Jul 18 2007
BASF Aktiengesellschaft (BASF), Ludwigshafen, announced today that it is evaluating strategic options for selected parts of its styrenics activities. In parallel to the evaluation process, BASF has received an initial offer for selected parts of its styrenics activities, and plans to start discussions with the interested party.
BASF’s activities under consideration include its styrene monomer (SM), polystyrene (PS), styrene butadiene copolymer (SBC) and acrylonitrile butadiene styrene (ABS) businesses with plants in Antwerp, Belgium; Altamira, Mexico; São José dos Campos, Brazil; Ulsan, South Korea; and Dahej, India. These activities posted sales of about €3.2 billion in 2006 and have approximately 1,000 employees.
“Earnings in our styrenics activities have improved considerably thanks to efficiency optimization measures and fine-tuning of business models. However, further repositioning steps are necessary to meet appropriate levels of profitability,” said Dr. John Feldmann, Member of the Board of Executive Directors, responsible for the Plastics as well as Oil & Gas segments. “We will now begin talks to examine this initial offer as well as consider other options to see if these activities can realize additional potential in their highly competitive markets as part of the portfolio of a company experienced in the global commodities sector.”
Hans W. Reiners, President of BASF’s Styrenics division, said that BASF’s remaining styrenics activities will in the future focus on foams and specialties for the construction, automobile, packaging, sport and leisure industries. “This ties in with the strategy of BASF’s Plastics segment to supply its customers with highly innovative, tailor-made solutions.”
BASF will ensure that customers will not face any supply disruptions during the evaluation process. Employees will be informed about developments on a regular basis.