'No net loss of BASF jobs' in US/Canada PS deal with Ineos

26 April 2005 19:41  [Source: ICIS news]

LONDON (CNI)--There wil be no net loss of BASF jobs as a consequence of the sale of BASF's US and Canadian polystyrene (PS) business to UK-headquartered Ineos, it was disclosed on Tuesday.

A spokesman for German chemicals and energy group BASF told CNI that offers have been made by Ineos to all employees at the Joliet, Illinois, polystyrene plant and to all other BASF personnel employed in the styrenics business being sold. The Joliet facility, which has a capacity of 385,000 tonne/year and produces both general purpose and high impact polystyrene, is included in the sale. It is the second largest polystyrene plant in the US.

BASF said earlier today that about 140 of its employees would be transferred under the deal, which it hopes to complete within the next few weeks, subject to regulatory approval.

Fred Baumgartner, global president of styrenics for BASF, said the Joliet site was no longer consistent with BASF's site integration strategy.

"While we are committed to our remaining styrenics portfolio in North America, the sale of the this business is another major step in our process of realigning the global styrenics business to ensure long-term profitable growth."

BASF, which is retaining a major styrenics production facility in Mexico, said it also remains committed to the polystyrene business on a global scale and will continue to make and sell polystyrene in other regions.

BASF claims number two position in global polystyrene production and was the fourth largest producer in the US and Canada.

By: Neil Sinclair
+44 20 8652 3214

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