BASF to halt DEHP production in Europe, shut 2-EH plant at Ludwigshafen

15 June 2005 16:53  [Source: ICIS news]

LONDON (CNI)--BASF announced on Wednesday it is to stop making diethylhexylphthalate (DEHP) in Europe from the third quarter of this year.

 

DEHP - used as a plasticiser - is produced at the firm's Feluy site in Belgium.

 

The German chemicals major said it was forced into the decision by a continuing sharp decline in demand for the product. It says the European DEHP market has declined by 50% since 2000.

 

BASF is also to close and dismantle its 200,000 tonne/year 2-ethylhexanol (2-EH) unit at Ludwigshafen, Germany, in October. 2-EH is the alcohol associated with DEHP.

  

At the same time BASF announced plans to close several other production units at Feluy, including phthalic anhydride (PA), plasticisers, fumaric acid and butanediol (BDO) derivatives. The maleic anhydride (MA) unit will, however, continue to operate.

 

BASF said the Feluy closures are required because of stagnation in the European market, excess global capacities and the unfavourable cost structure of the site, which it acquired from Italy’s Sisas in mid-2001.

 

The cuts will see 100 of the 300-strong workforce being offered jobs at BASF’s Antwerp site over 100 km (62 miles) away. An unspecified number will remain on the Feluy site to run the maleic anhydride unit. Others will be made redundant. Discussions are just beginning with the site works council.

 

A spokesman for the Feluy site said the workforce had made great efforts to improve the operations there since the acquisition, but market changes had made the cost position untenable.

 

The company stressed that the end of European DEHP production will not affect its plasticiser portfolio in North America and Asia, where it will continue to offer 2-EH and DEHP. In Europe, it notes, customers are increasingly moving to C9 and C10 phthalates as plasticisers, and it will continue to meet their demands with DINP, DPHP and speciality toy and food grade material, DINCH, produced in Ludwigshafen.

 

BASF will continue to make phthalic anhydride at Ludwigshafen. The glycerol plant at Feluy, operated by Neochim, will also continue to operate, a BASF spokesperson confirmed.

 

By: John Baker
+44 20 8652 3214

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