill bit industry for Oil and Gas drilling. Due to the excellent quality of its products, H.C. Starck has increased market share in this industry in North America, and so to better serve the customers, both know-how and manufacturing is being transferred to H.C. Starck Canada.
 
The investment project began in Q3/2008, but was suspended in Q1/2009 due to the global recession and particularly the decline of the North American Hardmetal market. Fortunately, this industry is recovering and we are confident to continue with the investment. The possibility to use the Ontario AMIS loan program facilitated the decision to complete the expansion project this year. We expect to complete our investment by Q3/2010. 

The H.C. Starck-Group is an international Group of Companies supplying high-tech industries such as Electronics, Aerospace and Aviation, Medical Technologies, Energy and the Chemical Industry with highly sophisticated specialties made from metals such as Tungsten, Tantalum, Molybdenum and Niobium, Advanced Ceramics and Conductive Polymers. The company has 13 sites worldwide and employs some 3000 specialist. Total Sales in 2008 was around 860 million Euros.

The Advanced Manufacturing Investment Strategy (AMIS) is a $500 million repayable loan program to encourage companies to invest in leading edge technologies and processes. The AMIS program is intended to provide targeted financial support to eligible manufacturing firms in Ontario to undertake product and process innovation that directly leads to advanced manufacturing investment and job creation.

Contact:
H.C. Starck Canada Inc.
Carol Gilmurray
Managing Director
933 Vidal Street South
Sarnia/Ontario N7T 8H8
Canada
Phone: +519 346 4358
carol.gilmurray@hcstarck.com

H.C. Starck GmbH
Manfred Bütefisch
Vice President
Corporate Communications
38642 Goslar/Germany
Phone:  +49 (5321) 751 3153
Fax:  +49 (5321) 751 4153
Mobile: +49 160 886 09 53
manfred.buetefisch@hcstarck.com

Until now, H.C. Starck has manufactured these products at its Laufenburg site in Baden-Wuerttemberg. This facility will continue to be used, until Evonik transfers production to its site in Hanau.

H.C. Starck announced its intention to sell the AMPERKAT^® product line some time ago because these catalysts no longer belong to the company’s core businesses. In its markets the AMPERKAT^® brand is known for its high quality. In line with a license agreement, Evonik will continue to use this brand name for a limited period of time.

When catalyst production is discontinued in Laufenburg, jobs for the eight employees working in this plant will be found in other areas of the site, as stipulated in the company agreement to secure jobs in Goslar und Laufenburg.

The business of the H.C. Starck Group with catalyst precursors based on tungsten, molybdenum, tantalum, niobium and rhenium will not be affected by this sale. These products will remain an important part of the company’s product portfolio.

Contact:
H.C. Starck GmbH
Manfred Bütefisch
Vice President
Corporate Communications
38642 Goslar
T:  +49 (5321) 751 3153
F:  +49 (5321) 751 4153
M: +49 160 886 09 53
manfred.buetefisch@hcstarck.com

The effects of the economic crisis and falling tungsten and molybdenum prices led to the temporary closure of some raw material mines. This situation coincided with a decline in recyclable raw materials. The resurgence of industrial production in the second half of 2009 and the end to the reduction of stock levels have prompted a considerable increase in demand. This has resulted in a reversal of price trends and higher quotations of the respective raw materials in recent months. H.C. Starck assumes that this trend will also lead to further increases in quotations similar to rising demand.

The tantalum market is currently driven by end industries’ demand for ethically irreproachable material. It has therefore come to a shift in raw material procurement from the Congo regions hit by conflict to other suppliers, which will also lead to price increases. 

In line with this trend, H.C. Starck will quickly pass on the increase in raw material prices to the end markets and secure supplies.

Contact:
H.C. Starck GmbH
Manfred Bütefisch
Vice President Corporate Communications
38642 Goslar/Germany
T:  +49 (5321) 751 3153
F:  +49 (5321) 751 4153
M: +49 160 886 09 53
manfred.buetefisch@hcstarck.com

Among other things he will be responsible for the strategic direction and further development of the Group. Dr. Andreas Meier joins the two current Executive Board members Dr. Uwe Salzer and Dr. Axel Westerhaus.

After studying chemical engineering at the University of Graz, Andreas Meier obtained his doctorate at the Montan University of Leoben in Austria. In 1985 Dr. Meier started his professional career with the Austrian public company RHI AG, a leading manufacturer of refractory products with 8,000 employees and a sales volume of 1.6 billion euros. Dr. Meier held various positions in research, production and marketing with global responsibility and became a Board member of RHI AG in 1999. In 2007 he was appointed Chairman of the Board of RHI AG.

Dr. Meier is 47 years old. He is married and has three children.

“We are very pleased to welcome Dr. Meier as Chairman of the Executive Board of H.C. Starck,” says Dr. Engelbert Heimes, Chairman of the Supervisory Board of H.C. Starck. “With his successful professional career, Dr. Meier has the broad industrial competence and valuable experience that will serve him well in his position at H.C. Starck. We wish him and his two colleagues, Dr. Salzer and Dr. Westerhaus, much success for their mutual tasks.”

“I am looking forward to my new responsibilities at H.C. Starck”, says Dr. Andreas Meier. “The company has a very wide and technologically sophisticated product portfolio, a strong international market position and is therefore well-positioned for profitable growth in the long term.”

Contact:

H.C. Starck GmbH
Manfred Bütefisch
Vice President
Corporate Communications
38642 Goslar/Germany
T:  +49 (5321) 751 3153
F:  +49 (5321) 751 4153
M: +49 160 886 09 53
manfred.buetefisch@hcstarck.com

To participate in this long-term growth, the management of the Business Line Chemicals at H.C. Starck is placing specific importance in its strategic position as a supplier to the chemical industry of high-quality tungsten catalyst intermediates. Considering the periodic global shortage of high-quality sodium tungstate and ammonium metatungstate compounds, H.C. Starck has increased the production capacity for these intermediates and can today meet the vast majority of the known world requirements.

“As one of the few fully integrated enterprises, H.C. Starck is already able to take the individual product wishes of the chemical industry into account, regarding the physical and chemical properties of the products, right at the start of the production chain. We can set our process parameters over the complete value added chain in such a way that we can in fact solve the unique problems brought to us by our customers with a very custom approach ,” said Silke Gray, Vice-president Sales & Marketing of the Chemicals Business Line at the H.C. Starck headquarters in Goslar, Germany. “Close and trusting cooperation between our applications engineering department and our customers’ technology departments has always in the past achieved highly satisfactory solutions for all parties; we are now working even harder to ensure that this success continues with existing and new partners. In addition, our customers are now able to satisfy their complete requirements from the one source, eliminating the need to use several different sources to achieve the same supply objective,” stated Gray.

As a compliment to their primary chemical supply, H.C. Starck also offers comprehensive expertise in the area of tungsten recycling. With decades of experience in the recycling of tungsten from the classic hard metal applications, the company can also recycle tungsten-containing materials from the chemical industry. These would include the reprocessing of spent catalysts and production wastes as well as the technology transfer for the recovery of tungsten losses from wastewater effluents at customer sites. Tungsten is separated from other substances in the vast range of starting materials and is then converted to pure tungsten chemicals. Beyond the clear economic and ecological benefits of recycling, the dependencies on primary raw material sources can also be reduced in the form of a direct closed loop. In addition, valuable raw material resources are additionally conserved.

Contact:

H.C. Starck GmbH
Manfred Bütefisch
Vice President Corporate Communications
38642 Goslar
T: +49 (5321) 751 3153
F: +49 (5321) 751 4153
M: +49 160 8860953
Manfred.Buetefisch@hcstarck.com

H.C. Starck GmbH
Silke Gray
Vice President Sales & Marketing Business Line Chemicals
38642 Goslar
T: +49 (5321) 751 3628
F: +49 (5321) 751 4628
M: +49 151 12174 328
Silke.Gray@hcstarck.com

The consequences of the financial and economic crises especially affected the chemical sector already in the summer months of 2008. Nearly all regions and sectors experienced a fall in demand, which in some cases was considerable. H.C. Starck, too, was not left completely unscathed by this downward trend, but the company initiated measures early enough to counteract the changed market conditions. In the fall of 2008, various steps were taken to make the production structures more flexible. At the same time, the core business units were restructured, the work procedures were streamlined and the decision-making processes were simplified. These measures aimed at further improving the efficiency and profitability of the H.C. Starck Group and increasing its competitive strength for the long term.

The Group generated sales of € 856 million (sales in 2007: € 905 million) in 2008. This decline compared with the previous year was largely attributed to currency effects and the sale of the Levasil business in 2008 to the Akzo Group. Adjusted for these effects, sales reached the previous year’s level.

The respective areas of the H.C. Starck Group developed differently. The Ceramics and Surface Technology Business Unit, in particular, achieved successes in the business year 2008. Surface Technology business line was able to further strengthen its market position and to press ahead with its technological leadership in the recycling of basic materials. In addition, the Electronics and Optics Business Unit boosted its business relationships to the optical industry.

The development in the individual business lines

The Hard Metals, Mill Products and Catalysts (HMC) Business Unit benefited from the high demand for its products in the European tool industry in 2008. Although sales were under last year’s level, this was mainly due to the withdrawal from the molybdenum chemicals business. Allowing for this, HMC achieved the previous year’s level of sales, despite sharply declining molybdenum prices in the fourth quarter.

A considerable slump in the Asian electronics market affected the Electronics and Optics (EOP) Business Unit in 2008, which resulted in a drop in sales of tantalum metal powder and conductive polymers. This effect was partly compensated by the strong demand from the optical industry. Since a large part of H.C. Starck’s sales are generated in Japan, but the yen to euro conversion developed poorly, the exchange rate also negatively affected results.

The growth surge of the Ceramics and Surface Technology (CST) Business Unit continued in 2008 with a further increase of sales. The Surface Technology Business Line developed very positively. H.C. Starck was able to strengthen its market position, supported by its technological leadership in the recycling of basic materials. However, business with ceramic components suffered a slight decline, due to falling demand from the automotive industry.

Despite sharply declining molybdenum quotations and the weak US$, the Fabricated Products (FPR) Business Unit, which manufactures customer-specified fabricated parts from molybdenum, tungsten and tantalum for the electronics, medical equipment and aircraft industries, was able to increase sales slightly in comparison with the previous year. Products for electronic applications played a large part in this success.

At the end of 2008, the H.C. Starck Group employed some 3,250 people at its 14 sites worldwide, compared with 3,400 at the end of the previous year.

At the 24th EU PV SEC in Hamburg from 21 to 25 September, four extruded rotary targets from 550mm to 4.2m in length will be on display at their booth located in Hall B2G, Booth 39. Extruded targets offer superior sputtering performance being virtually fully dense and having extremely low oxygen levels.

Targeting CIGS, a-Si (amorphous silicon) and CdTe thin films solar module manufacturers, H.C. Starck  has been developing and successfully producing custom sputtering targets in molybdenum (Mo) and nickel based (Ni) alloys, along with its other core competency materials: tantalum (Ta), niobium (Nb) and tungsten (W).
H.C. Starck, a leading worldwide manufacturer of refractory metals and fabricated products, uses highly specialized equipment and technologies capable of producing rotatable sputtering targets at the height of the most demanding requirements of target users in the areas of LCD display, large area coating and solar cell applications. Newly developed processes allow a wider range approach to materials used in thin film PV such as silver, Al, ZnAl, etc.

With their 5,000 metric ton direct extrusion press, unique in the refractory metals business, H.C. Starck can produce rotary targets for all 125 mm (monolithic) and 135 mm (bonded) applications in molybdenum up through the current largest large area coating rotary target requirement.  In alloys of lower high temperature strength like niobium, CP Ti, copper, etc., they are typically able to produce multiples of a single target.

Editor     
H.C. Starck Inc.       
Fabricated Products Group  
45 Industrial Place
Newton, MA 02461 USA

Cristian Cretu
T +1 216.692.6985
F +1 216.692.0031

One of two suppliers qualified with their renowned Si₃N₄ Grade M 11 HP powder in the PV industry worldwide H.C. Starck is finding an increasing number of manufacturers selecting them as their primary supplier. Also, H.C. Starck’s product quality and global market appearance makes them a desirable choice.
High grade Si₃N₄ powders are essential for purity of silicon ingots. Multicrystalline silicon ingots are obtained by melting and solidification of high purity silicon in fused silica crucible in dedicated furnaces. The purity of silicon ingots is known to be an essential parameter leading to high quality wafers - the core part of any solar cell.

The main concerns during solidification of multicrystalline silicon are to avoid impurities entering the silicon and to minimize stresses created during solidification. In the currently established production technology silica crucibles used for melting and crystallizing silicon are coated on their inside surface with a Si₃N₄ based coating, which facilitates an easy release of the ingot after finishing the production cycle.

The layer is sprayed on the crucible wall to prevent silicon/silica reactions that would provoke cracks and inhibit diffusion of oxygen and additional impurities from the crucible into the melt /solidified silicon. This application requires high grade Si₃N₄ powders provided by H.C. Starck.
 
Learn more about the advantages of H.C. Starck’s high grade Si₃N₄ powders by visiting them at the 24th EU PV SEC, Hamburg, from 21-25 September, Hall B2G, Booth 39.

Editor     
H.C. Starck GmbH
Im Schleeke 78 - 91
38642 Goslar/Germany

Dr. Thomas Schmidt
T +49 5321 751-3962
F +49 5321 751-4962

Goslar, June 30th, 2009 -  Dr. Heinz Heumüller, Chairman of the Executive Board of H.C. Starck GmbH and CEO of the international H.C. Starck Group since 2003, will leave the company of his own accord and in full agreement with the shareholders effective July 1, 2009.

“Based on my personal circumstances and after much deliberation, I have come to an agreement with the Supervisory Board to relinquish my position as from July 1, 2009,” said Dr. Heumüller and added, “This will clear the way for a successor to lead the company also beyond the planned exit of our shareholders. It is clear that this time will have to be further postponed due to the world economic crisis, and I would prefer not to change my plans.”

The Supervisory Board sincerely thanks Dr. Heumüller for his hard work and commitment as Chairman of the Executive Board of H.C. Starck GmbH and CEO of the international H.C. Starck Group. Dr. Heumueller has left his stamp on the company and helped in its development in the past six years.

Until a successor has been appointed, Dr. Uwe Salzer, Chief Financial Officer, will temporarily assume Dr. Heumüller`s responsibilities.

Dr. Heumüller will continue to be associated with the company. The extent of this relationship and the function are currently being discussed with the private investors.

The agreement was concluded on May 19, 2009 with Terry Shin, CEO of the Comet Network Group and Dr. Heinz Heumüller CEO of the H.C. Starck Group during a visit to the H.C. Starck facility in Leverkusen/Germany.

The signing took place in Leverkusen also because Comet is interested to expand its cooperation with H.C. Starck into other areas. Of high interest to Comet are the conductive polymers, produced and sold by H.C. Starck Clevios GmbH in Leverkusen. The CLEVIOS™ material and its derivatives pave the way for innovative solutions and new products of the electronics industry. Both parties confirmed their intention to broaden the scope of the present business relations.

“This agreement is a clear indication of the strength of Korea’s electronics industry - even in these difficult economic times,” said Richard McCorry, President and CEO of H.C. Starck Inc. and its Fabricated Business Products Unit: ”We are pleased to be able to support the continued growth of Comet in its business activities.”
“We value H.C. Starck and its Fabricated Products Business Unit as a reliable supplier for delivery of these crucial high-quality materials and look forward to a long and mutually beneficial cooperation,” added Terry Shin, CEO of the Comet Group.

Comet Network is a leading sputtering target manufacturer in Korea and supplies both LG Display and Samsung Electronics with various sputter targets such as Molybdenum, Molybdenum alloy, Copper and Aluminium for the production of flat panel display screens.

H.C. Starck is specialized in processing refractory metals and is able to successfully meet the steadily increasing demands of the electronics industry through its extensive research activities. The Group offers tailor-made product solutions, geared to the needs of its customers.

Further Information:

H.C. Starck GmbH
Manfred Bütefisch 
General Manager
Corporate Communications 
38642 Goslar
T: 49-5321 751 3153
F: 49-5321 751 4153
M: 49-160 886 09 53
Manfred.Buetefisch@hcstarck.com

Through these measures, the organizational structure, which, compared with other midsized companies, is currently quite generously dimensioned, will be considerably streamlined, thus allowing a more effective management of the company. Since the changes are limited to the management level, the daily business with H.C. Starck’s customers remains unaffected.

1. The three Business Units of H.C. Starck GmbH in Goslar will be merged into a single new Business Unit, managed by Dr. Axel Westerhaus. The ultimate management and control of all activities are the direct responsibility of the Executive Board. Those responsible for the key management functions are as follows:

Marketing & Sales: Dr. John van Put
Production: Dr. Thomas Eizenhöfer
Raw Materials Strategy and Supplies: Dr. Jörn Vogt
Research & Development: Dr. Gerhard Gille
Controlling: Dr. Jan Lösch

The new organization becomes effective as from April 1, 2009.

2. The conductive polymers business (CLEVIOS and AMPERTRON) in Leverkusen will become an independent entity, managed by Dr. Aloys Eiling. He will report directly to the Executive Board of H.C. Starck GmbH. This entity will be established as from March 1, 2009.

3. The ceramic components business of the CST Business Unit (H.C. Starck Ceramics GmbH, Selb) will be run as a separate entity. Dr. Andreas Sieverdingbeck will assume responsibility for this new entity and will report directly to the Executive Board of H.C. Starck GmbH.

The business with metal components will remain in its present form as the FPR Business Unit, managed by Rich McCorry, who will also report directly to the Executive Board.

"We have known Talison as a reliable supplier for many years, always selling its tantalum in compliance with recognized social, legal, ethical, safety and environmental standards", said Dr. John van Put, General Manager of H.C. Starck's Electronics and Optics Business Group. "As Wodgina has supplied more than 30 percent of the world's tantalum so far in 2008, the repercussions on tantalum prices are predictable".

Talison's decision is clearly driven by the downturn in worldwide demand for consumer electronics, a major user of tantalum products. Besides the present crisis the strong trend to reduce costs in the electronics supply chain impacted the tantalum market, leading to increasing tantalum supplies from the crisis area of the Democratic Republic of Congo. "It is clear that at the current spot prices, reputable companies like Talison cannot compete with unscrupulous traders offering little economic benefit to small miners or the local population", said H.C. Starck's CEO Dr. Heinz Heumüller.

Dr. van Put went on to say that his company has sufficient stocks and supply channels to meet the foreseeable needs of its customers, in particular, because of its backward integration relying on scrap recycling.

In spite of Talisons’s production termination H.C. Starck will continue to offer materials of high quality exclusively based on tantalum obtained from reputable sources, like Talison. "Clearly, the industry will see price increases as the significant effects cannot be absorbed by the supply base alone", said Dr. van Put.

Further information:

H.C. Starck GmbH
Manfred Bütefisch 
General Manager
Corporate Communications 
38642 Goslar/Germany
P: +49/5321 751 3153
F: +49/5321 751 4153
M: +49/160 886 09 53
Manfred.Buetefisch@hcstarck.com

From 15th October the BAYMETEC^® range will be marketed under the name of AMPERTEC™.

The name change to AMPERTEC™ is necessary, because all patent rights for BAYMETEC® products are with H.C. Starck, but the naming rights are retained by the Bayer Group. “Beyond that, everything remains the same for our customers,” emphasizes Dr. Stephan Kirchmeyer, Vice President, Electronics and Optics Business Unit at H.C. Starck.

With these versatile products that are based on metals, alloys and compounds of Tungsten, Tantalum, Niobium and Molybdenum, H.C. Starck has provided materials for use in the production of sputtering targets (PVD) as well as CVD and lighting applications. Under the new AMPERTEC™ name the materials will continue to offer the best solutions for the needs of the semiconductor, electronics and optical industries.

AMPERTEC™ - Ultra High Purity Materials
www.ampertec.info

Contact:
H.C. Starck GmbH
John Bayley
Product/Key Account Manager CLEVIOS™
Electronics and Optics Business Group
58361 Leverkusen/Germany
T: +49 214 30-26718
F: +49 214 30-56284
E-Mail: john.bayley@hcstarck.com

- Management presents restructuring plans to supervisory board
- H.C. Starck continues to invest in projects to enhance high performance
- Company takes steps to adapt to changed market conditions

Goslar, 25 September 2008 - H.C. Starck, the leading manufacturer of specialty chemicals, advanced refractory metal, and ceramic products, is pursuing its growth and further development as a high performance enterprise. Yesterday, H.C. Starck management presented the strategy and business plans to achieve these objectives to the supervisory board. The company’s priority remains the systematic implementation of its mid-term growth strategy. However, the company is also taking immediate actions to adapt its business strategy in response to increasingly difficult market conditions. The company has already initiated external measures, including price increases. Internally, the company will implement a restructuring plan with the objective of reducing costs, streamlining the organization and enhancing operational flexibility. In addition, the company will transfer part of the tantalum production currently located in Goslar and Japan to Thailand.

Profitable lines of business the foundation for future growth

Over the next three years, H.C. Starck plans capital expenditure of up to €50 million annually in order to reinforce and further expand its existing strong market position in the fields of wolfram, ceramic and metallic powders, surface treatment technology, ceramic components, metallic components and CLEVIOS™. These growth markets are expanding rapidly.

The company is taking action to achieve substantial cost efficiencies in the production of tantalum. In addition, the company is entering into strategic cooperation agreements with raw materials suppliers of tantalum and wolfram to compensate for its current structural disadvantages with respect to its raw materials supply chain. 

Restructuring planned

Because of the significant slowdown in the broader chemical sector and the substantially higher prices for raw materials and energy, the H.C. Starck group will not achieve its profitability targets for 2008. In light of the continuing deterioration in business conditions, the company has decided to implement further cost savings measures immediately.

Following an extensive process optimization program in the areas of production and technical services over the past eighteen months, the company will now implement a restructuring program for its administrative and other service functions. “Market conditions oblige us to become more efficient and flexible. Our current structure arose during the period when our company was part of a much larger corporation. As a result, we are less streamlined than our competitors and therefore less able to deal effectively with the rapid developments in our industry. We therefore will focus on maximizing the cost savings in our administrative and service functions where there is most potential for such efficiencies,” noted Dr. Heinz Heumüller, CEO of H.C. Starck.

The reduction in staff numbers will affect most of H.C. Starck’s sites around the world, in particular the corporate headquarters in Goslar, where the administrative and service functions are concentrated. Worldwide, a total of approximately 200 positions are expected to be eliminated by the end of this year. Further reductions in headcount are expected in connection with the outsourcing of a number of activities. The company is cooperating with the works council to develop a social plan for the employees affected by these measures.

The supervisory board and management are convinced that the company will resume its successful development upon implementing these strategic and operational measures.

Further information:

Manfred Bütefisch 
General Manager
Corporate Communications 
38642 Goslar/Germany
Phone   +49/5321 751 3153
Fax        +49/5321 751 4153
Mobile  +49/160 886 09 53
Manfred.Buetefisch@hcstarck.com

?? Dr. Heumüller, H.C. Starck Group plans a new round of price increases. Didn’t the move in April have the desired effect? 

!! On the contrary, our American subsidiary was able to push through higher prices on the market. Other Business Units based in Germany have also raised prices selectively. However, further increases in costs have now forced us to take this step. They cannot be absorbed by additional improvement programs and affect all Business Units – although to varying degrees.

?? What sort of increases in costs are you talking about?

!! We have experienced further increases primarily in energy costs. Across all sites, they amount to a double-digit million-euro figure. Added to that are rises in costs for raw and auxiliary materials as well as production supplies. For example, we will have a massive price increase in the case of tantalum.

?? This means your customers can expect further price increases. How high are they going to be?

!! Adjustments may even reach high double-digit percentages in some of our main product segments. The new prices will reflect the specific increases in costs in those respective business units. We are working closely with our customers to look for ways to pass on these rising costs and the thus inevitable price increases in the entire added value chain.

?? When will the prices increases take effect?

!! Price increases will take into account contract periods, but will generally be effective as of November 1, 2008.

?? What happens if customers refuse to accept price increases and change suppliers?

!! We have completed a successful performance improvement program and know that we are positioned competitively in terms of production. The anticipated price increases are not an H.C. Starck problem, but an industry-problem. It is affecting all suppliers equally. Everybody will be forced to transfer these unexpected cost increases into higher prices. It is the only way to maintain the choice of products for our customers and to ensure our long-term economic viability including the associated investments.

?? What happens if they refuse to accept increases anyway?

!! We are keeping a close watch on our markets. We will assess every individual case and take the necessary measures. 

?? What investments have you planned?

!! Up to and including 2010 we are planning investments of some 50 million euros per year in various projects. We are investing, for example, in ceramic materials for the highly promising fuel cell technology. We are also going to expand capacities for tungsten carbide and construct a new manufacturing unit for alternative binders used in the production of hardmetals. In addition, we are investing in our service package in the field of molybdenum recycling for our customers in the chemical industry and in the production of entirely innovative atomized alloyed powders. And we are further developing our conductive polymers, which have become an essential product for the electronics industry.

?? That is an ambitious program. Will you still be able to accomplish all this in times of a cooled off economy and increasing investment costs?

!! We have demanding customers who are used to receiving innovative products and services from H.C. Starck. We will continue to meet this demand and to assume that our customers will support us in this effort.

Thank you for the interview.

“These are adjustments that may even reach high double-digit percentages in some of our main product segments,”  said Dr. Heumüller, CEO of the German parent company, in a recent interview. “We are working closely with our customers to look for ways to pass on these rising costs and the thus inevitable price increases in the entire added value chain.” (The entire interview is available here)

In recent months H.C. Starck has completed a successful performance improvement program and is positioned competitively in terms of production. “The anticipated price increases are not alone a H.C. Starck problem, but an industry problem. They are affecting all suppliers equally. Everybody will be forced to translate these unexpected cost increases into higher prices,” said Dr. Heumüller.

The H.C. Starck Group is currently informing customers about the increase in prices. Provided that no contract periods have to be taken into account, the new prices will generally be effective as of November 1, 2008.

Contact H.C. Starck GmbH

Manfred Bütefisch 
General Manager
Corporate Communications 
38642 Goslar/Germany
Phone   +49/5321 751 3153
Fax        +49/5321 751 4153
Mobile  +49/160 886 09 53
Manfred.Buetefisch@hcstarck.com

Established in 1996, H.C. Starck Canada currently produces fine grade tungsten and tungsten carbide powders, and employs more than 30 people.

H.C. Starck is an international group of companies with more than 3,500 employees at 13 production sites in Europe, North America and the Far East. It generated sales of 905 million euros in 2007.

The Group produces an assortment of refractory metal powders that is unique the world over, including tungsten, molybdenum, tantalum, niobium, rhenium as well as their compounds (borides, carbides, nitrides, oxides, silicides, sulfides). Further production capacities focus on thermal spray and advanced ceramic powders, nonferrous metals, such as nickel and cobalt and their salts, as well as boron and boron compounds. In addition to metal and advanced ceramic powders, semi-finished and finished products are also manufactured. H.C. Starck is also a leading supplier of specialty chemicals and products formulated for the electronics industry.

Contact:
H.C. Starck GmbH
Manfred Buetefisch
General Manager Corporate Communications
38642 Goslar/Germany
Phone +49 5321 751 3153
manfred.buetefisch@hcstarck.com

The concentration of the company portfolio on the key business sectors could be driven forward as planned with the sale of the battery business to the Japanese Toda-group. This strategy is to be continued with the planned sale of the Kieselsol-business in 2008. Besides these portfolio measures various projects for increasing growth and revenue were successfully initiated in 2007. In this connection especially the qualification offensive regarding the further training of our staff deserves special mention, and received a very positive reception.

In view of the measures undertaken H.C. Starck is well set to face the competition in a slowing global economy.

Contact:
H.C. Starck GmbH
Manfred Bütefisch
Director of Company Communication
38642 Goslar
Telephone 05321 751 3153
Telefax 05321 751 4153
Mobile   0160 886 09 53
Manfred.Bütefisch@hcstarck.com

"We are convinced that the silica sol business continues to have very attractive growth possibilities under the ownership of Akzo Nobel," says Dr. Heinz Heumueller, CEO of the H.C. Starck Group.

The companies concluded the contracts on April 30, 2008. The sale is subject to the approval by the antitrust authorities.

"This strategically important acquisition will enable us to enter a number of additional silica sol markets, primarily in Europe," explains Rob Frohn, Akzo Nobel's Board member responsible for Specialty Chemicals. "Our streamlined chemicals portfolio is primed for investment and this transaction emphasizes our commitment to focusing on growth."

Headquartered in Goslar, H.C. Starck is an internationally leading producer of refractory metal and ceramic powders, special chemicals and fabricated products made from advanced ceramics and refractory metals. Last year the company generated sales of 905 million euros. The international H.C. Starck Group employs more than 3,400 employees at 13 sites in Europe, Asia and North America.

"Akzo Nobel is the ideal partner for our future expansion," stress H.C. Starck Silica Sol's Managing Directors Dr. Gabriele Hey and Sven Marienfeld. "With the support of Akzo Nobel we are well positioned continue to pursue our growth strategy." Akzo Nobel is committed to Levasil's existing operations in Leverkusen and also considers expanding its local production capacity.  

Contact:
H.C. Starck GmbH
Manfred Bütefisch 
General Manager
Corporate Communications 
38642 Goslar
Phone +49 5321 751 3153
Fax +49 5321 751 4153
Mobile +49 160 886 09 53
Manfred.Buetefisch@hcstarck.com

The substantial increase in demand for molybdenum, tungsten, niobium, and tantalum, including from emerging markets such as China and the global consumer electronics market has resulted in a sustained increase in the cost of raw materials. These market conditions for refractory metals are increasingly projected to be secular, not cyclical. This means that pricing pressures will be sustained and likely increase. In addition to the cost of molybdenum, tantalum, niobium, and tungsten, prices of other commodities, such as energy, significantly affects FPR including, for example, in production and transportation.

“H.C. Starck Inc. thus far has absorbed all of these macro economic based cost increases, said Andrew Towey, Vice President of Global Marketing for FPR. Unfortunately the prevailing market conditions have reached a point where H.C. Starck must recoup some of these costs.”

About H.C. Starck
H.C. Starck is an international group of companies with more than 3,400 employees at production sites in Europe, North America and the Far East.  Widely known for its technology in refractory metals, ceramics, and chemicals for the electronic, semiconductor, and optical industries, H.C. Starck is owned by Advent & Carlyle.

Contact:
Andrew Towey
Phone: +1 617.630.5810
Fax: +1 617.630.5807
andrew.towey@hcstarck.com 

Background: All patent rights for the BAYTRON^® products are with H.C. Starck. After the separation of our company from the Bayer group, they have retained the naming rights for BAYTRON^® – thus, making this name change necessary. “Beyond that, everything remains the same for our users,” emphasizes Dr. John van Put, General Manager of the Electronics and Optics Business Unit at H.C. Starck. The name CLEVIOS™ stands for the “Clever invention of solutions”.

With this versatile functional material, H.C. Starck has breathed life into conductive polymer technology. So far, successful applications of CLEVIOS™ include transparent antistatic-coated films and conductive polymer capacitors on the basis of tantalum and aluminum, which will soon effectively displace conventional designs. New kinds of OLED displays, organic solar cells, electronic paper, and printed electronics are just a few of the many possible applications.

Contact: H.C. Starck GmbH
John Bayley
Product/Key Account Manager CLEVIOS™
Electronics and Optics Business Group
58361 Leverkusen
Phone: +49 214 30-26718
Fax: +49 214 30-56284
E-Mail: john.bayley@hcstarck.com

Under the co-operation agreement, CFCL and HC Starck will collaborate to develop advanced SOFC components, in particular anode-supported cells.  CFCL is prepared to license its relevant IP in order to optimize the performance of the cell. H.C. Starck will assist in improving manufacturing processes and in reducing unit costs.

As stipulated in the supply agreement, H.C. Starck will supply fuel cells at agreed prices until December 2011, which secures long-term costs for CFCL. The supply of the fuel cells is expected to commence in mid-2008, with further increases in forecast volumes and reductions in unit prices from 2009.

H.C. Starck has recently commissioned two lines for manufacturing solid oxide fuel cells, specifically for anode-supported cells and for electrolyte-supported cells, with an annual capacity of about 700,000 cells each. The SOFC manufacturing lines are located at its subsidiary company H.C. Starck Ceramics in Selb, Germany. H.C. Starck’s world-class manufacturing facility is dedicated and fully equipped to produce high-quality anode-supported fuel cells in accordance with CFCL’s rigorous specifications. H.C. Starck’s manufacturing processes are certified to ISO standards 9001 and 14000.

As part of CFCL’s commercialisation strategy, the partnership will combine CFCL’s and H.C. Starck’s expertise in SOFC as well as H.C. Starck’s manufacturing capabilities, securing the supply chain for mass manufacture of high-quality cells at commercially viable unit costs.

CFCL will continue to produce fuel cells at its Melbourne R&D and pilot manufacturing facility, leveraging its 15 years of development expertise to drive continued improvements in cell performance.

This cooperation is non-exclusive for both parties. CFCL is reviewing similar opportunities with other suppliers throughout Europe.

Commenting, Brendan Dow, Managing Director of Ceramic Fuel Cells, said:

„We are delighted to have secured our supply chain for basic fuel cell components with a global leader in advanced ceramic production. This announcement represents a significant step in fuel cell commercialisation. We have combined our valuable intellectual property – developed since 1992 - with H.C. Starck’s manufacturing capacities in order to quickly move to volume production, with the same level of quality, at a lower cost and a lower risk.“

Commenting, Aloys Eiling, Managing Director of H.C. Starck Ceramics, said:

“The partnership with CFCL, a major global SOFC manufacturer, is an excellent fit for our strategy to become the world’s leading supplier of SOFC cell technology. The collaboration enables us to bundle our strengths and further develop our cell technology and to optimize manufacturing processes to CFCL’s advanced technical and commercial requirements. Through the supply agreement we will utilise our existing SOFC manufacturing facilities and invest in additional equipment to further expand our capacity to supply the growing market for solid oxide fuel cells. We are excited about the agreement and consider this to be the next important step towards maturity of the solid oxide fuel cell technology.”
-------------------------------------------------------------------------------------------------------------------------
Managing Director Brendan Dow discusses the agreement with HC Starck on a
Boardroomradio webcast – click here  or go to www.brr.com.au/cfu.

For further information please contact:

Ceramic Fuel Cells
Andrew Neilson - Tel.: +61 (0) 419 950 771
Email: investor@cfcl.com.au

Hogarth Partnership (PR für CFCL)
Sarah MacLeod / Sarah Richardson / Vicky Watkins - Tel.: +44 (0) 20 7357 9477
 
Libertas Capital (NOMAD für CFCL)
Aamir Quraishi / Andrew Hardy - Tel.: +44 (0) 20 7569 9650
 
H.C. Starck Ceramics
Hans Peter Baldus - Tel.: +49 (0) 9287 807 304
Email: hans-peter.baldus@hcstarck.com

About CFCL
Ceramic Fuel Cells Limited is a world leader in developing solid oxide fuel cell (SOFC) technology which can provide reliable, energy efficient, high-quality, and low-emission electricity from widely available natural gas and renewable fuels. CFCL is developing SOFC products for small-scale on-site micro-combined heat and power (m-CHP) and distributed generation units that co-generate electricity and heat for domestic use. CFCL

is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).
www.cfcl.com.au
 
About H.C. Starck
H.C. Starck is an international group of companies with more than 3,500 employees at 13 production sites in Europe, North America and the Far East. It generated sales of 985 million euros in 2006.

H.C. Starck produces an assortment of refractory metal powders that is unique the world over, including tungsten, molybdenum, tantalum, niobium, rhenium as well as their compounds (borides, carbides, nitrides, oxides, silicides, sulfides). Further production capacities focus on thermal spray and advanced ceramic powders, nonferrous metals, such as nickel and cobalt and their salts, as well as boron and boron compounds. In addition to metal and advanced ceramic powders, semi-finished and finished products are also manufactured. H.C. Starck is also a leading supplier of specialty chemicals and products formulated for the electronics industry.

H.C. Starck started to develop SOFC materials in 1996. Through the acquisition of SOFC cell producer InDEC in 2003, H.C. Starck obtained know-how in cell technology. Since then H.C. Starck has built large production lines for electrolyte- and anode-supported cell technology and improved the SOFC technology significantly to meet the technical requirements for series production.

H.C. Starck’s fuel cell development and manufacturing operations are located at its 900-m2 facility in Selb, Germany. H.C. Starck employs 20 staff at these facilities, which comprise state of the art continuous tape casters and automatic screen printers located in air-conditioned clean room facilities, production rooms for slurry and paste preparation plus sintering facilities supported by ISO-certified quality control processes. Since 2000 H.C. Starck has invested double-digit million euros in the development of SOFC components.

H.C. Starck’s facilities in Selb have a capacity of 1.4 million fuel cells per year. H.C. Starck is currently investing in further equipment to expand this capacity to supply the growing market for solid oxide fuel cells.

Fuel Cells and m-CHP product development
H.C. Starck produces anode-supported solid oxide cells, comprising a porous anode support layer, which gives the cell its mechanical strength, a functional anode, a thin-film electrolyte and a porous cathode. CFCL also makes anode-supported cells at its facilities in Melbourne, Australia.
These cells convert all sorts of fuels into electricity and heat, via an electrochemical reaction. The cells are combined into fuel cell stacks to produce very efficient power and heat for micro-CHP units, auxiliary power units and other advanced stationary power appliances.
CFCL will use the cells supplied by H.C. Starck in CFCL’s Gennex fuel cell module, comprising an advanced metal-ceramic fuel cell stack plus highly efficient balance of plant components developed by CFCL. CFCL will sell its Gennex module to CFCL’s appliance partners for integration into m-CHP products for homes, running on widely available natural gas.
CFCL is developing m-CHP products with leading appliance partners and utility customers in Germany, France, the United Kingdom, the Netherlands and Japan. 

Staxera GmbH, a joint venture of H.C. Starck GmbH and Enerday GmbH, a subsidiary of Webasto AG, is specialized in the development and production of stacks of high-temperature fuel cells (SOFC) and opened its new development and production facility on January 24, 2008 in Dresden/Germany.

Tantalum Egypt JSC holds the mining rights for the Abu Dabbab exploration area in Egypt. The contract has a term of 10 years and comprises a volume of 600,000 lbs / Ta2O5 per year.

“The contract is a solid cornerstone of our raw material strategy and enables H.C. Starck to continue to be a reliable partner at all times for our customers on the basis of a sound supply source,” commented Dr. Heinz Heumüller, chairman of the executive board, on the agreement.

The conclusion of this contract not only constitutes an expansion of its tantalum raw material base for H.C. Starck, but is rather also to be seen as a commitment to the tantalum-processing industry that H.C. Starck is equipped for long-term involvement in the tantalum market.

Tantalum metal powder is an indispensable intermediate for the production of capacitors without which modern cell phones, laptops or flat screens would not be possible. H.C. Starck is particularly a specialist for high capacitance tantalum powders which are above all indispensable for the latest generation of modern electronic appliances. In combination with the conductive polymer CLEVIOS, H.C. Starck offers the worldwide capacitor industry a unique product portfolio.

Contact:

H.C. Starck GmbH
Manfred Bütefisch
General Manager Corporate Communications
38642 Goslar
Phone:  +49 5321 751 31 53
Fax:       +49 5321 751 41 53
E-Mail:  manfred.buetefisch@hcstarck.com

“Based on our longstanding and fruitful relationship with Toda Kogyo, we believe that Toda Kogyo is an ideal partner for the future development of the Battery Products business,” explained H.C. Starck Managing Director Dr. Heinz Heumüller. “We are convinced that with the support of Toda Kogyo, the business will continue its growth path and work to further improve performance.” 

Mr. Toshiyuki Toda, President of Toda Kogyo said, “With the acquisition, Toda Kogyo Corp. can avail itself of a global supply network combined with its existing manufacturing facilities in Japan. The battery materials business unit of Japan has two factories, one in Onoda, Yamaguchi, and the other in Kita-Kyusyu, Fukuoka. The latter is producing 600 tons a year, that will be inceased more near future, of nickel oxides cathode materials for Li-ion batteries, commonly used in PCs and cellular phones and expected to be one of the promising batteries for HEVs. The acquisition also enables Toda Kogyo Corp to add cathode materials for the Ni-HM batteries to its traditional product line. The demand for Ni-MH batteries, currently used for HEVs, is also growing.“

The business relationship between Toda Kogyo and H.C. Starck goes back to 2003 when both companies started a joint development of a new type of battery cathode materials. Since then, H.C Starck has supplied Toda Kogyo with precursor materials from its Sarnia plant in Canada, which Toda Kogyo uses in the production of cathode material for the next generation of lithium-ion batteries. Based on strong R&D capabilities and material science know-how, the Battery Products division has developed a leading technology position in battery production. The production site in Sarnia is the only industrial scale production facility for spherical Nickelhydroxide (SNH) in the western world.

H.C. Starck GmbH is the world’s leading producer of specialty metals, advanced ceramics and electronic chemicals for a wide range of applications in high-growth markets such as electronics, chemicals, aerospace & defense, automotive, energy and medical equipment. The Company’s specialty metals portfolio comprises molybdenum, tungsten, tantalum, niobium and rhenium, which it offers along the value chain from chemicals/powders to sophisticated fabricated products. H.C. Starck is known as one of the technology and innovation leaders in its industry. In 2006, the Group reported sales of € 985 m and employed approximately 3,400 employees at 15 production sites across Europe, North America and Asia. 

Toda Kogyo was founded in 1823, and is the world’s leading manufacturer of iron oxide particles which are essential raw materials, or integral components of industrial and consumer products. The Company’s design concept optimally harnesses the chemical and physical properties of iron oxide particles for various applications and the experience gained from the manifold combinations of Toda Kogyo’s particle design elements is not only applied to iron oxides, but also to oxide materials for rechargeable batteries and numerous application areas of nanotechnology. Focusing on the battery materials on lithium nickel oxides, their research and development were started in 1992 and they have been marketed since 1999 as applying for hi-energy and hi-power Li-ion batteries. Toda Kogyo is continuing to focus its efforts on solutions that reduce the burden on the environment, enhance energy efficiency, and support a richer, more convenient and fulfilling life.

Contact H.C. Starck GmbH:
Manfred Buetefisch
General Manager Corporate Communications
38642 Goslar/Germany
Phone:   +49 5321 7513153
Fax:       +49 5321 7514153
E-Mail:    manfred.buetefisch@hcstarck.com

Contact Toda Kogyo:
Energy Solution Company
Todakogyo Corp.
Hiroshima/Japan
Phone:  +81-3-3433-2411
Fax:       +81-3-5404-7244
E-Mail:    Kenji_Ogisu@todakogyo.co.jp

Dr. Carl Voigt has been appointed chairman of the supervisory and advisory boards. Dr. Voigt, who has many years of experience as member of the Board Management of Degussa AG, was pleased to accept the appointment after recognizing H.C. Starck's potential based on its unique materials and technologies platform.

“We are very pleased that we have been able to find such top level support for the further development of our company in such a short time,” said Dr. Heinz Heumüller at an information event organized in early February 2007. Dr. Carl Voigt, new supervisory board chairman of the H.C. Starck Group, added: “H.C. Starck is a company with an  enormous innovation potential and the strength to develop into a high-performer very quickly, capable of operating successfully and completely independently in global markets. It is a great pleasure for me to be able to contribute to the success of this challenging task.”

About H.C. Starck:
The International H.C. Starck Group has more than 3400 employees in 15 locations world-wide and achieved sales of Euro 920 million in 2005. H.C. Starck produces a unique range of powders of refractory metals such as tungsten, molybdenum, tantalum, niobium, rhenium and their compounds (borides, carbides, nitrides, oxides, silicides, sulphides). A further core production area includes ceramic powders, sintered metal powders, thermal spray powders, non-ferrous metals; nickel and cobalt and their salts as well as boron and boron compounds.

Contact:
H.C. Starck GmbH & Co. KG
Manfred Bütefisch
General Manager
Marketing Services and Public Relation
Phone: +49 5321 751 3153
Fax: +49 5321 751 4153
E-mail: manfred.buetefisch@hcstarck.com

Leverkusen – The Bayer Group plans to sell its subsidiary H.C. Starck to a consortium formed by financial investors Advent International and The Carlyle Group for approximately EUR 1.2 billion. As planned, the proceeds will help to finance the acquisition of Schering. Commenting on the transaction, Bayer Management Board Chairman Werner Wenning said: “We are convinced that H.C. Starck will have very good development prospects under the new owners.”

The transaction value comprises a cash component of more than EUR 700 million and the assumption of financial liabilities and personnel-related commitments totaling some EUR 450 million. The divestment thus reduces Bayer’s net debt by about EUR 1 billion, with an accounting gain of about EUR 150 million. Closing is planned to take place at the beginning of 2007, subject to the approval of the antitrust authorities.

Advent and Carlyle intend to continue developing the H.C. Starck business, with the aim of positioning the company for an initial public offering in three to five years. Gregor Böhm, Carlyle Managing Director in Munich, said: “We’re delighted to be investing in such a first-class company. H.C. Starck is an extremely innovative and highly specialized enterprise with excellent positions in its various markets. We look forward to working with the entire team to help grow H.C. Starck for the benefit of the company and its employees.”

Ralf Huep, General Manager at Advent International in Frankfurt, commented: “H.C. Starck is a highly attractive investment. It not only holds leadership positions in its markets, but also has enormous growth potential, both in existing and prospective new business areas. We will work closely with management and Carlyle to leverage these strengths and continue the successful development of H.C. Starck’s business.”

Bayer conducted the sale of H.C. Starck as an auction process. Several of the many prospective acquirers were invited to examine the company in detail and submit a binding offer. Both strategic and financial investors participated in the bidding through the final stage.

H.C. Starck, headquartered in Goslar in northern Germany, manufactures metal and ceramic powders, specialty chemicals, and parts made from advanced ceramics and refractory metals. The company employs some 3,400 people and last year posted sales of EUR 920 million. H.C. Starck has 15 sites in Europe, Asia and North America.

“Advent and Carlyle are ideal partners for our future expansion,” explained H.C. Starck Managing Director Dr. Heinz Heumüller. “With their support we will continue to pursue our corporate strategy and business objectives and work to further improve performance.”

Bayer announced in March 2006 that it would divest its subsidiaries H.C. Starck and Wolff Walsrode and use the proceeds to partly finance the Schering acquisition. The two companies have so far been part of the Bayer MaterialScience subgroup, which will focus in future on its core businesses.

About Advent International:
Advent International is one of the world’s leading private equity firms, with over EUR 8 billion (US$ 10 billion) in cumulative capital raised and offices in 14 countries across Western and Central Europe, North America, Latin America and Asia. Since its inception in 1984, Advent has invested in more than 500 companies in 35 countries and has taken over 130 of these businesses public on major stock exchanges worldwide. Advent has a proven track record of success in the German market, having concluded eight transactions in the past two years. In 2004, for example, Advent and Carlyle jointly acquired HT Troplast, the world’s leading manufacturer of vinyl profiles for windows and doors.

About The Carlyle Group:
The Carlyle Group is a global private equity firm with more than US$ 46 billion (EUR 36 billion) under management. Carlyle invests in buyouts, venture and growth capital, real estate and leveraged finance in North America, Europe and Asia. Focus industries are aerospace, automotive & transportation, consumer & retail, chemicals, energy & power, healthcare, industrial, technology & business services, and telecom & media. Since 1987, Carlyle has invested total equity capital of US$24 billion (EUR 19 billion) in 576 transactions.

Leverkusen,  November 23, 2006

Contact:
Bayer AG:
Günter Forneck, phone +49 214 30 50446
Email: guenter.forneck.gf@bayer-ag.de

Christian Hartel, phone +49 214 30 47686
Email: christian.hartel.ch@bayer-ag.de

Advent International:
Claudia Werth, phone +49 69 92037-114
Email: c.werth@abfd.de

The Carlyle Group:
Katherine Elmore-Jones, Tel.: +44 207 894 1560
Email: Katherine.ElmoreJones@carlyle.com

 
Forward-Looking Statements
This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

The Austrian Krall Group, which allegedly owns a pyrochlore mine in the DRC, apparently cannot live with this decision. Krall Metal Congo S.c.a.r.l. (hereinafter referred to as Krall) is indulging in allegations which threaten to damage the H.C. Starck Group’s good name. So-called “proof” of alleged misconduct by our company (and other companies) is offered on the internet site niob.cc. In addition, it has – unsuccessfully – tried three times to date to have these or similar allegations also backed up by the courts or by state authorities.

We for our part have decided not to take legal action against Krall (because we do not have to concern ourselves with such absurd accusations); however, so that an opinion can be formed, we are indicating in brief the results of the previous proceedings that Krall has brought against us.

Goslar, 21. July 2006

1. Attempt to institute OECD proceedings through the German Federal Ministry of Economics and Labor
In November 2004, Krall attempted to prove that H.C. Starck among others had illegally purchased raw materials from a pyrochlore mine which allegedly belongs to Krall. However, H.C. Starck cannot in fact process pyrochlore in any manner in its plants. The further examination by the relevant state authorities at the Federal Ministry of Economics and Labor in Berlin came to the view that the questions and factual position “do not justify a further examination”.

2. Lawsuit before Brunswick Regional Court
Despite this result, Krall Metal Congo S.c.a.r.l. brought an action against us on behalf of Krall Metal Congo scarl in March 2005 concerning the same matter before Brunswick Regional Court. The lawsuit was dismissed at the first hearing as being inadmissible and unfounded. Krall could not only not present any evidence for its allegations – in the view of the court, not even the ownership of the said mine was “conclusively presented”.
Interestingly, the statement of the complaint is published on the website niob.cc, not, however, the court’s negative ruling for Krall.

3. Renewed attempt to institute OECD proceedings through the Austrian Federal Ministry of Economics and Labor
Krall thereupon attempted once again in November 2005 – this time directly through the Austrian OECD contact office – to institute proceedings in the same matter against H.C. Starck. It was apparently able to convince the Austrian authorities that the prerequisites for proceedings “viewed overall, at least seem possible”. The Austrian contact office finally closed the file in May 2006 because Krall could not provide any evidence for its allegations.

H.C. Starck is a key supplier of ‘hole transport’ materials used in polymer organic light emitting diode displays, a technology in which CDT is a leading developer. Under the arrangement with Starck, CDT will distribute materials solutions which it will formulate for specific ink jet printing applications. Ink jet printing has become an important potential method for manufacturing P-OLED displays, and CDT and its partners have built substantial expertise in its application. Ink jet printing is capable of offering huge scalability, low TAC times and high material utilization.

CDT has been given non-exclusive rights to distribute the formulated products, with the focus on development quantities and smaller users; H.C. Starck will have rights to utilise CDT’s formulation expertise and expects to supply larger customers with commercial display manufacturing operations.

For CDT, Dr David Fyfe, CEO commented: “This move is a further strengthening of the supply chain for P-OLED materials. Starck has recognised that CDT has leading know-how in formulating inks for P-OLED display manufacture using ink jet printing.”

For H.C. Starck, Dr Klaus Lerch, Global Manager Marketing & Sales Functional Materials commented: “The granting of a licence to CDT broadens the marketing scope of H.C. Starck – meeting the challenges of the rapidly developing P-OLED technology, which will be primarily based on ink jet systems. We appreciate that CDT regards our CLEVIOS products as key materials in this application.” 

About CDT
Cambridge Display Technology is a pioneer in the development of light emitting polymers (P-OLEDs) and their use in a wide range of electronic display products used for information management, communications and entertainment. P-OLEDs are part of the family of organic light emitting diodes, or OLEDs, which are thin, lightweight and power efficient devices that emit light when an electric current flows. P-OLEDs offer an enhanced visual experience and superior performance characteristics compared with other flat panel display technologies such as liquid crystal displays, and have the key advantage that they can be applied in solution using printing processes. Founded in 1992, the company is headquartered in Cambridge, UK and listed on the US Nasdaq stock exchange under the symbol ‘OLED’.

More information on CDT can be found at:  www.cdtltd.co.uk

About H.C. Starck
H.C. Starck is an international group of companies with more than 3,400 employees at 14 production sites in Europe, North America and the Far East.  The company is a leading supplier of specialty chemicals and products formulated for the electronics industry.  The company also produces a unique assortment of refractory metal powders, including tungsten, molybdenum and tantalum as well as their compounds. H.C. Starck experts provide answers and solutions to challenges and problems in areas ranging from construction to alloying, especially for customized components. As a further service H.C. Starck offers the extrusion of molybdenum and TZM.

H.C. Starck became a member of the Bayer Group in 1986.

Editorial Contacts: CDT
Terry Nicklin
Marketing Director
+44 1954 713600
tnicklin@cdtltd.co.uk

H.C. Starck
Manfred Bütefisch
General Manager, Marketing Services and Public Relations
+49 5321 751 3153
manfred.baehnisch@hcstarck.com

H.C. Starck has been a valuable and appreciated addition to the Bayer MaterialScience portfolio. “For us, the separation brings regrets, but, at the same time, we are filled with great confidence for the future of H.C. Starck”, BMS- Chairman of the Board, Dr. Hagen Noerenberg, comments this step. ”Within the last few years, we worked together intensely on a wide range of high level innovations. Regardless of the current changes, this overall positive and trustful cooperation remains a solid basis for the further development of shared projects in the future.”

“H.C. Starck has a strong tradition, is now leaner and more competitive than ever and has outstanding potential for growth”, emphasizes H.C. Starck Managing Director, Dr. Heinz Heumueller. In 2005 sales revenue grew by 31 percent to 920 million Euros. “We are fully committed to uphold our tradition as a solid employer for our staff, a valued business partner for our clients, and a good neighbor at our sites. Both company management and employees will ensure that the business relationships will be continued to the fullest satisfaction of all partners.

At this point it is too early to comment on the further development and timing of the sale. In the interest of all involved parties, the next steps will be initiated as soon as possible.

For further information please see www.bayer.com