04 February 2009 14:19 [Source: ICIS news]
LONDON (ICIS news)--BASF is considering selling its leather and textile chemicals business after restructuring and efficiency programmes failed, the company said on Wednesday.
“Our employees have worked hard to improve the business in recent years. In view of the difficult market situation, the results are not sufficient to ensure long-term success with our own means,” said Hans Reiners, head of the performance chemicals division, of which leather and textiles is a part.
The business unit has therefore introduced an additional programme to increase efficiency, which is expected to reduce costs by €25m ($32m) by 2011, BASF said.
In addition to implementing this cost-reduction program, BASF said it was reviewing future strategic options, including the formation of a joint venture or the complete sale of the business.
“The market requires this step not just because of the fragmented supplier structure and the low market growth,” said Reiners.
BASF operates production plants for leather and textile chemicals in ?xml:namespace>
The business, which employs approximately 1,300 people, posted global sales of about €400m in 2007.
Leather and textile chemicals include products and concepts for weaving, pretreatment, optical brightening, analogue and digital printing, coating and finishing, as well as dyeing auxiliaries in addition to chemicals for all wet-end and finishing processes in the leather and fur industries.
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