BASF confirms plan to separate styrenics business by 1 Jan

07 October 2010 08:20  [Source: ICIS news]

BASFSINGAPORE (ICIS)--BASF will complete the spin-off of its styrenics business under the name Styrolution by 1 January next year, the company confirmed in a statement on Thursday.

The introduction of Styrolution would see BASF transferring its styrenics businesses at production sites in Germany, Belgium, South Korea, India and Mexico to the new firm, BASF said.

The spin-off would include its businesses in styrene monomers (SM), polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene butadiene copolymers (SBC) and other styrene-based copolymers, it added.

Separate companies would also be established in other countries, for instance in the US, Italy or China, where BASF has other styrenic activities, such as marketing and sales, the company said.

BASF’s styrenics business posted sales of €2.5bn ($3.47bn) in 2009, it noted.

“Through this action, we will be able to sustain and improve our global business in an environment characterised by volatile demand, high pressure on margins and intensive competition,” said Martin Brudermuller, member of the board of executive directors of BASF and responsible for BASF’s plastics business.

BASF would be retaining its global business in PS foams, while the SM/PS capacities in Ludwigshafen used to produce foams would also remain with BASF, the company said.

Styrenics are mainly used in household, office, electrical and communications engineering and packaging applications, according to BASF.

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By: Nurluqman Suratman

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