18 August 2008 13:12 [Source: ICIS news]
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LONDON (ICIS news)--BASF will reorganise its global styrenics business ahead of its planned divestment and expand the scope of the sale to include its styrenic copolymer business, the German chemical company said on Monday.
The divestment will now include styrenic copolymer production plants in Ludwigshafen and Schwarzheide, Germany, as well as the styrene copolymer global marketing, sales and logistics activities, BASF said in a statement.
"We are reorganising our styrenics business to improve its future success and give us new options outside of BASF," said board member responsible for plastics Martin Brudermuller.
The new subsidiaries, to be established in January 2009, will operate the global styrenics business independently.
Since BASF announced the sale of selected parts of its styrenics division last July a number of buyers have been suggested, including LyondellBasell, SABIC and INEOS Nova.
Citigroup had estimated the sale's potential value at €1.6bn on BASF's initial announcement but in February the German chemicals giant assessed the value of the division at $904m (€615m).
The new subsidiaries would combine the commodities styrene monomers (SM), polystyrene (PS), styrene butadiene copolymer (SBS) and acrylonitrile butadiene styrene (ABS) as well as the additional styrene copolymers business consisting of seven separate brands.
The styrenic commodities and copolymers businesses had sales of around €4bn in 2007, BASF said.
($1 = €0.68)
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