BASF sees DM30m cost savings from Feluy MA/BDO purchase

11 July 2001 17:12  [Source: ICIS news]

LONDON (CNI)--BASF said Wednesday it expects to generate cost savings of some DM30m ($13m/Euro15m) over the next 12 months as a result of its purchase of the Feluy, Belgium assets of Sisas subsidiaries Eurodiol and Pantochim.

The European Commission (EC) approved the acquisition earlier today, saying that even though it will give BASF a large market share in butanediol (BDO) derivatives, it will have a less harmful impact on the market than if the Feluy plants were closed.

German chemicals giant BASF expects to complete the DM295m ($127m/Euro151m) acquisition on Friday (13 July).

The group said possible cost savings will arise in the areas of administration, plant maintenance, process development and knowledge transfer. It plans to cut employee numbers at the Feluy sites from current levels of about 370 to 312.

A BASF spokesman acknowledged that the group was evaluating synergies between the Feluy research and development (R&D) centre and its existing R&D activities in Ludwigshafen, Germany but declined to comment on speculation that the Feluy R&D centre will close.

The Feluy sites have the capacity to produce 92 000 tonne of phthalic anhydride (PA), 90 000 tonne of maleic anhydride (MA), 70 000 tonne of BDO/derivatives and 95 000 tonne of plasticisers.

By: Anna Jagger
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly