BASF taking steps to sharpen focus & integrate Ciba business
05 Feb '09
5 min read
In the Care Chemicals division, BASF is now combining all businesses that contribute to cleaning, personal care and hygiene in addition to human and animal nutrition as well as pharma. The assignment of the superabsorbents business to Care Chemicals will strengthen the division's portfolio with additional consumer-related products for personal care.
In the future, the Performance Chemicals division will primarily offer innovative and specific solutions for a broad range of industries including plastics processing, automotive, refineries, oil fields and mining, as well as leather and textiles. Ciba's plastics additives business, among others, will be assigned to this division after the Discovery Phase.
BASF reviews strategic options for leather and textile chemicals:
The leather and textile chemicals business also forms part of the activities of the current Performance Chemicals division. For several years, this business has been characterized by low market growth and high competitive pressure. In order to improve competitiveness, BASF has implemented a series of restructuring and efficiency programs in the past years. However, these measures have not been sufficient to ensure the long-term profitability of the business.
Hans W. Reiners, head of the Performance Chemicals division, said: “Our employees have worked hard to improve the business in recent years. In view of the difficult market situation, the results are not sufficient to ensure long-term success with our own means.” The business unit has therefore introduced an additional program to increase efficiency, which is expected to reduce costs by €25 million by 2011.
In addition to implementing this cost-reduction program, BASF is reviewing future strategic options. In particular, these include the formation of a joint venture or the complete sale of the business. “The market requires this step not just because of the fragmented supplier structure and the low market growth,” said Reiners.
BASF operates production plants for leather and textile chemicals in Germany, Spain and Turkey, as well as in Brazil, India and China. The business, which employs approximately 1,300 people, posted global sales of about €400 million in 2007. Leather and textile chemicals include products and concepts for weaving, pretreatment, optical brightening, analog and digital printing, coating and finishing, as well as dyeing auxiliaries in addition to chemicals for all wet-end and finishing processes in the leather and fur industries.
About BASF:
BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from oil and gas to chemicals, plastics, performance products, agricultural products and fine chemicals. As a reliable partner BASF helps its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF has more than 95,000 employees and posted sales of almost €58 billion in 2007. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).
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