Germany’s BASF to exit India, Malaysia EPS ops by end-2012

18 September 2012 09:06  [Source: ICIS news]

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SINGAPORE (ICIS)--BASF will permanently shut down expandable polystyrene (EPS) operations in India and Malaysia by the end of the year, while in South America, the company is preparing carve-outs and other strategic options for its EPS business, the German chemicals firm said on Tuesday.

The plants in Pasir Gudang Malaysia and Thane, India, have a combined EPS capacity of more than 100,000 tonnes/year, it said in a statement.

“In light of high overcapacities and low margins in some regions, BASF is focusing its global styropor (EPS) activities on strategic markets and core products with better profitability,” the company said.

A total of 115 employees will be affected – 60 in Malaysia and 55 in India, BASF said.

“BASF will work with employees affected by the shutdowns to find the right transition plan,” it said.

The plants’ closure “has become inevitable”, the company said citing “uneconomic operations” as “high EPS overcapacities in Asia Pacific that have developed in recent years” led to “extremely low margins”, said Giorgio Greening, head of the global business unit for foams at BASF.

By: Pearl Bantillo
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