AlzChem AG Dr.-Albert-Frank-Str. 32 83308 Trostberg Nummer 12 vom 13.09.2016

www.alzchem.com

1,000,000 tons of Dicyandiamide

AlzChem celebrates the anniversary of Sabine Sieber a ‚bread and butter’ product, which is still thriving. Communications

T +49 8621 86-2651 In 2016 AlzChem celebrates a very special moment: F +49 8621 86-2020 [email protected] reaching the production milestone of 1 million tons of dicyandiamide (DCD). This quantity, second to none worldwide, was produced in a plant which was commissioned back in 1950.

DCD is a centerpiece of the so called NCN-chain, the backbone of the AlzChem product range. Calcium carbide, at the start of the chain, has been produced for more than 100 years by reacting the raw materials of coal and limestone with electric power at more than 2.000 °C.

Calcium cyanamide, as the next chain member is also generated at temperatures exceeding 1.200 °C utilising nitrogen from the air. Upon treatment with acid, hydrogen cyanamide is liberated, which directly forms DCD if not inhibited.

Today, AlzChem operates three of the few remaining carbide furna ces outside of China at its sites in Hart (Germany) and Sundsvall (Sweden). Downstream production of all chain products is uniquely positioned in close proximity, which allows for a ‘Verbund’ structure and optimisation of yields throughout the chain.

The production plant for DCD at the Schalchen site was commissioned in 1950 and has been in operation without interruption ever since. It is the only remaining DCD plant outside of China, and with a nameplate capacity of 20.000 tons, certainly among the biggest. The unit, optimised towards efficiency and environmental protection, can produce high quality material to differing specifications, in line with the requirements of customer markets. AlzChem is certified according to ISO 9001 standards, however the DCD production also caters to the more demanding requirements of pharmaceutical customers.

DCD is a white, non-hazardous powder in appearance; but nevertheless it engages quickly in chemical reactions; consequently, its derivatives are diverse and have a wide range of applications. The flame retardant properties are useful in printed circuit boards and specialty papers, and the downstream derivative guanidine nitrate acts as a gas generator in commercial car airbags.

AlzChem AG MANAGEMENT BOARD CHEMICAL PARK TORSTBERG Ulli Seibel (Chairman) Andreas Niedermaier District Court CHAIRMAN OF SUPERVISORY BOARD Commercial Register 21378 Markus Zöllner VAT number DE814722959

Seite 2 The main application of DCD and its downstream products, however, is in the life sciences sector. In only one further conversion step, metformin is formed, the first line treatment for patients suffering from type-2-diabetes. The growing success of biopharmaceutical drugs drives the development of the DCD derivate guanidine hydrochloride. With its chaotropic properties it can influence the folding of proteins, which is utilised in the isolation of biologically produced active ingredients.

Significant volumes of DCD are used to stabilize urea containing fertilizers. It blocks nitrification enzymes, thereby reducing the leaching of nitrate into the soil and, as a consequence, the number of required nitrogen applications. Additional agrochemical applications are as a building block for crop protection chemicals.

AlzChem has a large captive consumption of DCD. As a micronised powder it is sold under the tradename DYHARD® into hot-curing epoxy systems. The resulting composite materials are used in sports applications (for instance bicycles, tennis rackets and golf clubs), or as high performance sealant in automotive applications. From reaction of DCD with formaldehyde, polycondensates are created which are used in the paper, textile and leather industries as well as for waste water treatment, and sold under the tradenames MELFLOCK® and ALZOFIX®.

The DCD precursor, cyanamide, is widely used for the production of creatine und guanidino acetic acid, which are available under the trade names Creapure® and CreAMINO® respectively. Creatine is a key intermediate in the energy production and storage in the human body; guanidino acetic acid is used as a feed additive mainly for chickens, as it improves feed conversion rate.

Since the global consumption of meat is on the rise, the demand for CreAMINO® is growing as well and is yet another reason for AlzChem to take on the journey for the next million tons of DCD!

AlzChem Group The AlzChem Group comprises AlzChem AG and its subsidiary companies NIGU Chemie GmbH in Waldkraiburg, Nordic Carbide in Sundsvall, Sweden, AlzChem International GmbH, AlzChem Stahltechnik GmbH, AlzChem Nutrition GmbH and the sales companies AlzChem LLC in Atlanta, USA, and AlzChem Shanghai Co. Ltd. in Shanghai, China. The registered offices of AlzChem are located in Trostberg in Upper , in the Traunstein district. AlzChem AG is an international chemical company with more than 1,400 employees and an annual turnover of more than 320 million euros. One of the main areas AlzChem focuses on is NCN chemistry, meaning products that have a typical nitrogen-carbon-nitrogen compound. These products are used in nutrition, agriculture, fine chemistry, metallurgy and automotive engineering.

AlzChem AG VORSTAND CHEMIEPARK TROSTBERG Ulli Seibel (Vorsitzender) Andreas Niedermaier Amtsgericht Traunstein VORS. D. AUFSICHTSRATES HRB 21378 Markus Zöllner