Paper Chemicals Division of BASF to be Headquartered in Basel

Effective July 1, 2009, BASF's Paper Chemicals operating division, which was established in April, will be headquartered in Basel, Switzerland, together with two associated business units: Coatings & Starch Europe and Wet End Chemicals. In addition, the European business unit for plastic additives and the global units for technology management and the restructuring of the pigment business will be located at the former headquarters of Ciba Holding AG in Basel. BASF is also establishing a new Business Center Switzerland in Basel, which will provide a platform for sales as well as finance and personnel functions in Switzerland. Basel will also be home to a BASF research center focusing on plastics, coatings and paper.

Following the closing of the acquisition on April 9, 2009, teams of experts from BASF and Ciba started analyzing the best possible combination of the businesses. The decision in favor of Basel underlines the strong position the former Ciba headquarters will have within the BASF Group. BASF said that Basel would be the headquarters of one of its global operating divisions when it announced its plans to acquire Ciba in September 2008. Detailed integration plans and the necessary restructuring measures will be published in July.

Dr. Fred Baumgartner was appointed head of the Paper Chemicals division effective April 2009. This division combines products and solutions to improve the production and properties of paper.

As planned, BASF intends to merge Ciba Holding AG with BASF Specialty Chemicals Holding GmbH, Basel. The remaining minority shareholders in Ciba will then receive a cash compensation of CHF 50 per share.

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