BASF puts selected styrenics units up for sale

17 July 2007 10:45  [Source: ICIS news]

SINGAPORE (ICIS news)--German chemicals major BASF said on Tuesday selected parts of its styrenics business are up for sale and that it has already received an initial offer from an unnamed party.

 

The areas under consideration to be sold include its styrene monomer (SM), polystyrene (PS), styrene butadiene copolymer (SBC) and acrylonitrile butadiene styrene (ABS) units, BASF said in a statement.

 

The businesses, with plants located in Antwerp, Belgium; Altamira, Mexico; Sao Jose dos Campos, Brazil; Ulsan, South Korea; and Dahej, India, posted sales of about €3.2bn ($4.4bn) in 2006 and accounted for roughly 1,000 employees, it added.

 

“Earnings in our styrenics activities have improved considerably thanks to efficiency optimisation measures and fine-tuning of business models. However, further repositioning steps are necessary to meet appropriate levels of profitability,” said John Feldman, the BASF board member responsible for plastics as well as oil and gas segments.

 

The company’s remaining styrenics activities would in the future focus on foams and specialties for the construction, automobile, packaging, sport and leisure sectors, said Hans Reiners, president of the firm’s styrenics business.

 

In April, BASF posted a 13.5% year-on-year rise in first-quarter earnings before interest and tax (EBIT) before exceptional items to €2.1bn, while first-quarter sales rose 17% to €14.6bn.

 

First-quarter earnings in the styrenics unit also improved due to the expansion of the business and improved efficiency, the company said.  

By: Jeanne Lim
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