BASF acquires automotive refinish coatings assets in China

20 April 2016 08:06 Source:ICIS News

SINGAPORE (ICIS)--BASF is acquiring the automotive refinish coatings assets of China’s Guangdong Yinfan Chemistry for an undisclosed fee, the German chemicals major said on Wednesday.

The deal is expected to be completed in the second half of this year, the company said in a statement.

“With this acquisition, we will broaden our portfolio and gain access to a strong distribution network, which will strengthen our position in the fast-growing Chinese automotive aftermarket,” said Markus Kamieth, the president of BASF’s coatings division.

The company did not disclose capacity details of the assets involved in the deal.

The automotive industry is major global consumer of petrochemicals which contribute more than a third of the raw material costs of an average vehicle. ICIS tracks the movement of petrochemical raw material costs in auto production both globally and regionally with the weighted ICIS Basket of Automotive Petrochemicals (IBAP).

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By Nurluqman Suratman